Posted on 12/02/2017 6:36:12 PM PST by RKBA Democrat
As the Senate advances on its tax-cut bill while House Republicans have passed their version, MarketWatch has the calculator to show how the bills would potentially impact your finances.
The legislation, called the Tax Cuts and Jobs Act, cuts individual tax rates and slashes corporate taxes, among other things.
But not everyone’s a winner. The mortgage-interest deduction is limited, and state and local income tax deductions are zapped in both the House and Senate plan. The plan from the upper chamber also eliminates the state and local property tax deduction.
The calculator includes the new rates and child-tax credit unveiled by the Senate Tuesday night. It’s only meant to give a look at what happens in the first year after enactment, as the individual tax rates are set to sunset.
(Excerpt) Read more at marketwatch.com ...
If the ominous things I’ve been reading about this bill are even somewhat true (takes away student loan write-off; Child credits revoked), then the R’s in Congress have just set into motion the Great Trump Betrayal to end all Betrayals. If Trump sings this, he is singing his own death warrant.
ANY tax increase on anybody is political poison and he will go the way of Bush 41.
The R’s had a real opportunity to overhaul the system and start public steering toward getting rid of the IRS and income taxes. But we get this turd instead.
My dreams of a small (.2%) national sales tax on everything sold are dashed once more. har har
See the link in post #3, that one shows how much you'd save compared to now.
“Is the child tax credit no longer refundable?”
Only the ADDED PART, the amount over $1000...at least per what I read.
I don’t think it should be refundable at all, same with EITC - the government should not pay you just for breathing.
bkmk
Your finances are really strange if this is so. What would cause such an increase?
I expect this will be followed by a work requirement for welfare which would move butts back into the private sector.
This could be Reagan II.
My taxes stayed essentially the same under Senate bill but increased by 10% under house bill for a measly income of $52,000!
my taxes go up 500.00 but my kids are all out of the house now, so that’s ok I am glad the majority will get a tax break.
He/she just wants to supply money for the congress’ sexual harrassment payoffs slush fund.
I’m retiring in 4 years (if I can hold out that long, the jury’s still out!). I’m wondering how this will effect retirees...hard to tell with pensions, social security, which isn’t taxed, etc.
We’ll save $1000-1300.
As pointed out on another thread, the tax plans favor people in red states with smaller mortgages and families. In other words, most conservatives.
I suppose you could take the lower itemized amount...but why?
Trump carried Pennsylvania. That might not happen if he signs a tax bill that raises the taxes of upper middle income Pennsylvanians. The GOP may laugh about raising taxes on Californians, because that state is gone for good to Republicans due to open borders policy. But it could be the Democrats who laugh if the GOP is kicking Pennsylvania away.
I think this calculator is flawed. I’m not a CPA, but it looks like they are making a huge mistake in the calculation.
Federal tax withholdings are calculated based on Taxable income, not Gros income.
Taxable income is Gross income minus pre-tax deductions like 401K contributions and Company Health Insurance premiums.
Personally, I shell out about $6K and $6K per year for 401K Contribution and Health insurance, respecitvely.
If I make 60K, the taxable portion remaining is 48K. This is what I think needs to be used for the calculator to be accurate, sans itemizing.
If I understand correctly, neither 401K conributions, nor Insurance premiums will be treated any differently than they are now.
Someone who knows more can correct me, but I believe the calculator is incorrect in asking for Gross Pay instead of Taxable Income.
The other wildcard would be the SALT deduction, In or Out, and limited to 10K/year.
If the SALT deduction is on top of the Stndard deduction, sweet. If it is part of an itemized return, that is still OK for many people.
Thoughts?
If the people who voted for Trump in states that Trump won perceive that Trump's policies are costing them money, it's over. Americans know intuitively when they have less money than they had before. Every social issue out there takes second chair to Americans' pocketbooks. If #taxcuts become #faketaxcuts, Trump is mortally wounded. The Democrats won't even have to lie in their campaign ads.
Ideally, tax cuts are supposed to be achieved by a reduction in government spending, not by making winners and losers from certain brackets of taxpayers. That's what Obamacare did.
There sure seem to be a lot of people, myself included, who are growing concerned that the GOP's tax cuts might result in less money in our wallets than we had under Obama and the Democrats.
Finally, a FReeper who truly “gets it”.
PA will NEVER vote GOP again.
Or at least for a generation.
Well said. I'm the sole wage-earner in a family soon to be of six. My wife is due with baby #4 next March. Our first child was born in 2009 and we've enjoyed, no, counted on, that refundable child tax credit ever since then. Take it away and it's going to feel like a reduction in my family's income.
I don't care what anyone here says, I'm not going to be happy about it.
Do we want to encourage married American couples to have more kids or do we want to import them?
The state selection is to calculate your current tax.
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