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 ...
A huge part of my current job (VP of IR) is to keep up with current events, mostly business but also politics. When I speak to institutional investors or get our CEO and CFO ready to speak to institutional investors, I’m expected to be their go to for any and all information and have every answer at my fingertips. As such, when its a slow industry report week in hospitality like this week is, and end of the quarter financials aren’t ready, I spend a lot of time on WSJ, FR, Drudge, CNBC, Yahoo Finance and a few other places. One of the things our investors expect us to know is how tax reform would impact us as well as our business guests (~65% of our business is business travelers) so I’ve spent a lot of time on it this week. And yes, I make $300/hr on consulting calls in my old industry about once a week (supermarket). Not sure why you seem so uptight lol
And yet you cannot correctly state the present tax brackets and make calls here without even knowing what breakpoints are for the tax brackets!
I am not uptight. Just suspicious.
Where did I incorrectly state the present tax brackets? Post # plz.
and make calls here without even knowing what breakpoints are for the tax brackets!
It's long been rumored its at the 15/25/39.6 ones today for the three new brackets, but as I've already said/admitted, the devil will be in the details and even if it is the case now may change in the next month. But with total taxes collected dropping 1.5T, you can only get to that amount if its those brackets or higher.
I am not uptight. Just suspicious.
No, you just just seem like a negative person
Since the breakpoint has not been provided you have no idea what your marginal tax rate will be.
What are the breakpoints for these brackets?
You don’t know.
As I've said multiple times, long RUMORED. As I've also already said, it may or not be a correct rumor and even if it is (which I believe is likely, or the cutoffs will be even higher, meaning more of a cut), it can get changed during the negotiation process. We'll find out in the next month if I'm right. The only way taxes go down $1.5T is if I'm right. Still waiting for where I was "wrong" on the current tax brackets. Have a nice day, I'm done with this conversation.
266
“RUMORED”
So the 10% bracket will increase to 12% and the breakpoint will be increased so more tax will be levied for this bracket?
Or will the breakpoint be lowered moving present 10% income into a 15% bracket?
I think you are reading 266 backward. The first # listed, as stated, are the current bracket referenced, specifically 15%, 25%, and 39.6% and the parenthesized are the new bracket (12%, 25%, 35%). I didn’t do parenthesized new for the larger group of current #s at the end but I believe it will look like this current (new): 15 (12%), 28 (25%), 33 (25%), 35 (25%) and 39.6 (35%). Like I said, have a nice day.
I expect and has been rumored the initial proposed ranges/break point (Married) for 12% will be $0-$75,900, 25% for $75,901-$418,400 and 35% for $418,401+. We’ll see if I’m right.
LOL.
Finally!
If you are right I may break even but I can liquidate my IRA in a hurry.
Your assumption essentially combines the 10 and 15 percent brackets saving $1000.
However, my losing personal exemptions of $8000 in the 25% bracket costs me $2000 so as a middle class homeowner I lose.
Looks like the real winners are those making over $231,000.
That will not go over good!
When corporations try to pass on taxes to consumers of their exports, they are told sorry, I’ll buy that from Korea or Japan or Thailand.
Looks like the real winners are those making over $231,000.
Yes, upper middle class/lower upper class will do very well unless they live in SF, LA, CHI or NYC where they lose a ton of state income / property tax deduction in the tens of thousands. Also, AMT is gone which will also help. I'm estimating this will lower my federal taxes next year ~$10,000 IF personal exemptions stay in or ~$8,000 if it doesn't. But we'll see what happens. Who knows if this even passes in any form.
I hadn't thought about the IRA aspect, but that is a good point. If I do end up retiring at 45 like I'm hoping to do, it'll certainly make it much cheaper to do 401k/Trad IRA conversions to Roth IRAs in case rates go higher in the future.
If my money was out of my IRA capital gains and dividends would be taxed at a lower rate.
What will the new bill do for long term gains and qualified dividends?
From the article - "While the framework would leave unchanged certain taxes on investments, including those on capital gains and dividends, the money management industry stands to benefit."
That's the most definitive statement I've seen on it but probably up for negotiation in the next few weeks.
Bookmark
“If you are a homeowner with $50,000 to $120,000 in income, most likely you will be paying more.”
I’m pretty dumb on taxes. Is that gross income or taxable income?
It depends on your definition of “upper class”
We are - by no means - living on easy street - yet we are currently in the phase out bracket for CTC.
Why would (so called) “upper class” need CTC?
Same reason as anyone else - to use that money towards cost of providing for a family - tuition- etc... Instead of throwing it away to have our government waste it.
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