Level 8
This widget could not be displayed.

Tax reform

The Standard Deduction nearly "doubles" but the personal exemption gets eliminated. Doesn't that mean that certain families will end up having more taxable income?

 

For example, we have $19k in itemized deductions and $8k for two exemptions in 2017, for a total reduction of $27k in taxable income, but with new "tax cut" plan, isn't my income reduced by only $24k, the new standard deduction?

 

Please explain to me how this is a tax cut, if my taxable income is going to be higher.