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Ultimate Tiger [35228]
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Trump and his spokespeople have been saying that folks will see a 65% increase..
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Jun 6, 2025, 7:04 AM
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in taxes if the Big Beautiful Bill isn't passed.
Can anyone explain this, 'cause it sure sounds like total horse sheet?
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Dynasty Maker [3308]
TigerPulse: 96%
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Well, the 2017 Tax Cut (enacted by Republicans).....
Jun 6, 2025, 7:09 AM
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had a sunset provision where taxes would eventually go back up. This was a budget thing that allowed them to pass the act through Reconciliation and bypass a Filibuster in the Senate.
So, if legislation isn't enacted, then by law, we will have tax rates increase. Not sure about the 65% number. It depends on your specific situation as to whether and how much taxes will increase.
https://www.jpmorgan.com/insights/wealth-planning/taxes/tax-cuts-and-jobs-act-tcja
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Ultimate Tiger [35228]
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Yes, I understand that rates would revert to pre TCJA rates...
Jun 6, 2025, 7:43 AM
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but that's no where near a 65% increase.
The biggest bracket change is the 24% bracket moving back to 28% (and bracket income range changes too), which is a 17% increase...of course it's not even that high because of the lower bracket impacts and bracket income range changes.
And there a little offset depending on situation with the child tax credits and phase-out income levels.
Also, the std deduction goes down, but that impact varies widely on personal circumstances.
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Dynasty Maker [3308]
TigerPulse: 96%
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I agree with you. The 65% number is likely made up...
Jun 6, 2025, 7:53 AM
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There might be a few situations where taxes go up a high % on certain people. The devil is in the details, and depends on specific situations with deductions & such.
Bottom-line...Taxes are going back up overall unless Congress extends the tax cuts.
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Ultimate Clemson Legend [109135]
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I'm STILL waiting on my $1.98 gas.***
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Jun 6, 2025, 8:21 AM
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Standout [244]
TigerPulse: 100%
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Re: Yes, I understand that rates would revert to pre TCJA rates...
Jun 6, 2025, 7:55 AM
[ in reply to Yes, I understand that rates would revert to pre TCJA rates... ] |
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Maybe some of the loop holes change?
I think one of the items that changed was the Child Tax credit. I think it went from $1000 to $2000 a child. I think that was Ivankas contribution.  "> Maybe that goes away or reverts back? So if that goes back to $1000, and most families have 1~2 kids you could end up having to owe $2k more a year. For families that make in the 50k-100k range of income, that would be 60% jump that he is alluding to.
For me personally, I did not personally see a major increase or decrease in my Tax return after the "Tax Cut" was enacted. I think what I did see was tied directly to the Child Tax credit change. That said, I did like the tax changes, because quite frankly, it made filing taxes easy. I use to have to itemize. By doubling the standard deduction, that took care of my itemized deductions and made filing a lot easier.
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Clemson Conqueror [11474]
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Yeah - that's what I was thinking - lower income families with multiple kids
Jun 6, 2025, 8:38 AM
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would see a major jump with a change to the child tax credit.
As an aside: if the "Tax Cut" didn't affect you - do you mean the standardized deduction is now approximately what your itemized deductions are? If so - there are ways to make your charitable donations every-other-year (by donating to a specific type of fund) and then dispersing your donations evenly from that fund.
By doing this - your itemized deductions greatly surpass the standard deduction every other year, which helps to lower your taxes.
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Paw Master [17468]
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Ultimate Tiger [35228]
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The impact of the std deduction definitely varies widely...
Jun 6, 2025, 9:44 AM
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as does the income range for the marginal rates.
Meaning...a lot of people that used to take itemized deduction started taking the std deduction when it was increased. The impact will vary person to person based on what their itemized deductions will be.
Example, married joint std deduction is $30k. If that goes down to what it used to be, someone that would have itemized deductions of $28k isn't impacted as much as someone that has lower itemized deductions or will now just take the lower std deduction.
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All-Time Great [91056]
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I'm all for itemizations going back to what they were.
Jun 6, 2025, 10:53 AM
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My wife and I both work from home; That's almost 1/4 of my house dedicated to workspace that is nondeductible now.
Between that and goodwill/charity deductions, it kept my year end tax payments under 5 figures. I'm all for going back to that.
Lets change it back to how it was; my taxes were cheaper then.
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National Champion [8016]
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Re: Trump and his spokespeople have been say that folks will see a 65% increase...
Jun 6, 2025, 9:39 AM
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Don't know about 65% but we will see a significant tax increase in our household, although since we still have alot of deductions, should we need to go back to itemizing, it won't hurt us as badly as many others in a similar tax bracket who have few deductions but have been enjoying the 30k standard deductions anyway. People with kids will be hit even harder.
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Ultimate Tiger [36225]
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Somewhere I got the impression that the % might refer to
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Jun 6, 2025, 9:56 AM
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the percentage of Americans who will see a tax increase. In which case it's is being communicated falsely.
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Game Changer [2066]
TigerPulse: 97%
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Yes Im 95% sure he is confused and that is what
Jun 6, 2025, 10:25 AM
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he is thinking of. The 65% increase on taxes is a lie.
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Game Changer [2066]
TigerPulse: 97%
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Its a lie.***
Jun 6, 2025, 10:24 AM
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