StopThePumpFakesShav
All American
- Joined
- Apr 1, 2013
- Messages
- 9,198
That spreadsheet is neglecting the huge factor of getting rid of personal exemptions, which are $4k deductions per person, so $8k for a couple. About half of those middle class people will come out behind, depending on their circumstances (e.g., kids, home ownership). I'm confident some of you will be paying higher taxes due to this tax cut.
The immediate tax hits will be for the upper middle class/lower upper class in high tax locations like NY and CA. State and local deduction is a big deal, like $40k deduction for your typical highly educated couple in those areas making $400k. Instead of $40k plus $8k personal exemption, for $48k total itemized deduction, that couple will now take the standard deduction of $24k, which means a loss of about $10-12k post-tax income due to their marginal tax rate of close to 50%. This is balanced out partially or perhaps even fully by the lower tax rates in general, but many couples in this situation, who are almost entirely Democratic voters, will be paying more.
The millionaires are the only ones who will certainly benefit from the individual changes.
Yep. Where I live, state tax is in the 6-7% range and property taxes are 20-25K per year.