I don’
photo from america250.org
I don't intend to throw cold water on a warm campfire,
but also, I don’t want folk to have unrealistic expectations.
The Tax and Spending Bill, passed by Congress and soon
to be signed by the President, provides for tax relief for many people.
But please don’t expect thousands of dollars.
I provide a “copy and paste” of explanation from a
fact sheet published by the House Committee on Ways and Means.
Delivers
on President Trump’s Commitment to American Workers
- No Tax on Tips:
- Eliminates income taxes on up to
$25,000 of tips for the 4 million tipped workers, boosting incomes of
tipped workers by $1,300.
- No Tax on Overtime:
- Eliminates income taxes on up to
$12,500 of overtime pay premium for the over 80 million hourly workers,
boosting incomes by $1,400.
- Tax Relief for Seniors:
- Middle- and low-income seniors
will be able to deduct an additional $6,000.
- No Tax on Auto Loan Interest:
- The average American family will
be able to fully deduct auto loan interest for new American-made cars.
*end of “copy and paste”*
Please pay attention to phrasing such as
*Eliminates income taxes on up to
$25,000: Regarding tips, tipped workers will see an increase of $1300. This
is an increase of $25 per week.
*Eliminates income taxes on up to
$12,500: Regarding overtime, This increase of $1400 results in an extra $27
per week.
*deduct an additional $6,000: Regarding tax relief for seniors,
this deduction of $6000 will result in an extra $12 per week for someone
with a 10% tax rate.
For realistic and accurate expectations
and planning, I suggest you consult your tax preparer to know how these policies will benefit you personally.
For more information you can visit the
official Ways and Means website:
