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Tuesday, December 19, 2017

GOP tax plan saves us $20 a week

Median wage earners (half of all workers in America) will save a measly 20 bucks a week (or less) with the new GOP tax plan.

Paul Ryan

Per Social Security wage data: the "median" income in the U.S. is a little over $30,000 a year for wage earners.

The new tax plan lowers the tax rate from 15% to 12% on income over $9,525 up to $38,700 --- so median income earners making $30,000 a year will save $900 from the new tax rate.

Median wage tax rates (old and new)

The new tax plan will also raise the standard deduction from $6,350 to $12,000 (almost double); but it also eliminates the $4,050 personal exemption --- for a difference of $1,600 less that you'd have to pay tax on.

12% tax (on income over $9,525 up to $38,700) = $192 saved for median income earners making $30,000 a year. ($192 = 12% of $1,600

Save a whopping $21 with new GOP tax plan!

(Below) Old tax brackets scheduled for 2018 (Blue shade is the "median" bracket)

Old 2018 tax brackets

(Below) New tax brackets scheduled for 2018 (Blue shade is the "median" bracket)

New 2018 tax brackets

* Based on single filers with no children.

3 comments:

  1. For a secretary, it's $1.50 a week

    https://www.forbes.com/sites/eriksherman/2018/02/05/paul-ryans-deletion-of-his-tax-cut-promotion-shows-the-attitude-of-politicians/#75ed4fa949db

    ReplyDelete
    Replies
    1. Maybe it's because she only works 4 hours a week for minimum wage :)

      Delete
  2. https://www.vox.com/policy-and-politics/2018/2/26/17044440/gop-tax-cut-tax-reform-law-chart-regressive-rich-poor-graph

    ReplyDelete