Math, again... - sm Posted: Dec 10th, 2017 - 2:59 pm In Reply to: I doesn't tell you how many of those people - have kids where they
I can tell you how many will lose due to the loss of exemptions. None of the poor.
The increase in the child tax credit, CTC, (either $1600 or $2000 depending on the House or Senate plan) covers the loss of the dependent deduction.
This one is really easy to calculate. The dependent deduction is about $4000 per child, the current tax credit is $1000.
Look at the Senate plan. The increase in the CTC is $1000 or 25% of the $4000 dependent deduction. That means everyone below a 25% tax rate saves money. For married filing jointly that's $120k and under. Everyone in the 25% bracket breaks even, $120k to $390k. The only ones who pay more are those making more than $390k in taxable income.
The same calculation with the House plan. $1600 CTC. The extra $600 is 15% of $4000. Under the House plan $90k and under is in the 12% bracket so they save money. Above $90k is the 25% rate so those would pay more.
The loss of the state tax deduction means an extra $1.3 in the federal coffers. Doesn't that warm your heart? That extra revenue means you don't have to worry about them cutting entitlements to America's most vulnerable citizens.
https://www.thebalance.com/trump-s-tax-plan-how-it-affects-you-4113968
LINK/URL: Math, again...
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