While administration officials have pledged everyone will end up getting a tax cut, the framework they’ve released is selectively specific: It clearly states how to cut taxes for the wealthiest Americans, while leaving the details of working-class tax cuts exceedingly vague.
Trump’s plan reduces the seven tax brackets that exist today, which range from 10 percent to 39.6 percent, into just three brackets of 12, 25, and 35 percent. (Republicans have said they may add a fourth higher bracket.)
While the plan technically doubles the standard deduction to $12,000 for individuals and $24,000 for couples, it, as Josh Barro and Daniel Hemel have pointed out, also eliminates personal exemptions of $4,050 per adult and child that are currently tacked on to the existing, smaller standard deductions. When those exemptions are taken away, the much-hailed doubled deduction packs a lot less punch.
As a result, a married couple with two children making $50,000 per year would see their income taxes increase by nearly $900 under Trump’s plan.
Working parents are clear losers under Trump’s tax plan https://t.co/qn9BMSYz1t
— Mother Jones (@MotherJones) 29 September 2017
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