3 ms·
Tax is complicated, however: 1. Fewer tax brackets. Many software engineers are in the 28% and 33% brackets. A lot of these people will now be in the 35% brack
by tabeth 9y ago
Tax is complicated, however:
1. Fewer tax brackets. Many software engineers are in the 28% and 33% brackets. A lot of these people will now be in the 35% bracket, depending on their exact income.
2. Standard deduction has been increased. More money in their pocket (though this is true with many)
3. Mortgage interest deduction -- this might be removed to only 500k. This means people in california won't be able to deduct as much for their expensive houses.
There are many more things, obviously.
- votepaunchy 9y agoThe standard deduction is being increased but personal exemptions eliminated so that’s basically a wash. Child tax credit increase is also offset by eliminating exemptions.
- el_benhameen 9y agoThese are a good summary, but for #1, I was under the impression that the Senate bill keeps 7 brackets. Whether that will survive conference is another matter, but from what I know, the conference version will more likely resemble the senate’s version of the bill.
- jwatte 9y agoAnyone with substantial state taxes and mortgage interest is unlikely to take the standard deduction currently, and the increase in the standard deduction seems unlikely to compensate nearly enough. Couple with the significant impact on education cost (especially graduate education) and this tax plan looks tailor made too punish the coasts and benefit the aristocracy.
- bogomipz 9y agoIndeed people living in NY and CA are going to feel pain without the ability to deduct states taxes. People are in for a shock.
- bogomipz 9y agoIts worth noting that 2 and 3 are mutually exclusive. You can claim one or the other.