The Takers will continue to take. And tax welfare (like EITC) is continued or even expanded (depending on who you read). EITC has been one of the biggest sources of tax fraud over the years - but no one wants to touch it.
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 ...
The Takers will continue to take. And tax welfare (like EITC) is continued or even expanded (depending on who you read). EITC has been one of the biggest sources of tax fraud over the years - but no one wants to touch it.
“Why should the rest of the country subsidize these states that seem to believe that they do not have to follow immigration rules and want us to pay for all the freebies they give away.”
Sheer ignorance.
Taxpayers in these states are subsidizing the freeloaders in the Red states. Almost all blue states pay more in income taxes than they receive in benefits.
Almost all red states receive more in federal expenditures than they pay in income taxes.
As examples I cite Texas, which receives $1.50 for every federal tax dollar (and is THIRD in net benefit of SALT deductions), and North Carolina which receives nearly $8!, $8! for every tax dollar sent to DC.
So they’re still eliminating personal/dependent exemptions?
I don’t see how this pile of K Street garbage passes. I’ve got a feeling the beltway GOP is about to go 0 for 3.
I have relatives in NY, and they would disagree with that statement. NJ does fare better in this version than in the originally proposed bill (you are correct there).
But CA is going to get creamed, because a greater portion of their deduction is from state and local taxes that rely less on property taxes than does NY and NJ.
My taxes would drop ~$1,750 next year with this.
“So they’re still eliminating personal/dependent exemptions?”
Completely eliminated.
100% correct. States like NJ receive back less than 70 cents on every dollar handed over the Federal government, and states like CA, NJ, IL, CT, and NY pay a HUGE portion of the Federal revenue.
“So they’re still eliminating personal/dependent exemptions?”
I can already say with near certainty that means your AGI is somewhere between $50k and $75k.
That’s the target range for rate reductions.
UNLESS you itemize and have kids.
History repeats, over and over and over again.
Oh, and the Jews will get the blame again. Gotta have a scape goat
Well, then, I guess we need to just give up and turn it over to the tender mercies of the socialist bureaucrats. They know better and they really care!
If it does, it is their own fault.
They wrote it with clear "winners and losers" - and are gambling that they can ram it through and expect the losers to just shut up and take it.
Man, I really hope you are wrong.
I think I’ll wait until publication and not some fake “insider information” story to tell me what’s in the bill.
I think the pay for perspective is a silly one. The government doesn’t pay for anything because they have no money but that which the people give them through taxation. We have $1million, we spend a million. We have 500K that’s what we spend. The way I would have gone about this is to blow a hole in the debt and then make arguments after that is already a fact on the ground that this is unsustainable and we need cuts. The GOP doesn’t know how to play the game. You create facts on the ground and that automatically changes the discussion. Does this pay for it on the backs of the people? That I don’t know because I don’t know the details but if you’re referring to SALT then I am fine with that. That is a fact on the ground for New York and Cali and the like. They should have governorship elections that discuss cutting taxes at a state level instead of huge taxes that the rest of the country have to, in essence, subsidize.
Right now, the interest on the debt is about 6%.
But if interest rates go up, Katy bar the door.
And, I am highly suspicious of the globalists. I think they are going to try to devalue the US Dollar.
Then we are really screwed.
I would lose big in this considering my California status. Biggest hit for me would be to lose state/local taxes deductions.
Actually the WSJ has published an infographic that spells this out:
Individuals:
39.6% - +$500K
35.0% - $200K to $500K
25.0% - $45K to $200K
12.0% - Up to $45K
Married Filing Jointly:
39.6% - +$1M
35.0% - $260K to $1M
25.0% - $90K to $260K
12.0% - Up to $90K
The SALT deductions go away and the property tax deduction are capped at $10K with the mortgage interest deduction being capped on loans up to $500K.
So - depending on where the brackets are & what the details are on a phase out for CTC - we’re looking at approx the same tax reliability - or a $2500 increase.
I doubt the 12% bracket will go very high though considering how secretive they’ve been.
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