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GOP unveils final version of tax reform bill
Fox News ^ | December 15, 2017 | Samuel Chamberlain

Posted on 12/15/2017 3:07:31 PM PST by jazusamo

Congressional Republicans unveiled the most sweeping overhaul of the nation’s tax code Friday evening with an eye toward final passage next week after two key GOP senators endorsed the legislation.

The final version of the so-called Tax Cuts and Jobs Act keeps seven tax brackets, but reduces rates for five of them. The new rates start at 10 percent and rise to 12, 22, 24, 32, 35 and 37 percent. The corporate tax rate is reduced from 35 percent to 21 percent and the bill provides sweeping tax deductions to other businesses, lowering their top effective tax rate to about 30 percent instead of 39.6 percent

The final package would double the basic per-child tax credit for families making up to $400,000 a year from $1,000 to $2,000. Sen. Marco Rubio, R-Fla., was expected to vote for the bill after winning a late concession that would make up to $1,400 of the credit available as a tax refund to lower- and middle-income families with relatively small tax bills.

(Excerpt) Read more at foxnews.com ...


TOPICS: Business/Economy; Front Page News; Government; News/Current Events
KEYWORDS: 115th; incometaxes; taxcutsandjobsact; taxes; taxreform; taxreformbill; tcja; trumptaxcuts
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To: wita; Diana in Wisconsin
I haven't actually "liquidated" all assets - both of us getting SS and have other retirements that pay the expenses with a decent amount left over, but we have no debt...we own both vehicles and the house.

We both have IRAs that are in a vehicle that guarantees 6% (4.8% after fees) but will not lose any principle if the market tanks, while gaining extra if the market does well under a set of circumstances. Last year we gained over 10% because the market did well and it looks to be similar this year. Put some non-IRA money in an "annuity" that we have a good deal of control over and while the initial money was already taxed, the earnings (10% simple interest/year) will be taxed when we take them out (pro-rated to take x-amount of tax-paid and a smaller amount of taxable when we decide to tap it).

We chose the current vehicles because we took hits for both the previous "crashes" and did not want to risk such again in retirement - could be earning more right now but wanted the security blanket against big hits.

The only thing that could inconvenience us now is runaway inflation and it would have to be pretty bad to really cause issues.

101 posted on 12/16/2017 8:04:26 AM PST by trebb (Where in the the hell has my country gone?)
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To: MinuteGal; jazusamo; flaglady47; JulieRNR21; mcmuffin; I still care; Liz; M Kehoe

Never good when one section of people are forced to subsidize another section of people.

But then, for every 8 geezers retiring, there are only 2 new workers joining the work force, for a decade or 2 to come. Entitle payments are on track to hit a wall in 15 years. Which means either cut entitlements, or make more babies or import more immigrants. Many countries in Europe and Japan are facing the same problem.


102 posted on 12/16/2017 8:36:19 AM PST by entropy12 (30 Million low wealth, low skill LEGAL chain migrants in 25 years = REAL cheap labor express)
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To: terart

Depends on income level of your business.

For joint filers:

10 percent: $0 to $19,050
12 percent: $19,050 to $77,400
22 percent: $77,400 to $165,000
24 percent: $165,000 to $315,000
32 percent: $315,000 to $400,000
35 percent: $400,000 to $600,000
37 percent: $600,000 and above
For single filers:

10 percent: $0 to $9,525
12 percent: $9,525 to $38,700
22 percent: $38,700 to $82,500
24 percent: $82,500 to $157,500
32 percent: $157,500 to $200,000
35 percent: $200,000 to $500,000
37 percent: $500,000 and above


103 posted on 12/16/2017 8:40:06 AM PST by entropy12 (30 Million low wealth, low skill LEGAL chain migrants in 25 years = REAL cheap labor express)
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To: terart

However the standard deduction has nearly DOUBLED.

Which means AGI subject to above tax rates will be lower.


104 posted on 12/16/2017 8:42:16 AM PST by entropy12 (30 Million low wealth, low skill LEGAL chain migrants in 25 years = REAL cheap labor express)
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To: freedumb2003; terart

Not completely true, since there is a 20% exemption involved.

Pass-Through Deduction
Current law: Pass-through businesses, which include partnerships, limited liability companies, S corporations and sole proprietorships, pass their income to their owners, who pay tax at their individual rates.

Proposed: Owners could apply a 20 percent deduction to their business income, subject to limits that would begin at $315,000 for married couples (or half that for single taxpayers).


105 posted on 12/16/2017 8:46:49 AM PST by entropy12 (30 Million low wealth, low skill LEGAL chain migrants in 25 years = REAL cheap labor express)
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To: entropy12

That is new — good news.

Too damn many moving parts in this “tax simplification” law.


106 posted on 12/16/2017 8:53:41 AM PST by freedumb2003 (Conservatives should do daily affirmations: reading/repeating the 9th and 10th Amendments)
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To: freedumb2003

Do not worry too much. On the whole middle class gets a tax reduction. Any good tax software will compute tax correctly. Some high rollers in states like NY, NJ, CA could end up with higher federal income tax IF THEIR SALT (state and local tax deduction) is higher than $10k.


107 posted on 12/16/2017 9:00:05 AM PST by entropy12 (30 Million low wealth, low skill LEGAL chain migrants in 25 years = REAL cheap labor express)
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To: House Atreides

And they really put the hammer down on single professionals.

Wow.

32% of all income over $157k and 35% at $200k.

All while miniaturizing SALT.

There must be an intent to punish. It’s the only reasoning I can deduce.


108 posted on 12/16/2017 9:04:59 AM PST by Mariner (War Criminal #18)
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To: dynoman

Thanks, the revised calculator confirms my suspicions that I will owe more. This will force people with a lot of SALT payments to find new ways to shelter their income or modify their behavior.


109 posted on 12/16/2017 11:55:46 AM PST by Truth29
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To: entropy12
You made a good point...hadn't thought about that.

Scary options.....

Leni

110 posted on 12/16/2017 4:13:34 PM PST by MinuteGal (MAGA !!!)
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To: trebb

Please be aware that those vehicles which guaranty 4.8% are not guaranteed to go bankrupt.


111 posted on 12/16/2017 4:51:00 PM PST by entropy12 (30 Million low wealth, low skill LEGAL chain migrants in 25 years = REAL cheap labor express)
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To: entropy12

Understood but some are so big and well established that if they go belly up we’ll have other things to worry about. Nothing is certain ... if we kept all our cash under the mattress, the government could gain full control by changing the currency and forcing us to “filter” it through their greedy fingers....


112 posted on 12/17/2017 2:46:59 AM PST by trebb (Where in the the hell has my country gone?)
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To: trebb

Best opportunities lie ahead.

http://www.multpl.com/shiller-pe/


113 posted on 12/17/2017 8:29:38 AM PST by entropy12 (30 Million low wealth, low skill LEGAL chain migrants in 25 years = REAL cheap labor express)
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To: MinuteGal
***This will come back to haunt him in his next election here in Florida***

I predict that if the Repubbies lose the Congress, Mr. Turncoat Rubio will do the same as he did to the Tea Party that got him elected originally: turn his back on them - and then become a 'Rat'... It would seem that Sen. Rubio is out for Mr. Rubio...

114 posted on 12/17/2017 12:20:01 PM PST by Bob Ireland (The Democrat Party is a criminal enterprise)
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To: Java4Jay

“Corporate tax rate down from 35% to 21% - This is nuts!”
“We get stuck holding the bag, again.”

Arguing that some other sector gets a bigger tax cut than you is like complaining that the burglars stole less from your neighbor than was stolen from you.

Be glad US corporations will be taxed less. Then, if you still think you are over taxed (which you are) - fight for more tax cuts again next time around.

The Left always tries to foment class warfare by advancing an economic fallacy that there is X amount of wealth to divide up. They tell the less wealthy that the more wealthy must have stolen their share of wealth. It’s a fallacy - that’s not the way wealth creation works.

A version of the same fallacy is being advanced with tax cuts. The Left obsesses on the fairness of which demographic gets a higher share of a tax cut. Don’t fall for it. Taxes are too high across the board, any tax cuts in any sector are a good thing.

Corporations shouldn’t be paying ANY tax - shareholders pay tax as individuals so a Corporate tax is double taxation - a leftist trick to begin with. Then, with high corporate tax rates, US corporations can’t compete in and the entire US economy flounders, Americans lose jobs. Any cut in the corporate rate is a win. Be glad for any cut we can get in an sector and then fight for more next time around.


115 posted on 12/17/2017 1:21:30 PM PST by enumerated
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To: entropy12
Almost makes me wish I wasn't retired and didn't need to go the "safe" route - almost but not quite, I enjoy being retired and having enough to live on that i no longer have a need to save/amass any more.

Appreciate the link though - savvy folks preparing for retirement do have some good options available.

116 posted on 12/18/2017 3:17:17 AM PST by trebb (Where in the the hell has my country gone?)
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