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 ...
Please get back to me when you know the present tax brackets.
Failing to understand that the 10 to 12 change looks bad is an exemplification of cluelessness.
Yes they are - in fact showed you how much they were ($1,800). If they have a kid, they wouldn’t but a married with no kids would today pay $1,800 in federal income taxes.
Dude. The dude that moves into a $100,000 starter home pays no tax so that is out of the equation.
I am talking about homes taxpayers in the $60k to $120k income range would buy.
This is a totally silly discussion. But you said, "People living in $100K houses don't pay taxes."
I live in Indiana. The cost of living is VERY reasonable. It's a well kept secret. Don't tell anyone. Where I live, a $300K home is pretty upper class digs. I think I make a decent wage (above 6 figures). I bought my house 12 years ago and today it is worth about $200K. My house is 3,200 SF, 4 bdrm, basement, 3-car garage 1/4, in a big city suburb.
LOL!! I have my own spread I use for calculating my taxes that was off by $50 last year for my wife and I and $120 the year before (and I make well over 6 digits). The current tax brackets are 10%, 15%, 25%, 28%, 33%, 35%, and 39.6%. I can do my taxes which includes multiple rental properties and multiple other sources of income in less than 15 minutes. I know way more about taxes than you do.
“For the higher income earners, while your deductions go down, the standard deduction goes up $10k.”
Sigh ....
Most higher income earners don’t use the standard deduction.
>>>Trump’s tax bill passes for that same couple. They still make $39,000. They get $24,000 in standard deductions and $8,100 in personal deductions, meaning they can be taxed on $6,900 * .12 = $828, so their tax bill is cut by more than
The personal exemption goes away, so income would be 15,000 and tax would be 1800. Pretty much breaks even. But add a kid and the story changes to the worse.
Pardon me if I am a little skeptical of some of the hand-wringing.
Thank you. Get in this boat. We'll row together for now. LOL!
OK! Got it.
It's a wonder Republicans get anything done, what with leadership having their heads firmly implanted, and the rank and file acting like cats someone is trying to herd.
I realize that, but even most of the ones in the top 20% are not paying a lot over the standard deduction due to 1) equity in their home (many own outright) 2) low mortgage rates today. Sure, if you live in CA, NY, NJ, or IL that portion of it would be bad. However, you also get a big reduction in the 15%, 28%, 33% and 35% tax brackets (that would go to 12% and 25% respectively) at the same time. Unless you have a million dollar mortgage, you are still better off.
If they get rid of personal exemptions, that would indeed get rid of most of that benefit. Hadn’t caught that in the WSJ article I wrote but upon re-reading does appear that way.
Federal tax belongs on corporations, only. The 16th amendment just legalized The Corporate Excise Tax of 1908. The two year, war powers, individual federal tax, of WWII, ended two years after it started.
Sure it's possible to create a better plan, but what can pass in congress is important too. We could abolish the IRS if congress would do the right thing. And as for the deficit, I believe Trump would actually cut government programs. Having a double standard deduction is going to sound good to a lot of middle class voters.
“I live in Indiana. The cost of living is VERY reasonable. It’s a well kept secret. Don’t tell anyone. Where I live, a $300K home is pretty upper class digs. I think I make a decent wage (above 6 figures). I bought my house 12 years ago and today it is worth about $200K. My house is 3,200 SF, 4 bdrm, basement, 3-car garage 1/4, in a big city suburb.”
My county has a median family income of $40k. Not exactly a rich area! From Zillow:
“The median list price per square foot in xxxxxx County is $115”.
3,200 x $115 = $368,000. No basements in FL.
“Having a double standard deduction is going to sound good to a lot of middle class voters. “
Not to a lot of homeowners like me that presently itemize.
Women and children benefitted most
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