For about the same pay, federal tax rate definitely goes down because that is what the new tax policy is all about. What we want to know is whether the total tax payable (federal and SALT) as a percentage of your total payroll, has decreased or increased?
Just completed/filed my taxes. My last year SALT was high and this year higher than last year. My SALT deduction is capped by Trump taxes, but equally compensated by AMT removal. Then reduction in marginal tax rate reduced my taxes, but very small amount less than 0.5% level.
This would be funny if these terribly uniformed people didn’t vote based on their incorrect opinions. All this says is democrats are married to their emotional opinions regardless of actual facts.
Most voters vote on emotion, regardless of left or right. The left doesn’t have a monopoly on misinformed voters. I can say the same about Republicans on immigration and guns.
We owe $10K LESS this year than we would for same numbers, same situation (but a $1M interest deduction instead of $750K) calculated with last year’s software!
So apparently for whatever reason Trump’s changes helped us. (or I typed something in wrong)
~90% of tax payers claimed standard deduction. If people don’t itemize, then they can use the new 23 line 1040.
Chile actually has automated tax returns unless you own a business. All the info that’s reported to on tax forms is electronically sent to the government. Then you log into the government website and your taxes are done for you. You just have to confirm them. There’s no reason why that couldn’t happen for 90%+ of Americans except lobbyists would fight it.
If 90% aren’t itemizing, then what is there to audit? We should simplify the tax code even more and make taxes automated. The IRS has 80,000 employees. The idea that that’s not enough means they aren’t approaching the problems correctly.
That’s the wrong approach. If the tax code is simple enough and automated, then there’s no need to audit for compliance. Compliance is automatic. There’s nothing to abuse.