So the latest proposal is out.
https://www.cnbc.com/2017/09/27/read-the-full-gop-tax-proposal-here.htmlI am bit frustrated because at the end of the day this bears the primary problems of the original proposal. It makes it look like they are doing middle income people a favor by "doubling the standard deduction"... But at the same time they want to get ride of personal exemptions which nullify that doubling.
Single people, married couples and couples with 1 kid will end at a slight advantage which shrinks as you move up that chain. Now families of 4 would be starting at a net negative base from where we are today.
My tax exempt income for the fed is at $28900, that would shrink to $24000 base. So I basically lose a whole exemptions. Its possible they could make it up with the child tax credit, but they are still showing the same number for that... If you managed to keep your household income under $110k after adjustments you basically were already getting those child tax credits. So families of 4 just get shafted for an extra $1000 in taxes in the 25% bracket...
Even on top of that doubling the standard while cutting exemptions if a fucking joke even for single people. Do tax payers really not comprehend that their net implicit tax break as a single earner is $10,300 because of exemptions not $6,300? They basically they just offered to shave a single earners tax burden by $1700 tax free dollars... $204 dollars a year or a whopping $17 a month, if you are 25% you get double that so I guess they are buying you dinner at $34 a month saved... Thanks for helping pay for my Netflix so that someone earning a million a year can save $25k a year... Tax relief my arse.
I mean it not a huge difference, but seriously can families not do basic math? What gives? How does shifting the core tax break away from families to people with no kids and on top of that make it look like a bigger break than it is by touting that they are doubling something?
The real tax relief here comes in the form of the estate tax removal and very high earners shaving 5% off the top bracket. So questionable changes for the middle class range and fat break for people pulling in millions.
Honestly I don't expect huge tax breaks but I do kind of expect not to see my federal tax baseline go up due to ass backwards modifications to long standing tax code to make things "simple" for people who can't count the number of people in their home and add some numbers together...