Democrat claims about the new tax law.


The Democreeps still are firing their old campaign slogans to wit: tax cut for the rich. So, I thought I would calculate whether or not the “average American” got a tax cut (and I checked with a tax accountant to be sure).

Here are the rates in the old tax law – let’s call it the Obama Tax Law or the Democreep Tax Law:

 

Here are the rates in the soon-to-be new tax law – let’s call it the Trump Tax Law or the Republican Tax Law:

These are the Trump versus Obama standard deductions:

Comparison of New and Old Tax law for the average married America with no children (the average earnings for a working person in the US is $51,939).

Trump/Republican Tax Law

2018 with personal deduction only

Earnings $51,939 – 24,000 = 27,939

(0-19050 @ 10%)                           1,905

(19050-27939 @ 12%)                  1,067

Federal tax                                2,972

Obama/Democreep Tax Law

2018 with personal deduction only 

Earnings $51,939 – 20,800 = 31,139

(0-18650 @ 10%)                          1,865

(18650-31139 @ 15%)                   1,873

Federal tax                                3,738

Difference in Fed Tx                 766

Percent difference           20% less

For the working poor, the first tax bracket (note it is the same in the Trump and Obama tax plan) is irrelevant because any earnings for a married couple up to $24,000 has a zero tax. For middle income groups up to $237,950 the tax reductions in each bracket are reduced by 3-4%.

I’m not savvy enough to calculate child tax credits so I chose a married couple with no children. But a 20% reduction in taxes is substantial and belies the claim that the “average” American won’t get a tax reduction.

Roy Filly

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About Roy Filly

Please read my first blog in which I describe myself and my goals.
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