Nearly doubling the standard tax deduction
The 2017 tax bill completely failed to deliver an investment boom, but in exchange, it lightened the tax load of many low-income earners but as simplified their life. Right before the tax bill, the standard deduction for taxpayers was $6,350 for those who were single, $9,350 for those who were heads of household, and $12,700 for married couples, alongside the personal exemption of $4,050.
Beyond this protected amount, low-income taxpayers can deduct additional amounts, only if they kept their records. The tax law swept away that particular need for record-keeping through low-wage workers.
Well, it nearly doubled the standard deduction, as for income that was earned in 2020, single people paid no income tax on their first $12,400, and heads of household on their first $18,650, but also married couples on their first $24,800.
The majority of the benefits of the 2017 bill were fully collected by the richest, and this measure did a great service, not only to the working poor but also to the many middle-income families, who can easily deduct more while reporting less.
