The current Tax reform does not lower taxes for all. Instead it simply shuffles the the tax burden. For some, it means a higher tax burden for others not so much. A taxpayer filing a joint return with 5 dependents, who does not itemize likely sees an increase in taxable income from 2017. Why? Because in 2017 each dependent was worth $4050 in exemptions or in this case $28,350...then add to that the Standard Deduction for Married Filing Joint ($12,700) total deductions = $41,050. This year it's a straight up $24,000.
But wait there's more!
What about the married couple with no dependents. Last year they got $8,100 for the two exemptions add the Standard Deduction ($12,700) there total deductions are $20,800 for 2017. During the current year their situation improves because the Standard Deduction is $24,000.
The Tax Man giveth and taketh away....
