Here's what Trump's new tax plan means if you're making $25,000, $75,000, or $175,000 a year

[mfcorey1]

https://www.msn.com/en-us/money/personalfinance/heres-what-trumps-new-tax-plan-means-if-youre-making-dollar25000-dollar75000-or-dollar175000-a-year/ar-AAsAw3y?li=BBnb7Kx&ocid=mailsignout

president Donald Trump's tax plan is being billed by the White House and Republicans as a boon for the middle class.

The 429-page GOP tax plan, called the "Tax Cuts and Jobs Act" was revealed on Thursday. Under the new plan, tax brackets would be reduced from seven to four, and the standard deduction would be increased.

Exactly how much individuals save will depend on many factors, and as Business Insider's Josh Barro pointed out, tax cuts for average Americans aren't likely to be as sweeping as Republicans make it sound.

Wealthy Americans, including Trump himself, stand to benefit handsomely from the tax proposal, thanks to provisions eliminating the estate tax and the Alternative Minimum Tax (AMT), among others.

Still, as it stands now, take-home pay could increase — albeit slightly — for most Americans under Trump's tax plan.

We were curious how it might change, so we ran some numbers using the current proposal. (Click for full size)

[no_hypocrisy]

1. I figured if my taxes were alterred like that, it would be for payment

of the Debt, not tax cuts.

[mfcorey1]

2. Look at the measly 178 dollar savings. The poor will see virtually no savings!

[Igel]

4. It's hard to cut what you don't pay.

My family's income tax rate is around 5-6%. We pay something like $3k/year between the two of us. The tranche of taxpayers that one site puts my family in, the range from top 25 to top 10%, earned something like 22% of all income in 2014 and paid around 16% of federal income taxes. It's not until the top 5% is reached that their share of taxes exceeds their share of income. In 2014, that was something like $189k/year. (So my family wasn't close to that 5% cut-off limit threshold.)


Part of having a progressive tax code is that if you don't make much you don't pay much. If the top 50% pay a bit more than 97% of the federal income tax actually paid, that leaves less than 3% for distribution among the lower 50% of households.

What's left is Social Security and Medicare, which makes up most of what the bottom 50% pay.

So a single person making $25k/year "saves" almost nothing. A single person with a child would "save" nothing at all. Probably gets negative income tax payments through refundable tax credits.

[uppityperson]

3. Thank you for this link

[Bengus81]

5. Same GW Bush BS "tax cut". You can buy a muffler or the Lexus the muffler is attached to...

None of this BS is shocking to me,just more of the same. If Butternut thinks giving working class people $178 bucks a year is going to be some big stimulus to the economy then he's more fucking NUTS than I thought.

Of course he knows better,just playing his base for the MILLIONS he'll make off this SHAM tax cut.