For Lawyers, Scientists & Other Inquisitives

An America watcher's observations about "life": Science, Law, Politics, Education, Humor, . . .

The Debt Limit Dance

by Leave a Comment

The insane, ritualistic and potentially disastrous economic dance of destruction has been going on in earnest for the last several days.

The disagreement centers around two issues: 1. One must pay one’s bills. 2. One must live within one’s means. Even little kids know these basic truths. But the negotiating team led by a senior adult on one side and by a relatively younger adult on the opposing side, our national leaders (I know I am being generous), don’t want to simultaneously grasp both truths.

If history is any indication, one minute before the proverbial tomorrow a comprise will be reached, and each side will proclaim victory to their respective constituents, who have often scratched their heads wondering why and how they entrusted their overall well being to such individuals.

If they can’t reach a compromise by the fast approaching deadline, then, tomorrow will really be a bad day.

 Proposed Tax Bill: Middle class to be squeezed BAD!

by Leave a Comment

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
Standard deduction Current

$6,500 / $13,000
(singles/couples)

  

Proposed 

$12,000 / $24,000

(singles/couples)
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.