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dropdeadfred, Trump's Tax Plan and How It Affects You

"You’re wrong. Folks making 40-60k got a raise in their take home pay last year."

I don't see how what you're seeing makes my position that the Trump tax plan helps the wealthy more than them middle class wrong. I never disagreed with the position you put above, nor with the fact that total tax for most go down. But don't forget that is short-term (temporary), whereas the cut for corporations is permanent. Also, the change to the estate tax exemption. It's obvious whose family that one helps as much as it helps the families of all the other billionaires in America.

[...]

The Act doubles the estate tax exemption to $11.2 million for singles and $22.4 million for couples. That helps the top 1 percent of the population who pay it. These top 4,918 tax returns contribute $17 billion in taxes.

[...]

Seven Ways It Affects You

The Tax Act is so complex it affects each family differently depending on their personal situation. Here is a broad description of how it might affect the following seven groups:

1. High Income: If you have a very high income, the tax plan helps you the most. The Tax Foundation said those who earn more than 95 percent of the population would receive a 2.2 percent increase in after-tax income. Those in the 20 to 80 percent range would receive a 1.7 percent increase. The Tax Policy Center said those in bottom 20 percent would only receive a 0.4 percent increase.

2. Heirs to Wealth: If you inherit a lot of money, the larger exemption for the estate tax will benefit you.

[So 2. as 1. helps wealthy families the most.]

3. Few Deductions: If your itemized deductions are less than the new standard deduction, you win on two levels. First, the larger standard deduction will reduce your taxes. Second, you can skip the complicated process of itemizing. That not only saves you time but also money if you no longer need to pay a tax advisor.

4. Large Families: You may be hurt by the elimination of personal exemptions. The higher credits for children and elderly dependents may not be enough to offset that loss.

5. Homeowners: If take out a new home equity line of credit, you can only deduct the mortgage interest if you use it to buy or improve a home. If you take out a new mortgage or refinance an existing one, you can only deduct the interest up to the limit. If you live in a state with high property taxes, you can only deduct the first $10,000.

6. Young People: Since young people are generally healthier, they are more likely to benefit from the elimination of the Obamacare tax.

7. Self-employed: If you are a 1099 contractor, own your own business, or are self-employed, you may benefit from the 20 percent deduction on qualified income.

To see how Trump's tax plan affects you personally, use this federal income tax calculator.

How It Affects Businesses

The tax plan helps businesses more than individuals. Business tax cuts are permanent, while the individual cuts expire in 2025. But the nation's largest private employer, Walmart, said it will raise wages. It will also use the money saved by the tax cuts to give $1,000 bonuses and increase benefits.

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