Will your taxes go down with the new, Republican government? Not necessarily.
Complaints about the tax code being unreasonably complex are well founded; even well seasoned IRS agents have trouble keeping up with the convoluted rules and calculations. Simplifying the tax code cannot be easily accomplished with an axe; parts of what’s left will remain to make things even more confusing.
Two of the principal proposals of the incoming regime are to reduce the number of individual tax brackets, and to greatly increase the standard deduction and eliminate personal exemptions.
This could cause many people’s taxes to increase by bumping them up to a HIGHER tax bracket, and/or eliminating personal exemptions for dependents, thereby increasing taxable income.
Check out this MarketWatch article to read more.