Posted on 11/12/2017 4:31:47 AM PST by Kaslin
As a professional in the tax field who has written about this issue for close to 40 years, it is quite amusing to watch self-appointed experts in the press pontificate about the massive proposal for changes to our tax system that was introduced by Republican leaders in the House of Representatives. Let’s take a real look at the proposal.
First, you need to understand most professionals refuse to comment to their clients on the bill because we are so far from the plan being enacted that it could change significantly. People do not want clients badgering them about the seesaw negotiations. Obviously, that means you should not get too invested in what currently exists in the plan.
On the other hand, you can discount some babble from sources trying to cast a negative shadow over the plan. Catherine Rampell, the in-house “supposed” expert at the Washington Post, wrote that “many blue states are in big, big trouble.” They may be, but not necessarily over this tax plan. She goes on to say “The new Republican tax plan is, on the whole, a bunch of tax cuts weighted toward the rich.” Again an attempt to perpetuate a mantra of the Left. Unfortunately, her own newspaper countered by stating that the middle-class would have a tax cut of over $1,100 per family. Rampell doesn’t even see her own inherent contradiction in the two statements where first she says the wealthy in blue states would suffer, but the plan benefits the rich. As I said, quite humorous.
Let’s look at what this plan does. As I have written previously I consider it virtually criminal that the kingpin of freedom and free enterprise, the United States of America, has the highest corporate tax rates in the world. That is before you add in our states’ corporate taxes. This plan fixes that. We live in a competitive world. We live in the supersonic jet age world where we have to be competitive with other countries to attract and keep job producers. Other countries have been eating our lunch by drawing our multi-national companies to their lands and keeping their own companies from coming to America to hire our workers. This will change that. The new rates move us to the middle of the pack among major industrialized nations.
This is huge. It is necessary. It is proper public policy. Anyone who does not support this is a myopic fool. This is the most essential part of the plan and helps all of us.
If nothing else this tax plan kills the Death Tax and the Alternative Minimum Tax (AMT). As I have previously written, the Death Tax is despicable even if the level has been raised to where most people will not have to pay it. There is still extensive planning done by many people below the level where they would have to file an estate tax return. If I never had to speak to an estate planning attorney again on behalf of my clients I would be delighted.
All one will need is a will (you have one; correct?) and maybe a trust if you have a ne’er-do-well child. There is so much money wasted in this area with high paid advisors, the Death Tax makes it just a full-employment act for suits.
I have told people for a long time the only person who understands the AMT is a guy in a very large building in D.C. on the fourth floor in a back office.It is far too complicated and has not done what it was intended to do for years. Good riddance.
The single craziest clause of this proposed law is striking the deduction of alimony as a deduction for the payer and as income for the payee. Why they dealt with this issue I have no idea.It would make sense if someone was paying $5,000 a month in alimony and they could just reduce it to say $3,200 to reflect no longer getting the tax deduction and the recipient not having to declare the income.
The problem is to do that everyone paying alimony would have to go back to court to get those reductions even if the former spouse agreed to the reduction. Then they would have to convince the judge (mediator) who in my experience has nearly zero understanding of economics or taxes (as well as the attorneys). They have their own perverted form of accounting.This clause should be ditched because the system is far too complicated to unwind.
For many who are just employees and maybe own their home, this will make life much easier. Because the standard deduction is doubled to $24,000, for most people filing taxes will be simple if this plan were to pass. They will no longer worry about itemized deductions and keeping track of a bunch of expenditures to potentially get a tax benefit.
Make no mistake for the people who run businesses or make a lot of money: this is not tax simplification. Their financial lives are complicated and thus their taxes will remain complicated.Maybe even more so.
Take a deep breath. We have a long way to go before this becomes law.
The TRUTH is that the GOP has squandered their opportunity
to help Americans, but only HELPED THEMSELVES,
as they kept ObamaCARE, kept spending high, and
continued to cover every scandal from the IRS to Benghazi.
Americans HATE THE ever-lying, dastardly GOP.
Odd that this tax expert doesn’t mention loss of personal/dependent exemptions.
He might have - as there seem to be certain gaps in the article toward the end where the authors subject is simply referred to as “this” - leave one wondering what he is writing about exactly. Could be that some editor inadvertently cut parts that should not have been cut.
Maybe, but the libertarians and rats are worse, amd worse yet is the old media empire run by the rats.
I just checked, its the entire article
So in other words this tax plan favors corporations and the wealthy at the expense of middle-class taxpayers. Tell us something we don’t already know.
“standard deduction is doubled to $24,000”
This is wrong. The number is for married couples!
Ten (10) percent. NO DEDUCTIONS,no loopholes. Good enough for God. Good enough for GOP!
Typical of the GOPeers supporting the individual side of the “reform”.
My fear is that the GOPe will help get rid of the deductions and then the Dems will come in and raise the rates.
Or how a family of four will see their taxable income INCREASE.
my personal calc is about 4000 more per year in taxes. if passes done as a republican voter
This is not a tax cut plan. It’s a tax “reform” plan and whether you’ll win or lose depends on where you are. Corporations and the lower middle class win. The poor stay about the same. I’m fine with it as is because I appear to win slightly. But the devil is in the details.
From a political perspective, this tax plan is poison. The fact that the plan cuts corporate taxes at the cost of other taxpayers is ready made for opposition ads. But that’s probably a feature. It’s obvious that the gop faction of the uniparty is desperately trying to lose the next election. They thirst for minority status where they don’t actually have to lead.
Politics is a scam and we’re suckers for playing.
We need to hold Pryno and Ditch to a promise to enact common sense, comprehensive spending control.
Trump should veto the bills as proposed.
If this passes, the Democrats will sweep in and win the House and Senate. Sooner or later they will have veto-proof majorities and they will import millions of drug gangsters and jihadists as new “citizens.” Your Second Amendment rights and First Amendment rights (especially when it comes to religion) will be violated. The GOPe has to know this. They must want to lose.
Yeah, the 24,000 is for married couples, but a single homeowner has to pay the same property taxes, and the new deduction wouldn’t cover it.
I never “deduction envy” was such a huge problem.
Yes I had checked also - what was written was deleted by the Townhall’s editor (not you) was what I was trying to say.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.