Tax plan will be bonus for most

Articles in The Day about the new tax law want people to believe that the majority of taxpayers are going to be hurt by the cap of $10,000 of itemization on their tax forms. In accordance with the Congressional Research Service, 17 percent of people with incomes of $20,000 to $50,000 itemize an average of $15,600 on their tax forms. Thus 83 percent of the people in this range aren’t affected by the cap.

For the 83 percent the standard deduction increases from $12,000 to about $24,000 and their taxable income drops by an additional $12,000. Those in the 17 percent group can now take the standard deduction and still realize a $24,000-$15,600 or $8,400 income reduction and more take home money. Also, 46 percent of people with incomes of $50,000 to $100,000 itemize $19,200 on their tax forms. Thus 54 percent of the people making up to $100,000 aren’t affected and will realize the additional $12,000 taxable income tax reduction and the 46 percent who itemize will see a $24,00-$19,200 or an additional $4,800 taxable income tax reduction.

Only people making somewhere around $150,000 will either break even or see a small increase in their taxes.

High tax states should lower their taxes to help stop the exodus of high-income people from their state.

Frank Ricci

Groton

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