The first major tax reform in 30 years in America is officially done thanks to the Republicans and President Trump. The first real tax reform for the American People since 1986. It’s a huge accomplishment, and the first of many accomplishments that President Trump ran his 2016 Election campaign on. Many Americans are asking, what does that mean for me though? Let’s break it down for you.
New tax plan:
Example: Married couple & 2 kids (ages 16 & under) make $80,000.
Take $80,000 and subtract the $24,000 standard deduction, so $56,000.
The money you made between $0-$19,050 is taxed at 10%; so, $1,905
Take $56,000 and subtract $19,050 because you paid 10% on that amount. Thats $36,950.
Because the next bracket is $19,051-77,400 @ 12% all of the remaining $36,950 would be taxed at 12%, so $4,434.
We add that $4434 to the $1905 from the first bracket and you get your total tax obligation: $6,339.
Your tax obligation is $6,339 before deductions.
The child tax credit is $2,000 each kid, so $4,000. Comes off that.
Other common deductions are mortgage interest, student loan payment interest, charitable donations (tithing, clothes, political donations etc). These will all reduce your tax liability.
If you had no other deductions, for this example, your obligation would be $2,339.
To break it down one step further, your federal tax withheld from your paycheck biweekly would be $44.98 each. Take a peek at what it is currently.
Credit to my good friend Adam Cawthon for that break down of the Tax Plan for those at home. The Democrats are angry about Tax reform passing, and why is that you ask? They are angry because now the GOP and the working class have a win. Since 1986 they have fought this, because the average Democrat voter doesn’t work, or has no ambitions in life. They are that group that wants socialism and government hand outs. Now when 2018, the Republican Party and President Trump can tout they actually did something instead of grand standing like the left. This my friends is a massive win for the GOP, and an even better win for America!
Here’s a few more tidbits from my good friend Adam Cawthon on the Tax bill;
The Liberal media is lying to people about this tax bill…
1st, its a tax reform and massive cut.
2nd, to suggest that this isnt a tax relief for the middle class is simply a lie!
– who benefits more from the standard deduction going from $13,000 to $24,000… millionaires??? Cmon. The first $24,000 a married couple makes ($12,000 for single folk) is not taxed.
Real numbers: the average household income in Arkansas is 40,500. More than 1/2 of the income isnt taxed at all! You’re gonna go on tv and tell people in Arkansas that they aren’t gonna feel that???
The child tax credit doubles. Yes, Millionaires the world wide are licking their fingers over the child tax credit going from $1,000 to $2,000… except, people who make more than $400,000 dont qualify for the credit. That figure went up from being cut off at $110,000 with this bill. People in middle class will feel that tax cut!
Rich/Elite 1% America doesn’t care about an extra $5,000 – $10,000… they just dont…. but where would you be right now, this 10 days before Christmas with an extra 5-10 thousand dollars of your own money in your bank and not at the IRS?
Thats what we are talking about here folks. Thats why liberal media isnt praising this. It means Republicans win 2018 midterms. I couldn’t care less who gets credit, I know a lot of people that are going to keep more of their own money.
If you don’t like or want this American tax relief, you can determine what your tax liability is, based in 2017 tax law, and have that additional amount held out. You’re welcome. You don’t have to better your life with that dirty Republican money.
That’s all I’ve got for today on the Tax Bill, and I’ll end with Merry Christmas America, and Thank You President Donald J. Trump