Posted on 11/02/2017 7:21:40 AM PDT by GIdget2004
House Republicans will propose limiting the deductions for mortgage interest and state and local taxes in the tax bill they are releasing on Thursday, according to a summary of the legislation obtained by The Hill.
The bill, called the “Tax Cuts and Jobs Act,” largely follows the parameters that GOP leaders and the White House outlined in September. It would reduce the number of individual tax brackets, slash rates for businesses and eliminate a number of tax breaks.
In order to offset the costs of the legislation, Republicans are putting forward some proposals that are sure to be controversial.
The bill would keep the mortgage-interest deduction, but only for newly purchased homes up to $500,000. Homes bought in the past could keep the deduction regardless of price. The housing industry is sure to push back on that cap.
The legislation would also taxpayers to deduct their state and local property taxes, but only up to $10,000. It would not allow people to deduct state and local income or sales taxes.
Blue-state Republicans have fought to preserve that deduction, which is important to their constituents. It’s not clear how receptive they will be to the compromise.
“I’m still analyzing it, but right now, I’m strongly leaning no,” Rep. Pete King (R-N.Y.) said.
Several other controversial ideas that were floated to help pay for the bill, including limits on pre-tax contributions to 401(k) plans and including repeal of ObamaCare’s individual mandate, were apparently not included, according to the summary.
(Excerpt) Read more at thehill.com ...
How about we build that WALL...which will actually save millions of $$..and probably life and limbs..too.
How about we police and clean up the welfare roles....in this country. Probably save billions....
How about we clean up..and police the MEDICARE fraud...going on in this country....Probably save billions....
I could go on...and on.
“OTOH...paying more taxes, so that illegals, slackers, ghetto thugs, and CRONIES of pols ( companies, colleges, etc.) can get more of my money STINKS!”
I agree.
But there are credits and brackets that have changed, so until people actually run their own numbers, they won’t know what they will be paying. Just seeing a deduction reduced doesn’t give the whole picture.
Show me a scenario, using the entire 1040 and subsequent forms, That shows how anyone would pay thousands more. Just pointing to one deduction disappearing isn’t very accurate.
Everybody needs to take deep breadth here.
Looking the current tax brackets and the proposed brackets this an excellent for lower middle and middle income earners especially those with modest item deduction amounts.
Below are the married joint filing AGI levels you need to have under the proposed plan to end up paying the same tax as the current plan.
80,000 AGI becomes 104,200 AGI to pay the same tax
100,000 AGI becomes 124,200 AGI to pay the same tax
150,000 AGI becomes 174,200 AGI to pay the same tax
200,000 AGI becomes 229,860 AGI to pay the same tax
250,000 AGI becomes 280,848 AGI to pay the same tax
So what one could loose in itemized deductions would probably be more than offset by the bump in AGI needed to end up paying the same tax.
Well, now you’re being way too logical and factual. You’re taking away the ability for many to have a knee-jerk emotional fit.
They dropped the $4050.00 per personal exemption!
For someone who lives in my town, in state, with a similar income or more, or even less, the state and property taxes will have the paying thousands of dollars more, unless they have something like 10 minor children living with them. And I'm NOT talking about extremely wealthy people!
The same is also true for many people living in other states as well!
I'm NOT going to tell you what my income and taxes are; it's none of your business! And if you want to not believe me/accept what I said, then it's on you, as I have less than no reason to lie/make anything up.
The brackets and earnings for them HAS been posted; as they stand now! And they STINK for many!
Earlier, you said that you wouldn't mind paying more taxes, so YOU can pay my state and property taxes from now on. ;^)
You make good points. With details, no caps and real numbers. You’re a breath of fresh air.
But do you see businesses (real ones, not lawyers etc - manufacturing ones) benefiting?
We’ll have to see Trumps’s response to this. It’s not exactly what I wanted to see, but it does cut taxes for many middle class earners and businesses. Small businesses as well, that have been struggling with excessive regulations and taxation. Like the one I shut down because fees, regulations, taxes of numerous kinds, insurance, and licenses made it not worth my time and investment.
FLAMING HORSESHIT !
They should add it back in.
Am I on DU?
You are insulting me, with lots of caps, just because I calmly ask you For more information?
I know you have lots of knee-jerk reaction’s around these threads, and try to bully people into going away. I lovely example of conservatism you are not.
I didn’t ask you anything about yourself. So you don’t have to get allHigh and mighty. I asked you to give me a scenario. Make one up. Just show me one where the numbers come out where someone pays thousands more. It’s not rocket science, since you pretend to know all about this bill and it’s effect on everyone.
Obviously you can’t do it. So instead you resort to insults and telling me it’s none of my business. That’s not very intelligent.
He can pay mine, too, which will be easier, since my property taxes are about 1/3 to 1/2 of the average New York homeowner’s.
Talk about being on DU...it is YOU and the others here, who are posting like a kneepad wearing DUer, when faced with a post that disagrees with your uneducated "opinion" piece.
You said that you wouldn't believe that it would cost others MORE money, unless you say a 1040 form. Ergo, you WERE, indeed, asking for personal info.
Would you accept a madeup 1040 form? I doubt it.
And I don't "bully" anyone; snowflake.
I don't live in N.Y. state either, but my property taxes are sky high; sadly.
Because 24,000 doesn’t compensate for my deductions. Used to be 12000+personal exemptions + all deductions
Yes, but remember the effective tax rate for all corporations is just under 13%. No was of knowing, but I'd assume a 40% reduction in the gross rate would do at least the same in the net. So 13% drops to 8% or 9%. The long term benefit of that to the economy is probably exaggerated. Deregulation or the expectation of deregulation is probably more important.
The problems I see, the pass through rate of 25%, wonderful for very high earners, is inequitable. And will not only add to regulations, but will encourage creative accounting. And I think the estate tax elimination is problematical, particularly given the fact that the long term deficit hasn't been addressed. Nor has the step up basis for capital gains been addressed, so presumably it disappears.
More important, this benefits middle class taxpayers and below. That could be $50m some places, $100-$150m others. Before anyone questions that, in the evil blue states we want to stick to, several of which from the midwest elected President Trump, that's a couple of married school teachers, or a teacher married to a policeman or fireman. That will provide a boost to consumer spending. No huge benefits to high income, though there is in the 500m to 1mm range. They likely will spend discretionary income. I suspect the problem will be in that $50m to $250m range. I know, lot of money, but I'm not sure there's not much benefit there. In some ways not a big deal, but they also spend or invest increased discretionary income. And there are more of them. And I'm not sure much of the tax cuts hit there. I should note that though most of the talk has been about state taxes, I believe deductions for medical expenses and college costs disappear as well.
My real problem, if this is the sum total of 7-8 years of contemplation, shame on the GOP. Same with healthcare. And while I don't blame Trump for that, I don't think he's added much either.
I’m single, make a decent salary and it looks like this tax plan won’t help me very much. Might actually hurt some. I’m still studying what we have so far to know whether to gripe, shrug or cheer.
Yeah, but they didn't stick it to anyone. I fear this will become a political problem. If, when Nancy and Chuck yell about sticking it to the middle class to benefit the rich, more people listen, that's not good.
I didn’t say “CottonBall”.
“I fear this will become a political problem.”
Especially when it’s true.
There are 34 Republicans in NJ, NY, CA and Il.
All of their seats are now in play...at least.
The entire GOP delegation from CA is likely to be removed. That’s 14 right there.
And I’m going to help make it happen.
On the up side, lower corporate rates *should* mean lower prices, increased paychecks and greater employment.
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