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1 1 (September 2017)

handle is hein.amenin/aeiaazh0001 and id is 1 raw text is: Powered by Open Source Policy Modeling Increasing the Standard Deduction Alex Brill I September 20, 2017 1 Tax Brief Series 1 Current Policy Under current law, taxpayers can claim the standard deduction as an alternative to itemizing de- ductions. In 2017, the standard deduction is $6,350 for single filers, $9,350 for head of household filers, and $12,700 for married couples filing jointly. 2 Reform Options Both the House GOP and President Trump have proposed increasing the standard deduction. Using the open-source Tax-Calculator, I present results describing the effects of increasing the standard deduction by 25%, 50%, 100%, and 200%. Policy Taxpayers Itemizers Taxpayers Taxpayers 10-Year Receiving (millions) Facing Lower Paying Zero Revenue Tax Cut Marginal Tax or Less Change, (millions) Rate Income Tax Static (millions) (millions) (billions) Current Law 0.0 44.6 0.0 70.8 $0.0 25 percent 69.2 39.1 11.4 73.9 -$249.0 increase 50 percent 74.3 32.8 22.1 77.1 -$504.4 increase 100 percent 84.6 23.4 40.2 82.8 -$1,051.4 increase 200 percent 92.9 15.3 59.9 93.0 -$2,145.9 increase 3 Comments Under current law, 111.9 million taxpayers are expected to claim the standard deduction and 44.6 million are expected to itemize their deductions in 2017. Expanding the standard deduction narrows the tax base, increasing the number of people paying no income tax by 31 percent when the standard deduction is tripled. If the standard deduction is doubled, 84.6 million people would receive a tax cut, 40.2 million would face lower marginal tax rates, and 82.8 million taxpayers would pay zero or less in federal income tax.

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