AI
Thursday, February 07, 2019 9:22:38 PM
So I was looking for an article and I think this explains what's going to happen. I have no idea. There's nothing more boring to me than taxes except when it hits you in real time. There are more charts and tax information at the link.
How a Tax Cut Turns Into a Tax Increase
House Republicans have put forward a plan to fundamentally revamp the tax code and provide large tax breaks to the highest income Americans through rate cuts on business income and repeal of the estate tax. However, House Republicans have also claimed that the plan provides significant tax breaks to middle-income families. It turns out, though, that those tax breaks for the middle are small as compared to what’s offered to the top, and disappearing.
In rolling out their plan, House Republicans focused on an example family?—?a married couple making $59,000 per year and with two kids. They said that family would get a tax cut of over $1,182 in 2018 (compared to what they paid in 2017). But, what they didn’t say is that a family making $59,000 would face a tax increase by 2024 relative to current law, with the tax increase potentially rising to nearly $500 by 2027. This is even as tax cuts for those at the top are maintained.
The figure below shows the tax change under the House plan by year relative to current law. It starts with a tax cut of $1,106 in 2018. (This is a bit less than the figure advertised by the House Republicans since this compares apples to apples: their 2018 plan as compared to 2018 current law, as opposed to comparing the plan in 2018 to 2017 liability like the House Republicans did.) But, that tax cut dissipates over time and finally reverses.
The pattern of a tax cut turning into a tax hike is the result of several factors:
https://medium.com/whatever-source-derived/how-a-tax-cut-turns-into-a-tax-increase-960c32d1ba82
How a Tax Cut Turns Into a Tax Increase
House Republicans have put forward a plan to fundamentally revamp the tax code and provide large tax breaks to the highest income Americans through rate cuts on business income and repeal of the estate tax. However, House Republicans have also claimed that the plan provides significant tax breaks to middle-income families. It turns out, though, that those tax breaks for the middle are small as compared to what’s offered to the top, and disappearing.
In rolling out their plan, House Republicans focused on an example family?—?a married couple making $59,000 per year and with two kids. They said that family would get a tax cut of over $1,182 in 2018 (compared to what they paid in 2017). But, what they didn’t say is that a family making $59,000 would face a tax increase by 2024 relative to current law, with the tax increase potentially rising to nearly $500 by 2027. This is even as tax cuts for those at the top are maintained.
The figure below shows the tax change under the House plan by year relative to current law. It starts with a tax cut of $1,106 in 2018. (This is a bit less than the figure advertised by the House Republicans since this compares apples to apples: their 2018 plan as compared to 2018 current law, as opposed to comparing the plan in 2018 to 2017 liability like the House Republicans did.) But, that tax cut dissipates over time and finally reverses.
The pattern of a tax cut turning into a tax hike is the result of several factors:
https://medium.com/whatever-source-derived/how-a-tax-cut-turns-into-a-tax-increase-960c32d1ba82
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