So Fox News, using info from the Tax Foundation, are claiming that when the Trump Tax cuts end that now households will be having an onerous tax burden at a time that households are struggling to meet ends with rising costs.
Now, it is true that the tax cuts will raise all rates above the first bracket but the Tax Foundation’s numbers don’t add up.
They claim that getting rid of the tax cuts will over complicate things but their own calculator is different!
So a single filer, making 30k with no children the Tax Foundation says that they would have a $253.75 increase to their tax burden. But doing a “custom” tax situation with their calculator and putting in the same details (single 30k no kids standard deduction) I get an increase in taxes by $332.75. Doing the math myself I get a tax burden increase of $114.00.
So their bracket goes from 12% to 15% but none of these numbers line up. The Tax Foundation clearly is manipulating something.
The next example I am going over is, family filing jointly making 165k with 2 children. Tax Foundation says after the tax cuts expire they would owe $2450.50 more. A “custom” tax situation with their calculator and putting in the same details again I get an increase in taxes by $5541.50. Doing the math myself I get a tax burden increase of $4259.94 (without factoring the child tax credit to boot!).
In the 30k scenario, if they are paid bi-weekly that is ~$10 a paycheck using the Tax Foundation’s reported numbers, ~$13 with their calculator, and <$5 with my math.
It’s still an increase but even in the worst case scenario that isn’t onerous.
In the 165k scenario, in their bi-weekly paychecks they would see ~$95, ~$214, or ~$164 more respectively. Now this is much more but how much do you want to bet the Tax Foundation has an article complaining about the deficit?
@NBAnthony2k FDR started the Federal income tax specifically to help not only pay for all the new federal programs but also to combat inflation. One cause of inflation is too much money and not enough goods. Taxing people is one way to reduce all that cash sloshing around.
It’s hard to take conservative deficit hawks seriously when they are so pro-tax cut.
Add comment