Here's the important fine print: "To simplify the tax rules, the additional standard deduction and the personal exemptions for taxpayer and spouse are consolidated into this larger standard deduction."Here's how that math works. Let's say you are single with no dependents, and you have a moderate income. Currently, you get to take the standard deduction ($6,350) and one personal exemption ($4,050). If you are 65 or older, you also get to take an additional standard deduction ($1,250). That adds up to $10,400, or $11,650 if you're over 65.The Republican plan would replace all these provisions with a single deduction of $12,000 ($24,000 for married couples.) That's a 15% increase -- except for seniors, who get a 3% increase.And then your first dollar of taxable income would be subjected to a 12% tax rate, instead of the current 10%. But don't worry -- the framework says "additional tax relief," as yet unspecified, will emerge for you during the committee process.For married couples, all the relevant amounts are doubled under the current tax code and under the Republican proposal, so the percent changes would be the same.If you have children, your fate is uncertain. The plan would abolish the $4,050 exemption you get to take for each of your dependent children. But it would also increase the child tax credit -- by an unspecified amount. Once that amount is specified, you'll be able to figure out whether you face a tax increase or a tax cut or what.Meanwhile, taxpayers who itemize their tax deductions for things like mortgage interest and state and local taxes would pay tax on more of their income under the Republican plan. The proposal says "most" itemized deductions would be abolished anyway, but those for mortgage interest and charitable giving would be retained.
I guess we should give the GOP some credit. They've been saying for decades that government is the problem, not the solution. I guess they keep wanting to get elected to prove that they're correct.
Quote from: Worldtraveller on September 29, 2017, 08:14:10 AMI guess we should give the GOP some credit. They've been saying for decades that government is the problem, not the solution. I guess they keep wanting to get elected to prove that they're correct. - hey man I think there's something wrong with your windshield- what? no, it's fine, no cracks in it or anything- no, but, really, *smashes windshield with a tire iron*, see, look, i think it's pretty broken, buddy, and by the way *sets car on fire, murders entire family*. see what i mean? we should really do something about this problem, *steals other guy's wallet and walks away whistling*hope you enjoyed my delightful mini-play