2018 vs 2017 Tax Plan Comparison

There is much discussion and speculation on the effects of the new tax plan just passed by the Republicans and signed by President Trump. The problem with a lot of the discussion is that it doesn’t reference the actual, black-and-white facts and figures as contained in the new law. Much of what is being said isn’t found in the law at all and much of what is being omitted from media commentary is right there in black and white. It appears that biased media sources don’t think most people will actually check the easily available facts or will forget when the public actually finds out what is in the bill. So, as a public service, I put together this comparison using the Family Earnings from the legislation (the big filing category). There are other tables for non-families as well that you can easily look up on a number of Tax Calculator websites, referenced below. I’ve seen other similar ones so the format is borrowed. However, I am referencing the ACTUAL legislation from the TAX CUTS AND JOBS ACT from the Conference Committee that produced this reconciliation that was passed into law. You can look up the final 1,101 page bill pdf.

If you doubt my numbers or statements in the table, look at the legislation, find the section that I missed in the law, and prove me wrong. I’m happy to be corrected for any FACTUAL mistakes. I’m not interested in commentary from media sources or other “experts” as it’s easy to line up “experts” to prove anything from the flat earth to alien invasions to the world is ruled by a conspiracy of green unicorns from pluto. I’m interested only in actual black and white facts from the legislation.

The other thing to be aware of below is that some of the earning levels are not identical to the old tables. So, for instance, a family making $400,000 actually is worse off in the new plan because the old plan started the 35% tax bracket at $424,951. I use the broadest application of the categories.

2018 Republican Tax 2017 & Prior Tax
Individual Standard Deduction 12,000 6,350
Married Standard Deduction 24,000 12,700
Child Tax Credit 2,000 1,000
Family Earning 0-19,050 10% 10%
Family Earning 19,050-77,400 12% 15%
Family Earning 77,400-165,000 22% 25%
Family Earning 165,000-315,000 24% 28%
Family Earning 315,000-400,000 32% 33%
Family Earning 400,000-600,000 35% 35%
Family Earning over 600,000 37% 39.6%
Medical Expense Deduction Over 7.5% of Income Over 10% of Income
Tax for not having medical insurance No Penalty Penalizes Non-Insured
Mortgage Interest Deduct up to first $750,000 Deduct up to first $1,000,000
Corporate Tax Rate 21% 35%
Death Tax After $22,400,000 After $10,900,000
State & Local Tax Deduction Capped at $10,000 No Cap

Things that didn’t change in the new bill that people were concerned about. Electric Vehicles still get a tax credit and Student Loan Interest is still deductible.

Tax Calculators and Summaries

A good comparison of Old and New plans from SavingsToInvest, a personal finance site.

The New York Times (who is no fan of Trump and is very left-leaning)

CalcXML, a calculator site so pretty even handed usually.

Fox Business, more of a centrist business site, but right of center in my view. 

CNN, like the New York Times, very leftist and is strongly opposed to Trump.

MarketWatch, a financial markets website owned by Dow Jones. Not a political site.