Here's what I can tell you or what I have seen. Paychex made an adjustment on withholding that resulted in $150.71 more/pay cycle. She is paid bi-weekly, 26 cycles...so about $1,808 more in take home pay annually.
However.....that doesnt necessarily translate to more pay in the end.....as that is just your withholding, which could be more or less than your final tax bill.
Plus, you now have to consider the cap on state, property and local taxes....providing you are itemizing, and the loss of the personal exemption (I think), or something associated.
So, you might be getting more take home pay now......but wont get the same refund that you may have got in previous years. As you were kind of getting it with each pay cycle
You might get more now in take home......but then owe some at tax time. I suppose, it is conceivable you get some more take home pay and potentially get a refund as well.
There's a lot more to it really, than the media or politicians discuss most of the time.
In a way....Pelosi is right....it is kind of crumbs to an extent, but we all know she is just trying to downplay it as much as possible.
On the flip side.....crumbs, if saved, invested can add up over time can be meaningful.....provided they stay long term
This seems to target "middle class" sorts of people....with younger kids as well as I believe they expanded the child tax credit amounts.
Middle class can mean many things depending on what part of the country we want to look at, plus you have to balance out with the caps and potential loss of deductions.
Regardless.....its nice and all. At least they are trying to reduce people's tax liability, but the devil is in the details overall and will vary from state to state, household to household.
It certainly isnt going to be all that meaningful to the $30k/year or lower crowd.....but I would argue they are not paying much if any in the way of federal income taxes to being with.......so pretty hard to reduce their tax liability.
We cant really rely on democrats to reduce our taxes.......can we?
Hope this helps, please feel free to let me know if you have any additional questions.
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