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 ...
Oh, you mean on the tax vote. Never mind.
Or reduce spending which is the long term problem no one wants to address.
We were promised a TAX CUT by Trump; instead, we get this POS RINO RYAN crap sandwich, which far too many, here, are cheering on.
Of course not. Would still like to profit from the exodus if it does happen though!
Ok, I did not get to look at all of your links, but I will focus on a few and add one to provide a quick response. I will stick with my CA/MS example.
Your link at https://en.wikipedia.org/wiki/Federal_tax_revenue_by_state states that the federal collections for CA were $400B and for MS they were $11.5B. That’s a per capita tax of just over $10K per person for CA and just under $4K per person for MS. (people in CA obviously are making higher wages)
Your link at https://taxfoundation.org/states-rely-most-federal-aid/ shows that the percentage of state budget that is federally funded is 26% for CA and 40% for MS.
Here is a link for state budget sizes:
https://en.wikipedia.org/wiki/List_of_U.S._state_budgets
It shows CA budget of $170 Billion (I believe today its actually north of $200B), MS budget of $6.4 Billion. From the percentage link above, that’s roughly $40B federally funded for CA and $3B federally funded for MS. But if CA return on dollar is 1 to 1, then these numbers do not jive. So CA must be getting more back than $40B. Hell, they got several billion alone just for the stupid high speed rail to nowhere project. Where did the other $350B CA got back go? Its not going to the state budget so it must be going to other give away programs that are not accounted for. So I seriously question the use of and validity of earlier percentage link. Someone is lying. I have seen other links confirming the revenue, so the return to state is bogus.
The details that are not present in any of the links include how that money comes back to the state and how it gets used. If it comes back to the state in the form of military bases, then it makes fiscal sense to have a higher per capita cash back rate in MS where the cost of living/construction/etc is much less than CA. As a federal tax payer, I get better bang for my military support buck that way.
On the other hand, if CA has 4 Million people on SNAP (I’ll bet its more) and MS has only 500K on SNAP, CA is wasting (in my mind) the federal tax dollars I had to fork over at a much higher rate. If CA didnt have 4M people including illegals on SNAP, and if CA didnt have millions of illegals bilking the school system and the emergency rooms, how much do you think the per capita return on investment from CA would increase?
I agree completely...seems a farm exemption would be easy, now lets move on.
Your answer makes no sense.
Why should single homeowners in New Jersey and New York get special federal income tax breaks that the rest of the country don’t get?
The folks who’ll get hosed under this are dinks living in high state income tax states.
Right you are.
Haven’t lived there in over 40 years but the rules to their game are still the same. They win with them and their cronies getting richer at the expense of the taxpayers.
Will you please stop using facts and logic? They have no place here.
You can’t be THAT naive...can you? *eye roll*
Hopefully some credible organization like the Tax Foundation will post some calculators soon so folks can easily run their own numbers. I did it the old fashioned way in about 5 mins and was pleasantly surprised.
while raising the standard deduction from $6,350 to $12,000 for individuals and from $12,700 to $24,000 for married couples.
Hmmmm. Not so sure. No love lost for the ryno but this tax plan isn’t so bad and will likely improve. Keep in mind that the legislative branch will determine whether its “revenue neutral.”
Oh sure, some of the blue state movers, into red states, might be RINOS, with others being Conservatives; however, you're dreaming if imagine that lots and lots and LOTS of the movers won't be lefties to faaaaaaaaaaaaaaaaaaaaaaaaaaaar lefties.
Oh yes they do.
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