The hit to working-class families might be ameliorated by changes in the child tax credit, but the tax plan released today was silent on the specific changes that will be made.
Hmmmmmm. Quite a big deal, there. Let’s look at your chart again:
Quick summary. From what we know today, the more kids you have, the worse you get screwed. Three kids, $1500 bucks more in taxes is your worse case scenario. Two kids could get hit with an extra grand, and one kid, possibly $500 dollars more.
There’s a pretty simple math problem there. If the child tax credit goes up by $500, all middle class earners are getting a tax break.
Five hundred bucks. So, the next question is, what is the average child tax credit today?
Ten Facts about the Child Tax Credit | Internal Revenue Service
Tax Tip 2011-29, February 10, 2011
So, the child tax credit is maxes at $1,000 and is means tested. If it is kicked up by about $300, then the majority of middle class families will get a tax break. If it’s kicked up by the $500 mentioned above, then if you have three kids and make right at the 52K mark, you break even, everyone else gets a break.
Seems that this isn’t much of a criticism, considering Trump’s plan so far is a barebones skeleton that Congress has yet to put some meat on. It’s going to be far more interesting, in my view, to watch the large blue state governors and senators trying to defend the state/local tax deduction, through which the federal government subsidizes high tax rates in the blue states.