Who Will Get Hit the Hardest When Taxes Go Up in 2026?
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- Опубліковано 28 вер 2024
- When taxes go up in 2026, who is going to be affected by it the most? People in the 24% tax bracket or lower won't see too much of a change. Those above that tax bracket will see big jumps...let me explain.
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12% to 15% bracket change is a tax 'increase' of 25%! Tell the truth about the effective increase! 3 is 25% of 12!
My taxes will go up by close to 20%! Thats a pretty substantial increase for “only” going from 24% to 28%.
Most the damage will be on the margin though. I don’t think your total tax bill will go up by 20%.
@@DavidMcKnight Between the tax rates increasing in every bracket and the standard deduction going down from where it is today to a much lower value I’m expecting to see my tax bill go up by almost 20%. It might only be 17% or 18%, but it’s going to be a significant percentage increase.
The standard deduction will be adjusted for 8 years of inflation from 2017 and the personal exemptions will be brought back so your deductions will stay roughly the same if you’re not itemizing.
Good video. I just got The Power of Zero book today. Very helpful Dave on the compression at the higher brackets. One comment related to the State tax comment by the other gentleman. I agree State tax is important to evaluate in your overall process, but to my knowledge there is nothing in the expiring tax bill that is going to cause a State income tax increase. In fact the one item that was included in the current law is a $10k limit on State tax deductions for federal.
Correct. Just implications for federal rates.
Hopefully those who have not been paying their fair share.
Most of those taxes will hit the middle class.
I agree that if the TCJA expires the bracket compression for higher brackets is bad, but I disagree that it is not significant for the 24% bracket and below because nearly half of the 24% bracket income range is scheduled to land in the 33% bracket.
True. Once you get above around $307k you jump up but the 35% bracket only has about $70k worth of space which is even more compressed. Thanks for your comment.
If you’re in the 24% MFJ tax bracket now, you will also lose 100,000 in that bracket which becomes the 33% bracket. So it does affect people under the 32% bracket.
True. Once you get above around $307k you jump up but the 35% bracket only has about $70k worth of space which is even more compressed. Thanks for your comment.
Thanks, Dave, for an outstanding presentation on the looming tax "bomb"!💰💰
You’re welcome!