GOP tax overhaul plan at a glance

Star Tribune ^ | 11/02/2017

[SeekAndFind]

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—Multinational corporations: Would establishe a 10 percent tax on profits by overseas subsidiaries of U.S. corporations and seeks to prevent tax gamesmanship that has moved U.S. companies overseas. Would permit “repatriation” of profits stockpiled overseas at a one-time lower rate. Would tighten tax rules on U.S. operations of foreign companies.

—AMT: Would repeal the alternative minimum tax, a parallel tax structure aimed at ensuring that all people pay at least some tax. It has been criticized for excessive complexity.

—Estate tax: Would immediately double the exemption on taxation of large estates from $11.2 million to $22.4 million and repeal the estate tax entirely after six years.

[rktman]

Looks like our new rate is <12%. No worries though. I doubt the gopE will pass anything meaningful anyway.

[Buckeye McFrog]

They should eliminate ALL deductions for state and local taxes. Blue states would start flipping to red faster than you can say H&R Block.

[EXCH54FE]

I say it is looking very good for this retired old single poor boy.

1. Nearly double the standard deduction to $12,000 for individuals

2. Deductions, no effect at my pay grade.

3. Tax credits, no effect at my level.

[BradtotheBone]

I haven’t heard anything on HSA deductions. Will that change?

[central_va]

Based on my 2016 1040 my taxes will go up $1,000/yr. Not what I voted for.....

[SeekAndFind]

You must be one of those high income folks Congress thinks needs no help at all.

[SeekAndFind]

RE: They should eliminate ALL deductions for state and local taxes. Blue states would start flipping to red faster than you can say H&R Block.

One thing is for certain -— NO SENATORS ( Republican or Democrat ) from any of the affected blue states will vote for this bill with this clause in existence. It would be political suicide.

With this, I am not sure if it will even pass the Senate without changes.

[central_va]

Tax credits: Would increase the per-child tax credit from 1,000 to $1,600 and extends it to families earning up to $230,000. There's also a new $300 tax credit for each adult in a family.

If this does happens and I will get say a $1,000 credit then it wil be a push. No increase and no decrease.

[adorno]

One thing is for certain -— NO SENATORS ( Republican or Democrat ) from any of the affected blue states will vote for this bill with this clause in existence.

Yet, with the "standard deduction" many, if not most, of those blue states constituents might be getting better tax breaks than if keeping the states and local taxes. How would the senators then explain that their constituents didn't get any tax advantages from the new tax bill?

What should happen is that people in blue states get better information to demonstrate that they too will pay less in taxes with the new tax bill.

[VikingMom]

Is this supposed to start in January 2018 or are they talking about making it retroactive for 2017?

I can’t find an answer to that but will not be happy if it is the latter as many people, including me, made financial decisions in 2017 based on the current tax code!

[Wayne07]

what part of it is working against you?

[GreyFriar]

Have you figured in this: “But personal exemptions of $4,050 for each family member would be eliminated.” That means, as I understand it, you and me, both of us over 65 will loose being able to subtract $8k from our gross income, thus making more of our income subject to taxing. That may or may not be offset by the new $24k standard deduction. I don’t recall ever hearing that the personal exemptions would be eliminated in all of the “big speak” about doubling the standard deduction.

[central_va]

From my Federal 2016 1040 line 42 was $12,150 (3 x $4,050). Now it will be $0.00 ouch! That was a big deduction from my AGI. The differnce between the new $24,000 std deduction for married is more than what I deduct when I itemize (line 40) which is good but it doesn't make up for the loss of the exemption deduction line 42.

There is talk of a new $1,000+ credit so it may work out I will pay the same. Big woop.

[central_va]

But personal exemptions of $4,050 for each family member would be eliminated = major screw job.

[RicocheT]

If the GOP Senators and House members have half a brain they should all vote to pass this tax reform/cut bill.

Yes, it’s not perfect but it’s a good start. Get something done now and if the GOP survives the 2018 mid-term elections, they can fix or improve the tax situation later.

If these guys screw it up as they did ObamaCare repeal, we on the right may consider renting some pickup trucks from Home Depot and drive to D.C.

[GreyFriar]

I believe the “goal” was to have the bill passed and signed before the end of this year in order to have it go into effect before Jan 1, 2018 and be used for filing this year’s taxes by April 15, 2018.

[central_va]

eliminating this exemption is a real f*** job.

[Codeflier]

Can be made to work out as a net reduction or wash for me, but is a disincentive to earn much more.

I just wish they could come up with a simplified tax with much lower rates for all. Too many special considerations for deductions, children, etc.