| Superman4 said: So here is how it affects me. AFter putting money into my HSA and 401K I will net right at about 60K. With my wifes business depending on deductions it will probably clear 20K or so. At the moment I dont itemize and take the standard deduction plus the child deduction. So that equates to 12K plus the personel exemption of 4K and 3K for my kids. So 19K in deductions. Under the new plan I get 24K off the top plus 1.6K per kid and 300 for my wife. So 29.1K in deductions. Even if I owned my home which I will this year, it will be under 500K, I do have student loans that I will start to pay but the interest on those wont be 12K a year. Add to this that my tax rate will go from 10%, 15% and 25%down to 12% and I will save even more. I am Middle class truely. Anyone who says they are middle class and lives in the city with a 4K a month rent payment or a 1 million dollar home is delusional. |
Is this an argument? Different people would be in different situations. You say yourself that you don't really use many deductions
I did the math real quick to see what the difference is for someone married filing jointly with a total income of $80,000 with three kids and no other deductions and found that they would see a decrease in taxes of $1,205. That leaves a change in total after-tax income of 1.6% which is pretty close to what the graph I included said was average (maybe a bit above average since you don't have many deductions). If you use other deductions, that percentage starts to shrink. Say you have some student loans (as you say you do). Depending on how much they are, that could tack $375 off of your taxes paid, dropping that difference to 1.1%.
Basically, as I previously said, depending on how much you utilized the factors that were cut, you may end up losing out. That doesn't apply to everybody, but it does apply to some. Others will end up getting a small increase in after tax income unless you are in the top 5% where you will be getting a pretty huge increase in after tax income. You are pulling in about 1.5%, or $1200 while those making $200,000 will pull in about 8%, or $16,000.
That means you and families like yours are paying proportionally more to the government while more likely to be overcome by the negative side effects of inflating budgets due to the tiny gain you are receiving.
While I do actually support some of the changes being made, the overall picture of who gets the benefit is far too warped to make this palatable.
Last edited by sundin13 - on 03 November 2017
