Penelope
Diamond Member
- Jul 15, 2014
- 60,260
- 15,767
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you have since we will no longer have personal exemptions. Or maybe you will have to wait till you file your
taxes in April 2019. which would mean smaller paychecks during the year.
They will probably address this sometime this year. I bet the IRS is just working their butts off now on all new forms to be ready for 2018 in what 2 weeks.
Haste makes waste.
Also Chain Inflation= means less increase in inflation that causes the brackets and standard exemptions to raise. I'm sure they will work on this.
Note that inflation indexing of the tax brackets and various tax breaks is altered in the tax package. Critics complain that this amounts to a surreptitious tax hike that over time would nail nearly all individual filers. Currently, the federal income tax brackets, standard deductions and many other tax items are adjusted annually based on the government-calculated Consumer Price Index. Economists have argued that the version of the CPI used now tends to overstate actual inflation because the formula doesn’t account for how people change their spending patterns as prices rise. They claim that a “chained” index is a far better measure of inflation. A chained CPI would result in lower inflation adjustments than the current index. The new law uses a chained CPI for inflation indexing. As a result, there would be smaller annual increases in tax brackets, standard deductions and other breaks.
Read more at 26 Ways the GOP's Tax Reform Will Affect Your Wallet
26 Ways the GOP's Tax Reform Will Affect Your Wallet
taxes in April 2019. which would mean smaller paychecks during the year.
They will probably address this sometime this year. I bet the IRS is just working their butts off now on all new forms to be ready for 2018 in what 2 weeks.
Haste makes waste.
Also Chain Inflation= means less increase in inflation that causes the brackets and standard exemptions to raise. I'm sure they will work on this.
Note that inflation indexing of the tax brackets and various tax breaks is altered in the tax package. Critics complain that this amounts to a surreptitious tax hike that over time would nail nearly all individual filers. Currently, the federal income tax brackets, standard deductions and many other tax items are adjusted annually based on the government-calculated Consumer Price Index. Economists have argued that the version of the CPI used now tends to overstate actual inflation because the formula doesn’t account for how people change their spending patterns as prices rise. They claim that a “chained” index is a far better measure of inflation. A chained CPI would result in lower inflation adjustments than the current index. The new law uses a chained CPI for inflation indexing. As a result, there would be smaller annual increases in tax brackets, standard deductions and other breaks.
Read more at 26 Ways the GOP's Tax Reform Will Affect Your Wallet
26 Ways the GOP's Tax Reform Will Affect Your Wallet