Trump delivers on tax cuts.
Good news:-The first $12,000 in income would be tax free so an
immediate savings of $1,323.75 for anyone earning more than $12,000.
-The first tax bracket is 12% $12000-$45000 is mostly 3% lower than the present 15%, so $26000 is tax 3% lower which results in
$780 savings for anyone earning more than $38,000.
-Non-itemizers will gain a +2000 deduction (increased standard deduction - loss of personal exemption)
so a $200-250 savingsSo, individual non-itemizing middle class filers will save like $2300.
While individual itemizing filers will lose deducting the local, state tax, and other deductions, so their savings will be like $1800.
The upper middle class will save more as the 28% bracket would be gone now. So, they could see savings like $4000-5000
Bad News:The brackets will be based on the Chained CPI.
https://www.forbes.com/sites/kellyphill ... 973d24eb83Forbes released further update. Now they say the 12% bracket starts at $1.
So that cuts down the savings.
No word whether it's retroactive or not.
The upper middle class does pretty good still, unless they use a lot of deductions.