General Discussion
In reply to the discussion: Time to repeal Reagan's taxes on Social Security/Unemployment Benefits [View all]winagawaukee
(8 posts)There is a little more to the Trump Tax bill. First the Trump Tax bill took away the Personal Exemptions which were around $6000 and increasing each year. They folded the Personal Exemption into the Standard Deduction and said look we increased the Standard Deduction. Classic Bait and Switch.
If you were already taking the standard deduction the new tax rates possibly reduced your tax burden. But for anyone who itemized you got screwed. Itemizers lost the personal exemptions. Now you only had your deductions which were either capped or eliminated.
Mortgage interest remained as a deduction. But Property Taxes and State Income Taxes were capped at $10,000. Any taxes above this were lost. And then other deductions were eliminated like moving expenses, union dues, tools, or educational expenses used in your profession.
So with the loss of personal exemptions and the cap on state and local taxes, itemizers pay more in taxes now. Biden has proposed removing the cap but we still have lost the personal exemptions.