While details of President Trump’s tax plan remain shrouded in mystery, Business Insider broke down the financial implications of candidate Trump’s proposed tax plan during the campaign season. The main takeaway is the more you make, the better you would fare. But one group, depending on their tax bracket, could be hit with higher tax payments: families with children, especially single parents. I urge everyone to examine the second and third chart in the article. The second chart illustrates that families making between $20,000 and $50,000 will see their taxes go up, while all other family filers with children get some modicum of a tax break on average. But the third chart showcases that single parents who earn between $20,000 and $200,000 fare the worst. They will receive a much higher tax increase due to deductions, personal exemptions, and head of household deductions. The loss of income under this law grows with each child.
• Instead of seven, we'd have three income tax brackets.
Current: 10%, 15%, 25%, 28%, 33%, 35%, 39.6%
Proposed: 12%, 25%, 33%
• The standard deduction would go way up. It jumps from $6,300 to $15,000 for singles; for married joint filers, it jumps from $12,600 to $30,000.
• Personal exemptions and exemptions for dependents would be eliminated, as would the head-of-household deduction.
• Families with children under age 13 could deduct childcare costs, capped at the state average.
• The alternative minimum tax, a complicated surtax that raises rates on middle- to upper-middle-class earners, would be axed. It currently affects nearly 5 million people.
• Gift taxes and estate taxes would be gone; capital gains held until death would be exempt up to $5 million per person.
For additional analysis, check out the Tax Policy Centers examination of the plan. (http://www.taxpolicycenter.org/publications/analysis-donald-trumps-revised-tax-plan/full)