Sunday, December 17, 2017

Trump Tax plan hits "the rich"

 All though the top rate ($500,000 and up) drops from 39.6% to 37%, the next rate, 35% used to start at $425,000. Under the Trump tax plan, you hit the 35% bracket at $200,000. In short a whole bunch of reasonable well off taxpayers got boosted up into the 35% bracket, whereas under current law, they paid 32%.   The really rich save 2.6% but the quite well off get hit for 3% more.
   The middle class ($38,701 to $93,701) get a 3% to 4% cut.
This is just looking at rates, I did not figure in the effects of doubling the standard deduction.  



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