12-02-2017, 03:25 PM
quote:
Originally posted by terracore
I haven't read the tax bill, but if what the lamestream media is reporting is accurate, the standard deduction should be almost doubling. We don't itemize our taxes (which is necessary to claim the deduction you are referring to) because the standard deduction is higher.
So in theory, my taxes should be going down. Wealthier people who use deductions will be hit by this change I'm sure.
If I remember right, Hawaii doesn't let us deduct our federal taxes, so we're already suffering under this scheme.
The problem with letting high tax states deduct their state taxes from their federal ones, is it unfairly punishes the low tax states who are more conservative with their taxes and don't have those taxes to deduct in the first place. It would be like taxing the Big Island to pay for rail on Oahu. Oh... wait...
I just don't understand people. It takes 5 minutes of reading to get the gist of what is going on.
http://www.businessinsider.com/whats-in-...es-2017-12
Standard deduction does double from 12,700 to 24,000 for married couples (families), but the personal exemption of 4,000 per person disappears.
So your taxes will go up if you are married and any children
Previous 12,700 + 3 X 4,050 = $24,850 deduction
Proposed = $24,000 deduction
The child tax credit will increase from 1,000 to 2,000 but its unclear if it is temporary (house version is)
The other big change will be how they will use the lower chained CPI to calculate the shift in tax brackets.
In the end (depending on the specifics that get passed) this will end up being the tax increase for nearly 1/2 the will end up increasing the taxes of 50% of the country in the lower and middle class.
So when your taxes do go, put the blame where it belongs. Who am i kidding
http://abcnews.go.com/Politics/senate-go...d=51432325
The proposed Senate Republican tax bill would increase the nation's deficit by more than $1.4 trillion over the next decade and disproportionately hit lower-income taxpayers, according to a new Congressional Budget Office analysis.
People with incomes less than $30,000 would ostensibly pay more in taxes when compared to the benefits they receive under the bill, the CBO found, due in part to reduced government outlays to support health care for such low-income individuals.
Those earning less than $30,000 would be worse off under the plan by 2019, given the decrease in benefits versus their tax contributions, while those earning less than $40,000 would join the group of people who are worse off by 2021 and those earning less than $75,000 by 2027, the analysis estimates.