Let say for example we had a fairly wealthy family making $200,000 per year with two homes, a middle class family making $100000 with one home, and a lower income family making $30000 renting an apartment. Lets say for math simplicity Interest tax deduction per house is $20000 per house, and Romney is elected and gives everyone a 20% Tax DECREASE
Taxes as they are today
As is The top earning example is taxed 200-40k or $160000 at 36% or $57000, the middle income example pays 100-20k or $80000 at 25% or $20000 and the lowest income is taxed $30000 at 15% or $4500. This would be total taxes taken in being $81500
With Romney Tax decrease
As is The top earning example is taxed $200000 at 30% or $60000, the middle income example pays $100000 at 20% or $20000 and the lowest income is taxed $30000 at 12% or $3600. This would be total taxes taken in being $83600
So it is possible
Current Rates
| Tax Rate | Single | Married Filing Joint | Head of Household |
|---|---|---|---|
| 10% | Up to $8,750 | Up to $17,500 | Up to $12,500 |
| 15% | $8,751 – $35,500 | $17,501 – $71,000 | $12,501 – $47,600 |
| 25% | $35,501 – $86,000 | $71,001 – $143,350 | $47,601 – $122,850 |
| 28% | $86,001 – $179,400 | $143,351 – $218,450 | $122,851 – $198,900 |
| 33% | $179,401 – $199,350 | $218,451 – $241,900 | $198,901 – $222,750 |
| 36% | $199,351 – $390,050 | $241,901 – $390,050 | $222,751 – $390,050 |
| 39.6% | Over $390,050 | Over $390,050 | Over $390,050 |
Married Filing Separate was not included in the release, but would be half the amounts for joint filers. I’ll update the 2013 federal tax tables for all filing statuses as soon as the information is available.
