The_Yoda said:
sundin13 said:
To use figures more accurately representing this tax plan:
Worker One is paid $1000 and is asked to pay 20% in taxes. Now, under Trump's "Everybody saves!" plan, he "only" has to pay 19.8% in taxes, saving him a whopping $2 per paycheck.
Worker Two is paid $10000 and is asked to pay 30% in taxes. Now, under Trump's "Everybody saves!" play, he only has to pay 21.9% in taxes, saving him "only" $810 per paycheck.
Pretty much everybody is getting an infinitesimally small benefit in terms of after-tax income, except the top 5% who are going to be making up to 10% more.
PS: I'm not trying to argue with you, just adding to what you are saying.
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How much does worker one get back at the end of the year? How much does worker two get back at the end of the year?
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Okay so how it works is that taxable income is what is assessed in the example. This implys that both Worker One and Two have applied applicable deductions to their gross income to arrive at a tax bracket for which this example applies. Well thats the only way to think about the example because that is what tax actually is... a return is (income - deductions) * tax rate... in laymens terms. Owed tax and entitled returns are the same thing mathmatically, just opposites.
