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 ...
From what I understand, at least the first two of those are part of the plan. The death tax and AMT are to be eliminated.
It doesn’t really make any difference in how complex they make things. The basics still drive the situation. An increase in the marginal rate is always wrong.
I doubt it will make up for removing $20k in exemptions.
Not to mention that high property taxes in Texas will no longer be eligible for deduction. Family farm, home, a rent house — I’m in a hole.
And I have to start taking RMDs from IRAs next year. Looks like every penny of it will go to federal taxes.
I don’t know what my taxes will be but my taxable income will go up.
I don’t think you get what I’m saying. I don’t disagree with the overall theory you are saying, but right now my marginal federal tax is 35% and if this gets passed, it would be 25%. Why is that change bad?
Freddie Mac averages include low down payment mortgages, low credit score mortgages and people that don’t use zillow or bankrate to shop around. I’ve seen 7 yr ARMs at 2.25%
Individual changes in a negative direction are not bad, but the aggregate (Economics, by definition) is what drives the economy.
If there are to be “progressive” tax rates, they should be on a continuum. Reducing the # of steps and making the step difference larger is bad economics.
If all goes well next year, at least your estate won't have to pay a Death Tax....
I disagree. People consider their net take home, not # of steps or if it’s higher than last and taxes for people at larger companies always estimate your tax and withhold that every week. Most people don’t even understand their taxes. When someone making 100k goes from 500 a chk withhold to 425, they just know their taxes went down
No, I always consider what I want to do a given evening or weekend.
I live below my means and need a large incentive to do something for someone else that I don’t necessarily want to do.
Wait until an actual bill comes out and then see.
It’s natural to worry about things, but A: the media wants us to worry and nitpick, and B: it’s REALLY not healthy.
Whatever the case, in the ACTUAL words of the plan and not CNN’s breathless propaganda, I see literally nothing about removing personal exemptions other than a general comment about removing ‘many’ exemptions in order to simplify and give lower tax rates. The only time ‘personal exemptions’ comes up that I see is in CNN’s commentary.
And do you really trust CNN’s commentary? They’re the ones trying to make you worry and trying to do anything to turn people against this plan, and you and I both know how easily they outright lie.
Get back to me when the actual bill comes out and then we’ll see.
Ok that’s a data point of one. Meanwhile I’ve worked at the highest levels for multiple companies with over 10k employees. Not once have I ever heard someone turn down a promotion (aka more work) or pay raise because their marginal rate wasn’t worth it. I’ve personally gone from 10% marginal to 35% in the last 10 years and I still want more dough, and lowering that rate to 25 from 35 only increases it
I’m long retired and no longer a tax slave time wise. All the work I do for my fam and others is totally tax free. It’s very intellectually liberating.
Peeps are dumb if they only make their incremental decisions on the average. In the aggregate I suspect they don’t.
Go work for a large corp - most have zero clue on their taxes. They just know their witholding amount. Even at NQ deferred comp meetings (which are only employees that make at least 127k/yr), most are idiots about their taxes when questions come up. And at that level, a promotion usually means at least another 50k in income (or much higher), so even at 25-35% marginal, most will take the huge pay increase and work a cpl extra hrs a week
Well yes, but the super rich support Democrats. Not sure now we should lower corporate taxes except on private business. Public companies perhaps should be punished for supporting Democrats and being so anti-Trump.
Raise taxes on PUBLIC companies - they pretty much all hate Trump right?
No because you both lose the personal exemption. So the $60,000 family has previously an additional deduction of $8100 for both personal exemptions. Tax income, for simplicity, is then $40,000 for taxes of $4000.
So you are actually paying $320 more.
those included more than just fm loans.
I am sticking with 30 year mortgage which is mist common.
wrong. people make all kinds if decisions based on brackets.
several of my contacts were negotiated based on my expected tax brackets.
putting money into and withdrawing from IRAs is also.
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