Supporters of current tax reform state that the first $24,000 (married filing jointly) of your income would be tax free. This is true, but very misleading. What they fail to mention is that under current tax law $20,800 of your income is already tax free (married filing jointly, no children). You would only get $3,200 additional tax free income under proposed tax reform. For married filing jointly with two children, $28,900 is currently tax free. Taxpayers in this category would lose $4,900 of tax free income under tax reform.
For a single taxpayer, $12,000 would be tax free with tax reform. Currently, $10,400 is already tax free, so you’re getting $1,600 additional tax free income with proposed tax reform.
They also don’t tell people that personal and dependency exemptions of $4,050 each for 2017 would no longer be allowed after 2017. All taxpayers would be at a disadvantage for this loss; those with children would be at a further disadvantage.
Beware of supporters touting only what they want you to hear and taking away current benefits for many taxpayers they don’t mention. - James Hopkins, Sioux City