How does the GOP tax reform benefit the average middle class?

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The biggest relief I want is not in the rates.

I don't want to do anything or hire anyone to do paperwork for April 15.

They can have the money, I just don't want to file anything.

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They can have the money, I just don't want to file anything.

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Uh do you want to put accountants and tax lawyers out of a job? SMH

Whew, I made 467K this year.

It likely wouldn't be revenue neutral. A cut to larger corporations would certainly stimulate economic growth unless this was different than any other tax cut in mankind's history. Some will post links showing the previous statement is incorrect. But usually they don't go out far enough to see the growth. The IRS EOD (I think that's it, but am doing this from memory) has data that would prove their conclusions incorrect, and mine correct. It's hard to argue no economic growth occurred, especially given the growth's relation to a time period after a tax cut. You can see decreased tax revenues, obviously a lower tax rate, but you can see the pattern of increase year after year. Not all attributable to the cut, but more dramatic than natural growth. and their relationship in time to tax cuts. But still, the increased revenue mostly never matches decreased revenue in hte short term.

There is also the truth that tax cuts for wealthy people are not reinvested, but saved. The same holds true for larger corporations, but probably as shareholder return on equity.

All Democrat talking points, and all valid. But I'm not a Democrat, and I certainly want a tax cut. How does Iowa Golfer reconcile this seeming contradiction?

Well, the proposed tax cuts will include lower income persons (at a greater level), and also smaller businesses (although this has been a moving target). Unlike wealthy people, and unlike larger corporations, these people and entities actually do spend and reinvest.

This really has ever been tried before on the scale proposed. We've had cuts for less wealthy people, and we've backed into cuts for smaller businesses whose tax rate flows to their personal rate, but not like this.

So maybe it hurts because the rich and large corporations just keep the money. Possible. Maybe it's bad becuase we get higher interest rates. Bad argument. We're going to get them anyway, notwithstanding the deficit.

But I suspect this is good, due the the less wealthy and smaller business aspect. More likely to spend (actually almost guaranteed with less wealthy people) and more likely to reinvest as a small business.

And then my instinct about why this cut will be more like Kennedy and Reagan, than some other failed "principled conservatives" of the past. Anecdotal. A different feeling this time. Carrier is the first example. My day is spent largely talking to people, and almost exclusively businesses with under 500 employees, like myself. To a person, and myself included, we're all excited about paying less taxes. Our effective rates are in many cases higher than a Fortune 500 corporation's rates. But to a person everyone I've talked to has discussed expanding. Every single person. The confidence of Trump's victory by those of us employing people is like nothing I've ever seen before. I was fairly young when Reagan was POTUS, but I have some recollection. Probably very hard to measure, and again, certainly anecdotal evidence, but polls have struggled capturing public sentiment, and business owner confidence is a segment of public sentiment, so I'm not sure how they capture this. Because if a guy running a business employing 320 people isn't captured, can you imagine how many of us are running businesses with 5-6 employees? The under 500 employee category is the largest employer, and the largest job creator. And that segment of business is huge in this country.

It is about time a drywaller with a crew of 3-4 guys pays a rate closer to Bank of America, than to the top personal rate of about 40%. If everyone pays, everyone gets a cut. It's progressive in nature, but no one with any amount of intelligence ever thought a flat rate and taxes on a post card were remotely possible. And it is not. Most people with a modicum of intelligence looked at the plans proposed during the campaign and saw Trumps was clearly the most detailed, and most viable plan of any of the major candidates. I guess this could be debated, but if I'm going to debate tax plans, I'd prefer to debate tax plans that might actually get done, not debate some campaign lie that had no chance.

So how will you benefit? Rate possibly. Rate isn't everything, the talk is about increasing personal exemptions, so this needs factored in. Not what your income is, but what your taxable income is. Economic growth eventually leads to wage inflation. No one who gets a W2 has an issue with that, except maybe Janet Yellen. And even she has improved at keeping quiet. It would be best if she went back to UC Berkeley. As long as we're being radical with this new President, maybe we get Eric Sprott as Fed Chair. Think you see a melt now? Not only would that melt be the most entertaining thing ever in history, it would lead to assassination attempts. JP MOrgan Chase would actually start hiring, hiring old friend of Carlos Marcello, waiting for someone to take a ride in a convertible through Dallas. They'd find Johnny Roselli floating in Biscayne Bay again, but I'm not sacred. No one gives a shite what I do in Iowa.

Bring it on baby. Tax cut.

I doubt it LSURussian. Your taxable income from last year would be reduced by about $11K to 26K depending if you're single or married. Standard deductions are being increased significantly.

I've been using standard deduction/exemption interchangeable which isn't correct.

So take last year's taxable income, reduce it either $11K or 26K, and then go the the percentage in the chart.

That's back of the napkin, and if you have a large family, or file head of household, this wouldn't apply. Larger families and head of household are the two most likely groups that could get nicked the way it stands now.

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How does the GOP tax reform benefit the average middle class?

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A perfect question for a year ago.

Gonna save me about $900 per year.

Actually one of the few balanced and well reasoned posts around here. I can respect your opinion even if I am dubious of the idea of what I see as corporate welfare.