Posted on 11/10/2017 4:01:25 AM PST by SkyPilot
Congressional Republicans advanced two competing visions of tax reform Thursday, setting up a potentially bruising battle in the weeks ahead as they struggle to agree on a bill President Trump can sign.
With the Senate GOP's unveiling of its tax plan, key differences with the House version became apparent. Among the biggest potential losers in both plans are residents of California and other high-cost states, who rely heavily on itemized deductions for state, local and property taxes.
The Senate plan eliminates all such state and local deductions, while the House proposal retains property tax deductions up to $10,000. As a trade-off, the Senate version would preserve other popular deductions targeted for removal in the House plan, such as for medical expenses.
Both the Senate and House plans would lower the corporate tax rate from 35% to 20%, but the House would make the cut immediately, while the Senate would delay implementation for a year, until 2019, in order to save an estimated $108 billion.
There are also key differences in how new individual rates would be set, the repeal of the estate tax and a variety of other provisions.
Those and other discrepancies will need to be settled, while also making sure the tax breaks don’t add to the federal deficit by more than the agreed-upon $1.5 trillion over 10 years.
But Republicans appear motivated to fulfill one of their party’s top campaign promises. This week’s GOP losses in state elections served as wake-up call and could provide momentum to push for passage of tax legislation by Christmas, assuming they come to an agreement.
“This comprehensive tax reform will make a huge difference for America,” said Senate Majority Leader Mitch McConnell (R-Ky.). “This is going to be an extraordinary accomplishment.”
(Excerpt) Read more at latimes.com ...
I wouldn’t brag too much about our sanctuary governor, he’s so weak it’s painful to watch
Post #80 - great chart. Thanks for posting.
I loved reading Heinlein as a young adult. Also Rand.
Excellent wisdom there.
What your post fails to acknowledge is that states such as CA and NJ deduct their high taxes from their federal taxes, which is in itself a federal subsidy.
This same mayor let a friendly company manage the local civic center for ten years, never auditing for fraud. That management firm’s employees now have over 100 felony counts levied at them in the past two months. He didn’t uncover the fraud—a local Tea Party retired CPA found it and authorities beyond the city issued the counts.
Taxes have been going up non-stop while trips to Japan are charged to taxpayers. They keep trying to revitalize their downtown with huge spending allotments, to no avail. So raise the taxes again, because they just don’t have enough money. You see, it is failing only because it doesn’t have enough money targeted—not that it isn’t worth everything spent. Every community needs a large, publicly owned laser tag facility built onto a new unneeded library.
I could go on. That is normally conservative Illinois that has allowed every level of government to go to complete rot. Federal dollars do come back, but are wasted on pipe dreams, leaving deficits like the large potholes everywhere around town. So they have to raise taxes and then people lime Skypilot exclaim that, rather than fix their local mess or leave it behind, the country can’t do anything to limit his long-standing deductions (which allow him to comfortably live among the rot he so loves).
I’m sick of it. We are leaving this mess behind for a better state.
Maybe Skypilot and others should put up or shut up, if they insist on loving their feces-covered locales.
In NH property tax rates vary from town to town typically based on the amount of school age children in the town, how fancy your school system is and the amount of commercial real estate exists in your locality.
Tuftonboro, NH and Newington, NH are two towns with very low property tax rates. The first is rural community in the central part of the state. The later is in the seacoast area that has a large amount of commercial real estate along a river. If you reside in one of these towns you literally could have one of the cheapest local/state tax burdens in the country and still be within an 1-2 hour drive from Boston.
Thank you very much.
L
Just axe the Deductions for the super rich like the Dot.com millionaires and billionaire’s in Silicon Valley. Why would any Rat or GOPe Member not Vote for that?
Feces-covered locales?
What the heck is wrong with you? First, a corrupt politician here or there does not justify millions of us getting screwed by the Federal government, Paul Ryan, and Mitch McConnell. Secondly, I am sick to death with people on this board trashing where other people live, work, raise their children, worship, take care of their parents, and any other facet of their lives. You don’t like other states? Fine. It’s not like Americans, veterans, Christians, or Conservatives live in those states you hate so much. Wait? In fact, they do.
Take your parochial bigotry and hatred somewhere else.
Subsidy? A deduction? I guess you don’t understand what a Tax Deduction is. Let me ask you: have you ever taken one? What about a Child Tax Credit? Any other deductions? Ever? You don’t see me trying to shame you for keeping more of your own money. That’s all you.
And there it is.
Well said, friend.
“A democracy cannot exist as a permanent form of government. It can only exist until the majority discovers it can vote itself largess out of the public treasury.”
I am commenting upon the claim that CA pays out more in federal income taxes than they get back. That is partially because they can deduct their high state taxes from their federal tax. Which in effect is a subsidy for their high taxes that persons with lower state taxes do not get. So yes, at that level, it is a subsidy by the feds of high state taxes. And that is the issue many conservatives have with the SALT deductions.
Take away the SALT deductions and that dynamic would change dramatically.
Kalifornia is a blow to the US.
“Take away the SALT deductions and that dynamic would change dramatically. “
How does that change anything, other than ensuring these states contribute MORE to the Federal Treasury...for others to feed from?
No, lower tax states can still deduct their state, local, and property taxes now, whatever they are.
Arguing that filers that have already paid high taxes, and their deduction is larger because they are avoiding having to pay more taxes on taxes they just paid is somehow "unfair" is ludicrous. And, as has been said time and time again, without the Federal tax revenue of NY, CA, NJ, CT, and other high tax states, the treasury would implode.
And whatever state you are in, you can still deduct them - for now. That is all about to change, because the GOP has sold us out. They are taking care of businesses and corporations, not their voters.
The G.O.P. Tax Plan Has a Fatal Flaw—and Neither the House Nor the Senate Can Fix It
Donald Trump’s top economic adviser, told CNBC’s John Harwood that the President had laid down “two really important principles” to guide the lawmakers and officials putting the legislation together. “Number one is we have to deliver middle-class tax cuts to the hardworking families in this country,” Cohn said. “Number two, our corporate tax system just is not competitive with the rest of the world. We have to create a corporate tax rate, and along with that a pass-through tax rate, that makes us competitive with the rest of the world so we can attract businesses back to the United States.” Yet since last week, when Paul Ryan and the House Republicans released their tax plan, it’s been clear that Trump’s two principles have run into conflict with each other. Or, rather, these principles have run into the laws of arithmetic, and the fact that there isn’t enough money in the Republicans’ own budget, even using the fuzzy fiscal math the Party favors, to provide big giveaways for all businesses and all households. Something had to give, and between businesses and households, House Republicans went with the businesses. From what we’ve seen of the Senate bill, so far, it does the same.
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