Posted on 09/27/2017 11:35:34 AM PDT by Jim Robinson
Congressional Republicans on Wednesday unveiled the framework for their long-awaited tax-reform plan, which simplifies the tax system and cuts rates for businesses -- while attempting to boost household incomes by nearly doubling the standard IRS deduction used by most Americans.
“Today, we move one step closer to fixing our broken tax code," House Speaker Paul Ryan, R-Wis., said. "This is our best opportunity in a generation to deliver real middle-class tax relief, create jobs here at home, and fuel unprecedented economic growth.”
The framework plan calls for increasing the standard deduction to $12,000 for individuals and $24,000 for families, which essentially doubles the amount of personal income that is tax-free.
Congressional Republicans describe the change as creating a larger “zero tax bracket.”
(Excerpt) Read more at foxnews.com ...
I would never do that. I just ran my projected taxes for 2017 through a tax program and got the surprise of my life when I was hit with the AMT for $7K.
"It's Tax Cuts for the RICH!"
Increasing the standard deduction but not fixing AMT means no change really.
I was harsh. Apologies. I’m grumpy.
I acknowledge the challenges and complications with a transition to FAIR TAX. In fact, year ago, when I read the Neal Bortz book about it, I immediately considered the problems. After researching all suggestions and research about implementation, I realized, we don’t have the grit or stomach for this sort of radical change. It would be like changing from Miles to Kilometers and feet to meters.
As you also pointed out, those who are moving to retirement or having saved money after being taxed would be affected when taxation moved from income to consumption. There would have to be a 2 to 5 year grace period where people were able to claim some sort of deduction or tax credit for taxes that had been paid on verifiable savings and implementation would have to be a multi-year thing. Essentially, the government would have to give back all money taxed previously for savings. And then at what rate do they rebate previously taxed savings ahead of the consumption implementation.
This is why I doubt we would have the will to make the change. And for sure, many wealthy people would likely get screwed the hardest. BUT that might help sell it for the liberals.
“I would never do that. I just ran my projected taxes for 2017 through a tax program and got the surprise of my life when I was hit with the AMT for $7K.”
You must have a very special situation! I am a middle class homeowner with taxable income over $59k and am nowhere close to being hit with the AMT.
great . Needs to be discussed in open committee like all laws. Great. I just did not want them to pull the wool over our eyes like they did on obamacare 2.0 . Thank God that failed miserably.
I smell a RAT.
What I heard this morning is that this bill eliminates the AMT and the Estate Tax.
That is misleading. Yes, it doubles the standard deduction but it also eliminates the personal deduction. So a married couple could see their standard deduction increase from $12000 to $24000 but they also lose $8100 in personal deductions. They lose the ability to deduction state and local income taxes and property taxes so their taxable income is sure to rise. Taxes on that income start at 12% instead of 10%, and depending on when the 25% rate kicks in they will almost certainly pay more in taxes.
With the removal of the personal exemption , it looks like that are going for a large family penalty. And which party’s members are more likely to have large families?
No way near long enough.
The biggest problem is the always overhead threat of a reinstitution of an Income Tax.
Europe shows the way with Income Taxes and VAT taxes. Then ther are wealth taxes (real estate taxes here at the moment). How much is enough? I'm very happy to be unemployed now as Zer0 hours of my labor are taxed. No more wage tax slavery for me.
I think you responded to the wrong post. Please check your work. Or maybe explain how the “Fair Tax” would increase your taxable income at all, let alone by a specific number.
;o)
If they got this to the senate today and the senate approved it tomorrow, could they go through the reconciliation process and get this signed?
We agree. BUT, the FAIR TAX, fully implemented includes a Constitutional Amendment to prevent this.
C'mon now. Don't sell yourself short.
“With the removal of the personal exemption , it looks like that are going for a large family penalty. “
My wife and I will be hit with an additional $8,000 in taxable income. Don’t know the tax brackets yet but that is at least a $2,000 tax hit!
Sorry, FReeper. You are asking the wrong person. Anyway, I don't know if I am happy with this or not. Frankly, I don't know enough about it. What are the rates and at what incomes are they starting? What is the child deduction that the article claims will stay? There is not enough information here for me to support or deride it. Democrats are hollering about it, so that is a good first sign.
Frankly, I don't know how anyone here can be sure whether it is good or bad yet. Some must be going on Faith in DJT while others have been beaten into pessimism and doubt. Most are just guessing for now. No details have been completely revealed.
There are smarter FReepers here than me. But I don't want this to pass so we can see what's in it. I don't trust government.
It's our best opportunity to do many things, but the do nothing RINO's just sit on their hands.
Good luck with that. Is Ditch on board? PRyno?
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.