From seven brackets to three
The White House and Congressional Republicans announced their plans for a tax code reform bill. There is a bit of something positive in it. It would simplify the tax code into three brackets, instead of the current seven. But that’s about all that is positive in it for the middle class.
“We’re going to cut taxes for the middle class, make the tax code simpler and more fair for everyday Americans,” Trump said while speaking about the plan. “We are going to bring back the jobs and wealth that have left our country — and most people thought left our country for good.”
The plan would raise the bottom rate to 12 percent from today’s 10 percent. According to the blueprint of the plan, average families “are expected to be better off” under all the changes it proposes. An analysis by the Americans for Tax Fairness found that the plan would provide a “modest middle-class tax cut,” mainly by doubling the standard deduction. However, the analysis also found that if the tax plan repeals the personal exemption and the head of household filing status, “much of that could be taken away.” Continue reading “Trump Tax Code Reform Favors the Rich and Big Corporations – Surprised?”