Why the new 12000 dollar standard deduction for single, and 24000 for joint in the new tax plan is [View all]

[still_one]

not as much as people may think, because they are eliminating the personal exemption.

Most television outlets either ignore or just brush over that fact.

The current personal exemption is 4050 for single, and 8100 for joint

That effectively means that the new standard deduction for a single return is 12000 - 4050 = 7950
and the new standard deduction for a joint return is 24000 - 8100 = 15900

Of course this will effect those that itemize deductions the most, and especially those who pay high property, live in high income tax states, and have home equity loans. In many of those cases they will realize an actual increase in taxes.

In other words, many of the middle class itemize deductions, and they will be paying the tax refunds for the lower, most wealthy income people, and corporations who are getting a 14% tax cut.

The middle class will be financing this tax cut short term, and when the deficits balloon out of control in 2025 when it expires, we will all be holding the bag