Quick calculation shows tax bill is no tax cut for middle-class individuals in the aggregate

[rgbecker]

Currently corporations pay about 300 billion/year. A 40% tax rate reduction should result from the cut in rates from 35 to 20% (+ or -). If so, that reduction results in a revenue loss of 120 billion a year. The bill is reputed to result in only a 150 billion deficit per year. Special treatment for high income businesses like doctors, lawyers, and other privately held companies set up as partnerships and sole proprietorships and the drop in top rate easily sops up the remaining 30 billion difference, leaving nothing for you and me.

The promised savings from the doubling of the standard deduction will be negated by the ending of the personal exemptions leaving most with little to no cut. Those with children will gain a credit, but will lose the exemption for a small savings. Other than that, unless the tax tables are shifted quite a bit to higher marginal income levels, I'm not seeing that there will be a big change to peoples' withholdings from paycheck that will give the GOP any boost for next year's midterms.

As one said, "a tank of gas a month" at the cost of 13 million losing health care and the rest paying 10% higher premiums.

[dalton99a]

1. Kick

[still_one]

2. This will be quickly realized by those who currently itemize deductions, and find that the personal

exemption has been removed. Most in that category will find that there may be no change or a slight tax cut, or for a good number there will be a tax increase from the current system

[D_Master81]

3. As someone who prepares taxes

I saw this weeks or months ago when the details of what trump was wanting were starting to get out there. I said to myself, "trump has a way of talking that appeals to the ignorant". It sounds great to hear 'doubling of the standard deduction'. But in the end its essentially a shell game. Take $ from the exemptions to cover the doubling of the standard. Child tax credit goes up but when you take away the savings from the exemption its not as much as they advertise. In the end it will all come down to what the tax rates are and where do those rates fall.

[smirkymonkey]

4. K&R

[cpamomfromtexas]

6. You are so right. I have wondered how long it would take people to figure this out.

[mitch96]

5. Tax plan calculator from a Fox noise contributor

I was snooping around this conservative web site..(keep your friends close, enemies closer) and found this.. The guys on this forum were drooling over how much money they are gonna get back... I think it's a scam to trick people into thinking the Tax grab will work.. This thing shows EVERYBODY is gonna get money back....uffda

http://taxplancalculator.com

m

[rgbecker]

7. Thanks for this link. It seems well thought out and correct.

Many variables not included, but for those with simple returns, it gives a general idea.

If half the households save $1000/yr. That is about 50 billion well above the 30 billion I'm saying is coming from special case beneficiaries. Something is not right unless the other half is paying in $1000/yr on average.