Re:US Senate passes sweeping tax overhaul bill
by marcell on Saturday December 02, 2017 @03:50AM
(#15831000)
Those numbers you posted are probably inaccurate. The true numbers really depend on whether you itemize your deductions, and how much. This particular tax bill substantially raises taxes for people who itemize, in particular states with high local taxes like California.
I don’t know about Fox News but The NY Times had a good analysis of this: https://www.nytimes.com/interactive/2017/11/28/upshot/what-t...
Obviously many families and individuals will see their taxes go up.
Re:US Senate passes sweeping tax overhaul bill
by WillPostForFood on Saturday December 02, 2017 @04:07AM
(#15831061)
The numbers are probably a little better than he posted, because of several last minute changes:
including a provision that will allow taxpayers to deduct up to $10,000 in state and local property taxes paid and allowing lower-income individuals to claim the medical expense deduction.
Re:US Senate passes sweeping tax overhaul bill
by sytelus on Saturday December 02, 2017 @04:10AM
(#15831069)
I assumed standard family (married filed jointly, 2 kids, standard deduction).
Re:US Senate passes sweeping tax overhaul bill
by jessaustin on Saturday December 02, 2017 @04:14AM
(#15831090)
Yeah somehow I don't see itemized deductions as a "middle class" thing. Even less so with the standard deduction increase.
Re:US Senate passes sweeping tax overhaul bill
by marcell on Wednesday December 06, 2017 @01:38AM
(#15859068)
About 1/3 of households itemize deductions, including myself. I live in a two bedroom condo with two kids, I consider myself "middle class." Itemizing deductions is much more common in high tax ("Blue") states due to the state/local tax deduction. This tax "cut" is targeted to raise taxes on blue states by eliminating that.
The standard deduction increase is a bit of a trick, since they removed the personal deduction. So it's not a "doubling" of the standard deduction, but an increase of a few thousand. It is not enough to cover the removal of other deductions for many middle/upper-middle class families.
Re:US Senate passes sweeping tax overhaul bill
by tymmc on Saturday December 02, 2017 @03:48AM
(#15830992)
The reality is that no-one really understand the consequences of the bill. It's a gigantic shit-pile of hastily written hacks crammed together at the last minute and rushed through without any opportunity for anyone to actually evaluate it.
There is one calculator out here (which might not be accurate because of changes): https://www.calcxml.com/calculators/trump-tax-reform-calcula...
I used it to arrive at following numbers. If this tax calculator is right then there is indeed ~$10K tax cut for everyone in middle class and above:
$750K->$236,950 to $212,060
350K->$81,595 to $72,060
250K->$47,701 to $38,900
150K->$17,778 to $9900
50K->$548 to 0
On the other hand this NYTimes analysis says that lower and middle class cuts are tiny but people with $1M or more just get huge cut: https://www.nytimes.com/interactive/2017/11/17/us/politics/s...
Also, according to above analysis poor people will be taxed more than before after 10 years!
So overall at this point I think computing impact remains very hazy given all kind of conflicting information. But one thing for sure, rich people are the major winner here given much higher cuts + no or less death tax. Warren Buffet had said that common strategy they used during Bush era was to give $400 one time check to everyone so they are happy while sneaking in millions of dollars of recurring tax cuts for the rich in form of capital gains.
I wish US had Swiss style public referendums where people can demand to vote on legislation and overthrow any legislation they wished.