From Financial Samurai: Hip hop hooray! With House Democrats agreeing to not hold the middle class hostage anymore, the tax bill passed 277-148! It was a landslide victory, but still it's interesting to see that there were 148 dissenters. What's more amazing is that Democrats weren't able to lower the estate tax exemption amount of $5 million per individual, and raise the estate tax level of 35%. Talk about bad negotiating!
The real fun now begins where we all do rough pro forma calculations of how much more disposable income we'll have in 2011 and potentially 2012! First off, I'm glad to see that everybody will pay 2% less on the first $106,800 they earn thanks to a cut in payroll taxes (Social Security and Medicare) from 6.2% to 4.2%.
From $100,000 to $172,000 (28% Federal marginal tax bracket for singles), you really aren't going to see much of a change in that money earned after, because the government wasn't going after you guys. But, for all you lucky ducks who make $172,000-$380,000 (33% Federal marginal tax bracket for singles), and $380,000+ (35% Federal marginal tax bracket for singles), you're in for a big treat!
... Note, If you make anywhere between $106,801 and $172,000 your disposable income only increases by $2,136. If you make under $106,800, you'll save...
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More on taxes:
Your property taxes are probably too high
Why Democrats are crazy to hate tax cuts for the rich
Upcoming gov't loophole will allow huge estate tax avoidance
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