Posted on 11/02/2017 4:41:47 PM PDT by Mariner
House Republicans released a sweeping tax overhaul Thursday that would limit or end many of the most popular tools used to minimize how much Americans owe— particularly in high-cost areas like California -- including lowering the cap on mortgage interest deductions and eliminating write-offs of state income taxes.
The much-anticipated rollout launches a grueling legislative process that will test GOP unity in the coming weeks as the party struggles to deliver one of President’s Trump’s top priorities.
The plan would immediately slash the corporate tax rate to 20% from 35% and streamline individual rates from seven brackets into four.
In addition to ending write-offs of state and local income taxes, mortgage interest deductions would be limited to new loans of no more than $500,000, down from the current $1 million. Deductions for second homes would no longer be allowed. Property tax deductions would be capped at $10,000.
Popular 401(k) retirement savings plans used by many Americans were untouched by the bill, despite some efforts to restrict those tax-deferred accounts in a effort to pay for cuts elsewhere.
House Speaker Paul D. Ryan (R-Wis.) said the plan — the most ambitious attempt to overhaul the U.S. tax code in generations — would save the average American family $1,182 a year.
President Trump praised it as a “massive tax cut for American families” that will lead to the creation of more jobs. He wants Congress to pass the legislation by year end.
“We’re working to give the American people a giant tax cut for Christmas,” Trump said at the White House.
(Excerpt) Read more at latimes.com ...
Personally, I'm totally screwed. Lose many of the state deductions...AND the alimony deduction.
The friggin' alimony deduction. What is THAT logic? It's STILL income to my ex, so we are BOTH paying taxes on the same money.
Rotten damn Republicans.
Sucks to be a Kali-fornian. LMAO! Don’t be mad, I live on Long Island,People’s Republic of New York.
I’m ok with this. What these high tax states need to do is cut their tax rates in order to get back in line with other, lower tax states.
Will the pols do that in CA? Not a chance. They’d rather weep and wail and shift the blame elsewhere.
It’s NOT reform, it’s a shell game to raise taxes on individuals.
Mariner, you’ve been tracking this closer than just about anyone else. Do you know if the deduction for state/local SALES tax remains? Of course that wasn’t available to those who took the state/local income tax deduction previously.
Don’t believe these Lying Leftist Media outlets that proved themselves during the 2016 campaign to be operatives of the DNC and intentional liars. They are presumed to be lying and we should presume what they publish is a lie. The presumption can only be rebutted with the outlet providing clear and convincing evidence they are not lying.
If this story is true and has some redeeming value, at least get the story from a relatively reliable source, not from a known Lying Leftist operative posing as a “news” organization.
Punish the blue states screw we aren't giving Trump any Electoral College votes. Looks like I need a more creative accountant.
We’re pretty screwed by the proposal, too. How about cutting spending? Isn’t 20 Trillion in debt enough? Is Congress waiting for 30 trillion before they start thinking about cutting spending? Or are they waiting for economic collapse?
“It’s NOT reform, it’s a shell game to raise taxes on individuals.”
It moves the tax burden from lower-middle class, non-payers and the very rich, to include corporations...To the Upper middle class. Those between 100k and 200k who itemize and have a mortgage. Especially if they have a passel of kids.
It’s revenue neutral. By DEFINITION that is not a tax cut.
California? Sympathy can be found in the dictionary.
I am tired of supporting blue states.
I’m in Pennsylvania, a state that voted for Trump. Low income tax here plus a six percent sales tax.
Property taxes bad but property values much lower than other states.
I’m not paying near 10-thousand in property taxes.
California didn’t vote for Trump so I guess that state gets a worse deal.
I guess its calculated as a tax cut for people who tend to vote Republican.
But the big problem is out of control spending in DC and I know they will increase the debt ceiling.
That’s what concerns me more than anything I get or don’t get in a tax plan. We should be concerned about that.
Gosh, i hope we don’t lose California in the next election.
“I am tired of supporting blue states.”
You’ve never done anything in your life to support a blue state. The blue states support YOU.
And we are tired of supporting those who do not enough to support themselves.
“in a effort to pay for cuts elsewhere.”
The minute I hear about needing to “paying for” a tax cut, i know i am listening to a blithering idiot.
They tax you on interest “earned”, but not interest paid?
WTF is THAT?
Increase Std Ded by ~ amount of taken away personal exemptions? That helps no one, especially those who deduct.
It’s a total scam and will not reflect well on Trump of Congress.
“Gosh, i hope we don’t lose California in the next election.”
What about those 14 CA House Republicans? Any use for them?
OR the combined 34 House Republicans in CA, NY, NJ and IL?
Perhaps they are of no concern either?
“What these high tax states need to do is cut their tax rates in order to get back in line with other, lower tax states.”
It isn’t the income taxes that are the problem, it’s the mortgage interest. If you live in Dogpatch, and have a home that cost you say $150k, you’ll do fine, but in the Coastal States, houses start at $500k. What I worry about is what it could do to the real estate market, causing people who were counting on their home’s equity to finance their retirement.
That is outrageous. I bet that will be fixed in conference.....
Californians get screwed two ways - lower mortgage deductions and no deductions for state income tax.
Nevada and Arizona, get ready for an invasion.
I’m not paying near 10-thousand in property taxes.
Guess you aren't in the five counties surrounding Philadelphia. 200k assessment easily tops 10k in property tax.
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