Looking at the proposed new marginal tax rates and brackets on the senate website (https://www.finance.senate.gov/imo/media/doc/12.2.17%20HR%201.PDF) from the current 2017 rates on wikipedia (https://en.wikipedia.org/wiki/Income_tax_in_the_United_States#Marginal_tax_rates_for_2017) how big a tax break can you expect?
Quick math for a family with $150k annual taxable income with the old (2017) method:
- 10% on $9,325 = $932.50
- + 15% on ($37,950 – $9325) = $4293.75
- + 25% on ($91,900 – 37,950) = $13,487.50
- + 28% on ($150,000 – $91,900) = $16,268.00
- ———————–
- total (2017) = $34,981.75
and now with the new (2018) method:
- 10% on $19,050 = $1,905
- 12% on ($77,400-$19,050) = $7,002
- 22% on ($140,000-$77,400) = $13,772
- 24% on ($150,000-$140,000) = $2,400
- ———————
- total (2018) =$25,079
So basically $10k less in tax, or an overall reduction of around 30%
Of course that does not take into account changes to itemized deductions, but at least its a start to wrap your mind around the new tax bill.
Thanks for the break down.