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Definitely still a work in progress it seems. I am interested though to see how this all shakes out. Some of the plan I am actually very FOR, but curious if it's actually possible. Here's a USA Today exert to consider, on current proposed changes to the tax brackets and standard deductions:
The seven individual income tax brackets in place now, which range from 10% to 39.6%, would be replaced by 12%, 25% and 35%.
The proposed bottom rate of 12% is higher than the 10% the White House said it was seeking in a one-page list of goals for tax reform released in April. But people paying 10% now may not owe any tax under the new plan.
"We flatten out the tax code, lowering the rates at every level so people can keep more of what they earn," said Rep Kevin Brady, R-Texas, chairman of the House Ways and Means Committee. "That means the 15% rate today will be lowered to 12. The 10% rate today will go to zero. The tax elevator goes down at every level."
The plan would nearly double the standard deduction, the amount that's subtracted from incomes before the tax rate is applied. The deduction would grow from $6,350 to $12,000 for individuals and from $12,700 to $24,000 for married couples.
Some of that increase, however, would be offset by the elimination of personal exemptions for a taxpayer and spouse. In 2017, those exemptions were worth $4,050, meaning a taxpayer and spouse could reduce their income by $8,100 before calculating how much tax was owed.
So I am actually for simplifying the tax code in favor of more uniform standard deductions vs several niche ones that not everyone qualifies for, like being married or owning a house, having several dependents, etc. I don't believe that those paying 10% will owe nothing though. That doesn't seem plausible, especially if you make all the other cuts to the higher brackets and business tax %s as well. Would be very nice for low income families though.
I have hoped and wondered for a long time if a more simplified tax code was even possible, as complicated as we have made it over the decades. While this is still a work in progress, honestly, I'm kind of rooting for it to maintain the spirit of simplicity it currently holds, and to make it through. One of the few Trump moves I am intrigued by.