I know my taxes went down. Filing single with an income of about $38,000 a year I got to keep about $600 more a year.
Not only did the tax rate go down by 3% but the standard deduction doubled.
The “rich” lost a lot of deductions through the law and high tax states pissed and moaned and Biden put some of the deductions that benefit the rich back.
Here are 2 changes that hit the rich hard but didn’t affect the poor or middle class.
https://www.taxpolicycenter.org/briefing-book/how-did-tcja-change-standard-deduction-and-itemized-deductions
“State and local taxes (SALT). Taxpayers can still deduct state and local real estate, personal property, and either income or sales taxes in tax years after 2017, but the TCJA capped the total SALT deduction at $10,000 for tax years 2018 through 2025.
Mortgage interest. The TCJA limited the deduction to the home mortgage interest on the first $750,000 of mortgage debt (reduced from the pre-TCJA limit of $1 million of mortgage debt) for mortgage loans taken out after December 15, 2017. Homeowners may no longer deduct interest paid on home equity loans, which was allowed for loans up to $100,000 before the TCJA, unless the debt is used to buy, build, or substantially improve the taxpayer’s home that secures the loan. Homeowners may still deduct mortgage interest on their primary residence and a second home.”
h/t Guest