I have searched the tax brackets for 2017 and 2018 and assumed a married couple filing jointly with a gross income of $40,000.00. Then I took that result and applied the CNN tax plan calculator to those results. AS the CNN tax plan calculator doesn't factor itemized deductions neither did I assume any. Here are my numbers
In 2017 a married couple filing jointly with a gross salary of $40,000.00 would be in the 15% bracket.
The first $13,350.00 of earnings in that bracket is subject to a 10% tax resulting in a partial tax of $1335.00
Then $13,350.00 is deducted from your total gross of $40,000.00 = $26,650.00 is taxed at 15% which equals $3997.50
The final tax is computed by adding $1,335.00 the 10% rate and $39997.50 the 15% rate which equals a total tax of $5347.50
In 2018 a married couple filing jointly with a gross of $40,000.00 and no deductions computes as follows.
$40,000.00 again puts a married couple in the 15% bracket but the numbers are a little different.
The first $13,600.00 is subject to 10% which results in a partial tax of $1,360.00
$40,000.00 minus $13600.00 equals $26,400.00 subject to 15% which equals $3,960.00
$3,960.00 plus $1,360.00 results in a total tax of $5,320.00
Take $5,320.00 from $5347.50 and that equals the difference between 2017 and 2018 and that is $27.50
Now if you apply the CNN tax plan calculator for the same scenario as above the calculator says a married couple filing jointly with a gross earnings of $40,000.00 you get a savings of .5%
.5% has a decimal equivalent of .05
.05 times the taxes for 2018 equals .05 times $5320.00 which equals $266.00 plus the savings from 2017 of $27.50 equals a total savings of $293.50 per year.
So for some to claim they will save $2900.00 they have to factor the ten year tax plan.
Of course I realize my scenario does use itemized deductions but CNN tax calculator doesn't allow it .
I
In 2017 a married couple filing jointly with a gross salary of $40,000.00 would be in the 15% bracket.
The first $13,350.00 of earnings in that bracket is subject to a 10% tax resulting in a partial tax of $1335.00
Then $13,350.00 is deducted from your total gross of $40,000.00 = $26,650.00 is taxed at 15% which equals $3997.50
The final tax is computed by adding $1,335.00 the 10% rate and $39997.50 the 15% rate which equals a total tax of $5347.50
In 2018 a married couple filing jointly with a gross of $40,000.00 and no deductions computes as follows.
$40,000.00 again puts a married couple in the 15% bracket but the numbers are a little different.
The first $13,600.00 is subject to 10% which results in a partial tax of $1,360.00
$40,000.00 minus $13600.00 equals $26,400.00 subject to 15% which equals $3,960.00
$3,960.00 plus $1,360.00 results in a total tax of $5,320.00
Take $5,320.00 from $5347.50 and that equals the difference between 2017 and 2018 and that is $27.50
Now if you apply the CNN tax plan calculator for the same scenario as above the calculator says a married couple filing jointly with a gross earnings of $40,000.00 you get a savings of .5%
.5% has a decimal equivalent of .05
.05 times the taxes for 2018 equals .05 times $5320.00 which equals $266.00 plus the savings from 2017 of $27.50 equals a total savings of $293.50 per year.
So for some to claim they will save $2900.00 they have to factor the ten year tax plan.
Of course I realize my scenario does use itemized deductions but CNN tax calculator doesn't allow it .
I