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Congress is expected to vote on the creatively titled Tax Cuts and Jobs Act in the next few days and all signs point to them having the votes to pass the bill that stands to dramatically overhaul the current tax system.
After months of secrecy, the GOP was kind enough to finally release the details of the proposed bill to the general public, who finally got the chance to see how the new plan will impact how much they’ll have to pay based on how much money they make in 2018.
Business Insider summed up the changes to the current tax brackets (assuming you’re a single filer) in an easily digestible graphic.
Republicans just released their final tax bill — here's how your tax bracket could change https://t.co/9FjoZeHQBf pic.twitter.com/qkKBwu5pBo
— Business Insider (@BusinessInsider) December 18, 2017
Single Filers
- 10%: $0 to $9,525
- 12%: $9,526 to $38,700
- 22%: $38,701 to $82,500
- 24%: $82,501 to $157,500
- 32%: $157,501 to $200,000
- 35%: $200,001 to $500,000
- 37%: over $500,000
Married Filers
- 10%: $0 to $19,050
- 12%: $19,051 to $77,400
- 22%: $77,401 to $165,000
- 24%: $165,001 to $315,000
- 32%: $315,001 to $400,000
- 35%: $400,001 to $600,000
- 37%: Over $600,000
If you don’t totally understand the chart, here’s an admittedly elementary breakdown.
The most dramatic change that comes with the new bill is the doubling of the standard deduction, which is the number you’re allowed to automatically subtract from your income for the year. This would theoretically benefit anyone who is single or married but could potentially have an impact on families with children when you take into consideration the elimination of the personal exemption.
The bill also lowers the percentage of income tax for virtually every tax bracket by at least a few percentage points. With that said, I’d like to extend my sincerest sympathies to everyone who stands to make over $500,000 next year for having to deal with a .1% increase in your bill.
It’s worth noting this article ignores the significant tax cuts for both corporations and business owners, because they required a much more nuanced analysis and I doubt many CEOs are coming to BroBible expecting a detailed breakdown of how the changes in policy will affect their bottom line.