The New Trump “Tax Cut” Act is here and it’s tax time! Who are the winners, and who are the losers?1
“They giveth with the large print and they taketh away with the small.”
– Tom Waits
Let’s examine how individuals fared under the New Act.
Consider Mr. & Mrs. X, a typical married couple filing jointly. They make $200,000 per year2. What “tax cut” can they expect under the the Tax Cuts and Jobs Act?
Their tax rate will go down from 28% to 24% which will save them $8,000. This is roughly the average tax cut for individuals. However, if they made slightly over $400,000 their tax rate would increase from 33% to 35%.
They get another benefit as well because the Standard Deduction was increased from $12,000 to $24,000.
There are also hidden “tax increases” for Mr. & Mrs. X: Read more