I am skeptical of the bill. Here is what MSNBC is reporting on brackets.
Under the House bill there will be four brackets: 12 percent, 25 percent, 35 percent and 39.6 percent.
12 percent: This rate applies to single filers above $12,000, up to $45,000. Married couples are subject to this rate starting at $24,000, up to $90,000.
25 percent: For single filers, this rate applies at $45,000 of taxable income. Joint filers who are married are subject to this rate starting at $90,000.
35 percent: This rate applies at $200,000 for singles and $260,000 for married couples.
39.6 percent: The top rate applies at $500,000 for singles and $1 million for married filers.
I don't think there is a "0" rate from 0-24,000 for couples which makes me suspect the 25% rate is starting at 66,000 rather than the current 76,000 and the 24,000 standard deduction is actually the 0-24,000 0% range. That is not how the current brackets work - the standard deduction isn't baked into the brackets which is why I think that 24,000-90,000 bracket is BS and it's really 0-66,000 for 12%. So this means people making 70-80k after standard deduction will pay more - much more if they currently get a decent savings from itemizing. It seems most over 200k will come out ahead and the higher the income the more certain it becomes you will come out ahead.
From what I can tell the bill helps primarily the 300k+ earners. Obviously those with high pass through income are the biggest winners.
The bill would save me a little bit this year by eliminating the 28% rate ,but next year I go to part time @24 hours and with the lower income next year my taxes are slightly higher under the new plan with 3 exemptions and some benefit from itemizing under the current law. The difference in tax won't even be noticeable but it's ironic my taxes are going up to pay for a cut for people making more than me. This is all assuming there is no 0% bracket from 0-24,000 thousand they are making it appear the bracket is raised by including the standard deduction as a 0-24,000 bracket.