With the personal exemption and standard deduction alone, an under 10K income results in an actual federal tax of $0.00. Remember that, in the tiered system, you are taxed incrementally as you pass through each level. For instance, if you are in the 25% bracket, you don't pay 25% on the entire taxable amount. You pay 25% on the amount above the previous bracket of 15% and 15% up to that point. My issue is with the complicated code that probably requires too many people to need to pay someone to do their taxes. Yes...you can deduct that expense but not as a credit. If you paid 100 bucks at one of these store fronts that pops up at tax time every year, you may actually only recoup $10 of that.
If in fact this is the purposed tax plan and goes through, well "middle America" you're going to get hit. It certainly shows that the upper tier gets a break but as usual the lower tier has to make the difference. That's not all as the article reports, its not a simplistic plan but a more reduction of "tax bands" from 7 to 3. There are other matters to include like deductions, etc., but overall the middle class isn't getting less in taxes. Argue all you want, but if lower income is under $10K and you have to go from 10% to 12% tax, that's a 20 per cent increase, which being poor isn't going to go well. While at it, it may have been better to at least keep the upper tier at the same level, not reduce it. That would have been more palatable to the general taxpayer. As usual playing with the numbers to get more in taxes.
Let's not forget that that "possible" outright gifts that corporations maybe getting if similar sweetheart deals to keep business in USA prove the norm. Aw gee, the fix is in. I thought, I had to worry about China and Russia, but the 5th column maybe the GOP or lack of it as it used to be. -----Willy