The NY Times (failing, according to the ONE with the BIGGEST megaphone in the land) published “What’s in the Final Republican Tax Bill”.
Here is a look (caution: It’s scary) at the issue of deductions and personal exemptions, important to middle class taxpayers:
|Standard deduction and exemptions|
$6,500 / $13,000
$12,000 / $24,000
|Personal exemptions||$4,150 per taxpayer and dependent||Eliminates|
So, a family of 4 would be a big LOSER (a word loathed by the ONE with the megaphone) under the so-called middle class tax cut. Here is my math based on the numbers in the table above. Under current law, deductions and exemptions (D&E) add up to $29,600: $13,000 (couple standard deduction) + $16,600 (4*4150) for the 4 exemptions. Under the proposed tax cut, the D&E add up only to $24,000 for this family. That is a 18.9 % ($29,600-$24,000)/(29,600)) tax increase.
Somebody tell me my math is WRONG. If not, we are headed for some serious problems in the years to come. I know first hand (Indian experience) what happens when a country lacks a robust middle class.