by Countable | 1.4.18
In late December, Congress passed the Tax Cuts & Jobs Act. Many wondered how the bill would affect their finances, so CBS News tapped Jeffrey Levine, a New York-based certified public accountant, to run numbers on three different households.
Here are the CPA’s findings:
Makes under $40,000 a year
"I got good news for you, Marcie," Levine said. "You're getting more money back next year.”
George will benefit from the doubling of the child tax credit, and Levine estimates a savings of about $1,300 in taxes.
Make over $150,000 a year
"I actually think they would pay tax on about $12,000 more of income," Levine said. "But because of the lower rates, they actually end up saving a little bit of money."
The couple will be switching to the newly-increased "standard deduction," which means a simpler return with no itemized deductions. Levine estimates they’ll owe around $650 less than before.
Small business owners
Pharmaceutical sales rep.
Make around $300,000 a year
"Layne and Melissa are from California, a very high income tax state so a lot of people are worried, 'oh my gosh, this is really going to hurt me,'" Levine said. "It actually is really going to help them, though."
According to Levine, the Lev’s itemized deductions, including breaks for state and local taxes, will be much lower. "But they'll no longer be hit with the alternative minimum tax and will now qualify for child tax credits when they didn't before," CBS reported. “Overall, Levine estimates they'll be responsible for nearly $13,000 less in taxes.”
Levine concluded that every one of the families he looked at "will have more money in their pocket next year." CBS News noted, however, that Levine pointed out "his calculations are just estimates and says everything could change again in a few years when many of the new provisions expire.”
The New York Times posted an interactive Tax Bill Calculator.
Are you predicting a tax break in the future? Do you support the Tax Cuts & Jobs Act? Hit Take Action and tell your reps, then comment below.
(Photo Credit: RRice1981 / iStockphoto)
Written by Countable
Missing in this analysis is how the super rich (i.e. those that own congress) fare. This bill throws a few bucks most peoples way so they won’t notice the millions going to corporations and those in the top 1%. Meanwhile the “benefits” to the rest of us expire and I for one am not holding my breath that the Mercer’s care if it’s extended. This bill puts us lightyears behind on closing the economic disparities in our country.
There are a great many things that taxes pay for that I like and approve of- I like knowing that if I put in a little extra a family in trouble will get help with food and medicine. I like knowing that if I put in a little more that sick children, disabled vets, mentally ill persons, elderly, and poor can manage a little easier. I like having a fire department and police in my town, and snow removal, street cleaning and all the things that we pool our resources to make happen. I do not approve of the vast majority of our tax dollars going to fund war. We have enough weaponry to destroy the earth many times over. How could we possibly need more? Why not invest that money in cures for cancer, ALS, MD, MS, and other devastating diseases? Why not use our money for good instead of violence? And, I do not approve of the obscenely wealthy avoiding payment of their fair share of taxes. They use public roads, public water systems, public mail, public education, public tv and radio, public electric grids-they should pay a percentage of their income to help pay for it the same as everyone else. Our president said in the debates that not paying taxes made him smart. In my opinion it just makes him selfish.
The initial tax relief Americans will feel will be destroyed by the cuts in Medicare and Social Security coming soon. When those tiny tax cuts expire, Republicans will still try to pay for endless war on the backs of the poor and middle class, who will never enjoy universal health care, cease to be able to afford college, public schools, affordable housing and a living wage will be things of the past. Most Americans will be serfs to the ultra rich overlords.
Throw a few dollars to the middle and lower classes while the upper class gets huge tax cuts. The GOP way.....
All those people complaining about how the very rich are not thinking straight. Look at how many folks large companies employ. The more employed folks in our country, the better our economy. Those uniformed folks need to quit resenting those who worked hard and are more successful. Envy is what is destroying the Democratic Party. They need to put more effort into helping our country rather than spend time resenting what a businessman President is doing for our economy. They need to remove the blinders of jealousy and work for the common good —which does not mean s “free” handout for those who want the government to support them totally.
What is also missing in this analysis is the impact on the poor and elderly, neither of which will fare well because of the cap on deductions and the elimination of the individual mandate, raising the cost of health insurance. But it’s all for a worthy cause, right? Now the ultra rich can be just a little richer!
The only people who should pay federal taxes are those who don’t mind half of that money being used to wage war in poor countries.
I would love to know who believes that the two "educators" listed in the second scenario ACTUALLY make 150k in combined annual income. Unless, one or both of them is fairly high up in administration, then their combined annual pay would be somewhere between 60 and 90k.
Glad we Finally have someone who has a Brain in the Whitehouse. Why should we pay for the “So Called Entitled who Live and Reside on Uncle Sams Plantation” ... they need to get off their Butts and Get a Job for once in their lives!!
This looks good now. Everyone is saving money. But there are two things to consider. One, if the majority of the US is saving money on taxes, how is the government funding itself? It seems that almost every year we are faced with the threat if a shutdown. Two, in a few years all these tax cuts are going away for individuals and families, yet the corporate tax cuts are staying, which means or taxes will probably be higher than they were before the rewriting of the tax code. The Republicans have screwed the American people in favor of helping their wealthy donors. The American people need to be vigilant to replace their Congresspeople who have screwed them for years to come.
So a few extra hundred in my pocket next year? A few thousand paid in income this year? Overall less money generated from the taxes of wealthy? With all these savings, where will trump get his golfing budget? Where is the money to repair/maintain infrastructure? Where’s the money to keep school systems up and competitive with the world?... just like they say “there are three types of republican voters, millionaires, billionaires, and suckers... check your bank account to see which one you are”
ALL MIGHTY GREED WON AMERICA IS GOING TO LOOK MORE AND MORE LIKE A JUNKYARD , EXCEPT OF COURSE GATED COMMUNITIES !!!! SICK AND WRONG
So all the hubbub saying this tax plan will hurt not help Americans is wrong.
More money in the pockets of hardworking Americans to invest back into the economy and allocate to causes they personally care about.
If you are one of the middle class that think you won with this tax scam then you must have been sleeping! Any reduced taxes will be short lived with crippling increases after mid term elections (WHAT A COINCIDENCE)! I watched the Senate hearing until 1:00a.m. Where Pence repeatedly hammered on the desk commanding the Sergeant of Arms to bring order in the gallery as one by one people were dragged from the chamber echoing “kill the bill, don’t kill us!” as smiling Republicans voted to pay off their campaign contributors. I listened to testimony citing that 35% of the corporate interests are held by foreign interests and that they will receive payoffs in 2019 of $5 BILLION AND BY 2027 that figure going abroad will be $40 BILLION annually, all to be paid from middle class taxes. All to be paid by our children and grandchildren! The passing of the Tax bill is troublesome and a clear example of the underlying problem with our government. Republicans are popping champagne corks now but come Election Day, they will be replaced. When the Democrats have control of the House and Senate they will pass bills that favor their party and so we are on this continual back and forth very divisive path of destruction. There should be an equal number of Democrats and Republicans in both the House and Senate with none of the Vice President tie breaking. Every bill should require a minimum of 60% majority of combined Republicans and Democrats to pass. Perhaps then we can unite America and stop the destruction!! IN THE MEANTIME, VOTE THE REPUBLICANS OUT OF OFFICE!!
Why would you care how anyone is affected outside your own tax bracket? Jealous? Get over it!
Well there you have it folks. Most people will get tax relief, with the doubling of the standard deduction from $6,000 to $12,000 for an individual, and from $12,000 to $24,000 for a couple. Although I am not pleased with some of this tax bill, there is much about which I am excited! The Dems have received many Pinocchio’s for their painting this as only helping the rich...whom I might add pay 80%+ of the taxes in this country. If a person came to me and said, “I am going to give you $2,000, but your neighbor is going to receive $20,000—or more, would I care about the inequality of the amount? Hell no! I could care less what you give someone else, if you are giving me $. And with this tax bill, we are not even talking about free money, we are talking about getting OUR $ back. So what; the rich guy gets more. Also, he may provide jobs to more, purchase more products (which fuels employment for those making/selling said products), invest in the company to expand, etc. And there are already signs of this. Hey, MSNBC employees, how did you like that Christmas bonus? And Need a job? Starting pay at Wells Fargo is now $15.00 per hr (and no one had to force them through a protest, no less!). These are already just a couple of the outcomes of this tax bill. But the Dems would say to you, “If the rich guy gets more than you, then it’s better to turn down that $2,000. We say this because until wage inequality is addressed, better to receive nothing.” There you have it in a nutshell, the difference between the GOP and the Dems!
Ok YOUR tax bill is done. Please focus on reducing the deficit. We owe it to our children.
This tax bill is a huge mistake! Some individuals might save a few bucks at the cost of putting our country in a huge debt and threat to social security, Medicare and Medicaid. All to benefit big cooperations and the super wealthy. We needed that tax money for our crumbling infrastructure for one thing. Don’t forget that was our tax money Trump just gave away!
I’d also like to point out that nothing stops you people from PAYING more taxes as well as donating your money to charity.