Far-Left leaning VOX was forced to admit yesterday that individual tax-payers were winners under new Tax Plan.
Republicans have promised a “giant” tax cut for Christmas — across the board.
In the short term, those will come to fruition. The Republican tax plan lowers the individual tax rates and increases the standard deduction.
In 2017, for a married couple the brackets are:
- 10% (taxable income up to $18,650)
- 15% ($18,650 to $75,900)
- 25% ($75,900 to $153,100)
- 28% ($153,100 to $233,350)
- 33% ($233,350 to $416,700)
- 35% ($416,700 to $470,700)
- 39.6% (taxable income over $470,700)
Under the new plan they’d be:
- 10% (taxable income up to $19,050)
- 12% ($19,050 to $77,400)
- 22% ($77,400 to $165,000)
- 24% ($165,000 to $315,000)
- 32% ($315,000 to $400,000)
- 35% ($400,000 to $600,000)
- 37% (taxable income over $600,000)
Most middle-class taxpayers would land in the 12 percent bracket; upper-middle-class households go from the 25 percent bracket to 22 percent, or from 33 percent to 24 percent, or from 39.6 percent to 35 percent. Families will also be able to benefit from a slightly expanded child tax credit.
According to an analysis from the Tax Policy Center, the bill would reduce taxes for Americans in all income groups in 2018 — increasing after-tax income by an average of 2.2 percent.
Now, of course, they had to have the rest of the article combating the plan. They even claimed “Donald Trump” was a winner thanks to this Tax Bill. Nevermind the fact his business has lost over $600 million dollars since his election or the fact if he fails future generations of Trump fall with him but of course Trump did all of this just to cut taxes on himself. The biggest attack though came directly after they claimed it was a win for the individual taxpayer “short term”. They then claimed long term it didn’t help them.
The tax cut for individuals will slowly decrease over time — and end altogether in 2025.
As Matthews explains, the thresholds for individual tax brackets are adjusted according to chained CPI, a lower measure of inflation than standard CPI, which is used currently. This will increase tax revenue over time by pushing people into higher tax brackets.
Then in 2025, the individual tax relief in the Republican tax bill expires altogether. This is due to a Senate budget rule that restricts the cost of the tax bill to $1.5 trillion. Republicans decided to sunset nearly all the individual tax cuts in order to make the corporate tax cuts permanent.
The result will be a tax increase in 2027 for more than half of all Americans — 53 percent, according to an analysis from the Tax Policy Center.
I couldn’t believe this chart. One moment we are in 2018, the next moment we are in 2025. Here are a few things to note from this chart.
1. The Tax Cuts go down for all groups:
Since the rich pay more they will obviously save more money from a Tax Cut. That means as these cuts go down they will still end up saving more. So don’t fall for the false narrative the rich keep their cuts over the little guy because it couldn’t be further from the truth.
2. The Tax Cuts will simply be put back into place
The reason the Tax Cuts end are due to congressional rules. This means that as they get closer to the expiring tax cut deadlines they will simply put them back into place and so you would end up seeing the same tax-cut. This graph is misleading because it doesn’t acocunt for the fact these tax cuts will either be put back into place or lowered further once they expire.