Here Is The Leaked Trump Tax Plan

Newz ^ | 09/27/2017

[Timmy]

I’m in Missouri (6% state income tax). No child credits anymore. Don’t think this does much for me.

[Eccl 10:2]

If they eliminate the Personal Exemptions, which previous iterations have done, I don’t see how I benefit from this.

If Trump hoses me on this, then I’m done with him.

[cherry]

personal exemptions and standard deductions are different animals...

the PE for two people would be $8100...loose that....but the standard deduction would be $24000...so a net gain of $4000 approx.?

[central_va]

It all depends on where that 25% bracket starts. Nobody will say.

[TheCipher]

It all depends on where that 25% bracket starts. Nobody will say.

Right. They do things like increase deductions but can take care of that on the other end by adjusting the tables.

[central_va]

I feel a screw job.

[Cowgirl of Justice]

Another leaker.

Why am I not surprised.

[SeekAndFind]

RE: I’m in Missouri (6% state income tax). No child credits anymore. Don’t think this does much for me.

It says in the article:

“Typical families in the existing 10% bracket are expected to be better off under the framework due to the larger standard deduction, larger child tax credit and additional tax relief that will be included during the committee process.”

[TheCipher]

[central_va]

The screw is inserted too high.

[Timmy]

But they removed the deduction for state income taxes.

[DoodleDawg]

A lot will depend on what the new tax brackets are, but right now I don’t see how I will be able to avoid paying more taxes. State and Federal since I don’t see Missouri making the same kind of adjustments.

[amihow]

Seniors hosed big time too.

[River_Wrangler]

Itemized Deductions: Keeps home mortgage interest and charitable deductions but eliminates all others including the "State and Local Tax" deduction which will mostly impact folks in the high-tax blue states of New York, New Jersey and California (but our understanding is that NY, NJ and CA residents want to pay higher taxes...so it's really a win for everyone).

This is a win for the no income tax people in states like Texas who have had to pay/subsidize income tax states for their reckless spending.

Thank you President Trump!!!

[DoodleDawg]

Seniors hosed big time too.

If this was a trial balloon it isn't going to go far.

[sarge83]

Hey the Republican congress is writing it why the concern?

The same bunch that can’t repeal obamacare, fully funded it, and passed a tax increase under obama, and have just worked themselves to death all of 2017, do NOTHING. What could go wrong?

[oincobx]

l believe he is referring to the personal exemption of $4,050 per member of the household. So if you are a family of four and you took the standard deduction last year, you had 12,000 + 16,2000 = 28,200 reduced from gross income. This hear that family of four gets 24,000. So a family of 3 is the break even. Then it will come down to how large the increase in the child tax credit will be.

[Mike-o-Matic]

>> My only recourse around this is to shelter a lot of
>> gross income in tax-deferred retirement accounts.

Grand, ain't it? But of course, "tax-deferred" ain't the same as "tax exempt" so you'll be paying it eventually anyway.

>>I’m a pass-through sole proprietor and I have to pay
>>both ends of social security. My effective tax rate is
>>substantially higher than most corporations.

Yep, as well as Mediscare. I agree with you 100%, it's inherently harmful and punitive to small business owners... the backbone of American commerce. But I guess small business doesn't have (or rather, can't afford) the right lobbyists.

[WVMnteer]

People are going to flip the hell out over not being able to deduct their state and local taxes. I’m in Texas now so I’m happily unaffected by that.

[Mike-o-Matic]

>> Capital Gains?

Yes please! As much of them as possible. :-)

Seriously though: From what I've been able to gather today (spotty at best) there is no current plan to change the rates on long-term gains. I have no idea if the brackets/breakpoints will have to change from the current ones though.

For short term gains, it's less clear to me what will happen, although owing to their higher tax rate compared to long-term gains, it's been speculated that the short-term rates will be lowered somewhat.

Of course, all of this may be changed or bargained away in negotiation. Personally I don't think it's worth trusting what was proposed yet, it'll probably get screwed around with so much we won't recognize it afterward.