YOUR TAX DEDUCTIONS MAY BE ON THE CHOPPING BLOCK
The link below takes you to Mitt Romney's 60 Minutes Interview on September 23rd. About 5 minutes in is where it starts to be relevant.
www.cbsnews.com/video/watch/?id=7422772nFurther, no one seems to understand that if Romney limits all deductions to 17K, that is a number being thrown around, the results of losing all of those exemptions and deductions will put you in a higher tax bracket, negating the reduction in taxes.
Example Based on Current Taxes:
Family of Four with 100K Income
Less 4@3800.00 = 15,200.00
Less Home Mortgage Int. Average - 10,000 year
Less Property Tax Average - 2500.00 year
Less Sales Tax deduction - 800.00 year
Less charity (Tithe) Minimal amount - 5000.00 year
Taxable Income = 66,500.00
(This does not even take child care, tuition, or other deduction in consideration)
$16,700 $67,900 $1,670 plus 15% of the amount over $16,700
Tax = 9140.00 - Effective rate = 9%
Example Based on Romney's Proposed Tax Plan:
Family of Four with 100K Income
Less 17,000.00 Flat Deduction
Taxable Income = 83,000.00
$67,900 $137,050 $9,350 plus 25% of the amount over $67,900
But Romney is proposing a 20% Reduction, so this is the result
$67,900 $137,050 $9,350 plus 20% of the amount over $67,900
Tax = 12,370.00 - Effective rate = 12.3%
This is a tax increase of 3.3% or 3,230.00.
This is based on lower than average deductions, and does not include the child tax credit of 1000.00 per child, the 2% reduction in social security tax available now, tuition credits, and a host of other items.
There is also this link that is more conservative, but still paints a bleak picture for the Romney tax plan.
www.barackobama.com/tax-calculator/Thank you.
