The GOP tax cuts expanded an exemption for the Alternative Minimum Tax (AMT) and changed tax breaks that often triggered the tax. As a result, The Wall Street Journal’s Laura Saunders reports, “This year’s AMT is a shadow of its former self. It is expected to raise about $5 billion for 2018, down from an estimated $39 billion under prior law, according to the Tax Policy Center.” The AMT will likely hit some 200,000 tax filers for 2018, down from roughly 5 million who would have had to pay if the tax cuts hadn’t been passed. And the number of people making $500,000 or less who owe the AMT will fall to about 120,000 this year from 4 million last year, a Tax Policy Center economist tells the Journal.
Federal, state and local governments spent about $441 billion on infrastructure in 2017, with the money going toward highways, mass transit and rail, aviation, water transportation, water resources and water utilities. Measured as a percentage of GDP, total spending is a bit lower than it was 50 years ago. For more details, see this new report from the Congressional Budget Office.
The GOP tax cuts have provided a significant earnings boost for the big U.S. banks so far this year. Changes in the tax code “saved the nation’s six biggest banks $3.3 billion in the third quarter alone,” according to a Bloomberg report Thursday. The data is drawn from earnings reports from Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, Morgan Stanley and Wells Fargo.
We told you Thursday about the Trump administration’s announcement that average premiums for benchmark Obamacare plans will fall 1.5 percent next year, but analyst Charles Gaba says the story is a bit more complicated. According to Gaba’s calculations, average premiums for all individual health plans will rise next year by 3.1 percent.
The difference between the two figures is produced by two very different datasets. The Trump administration included only the second-lowest-cost Silver plans in 39 states in its analysis, while Gaba examined all individual plans sold in all 50 states.
The cap on Social Security payroll taxes will rise to $132,900 next year, an increase of 3.5 percent. (Earnings up to that level are subject to the Social Security tax.) The increase will affect about 11.6 million workers, Politico reports. Beneficiaries are also getting a boost, with a 2.8 percent cost-of-living increase coming in 2019.