Senate Republican tax plan may eliminate property tax deductions and delay corporate cut

The Los Angeles Times ^ | November 8th, 2017 | Lisa Mascaro and Jim Puzzanghera

[Mariner]

As they prepare to unveil their own sweeping tax plan, Senate Republicans are revisiting key provisions of the GOP House proposal, including possibly eliminating property tax deductions as well as state income tax deductions, increasing the size of child-care credits, offering more help to small businesses and having corporate tax cuts phase in or expire, according to those familiar with the negotiations.

The final outline of the Senate plan, scheduled to be released Thursday, remained a work in progress, officials cautioned.

“Everything is on the table,” said one Republican official Tuesday evening, who did not want to be identified discussing the talks.

House and Senate Republicans agreed on an early framework for the tax overhaul — lowering corporate rates to 20% and consolidating individual brackets.

But as House Republicans push ahead with a vote next week on their bill, Senate Republicans are constrained by Senate rules that require their package not increase the federal deficit by more than $1.5 trillion over a decade.

Core to the Senate’s dilemma is how to make the corporate tax rates immediate and permanent — as President Trump wants — which has left them searching for revenue streams so they don’t add to the deficit.

They are considering various options: Fully repealing state and local tax deductions that are important to California and other high-tax states, including property taxes; adjusting individual tax brackets so higher-income households that earn less than $1 million fall in the top 39.6% rate; retaining some type of estate tax; or repealing parts of Obamacare.

[Republican Wildcat]

having corporate tax cuts phase in or expire

Expire? I don't even agree with "phase in", but it certainly should not have an expiration. That would render it totally meaningless as far as long term positive economic impact - businesses would not invest, start up, etc. in anticipation of the rates just going back to where they were. No, no, no!

[arrogantsob]

I agree.

[kaehurowing]

Juan McCain will screw this up somehow.

[arrogantsob]

Trump did nothing, tax and spend bills must be initiated in the House as per the constitution.

[arrogantsob]

Tariffs are not free money but provoke retaliation putting workers who make goods for export without jobs.

If you think we are watching a divisive catfight now just try and get tariff rates through the Congress.

[nopardons]

From the time I was six, I always had "chores" and I did NOT get an allowance at that age.

As a matter of fact, I ALWAYS had "chores" to do, even when I came home from college, on vacations. No chores done, no allowance!

My father had me working at his business too, but at first for no money at all and later for almost nothing and THAT was combined with "jobs" I had, starting when I was a teen. Until I had my own apartment, after college, I had to hand over the salary, from outside jobs, to my mother, unless I was paying for prom stuff, books, and the like, which was all on me.

It's not as though my family needed my wee salaries and when I did move into my own apartment, my mother used my money, which she had saved for me,to pay for stuff involving that move...such as deposit, first month's rent, etc.!

It certainly taught me the value of a dollar ( not that I really needed such a lesson, because I was always a saver [ I did get to put some of my allowance into a bank account, from very early childhood on ]and never a big "spender" ) and it's stood me in good stead all of my life long.

I don't over spend, have never been in debt, don't buy what I can't afford, and never buy something I don't need/just to have another or the newest thing.

[nopardons]

That's right...Trump didn't write this POS, but he DID instigate it and demand lower corporate taxes. And now, he has the gall to claim that this filth is the GREATEST CHRISTMAS PRESENT EVER, THAT HE IS GIVING US.

Reagan had an outline, that he asked the House to follow.

Trump didn't.

This crap sandwich will NOT be done/passed by Christmas and IF he doesn't send word down the Congress, with changes and/or signs it, when they get done mucking about with it with even worse crap in it, then he can go to hell!

[qaz123]

This sums it up so perfect....

https://www.thomhartmann.com/forum/2012/04/545-people-responsible-americas-woes

[willk]

So if they take away the property tax deduction why would anyone in the middle class itemize? I’m probably looking at a tax increase and my home value will lose about 10% just as I am trying to escape from California. Then they are going to give some of my money to people who don’t even pay income taxes?

[Kickass Conservative]

You won’t hear too many of today’s kids remembering stories like that.

We grew up in a different age, which really seems like we lived on a different planet compared to what’s happening nowadays.

[nopardons]

Sadly, you're probably right; though my grand is being more or less raised as we and his parents were.

Yes, sometimes I really DO feel as though I come from a different planet, vis-a-vis how things are today and yes, even when reading some of the posts on this site.

When I was growing up, this was the norm; no matter what class/strata one came from. Responsibility was always part of the programing! :-)

And kids had bank accounts as well as a bank of some sort, at home...usually kept in their room.

Part of our allowance always went into the plate, at church and we saved up to buy Christmas and birthday present for our parents and grandparents, if they were still alive.

And that old "work ethic" was instilled in us at a very early age...that's what having "chores" was for!

[Gene Eric]

>> In before the renter freepers

Don’t forget about the childless renters — twice as indignant.

[Jarhead9297]

I’m sorry but there was little to NO DISCUSSION on debate stages about Government growth, spending, eliminating complete agencies. That just did not happen. Tax cuts yes but restraining Government spending nope

[Gene Eric]

>> the ONLY people who’ll get any money back, are those who pay NO Fed taxes at all

Well, the tax liability will be less for middle-to-low incomers in states with low state/local taxes. Those who don’t pay, don’t benefit unless credits are also being offered.

The big Blue States will take the biggest hit. And that sucks for the Republican residents given their treasury contributions already, and by far, exceed those from other states.

[nopardons]

True as far as you went; however, the Senate is now in the process of putting people in higher brackets, than the original proposition called for and 1) there are states with NO state income taxes that have VERY high property taxes and the same is true in some states that have low state taxes 2) there is a sliding scale, which increases over the years, which DOES put far more middle income salaries into higher brackets now...sans the fiddle 3) we have yet to learn much of what else is in this POS and there's no doubt in my mind, none whatsoever, that these outrages are going to hit the people you imagine are going to escape the pillaging of their purses.

OTOH...those who don't pay any Fed taxes ARE getting our tax money back in this POS thing.

[personalaccts]

The GOP can “F” up a wet dream

[ducttape45]

And we continue to see why the GOP was on the losing end of the elections this week. They are still not following through on the promises they made last year and as a result people are voting them out of office.

As they continue to break their promises they will continue to lose favor with the people, the Rats will take control of Congress, and the country will lose.

Now we truly see that they had no intentions of keeping those promises, that they lied to the American people, and that Trump was wrong to trust them to do the right thing.

[SkyPilot]

This isn’t a tax cut - it’s a deduction cut.

Very well said.

And as many of us feared, the Senate version is even worse than the House version on how it screws over the middle class, home owners, etc.

Two days ago, Politico reported that Trump's aides were telling the rich donors and corporations not to worry about the House version, because it is the Senate version "that really matters." The same Senate version that even eliminates the lousy $10K cap on property taxes that isn't even indexed for inflation.

Unlike others here who say it has no chance of passing, I think it probably will pass in some fashion. Washington and the stupid GOP always seem to do the wrong thing, and they will find a way to burn us all again.

They should rename this: "The Mark Zuckerberg Wants Lower Taxes So You Have To Pay More Act"

[trebb]

I guess everyone has their own tax perk they like and will resist anything that take\s away from them while supporting that which only hurts others - w/o regard that the whole farce is a un-Constitutional boondoggle and all "tax breaks/deductions" need to be abolished. The whole "take a deduction for interest and taxes paid elsewhere" is just crap that "justifies other taxes to pay for the "revenue lost" due to the deductions - just spreads out the taxes to others who may not be using those deductions.

Human nature is a big part of the problem - almost as problematic as the Dems/GOPe/RINOs when it comes to doing the things that should be done to move us back towards the original Constitutional way of running the Nation.

[Oldeconomybuyer]

Gimmicks from the Gimmick Old Party.

They can’t just repeal Obamacare or cut tax rates, they need to cobble together gimmicks to satisfy donors, appease the 47% who pay no income taxes but vote, and to avoid the predatory media. Pathetic.