Posted on 11/02/2017 7:21:40 AM PDT by GIdget2004
House Republicans will propose limiting the deductions for mortgage interest and state and local taxes in the tax bill they are releasing on Thursday, according to a summary of the legislation obtained by The Hill.
The bill, called the “Tax Cuts and Jobs Act,” largely follows the parameters that GOP leaders and the White House outlined in September. It would reduce the number of individual tax brackets, slash rates for businesses and eliminate a number of tax breaks.
In order to offset the costs of the legislation, Republicans are putting forward some proposals that are sure to be controversial.
The bill would keep the mortgage-interest deduction, but only for newly purchased homes up to $500,000. Homes bought in the past could keep the deduction regardless of price. The housing industry is sure to push back on that cap.
The legislation would also taxpayers to deduct their state and local property taxes, but only up to $10,000. It would not allow people to deduct state and local income or sales taxes.
Blue-state Republicans have fought to preserve that deduction, which is important to their constituents. It’s not clear how receptive they will be to the compromise.
“I’m still analyzing it, but right now, I’m strongly leaning no,” Rep. Pete King (R-N.Y.) said.
Several other controversial ideas that were floated to help pay for the bill, including limits on pre-tax contributions to 401(k) plans and including repeal of ObamaCare’s individual mandate, were apparently not included, according to the summary.
(Excerpt) Read more at thehill.com ...
Yes, I am certain that those deductions which basically are a pay back to the state via its residents are not accounted for in tax paid/federal benefit received accounting.
JFK's TAX CUT was an across the board tax CUT; so was Reagan's!
OTOH, this POS proposition is CRAP; not to mention a tax INCREASE on a lot people...many of whole worked for, donated to, and support/ed Trump.
It won't stand as is and shouldn't! IT STINKS!
Wow. You make statements and are not prepared to back them up? You expect others to prove your assumptions for you? That’s a lib tactic. I expected better of you.
“So much for simplification. Pathetic.”
that’s what some of us have been saying for weeks.
But the GOP led with a major marketing campaign, starting with the “red states subsidizing the blue state taxpayers” and that’s been the party line.
At least 1/2 of all folks here on FR are echoing that lie. They don’t have any individual knowledge of any of it, most don’t even pay income taxes due to their level of income, retirement status or whatever.
They are in the 47% and are quite anxious to “stick it to those rich blue states” and make ‘em pay.
A brilliant PR campaign by the Chamber of Commerce and the GOP. I have to hand it to them.
Thanks, Paul RINO. Idiot.
I appreciate the links. Not sure if I have time at this moment to give them the time they are due to reply informatively. Let me have the evening to look them over.
No amount of information will convince somebody with an emotional attachment to a certain position.
Do people really pay thousands more? I figure it won’t be more than a few percent of what they already pay. I’m all for making the tax code easier. And getting rid of deductions and lowering the tax brackets would do that.
You know that if Trump just says these cuts will be paid for by increased revenues, he would be attacked. Reagan got rid of most deductions. I’m sure there were a lot of people that complained back then about that as well.
Our founding fathers risked everything they had. Every penny they had and their very lives. Those selfless attitudes are definitely gone. I would happily pay a little more in taxes by having less deductions actions, and have the economy booming so my investments are doing better. And better yet, this country and my son would have a future.
OK. I ran the numbers and much to my surprise I come up a winner under the new plan. To the tune of about $2500. Hell is always in the details but so far it’s looking pretty good.
A big BIG issue that folks are missing is the expanded child tax credit which, if I’m reading it correctly, will have a yuuuuge impact on upper middle class families who couldn’t make much use of it in the past. Keep in mind it’s a credit, not a deduction.
The real problem is a moral one: the government assumes it’s THEIR money, not ours. Otherwise, they would be factoring in ways to balance on the spending side, not trying to “pay” for the cuts by effectively raising the marginal rate on some.
Having the 12% bracket only go up to $45,000 for individuals will not cut it. A real break would run it up to the FICA income cap. And no 35% and 39.6% f*** the rich rates. That way, the simplification and goodie elimination (which I would like to support, by the way) wouldn’t cause a riot at the polls next year.
Sadly, an awful lot of posters to the tax threads, have no idea what they’re talking about re taxes and what was and is in this Bill; they also are the DOGS IN THE MANGER who want to “stick it to the rich/stick it to EVERYONE who live in a “BLUE STATE”...forgetting/ignoring that many Conservatives earn more than they do and/or live in blue states and post here.
12% only goes up to $45K for individuals (based on $90K for married couples). I doubt that would help single homeowners in New Jersey or New York very much if the goodies are eliminated.
Ps. I’d rather have a flat tax with the returns sent in on a postcard. But that wouldn’t pass. We could have the most conservative best Bill available, but you know our Congress…
I would suggest everyone run the wrong numbers and see first. There are details that would change things, making knee-jerk reactions unnecessary. Personally, if I pay a little more, I’m not gonna throw the baby out with the bathwater. If this doesn’t pass, Trump and the country are toast.
It wouldn’t for now, but here’s a possibility: When we moved from California to Texas, we noticed how reasonable Texas house prices were, even in big cities. However, property taxes were confiscatory. In order to make prices affordable, I believe those heavy-handed taxes held down the price of the houses. People had to take into account their monthly tax burden to see how much house they could afford. So house prices stayed reasonable.
So perhaps over a few years, prices will adjust. They would have to. Especially since this decreased mortgage deduction is only on new sales.
YES...if this crap sandwich stands ( which it won't ), many people shall pay THOUSANDS of dollars more than they do now; if not more than that.
No, those "selfless attitudes" aren't gone; Trump ran, paid, and won the election.
OTOH...paying more taxes, so that illegals, slackers, ghetto thugs, and CRONIES of pols ( companies, colleges, etc.) can get more of my money STINKS!
You mean the $500,000 limit, because there is NO cap on existing mortgages.
“most don’t even pay income taxes due to their level of income, retirement status or whatever.”
I think you need to chill. You’re making a lot of assumptions about people just because they disagree with you. I don’t suppose you really know the financial status of most of us, and you certainly know nothing about me. And your assumptions are quite insulting.
I have NO minor progeny at home.
OTOH...unless this POS Bill changes ( which it shall ), I am being screwed royally.
What deductions were eliminated? State taxes for individuals, that's it. Individuals, not corporations for whom it's a legitimate deduction. Easier, for who? Easy to sell that was to wage earners, but the two level system for earned income vs pass through income is absurd. Kansas tried this and it accomplished nothing other than regulatory abuse. Sure, the chamber of commerce sells it as a boon to your local plumber, who will hire more plumbers. Personally I don't think my local self employed plumber should pay lower taxes and a wage earner on the same income. And laughing all the way to the bank are law firms, hedge funds, much of the financial industry, and the real estate industry. All of whom rely on pass throughs. Reagan did a great deal of elimination of abusive deductions, there's none of that in this bill. And he leveled rates, didn't matter how your income was earned. Go to work, sit home and collect interest or capital gains, same tax rate. This plan does the opposite. Doctor employed by a hospital could pay a 39.6% marginal rate. Contract with him or a new entity as self employed, 25% rate. Look for a lot of work for CPAs and lawyers. No simplification.
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