Great! So I’ll have to pay way less income tax next year, right?
… right?
Yes*!
*As long as you make $400k or more.
Not exactly. Since we have a tiered tax system, you’ll pay more on every dollar UP TO a certain bracket, and less on every dollar OVER that limit if I understand it correctly
No. You pay a lower percentage in lower brackets. Most people don’t make it to the higher ones. A 1% difference in a normal tax bracket might mean a difference of a few thousand dollars in taxes. At high levels of wealth, 1% of millions is a shitload of savings, which is why it’s always pointed out that the wealthy disproportionately receive most of the benefits of tax cuts. There is no reason it has to be like this, their benefit could be capped at a hard dollar amount.
Tax brackets are also not connected. A common misconception is that when you go over a bracket limit into the next one suddenly all your income is taxed at that rate. This is incorrect. Your tax rate changed for each amount in that bracket and nothing above or below it, referred to as “marginal”. If the first tax bracket has a 0% tax rate and 2nd tax bracket has a rate of 5% starts at $10,000 and your income is $12,000, you don’t pay taxes of 5% of $12,000, you pay 0% for $10k and 5% of $2k.
One of the other major problems is that in the last 40 years the fusion of corporate power and political party purchase by lobby and corruption has us currently with some of the lowest maximum tax rates in history. Just 5 or 6 decades ago, normal tax rates were 50+% on the ultra wealthy. They’re now 37 and will be cut further. The super wealthy don’t even have regular “income” but earn from investments and may only pay 15% tax rate as they’ve lobbied for this exception. Their rate of 15% is of course before all the loopholes and lack of IRS staffing to enforce tax law, which disproportionately benefits the very wealthy.
That’s your US tax primer 101.
Do you have any good resources where I can learn more about this with a visual element? Videos or charts or something.
Thanks for the writeup as well, your ability to explain something complex but concisely is rad. Keep being you
Thanks for the write up! I guess I took for granted what I knew and need to read further into this change. Appreciate you taking your time to educate us all.
You will see relative pittance for lower tax brackets, millions and billions for the wealthy. What’s worse, critical services that will be cut to find these tax cuts, and then what will come next. They will cut Medicare, raise the social security age which is a benefit cut all to give just that much more to the ultra wealthy.
The land of opportunity for those who steal it.
I really can’t fucking cope with the amount of greed. They already have so close to everything. When is it enough?
It’s easier to justify murder every single day.
And they’re planning on passing it in the Senate with Budget Reconciliation so the Filibuster won’t stop it.
I hate our government. We are not a democracy but a republican run country were democrats get to play house, sometimes.
Time to filibuster into a shutdown, things are about to reach the near bottom for the USA.
They’re trying to do something called budget reconciliation (I’m not sure exactly what that is) to avoid getting filibustered.
“But that would be mean!” - Chuck Schumer, probably
Fun Fact, the House actually passed this bill 217 to 215 with only a single Republican voting against, meaning if every Dem had also been present and voted against it (one absence) still would have passed by the bare minimum number of votes. This also opens up the possibility of Republicans bypassing filibuster with reconciliation.
So what you’re saying is we’re boned?
No no, god no.
I said that shit back during the elections when composite polling predicted the Trump and GOP victory. If I kept saying it now I’d be a broken record.
Jokes aside, the GOP are clearly afraid of people learning they are cutting medicaid, so theres always a bit of pressure to put on.
the GOP are clearly afraid of people learning they are cutting medicaid
They didn’t seem afraid when they passed this garbage in the House.
They’re denying it, at least for now, but yeah.
Just want to say thanks for the pay paywall bypass
While cranking up the cost of imports for consumers
