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Thread: How the GOP tax plan hurts many

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    Re: How the GOP tax plan hurts many

    Quote Originally Posted by Rich123 View Post
    Suppose you earned $60,000.00 and didn't do with holdings through the fiscal year and you have two children, one 17 and one month years old and the other is 18 years old. Your are also married and filing jointly.

    Under the GOP tax plan you could claim the $24,000.00 standard deduction.

    But you can not claim the personal exemptions as the GOP plan eliminates that.

    How ever the GOP plan has increased the child tax credit from $1,000.00 to $2000.00. However the provision to use the child tax credit requires your child to be under the age of 17 years old. So that doesn't apply here.

    After everything is computed this filer will owe $4447.50.

    Now take that same filer and if he could file only by the 2018 guidelines he would,

    Get the standard deduction of !3,000.00

    He could use the personal exemption of $4150 for each of the people he can claim which would result in an addition deduction of $16,600.00

    After doing the math this filer owes $3607.50

    The significant difference in this case is the GOP's elimination of the PERSONAL EXEMPTION. In both cases neither filer can claim the child tax credit but the personal exemption applies to all people who live in your home and you support. In this case the GOP tax plan has cost this filer an additional $840.00
    https://townhall.com/tipsheet/guyben...icans-n2424201

    <snip>
    The average tax cut will be $1,600, according to TPC's data

    (Republicans cite a different statistic: A tax cut of more than $2,000 for a median income family of four).

    Let those numbers marinate for a moment.

    We've been caught in a blizzard of misinformation claiming that this bill hurts the middle class.

    But even the Republican-hostile Tax Policy Center couldn't escape the empirical conclusion that 80 percent of all Americans will see their taxes reduced under the bill
    <snip>
    I am not of the mind that a man is either of science or of religion. At his best and his worst, man exists in the misty glimmering where the falling angel meets the rising ape. That he chooses a direction from that point defines him as human.

  2. #12
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    Re: How the GOP tax plan hurts many

    Quote Originally Posted by Rich123 View Post
    Suppose you earned $60,000.00 and didn't do with holdings through the fiscal year and you have two children, one 17 and one month years old and the other is 18 years old. Your are also married and filing jointly.

    Under the GOP tax plan you could claim the $24,000.00 standard deduction.

    But you can not claim the personal exemptions as the GOP plan eliminates that.

    How ever the GOP plan has increased the child tax credit from $1,000.00 to $2000.00. However the provision to use the child tax credit requires your child to be under the age of 17 years old. So that doesn't apply here.

    After everything is computed this filer will owe $4447.50.

    Now take that same filer and if he could file only by the 2018 guidelines he would,

    Get the standard deduction of !3,000.00

    He could use the personal exemption of $4150 for each of the people he can claim which would result in an addition deduction of $16,600.00

    After doing the math this filer owes $3607.50

    The significant difference in this case is the GOP's elimination of the PERSONAL EXEMPTION. In both cases neither filer can claim the child tax credit but the personal exemption applies to all people who live in your home and you support. In this case the GOP tax plan has cost this filer an additional $840.00
    Fuzzy math there, dude.

    You forgot to factor in the drop in the federal tax rate from 15% to 12%.

    Your example family, under the existing plan would pay $4,665.
    Under the GOP plan, they will pay $4,320.
    That's a savings of $345.

    Not a huge savings, grant you, but still a savings.

    60,000 minus the old standard deduction plus exemptions equals $28,900, and when taxed at 15% that is a payment due of $4,665.

    60,000 minus the new standard of $24,000 (and no exemptions) leaves us with $36,000, and when taxed at the new rate of only 12%, the payment due is $4,320.

    And, that's just for a family of four with two kids over 17. If the two kids were younger, the parents would get an additional $4,000 child care credit.

    At any rate -- don't quit your day job and become either a mathematician or a paid tax preparer.
    "Nothing can stop the man with the right mental attitude from achieving his goal; nothing on earth can help the man with the wrong mental attitude." ~ Thomas Jefferson

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    Re: How the GOP tax plan hurts many

    TANSTAAFL

    ďAn armed society is a polite society.Ē
    ― Robert A. Heinlein, Beyond This Horizon

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    Re: How the GOP tax plan hurts many

    Quote Originally Posted by Crovax View Post
    Well thatís what happens when you rely on a 2 month old article to tell you about a bill that just got passed. There ended up being no modification to the student loan deduction or the graduate tuition waiver
    Sorry, my bad. I knew they had been on the chopping block, glad they were saved. My situation still ends up a substantial tax increase, so I'm not seeing a lot of good side to this bill. I know Donald says we are all gonna be so happy to see so much money in our checks in February. Maybe not as happy as he will be however.

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    Re: How the GOP tax plan hurts many

    Quote Originally Posted by JMR View Post
    Sorry, my bad. I knew they had been on the chopping block, glad they were saved. My situation still ends up a substantial tax increase, so I'm not seeing a lot of good side to this bill. I know Donald says we are all gonna be so happy to see so much money in our checks in February. Maybe not as happy as he will be however.
    Well doubling the standard deduction is pretty big for most people

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    Re: How the GOP tax plan hurts many

    Quote Originally Posted by Crovax View Post
    Well doubling the standard deduction is pretty big for most people
    I'm not sure for most people...certainly not me, but then I live in a high tax state, and as I have learned some posters here feel this is some type of comeuppance to blue state citizens.
    Also the loss of medical cost deductions is pricey for many people.

    In addition, the doubled standard deduction expires in a few years, and that will result in a tax increase that will have everyone screaming! Wonder if the timing of the expiration has any political significance? Have to give that a look.

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    Re: How the GOP tax plan hurts many

    Quote Originally Posted by JMR View Post
    I'm not sure for most people...certainly not me, but then I live in a high tax state, and as I have learned some posters here feel this is some type of comeuppance to blue state citizens.
    Also the loss of medical cost deductions is pricey for many people.

    In addition, the doubled standard deduction expires in a few years, and that will result in a tax increase that will have everyone screaming! Wonder if the timing of the expiration has any political significance? Have to give that a look.
    The medical deduction is still there and it’s actually expanded for ‘17 and ‘18, maybe you should read up on the final bill and not just the scare tactics around it

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    Re: How the GOP tax plan hurts many

    Quote Originally Posted by Crovax View Post
    The medical deduction is still there and itís actually expanded for Ď17 and Ď18, maybe you should read up on the final bill and not just the scare tactics around it
    I see the final plan includes the medical deduction. Sorry for this second error. That was a late change, which I am glad for. Now tell me you found where the property tax deduction is still a go...over $10,000 of course.

    The scare tactics includes the fact that a huge tax overhaul occurred behind closed doors, with no hearings, no bipartisan support, with vote getting bargaining resulting in pencil changes in the margin. No time allowed for Budget Office to make determination, no listening to economists ...no understanding at all of the meaning DELIBERATE. It was hastily thrown together in order to satisfy donors, who had outright told Congress that if they didn't get the cuts there would be no more donation. The middle class was told this was a big gift for THEM...BS

    And I think it important to remember that all of these advantages for middle class people are very very temporary. Corporations and the very wealthy have permanent tax relief. The debt that will follow will cause entitlement programs to be cut. That has always been Paul Ryan's aim. And he has convinced many people that their roughly $300 savings is worth all this.
    Last edited by JMR; 12-23-17 at 06:24 PM.

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    Re: How the GOP tax plan hurts many

    Quote Originally Posted by JMR View Post
    I see the final plan includes the medical deduction. That was a late change, which I am glad for. Now tell me you found where the property tax deduction is still a go...over $10,000 of course.

    And I think it important to remember that all of these advantages for middle class people are very very temporary.
    The bush tax cuts were temporary

    Sorry the property tax deduction is capped at 10k and interest deductions only for mortgages of 750k or less

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    Re: How the GOP tax plan hurts many

    Quote Originally Posted by Crovax View Post
    The bush tax cuts were temporary

    Sorry the property tax deduction is capped at 10k and interest deductions only for mortgages of 750k or less
    Who decided that property taxes over $10,000 (which we have to thank Susan Collins for that small concession) are excessive, but interest on mortgages of 750K should be deductible?

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