That’s odd since all the federal tax brackets but one dropped.
I had 4 personal exemptions which was equal to $16,200 on top of my itemized deductions. I lost all of that.
Its not a subsidy and its not any more or less of a “mask” than the mortgage interest deduction.
My tax bracket dropped 2% and I still went from getting a refund of 5k to owing $900. Nothing changed year over year with my itemization. Losing personal exemptions and having a limit on SALT deductions hurt me significantly. Married filing jointly 260k income.
Revenues are not up.
You’re not factoring in the corporate tax cut, inflation rates and other factors to get a true picture of how the tax cuts affected federal revenues.
They’re actually down…likely anywhere from 4-9% over what they would have been had the tax code remained unchanged.
Okay, so where two of them kids? Because the kid deduction off your income changed to a credit against your taxes owed. So if it was you and the wife, your standard decution is now higher, and the two kids are a credit on your taxes owed.
Sounds like it should be time for you to start talking to your state and local politicians to get those high state/local taxes lower.
The GOP voted to cap SALT. Quit passin’ the buck
Yes the GOP did. It shined a very bright light on area’s that have high local taxes. Now that light is on the states since the federal government via federal taxes is not subsidizing it anymore. The true costs is now being realized of the local taxes. Before, no one cared because you could use it as a deduction and lower a diferent tax. guess what, lower those local taxes and the people will have more of their own money to spend.
Yes 2 are children. However the child tax credit doesn’t even come close to making up the differences on the loss of the personal exemptions.
Which is BS because high tax states also provide more money to federal government than most other red states. I’m sure some of the moocher red states wouldn’t mind if California stopped subsidizing them.
So if you make the same last year (260K), you could only claim them as an exemption and not claim the child tax credit (couldn’t do that with over 200k). Now that’s been bumped to 400k, and the two children at worth a $4000.00 tax credit (2k each).
Did you REALLY get more than 4k off your taxes by claiming them as dependents last year?
No it’s no bull. The high tax states didn’t really have a pushback because it was going to be deductable off federal taxes. How you going to feel if the state your in (or local tax entity) raises taxes that you can’t deduct now? You going to be a little more upset, or will you just say Oh well higher taxes are a part of life?
The personal exemptions alone were worth $8100 for both kids. But I still lost $8100 for my wife and I.
The 8,100 was off your INCOME. How much tax was due on the 8,100 in extra income. Well actually it would be less than that since the personal deduction for your and your wife is now 24k isn’t it?
Now your two kids are 4 grand off any tax you owe.
Was the tax on the 8,100 in income you now have to claim more or less than 4 grand? I suspect the 4 grand off your tax liability is far greater than the amount of tax you saved with 8 grand off your income.
Never thought i would see the GOP arguing for reduced tax deductions for people
Even if that is a wash I lost out on reducing my taxable income by 8100 (my wife and I) then I missed on 5k of additional tax savings by having SALT limited.
Well the GOP would now like to blame you and your state for the GOP taking away a deduction from you.
How are they being punished?
A better way of framing this argument is.
If a lawyer in Idaho and a lawyer in New York both make 500k a year… why should the New York guy pay less in FED taxes than the other guy?
The correct answer is: he shouldn’t.
And now he doesn’t.