Thread by @IntegrityIGP

1) This is going to really get you going today😡😡😡.
The #DonorBailoutTaxBill is much worse than almost everyone is reporting because they are focusing on the increase in the standard deduction. However, the bill also repeals the personal exemption. Lets look at these 2 parts🤔

2) The @GOP has managed to push the line that they are increasing the standard deduction and this is going to be a boon for all Americans. The standard deduction will go from $6,350 to $12,000 for singles and from $12,700 to $24,000 for married couples. But this is all smoke...🤢

3) The result is a change of +$5,650 for singles and +$11,300 for married couples. But, they are taking the personal exemption of $4,050 away from every man, woman, and child. Here is some info on the personal exemption if you are unfamiliar with it. ttlc.intuit.com/questions/1899…

4) This results in most people having a TAX HIKE based on the standard deduction and personal exemption change. Lets take a deeper look at how this happens.

5) Accounting for both the standard deduction and personal exemption we get the following change in deductions those who are filing single without itemizing:
Single, 0 dependents - +$1,600
Single, 1 dependent - (-$2,450) 😬
Single, 2 dependents - (-$6,500) 😰

6) For couples we get
Married, 0 dependents - +$3,200
Married, 1 dependent - (-$850)😬
Married, 2 dependents - (-$4,900)😰
Married, 3 dependents - (-$8,950)😱

7) As you can see, even though they are touting this as an increase in how much of your income you can deduct without itemizing, it just isn't the case for most Americans. If you have even a single dependent (child) then you actually get a tax HIKE based on this change.

8) But it gets even worse. The personal exemption is not considered when you look to see if you can itemize. That means today you itemize if you have other deductions (mortgage, medical, state income tax, etc) > $6,350 for singles and $12,700 for couples.

9) Now, even though you likely have a lower amount you can deduct if you don't itemize, you can't itemize until your deductions are > $12,000 for singles and $24,000 for married couples. So the 44M Americans who itemize will likely get another hike on top of the loss of the PE.

10) Lets take an example:
Family of 4, 20k in itemized deductions (mortgage, state tax, etc), and an 80k income.
Today:
Personal exemption 16,200 deduction.
Itemized deduction of 20k.
total deduction of $36,200.

Taxable income of 80,000-36,200 = 43,800

11) Under the new #DonorBailoutTaxBill:
The family no longer gets the personal exemption.
The family can no longer itemize
The family gets a 24k std deduction.
80,000-24,000 = 56,000 taxable income.

So under the bill the family would pay taxes on an extra 12,200 in income.😡😱😡

Without the full bill we can't drill down to the exact amount of the TAX HIKE the family will experience, but we can estimate it at ~$1,500. Do you have an extra $1,500 to send to the @GOP so they can give a bailout to their donors? Not to mention the increase in the debt...

12) This becomes even more damaging when you consider they are capping SALT and reducing the mortgage interest deductions. They make it harder to qualify to itemize and then reduce your ability to get to that higher threshold.

13) This entire bill is riddled with these things. The bill appears designed to burden real Americans while benefiting non-human entities (businesses and financial trusts etc). When this passes it will damage us all. Tax reform may be needed but not like this...

14) The #DonorBailoutTaxBill will not help the economy... It needs to be stopped. Every news station needs to look at this and report on the removal of the personal exemption and the real tax HIKE hidden here. Please help spread this information so everyone in the country knows.