The Glass Tax Ceiling for working women still not resolved?!

The Glass Tax Ceiling for working women still not resolved?!

Although the current plan is suspiciously not detailed, it appears the “Marriage Penalty” is not going away.  Even worse, many married taxpayers will be paying MORE tax under the current proposals.

To review the marriage penalty exists when two single wage earners get married and pay more tax on the same now combined income.  The good news is this penalty doesn’t start until the combined wages exceed $420,000 combined wages.  That is up from $160,000 under the current plan.  Maybe Hillary would have been fair with tax reform but the democrats had 8 years to change this injustice and did nothing.  It was only improved under the Regan and Bush administrations and now potentially the Trump administration as well.

The chart below can be used to see the new tax amounts due for your income level to see the actual dolor change in tax the proposed reform will produce.  This chart is for comparison purposes only.  At the time of this writing the exact income levels that the new 15%, 25% and 35% rates have not been released.  The pre tax reform levels were used.

For example, if you earn $50,000 as a single taxpayer you would save $1,026 in tax.  A married couple earning $50,000 combined wages will save $568.  This is the federal government’s idea of making your taxes simple.

 

 (More) less Tax

PRE

POST

 Income

 Pre Tax Change

 PostTax Change

 PostTax Change

 Marriage

 Marriage

 single  MFJ  Single  MFJ  Single  MFJ  Single  MFJ

 Penalty

 Penalty

 15,000  30,000  1,784  3,568  1,800  3,600  (16)  (33)
 20,000  40,000  2,534  5,068  2,400  4,800  134  268
 25,000  50,000  3,284  6,568  3,000  6,000  284  568
 30,000  60,000  4,034  8,068  3,600  7,200  434  868
 35,000  70,000  4,784  8,978  4,200  8,400  584  578
 40,000  80,000  5,739  11,478  4,713  9,425  1,026  2,053
 45,000  90,000  6,989  13,978  5,963  11,925  1,026  2,053
 50,000  100,000  8,239  16,478  7,213  14,425  1,026  2,053
 55,000  110,000  9,489  18,978  8,463  16,925  1,026  2,053
 60,000  120,000  10,739  21,478  9,713  19,425  1,026  2,053
 65,000  130,000  11,989  23,978  10,963  21,925  1,026  2,053
 70,000  140,000  13,239  26,478  12,213  24,425  1,026  2,053
 75,000  150,000  14,489  28,978  13,463  26,925  1,026  2,053
 80,000  160,000  15,739  31,685  14,713  29,425  1,026  2,260  (208)
 85,000  170,000  16,989  34,485  15,963  31,925  1,026  2,560  (508)
 90,000  180,000  18,239  37,285  17,213  34,425  1,026  2,860  (808)
 95,000  190,000  19,582  40,085  18,463  36,925  1,120  3,160  (921)
 100,000  200,000  20,982  42,885  19,713  39,425  1,270  3,460  (921)
 105,000  210,000  22,382  45,685  20,963  41,925  1,420  3,760  (921)
 110,000  220,000  23,782  48,485  22,213  44,425  1,570  4,060  (921)
 115,000  230,000  25,182  51,285  23,463  46,925  1,720  4,360  (921)
 120,000  240,000  26,582  54,418  24,713  49,425  1,870  4,993  (1,254)
 125,000  250,000  27,982  57,718  25,963  51,925  2,020  5,793  (1,754)
 130,000  260,000  29,382  61,018  27,213  54,425  2,170  6,593  (2,254)
 135,000  270,000  30,782  64,318  28,463  56,925  2,320  7,393  (2,754)
 140,000  280,000  32,182  67,618  29,713  59,425  2,470  8,193  (3,254)
 145,000  290,000  33,582  70,918  30,963  61,925  2,620  8,993  (3,754)
 150,000  300,000  34,982  74,218  32,213  64,425  2,770  9,793  (4,254)
 155,000  310,000  36,382  77,518  33,463  66,925  2,920  10,593  (4,754)
 160,000  320,000  37,782  80,818  34,713  69,425  3,070  11,393  (5,254)
 165,000  330,000  39,182  84,118  35,963  71,925  3,220  12,193  (5,754)
 170,000  340,000  40,582  87,418  37,213  74,425  3,370  12,993  (6,254)
 175,000  350,000  41,982  90,718  38,463  76,925  3,520  13,793  (6,754)
 180,000  360,000  43,382  94,018  39,713  79,425  3,670  14,593  (7,254)
 185,000  370,000  44,782  97,318  40,963  81,925  3,820  15,393  (7,754)
 190,000  380,000  46,182  100,618  42,213  84,425  3,970  16,193  (8,254)
 195,000  390,000  47,750  103,918  43,463  86,925  4,287  16,993  (8,419)
 200,000  400,000  49,400  107,218  44,713  89,425  4,687  17,793  (8,419)
 205,000  410,000  51,050  110,518  45,963  91,925  5,087  18,593  (8,419)
 210,000  420,000  52,700  113,883  47,213  93,080  5,487  20,803  (8,484)  1,345
 215,000  430,000  54,350  117,383  48,463  96,580  5,887  20,803  (8,684)  345
 220,000  440,000  56,000  120,883  49,713  100,080  6,287  20,803  (8,884)  (655)
 225,000  450,000  57,650  124,383  50,963  103,580  6,687  20,803  (9,084)  (1,655)
 230,000  460,000  59,300  127,883  52,213  107,080  7,087  20,803  (9,284)  (2,655)
 235,000  470,000  60,950  131,628  53,463  110,580  7,487  21,048  (9,729)  (3,655)
 240,000  480,000  62,600  135,588  54,713  114,080  7,887  21,508  (10,389)  (4,655)
 245,000  490,000  64,250  139,548  55,963  117,580  8,287  21,968  (11,049)  (5,655)
 250,000  500,000  65,900  143,508  57,213  121,080  8,687  22,428  (11,709)  (6,655)
 255,000  510,000  67,550  147,468  58,463  124,580  9,087  22,888  (12,369)  (7,655)
 260,000  520,000  69,200  151,428  59,713  128,080  9,487  23,348  (13,029)  (8,655)
 265,000  530,000  70,850  155,388  60,963  131,580  9,887  23,808  (13,689)  (9,655)
 270,000  540,000  72,500  159,348  62,213  135,080  10,287  24,268  (14,349)  (10,655)
 275,000  550,000  74,150  163,308  63,463  138,580  10,687  24,728  (15,009)  (11,655)
 280,000  560,000  75,800  167,268  64,713  142,080  11,087  25,188  (15,669)  (12,655)
 285,000  570,000  77,450  171,228  65,963  145,580  11,487  25,648  (16,329)  (13,655)
 290,000  580,000  79,100  175,188  67,213  149,080  11,887  26,108  (16,989)  (14,655)
 295,000  590,000  80,750  179,148  68,463  152,580  12,287  26,568  (17,649)  (15,655)
 300,000  600,000  82,400  183,108  69,713  156,080  12,687  27,028  (18,309)  (16,655)
 305,000  610,000  84,050  187,068  70,963  159,580  13,087  27,488  (18,969)  (17,655)
 310,000  620,000  85,700  191,028  72,213  163,080  13,487  27,948  (19,629)  (18,655)
 315,000  630,000  87,350  194,988  73,463  166,580  13,887  28,408  (20,289)  (19,655)
 320,000  640,000  89,000  198,948  74,713  170,080  14,287  28,868  (20,949)  (20,655)
 325,000  650,000  90,650  202,908  75,963  173,580  14,687  29,328  (21,609)  (21,655)
 330,000  660,000  92,300  206,868  77,213  177,080  15,087  29,788  (22,269)  (22,655)
 335,000  670,000  93,950  210,828  78,463  180,580  15,487  30,248  (22,929)  (23,655)
 340,000  680,000  95,600  214,788  79,713  184,080  15,887  30,708  (23,589)  (24,655)
 345,000  690,000  97,250  218,748  80,963  187,580  16,287  31,168  (24,249)  (25,655)
 350,000  700,000  98,900  222,708  82,213  191,080  16,687  31,628  (24,909)  (26,655)
 355,000  710,000  100,550  226,668  83,463  194,580  17,087  32,088  (25,569)  (27,655)
 360,000  720,000  102,200  230,628  84,713  198,080  17,487  32,548  (26,229)  (28,655)
 365,000  730,000  103,850  234,588  85,963  201,580  17,887  33,008  (26,889)  (29,655)
 370,000  740,000  105,500  238,548  87,213  205,080  18,287  33,468  (27,549)  (30,655)
 375,000  750,000  107,150  242,508  88,463  208,580  18,687  33,928  (28,209)  (31,655)
 380,000  760,000  108,800  246,468  89,713  212,080  19,087  34,388  (28,869)  (32,655)
 385,000  770,000  110,450  250,428  90,963  215,580  19,487  34,848  (29,529)  (33,655)
 390,000  780,000  112,100  254,388  92,213  219,080  19,887  35,308  (30,189)  (34,655)
 395,000  790,000  113,750  258,348  93,463  222,580  20,287  35,768  (30,849)  (35,655)
 400,000  800,000  115,400  262,308  94,713  226,080  20,687  36,228  (31,509)  (36,655)
 405,000  810,000  117,050  266,268  95,963  229,580  21,087  36,688  (32,169)  (37,655)
 410,000  820,000  118,700  270,228  97,213  233,080  21,487  37,148  (32,829)  (38,655)
 415,000  830,000  120,350  274,188  98,463  236,580  21,887  37,608  (33,489)  (39,655)
 420,000  840,000  122,065  278,148  82,025  240,080  40,040  38,068  (34,018)  (76,030)
 425,000  850,000  124,119  282,108  101,368  243,580  22,751  38,528  (33,871)  (40,845)
 430,000  860,000  126,099  286,068  103,118  247,080  22,981  38,988  (33,871)  (40,845)
 435,000  870,000  128,079  290,028  104,868  250,580  23,211  39,448  (33,871)  (40,845)
 440,000  880,000  130,059  293,988  106,618  254,080  23,441  39,908  (33,871)  (40,845)
 445,000  890,000  132,039  297,948  108,368  257,580  23,671  40,368  (33,871)  (40,845)
 450,000  900,000  134,019  301,908  110,118  261,080  23,901  40,828  (33,871)  (40,845)
 455,000  910,000  135,999  305,868  111,868  264,580  24,131  41,288  (33,871)  (40,845)
 460,000  920,000  137,979  309,828  113,618  268,080  24,361  41,748  (33,871)  (40,845)
 465,000  930,000  139,959  313,788  115,368  271,580  24,591  42,208  (33,871)  (40,845)
 470,000  940,000  141,939  317,748  117,118  275,080  24,821  42,668  (33,871)  (40,845)
 475,000  950,000  143,919  321,708  118,868  278,580  25,051  43,128  (33,871)  (40,845)
 480,000  960,000  145,899  325,668  120,618  282,080  25,281  43,588  (33,871)  (40,845)
 485,000  970,000  147,879  329,628  122,368  285,580  25,511  44,048  (33,871)  (40,845)
 490,000  980,000  149,859  333,588  124,118  289,080  25,741  44,508  (33,871)  (40,845)
 495,000  990,000  151,839  337,548  125,868  292,580  25,971  44,968  (33,871)  (40,845)

 

 

 

 

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