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The top rate before was 39.6% for over 480k, over 480k now hits the 35% and 37% mark and that is a HUGE difference. Let's only consider how that effects the to
by propman 9y ago
The top rate before was 39.6% for over 480k, over 480k now hits the 35% and 37% mark and that is a HUGE difference.
Let's only consider how that effects the top 1% and a rough estimate. Currently that's around 1.73M filers with an average income of 1.4M a year. Under the new tax rules the average 1% will save $40,000 over 480k (will obviously save more under 480k but not counting that). That totals out to be $692B in tax cuts over 10 years or in other words basically 70% of the tax cut deficit based on standard scoring and 138% based on dynamic scoring (obv not exact). So this could have been a revenue neutral tax cut even after a massive tax cut to everyone, just a slightly less of a tax cut to the top 1%.
In other words 70% of the tax plan deficit over the decade is coming from cuts from the top 1%. I would have preferred a different allocation that would have decreased their tax burdens but not by that much. Obviously this doesn't consider many smaller factors but it's a fairly accurate estimate.
- sokoloff 9y ago> In other words 70% of the deficit over the decade is coming from cuts from the top 1%. I believe it's far more accurate to say that 70% of the tax cut-related deficit is coming from tax cuts to the 1%. The impact on the overall deficit is far less than 70% from those cuts.
- propman 9y agoThanks, edited. I can see how that was confusing
- TimJRobinson 9y agoYour math is off by one magnitude. $40k * 1.73 million people = $69.2 billion. Unless I'm missing something?
- propman 9y agoIt's 69.2B per year, 692B over 10 years. The tax cut deficit is stated over 10 years at 1.5T without the economic benifits and 1T over 10 years with benifits scored at standard and 500B with benifits scored with dynamic.
- stickydink 9y ago"$692B in tax cuts over 10 years" is what GP said
- satellitec4t 9y agoJust kind of laughing at the idea of people making $1.4M having a tax "burden" like it's weighing them down.
- usaar333 9y ago> Under the new tax rules the average 1% will save $40,000 over 480k It'd probably a lot lower. You need to consider other code changes. For instance a filer in CA with W2 taxable income of $1.4M saves only $4,500 due to the loss of state income tax deduction offsetting the vast majority of beneficial rate changes. ref: http://taxplancalculator.com/ http://taxplancalculator.com/
- myrandomcomment 9y agoUgh. Just checked the link. I pay more. In CA so state tax deduction loss kills.
- satellitec4t 9y agoYep, it's designed to punish blue states