Thursday, May 4, 2017

Trump's Tax Plan - Part 1

I know I just did a long series about speedrunning "Nancy Drew: Secret of the Old Clock", but would you mind if I wrote a series about President Trump's tax plan? I feel like I actually know something about the topic of taxes. Maybe?

One of the ideas is to double the standard deduction and get rid of dependents.

The way taxes currently work, you have to figure out how much money you made that year. Then you subtract $6,300 for yourself, and $6,300 for your spouse, if you have one. Then you subtract $4,050 for every dependent you have. That gets you the amount of money you pay taxes on.

The proposed plan is that you figure out how much money you made that year. Then you subtract $12,600 for yourself and $12,600 for your spouse, if you have one. That gets you the amount of money you made that year.

The good part of this plan is that it makes the math much simpler. Also, getting rid of dependents would reduce a TON of headaches. There are a lot of divorced or separated couples that have fights over who gets to claim the kids for tax purposes. Sadly, there are plenty of mean-spirited people who will claim a child they're not eligible to, just to cause problems for their ex-spouse. The IRS has procedures for what to do in this case, but they sometimes get ignored.

The bad part of the plan is that it doesn't work for everyone. If you do the math, a single person with two dependents ends up getting a smaller tax break. Same goes with a married couple, with four or more dependents.

1 comment:

Anonymous said...

does a single person get to deduct the $12,000? What about a married person with no children?

It doesnt seem fair that single people are so penalized when it is so much more expensive to live (you have to pay full rent, bills, not sharing any expenses etc.)

I can understand deducting those with children, but not childless married.