Trump Tax Cut 2019 Edition.mp4
So the twittersphere was abuzz with anger over Trump's latest floater.
The headline is a "Middle Class" tax cut to 15%. We have to assume that is talking about the 22% bracket.
But a lot of people don't understand how tax brackets actually work, so in the video I walk through three examples: a single person, a married couple, and a married couple with one child to see how much they would have to earn to be affected by this "middle class" tax break.
The answers might surprise you.
Resources:
https://www.nerdwallet.com/blog/taxes/federal-income-tax-brackets/
https://en.wikipedia.org/wiki/Household_income_in_the_United_States#Distribution_of_household_income
https://www.cbo.gov/topics/income-distribution
https://www.zerohedge.com/markets/tax-cut-20-back-trump-exploring-cutting-rate-middle-class-15
▶️ 3Speak
I don't think it makes a lot of sense to look at countrywide data to determine who's middle class. A single person making $51k is approximately middle class where I live; where my cousins live they'd be in the top 10%. In San Francisco they might be living in a car.
Taxing all of these people equally is kind of nuts.
Yes, that's true. The CBO does compile statistics by state, and if you drill down in the census reports you can get median income by zip code.
But the Feds do tax everybody the same. So I think looking at it on a nationwide basis does make sense. Wherever the people in those quintiles live, they are still in the percentile they are in.
Tax cut in one place usually equals tax hike in another.
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Well they are still going to be spending the same, so you'll be taxed by inflation instead.
#soundsfair
Keep cutting taxes and then file for bankruptcy....oh wait, this is the U.S. economy not a business. Uh-oh.
That last gif is freaking hilarious!!!!
Fun fact: every tax cut that benefits the middle class also benefits the rich.
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Also true