Post
by bluetick » Wed Sep 27, 2017 2:12 pm
Trump's Tax Plan Could Squeeze the Middle Class - Bloomberg
and the best place to get this money may be the millions of Americans who use deductions and other such strategies to lower their tax bills.
Upper-middle-class taxpayers in particular could face a triple whammy. On the table are limits on—or even the elimination of—three of their favorite tax perks: deductions for mortgage interest and for state and local taxes and the ability to make pre-tax 401(k) retirement contributions.
These perks are popular with other taxpayers, too. Except for the very poor, Americans of all income levels can use 401(k)-style plans to lower their tax bills and save for retirement. The mortgage and local tax deductions are useful to the 30 percent of filers who itemize their tax returns. That includes 39 percent of filers earning $50,000 to $75,000 a year, 56 percent of those making $75,000 to $100,000, 77 percent earning $100,000 to $200,000, and 90 percent or more of those making $200,000-plus, Internal Revenue Service data show.
The wealthiest Americans, meanwhile, may have the most to gain from tax reform. The latest proposals include the elimination of the estate tax, which applies to estates of $5.49 million or more, and a cut in the top rate paid by rich individuals and business owners.
The takeaway: billionaire president appoints billionaire cabinet and gets multi-millionaire Congressional leaders to favor the wealthiest Americans wrt tax reform. #MAGA #DraintheSwamp!
"OMG, this is terrible. This is the end of my presidency. I AM FUCKED!"