You Should Be Very Afraid Of The New Tax Changes

That's right. Mortified. 

For the working-class on up to the upper-middle class (no rich). Things are going to get a lot more challenging and complicated. That means, statistically speaking, virtually everyone.

First, of all, I hope you are not a single filer with no kids (oh fuck, I am). You're going to get screwed across the board.

Single filer shuffle

A casual glance at that chart shows apparently lowered tax rates across the board at all income levels. Rejoice! 

Oh, actually no, if you look closer, things take an ugly turn if you're a single filer. 

Single get a 12% tax down from 15%, all the way up to $37,950. Ok, cool.  

Problem is married filers enjoy a 12% tax rate all the way up to $77,000 in joint income. That means if both partners make $38,500, which is $550 more each, they still get a 12% rate and you don't. This on top of the savings married couples have by living together and child deductions is a strong argument to get married in Trumps America.

Playing "gotcha" with deductions

The republicans are playing "Gotcha" with our money.

Medical expense deductions. Republicans lowered the floor deductible medical expenses from 10% of gross income to 7.5%. Looks like working class folks finally get a break....right? Nope.

Gotcha! It only stays in effect for 2 years after the bill is passed. Then it goes back to 10% after 2019. 

What about the new child tax credit? It expires after 2025, Gotcha! More on that later.

Life is sweet(er) for the rich

Not a rich hater. I love legitimately rich people. I love capitalism. But damn, if we're going to tax somebody, anybody, why tax the middle class more? Does that logically make sense?

Here's the breakdown:

1. Corporate tax rates will be reduced to 20%. Who owns corporations? Not Joe Average down the street. 
2. The estate tax exemption has been DOUBLED from $5.6 million to $11.2 million. Who asked for that?
3. Mortgage deduction now limited to $750,000 where it previously went up to $1,000,000. Since most middle class people hold most of their wealth in the form of their house, this is a loss for middle class homeowners.
4. Those of us who are middle class and who make $82,500 to $157,500 and who don't own a corporation will inexplicably be taxed at 24%. So yeah, we are effectively taxing the middle class more than the rich.

Don't live in a blue state

For the 132 million people who live in the states that voted for Clinton in 2016 things will get interesting. Now, you can only deduct state and local taxes for sales, income and real estate taxes up to $10,000. 

Seeing as blue states tend to have higher state and local taxes, "Ouch!" is the only word I can come up with.

But what about the children?

Republicans: "What children?"

There's more to the child tax "credit" than meets the eye. On the surface it raises the credit parents get from $1000 to $2000. Cool right? Nope.

The bill eliminates or reduces numerous deductions and credits.

• You can no longer exclude employer-provided childcare on your taxes
• The dependent care credit is reduced from $3000 to $500
• No adoption tax credits (previously $13,750 per child)

Hey I'm a comic, not a tax accountant, but all I'm saying is "look out!".