Posted on 09/27/2017 11:35:34 AM PDT by Jim Robinson
Congressional Republicans on Wednesday unveiled the framework for their long-awaited tax-reform plan, which simplifies the tax system and cuts rates for businesses -- while attempting to boost household incomes by nearly doubling the standard IRS deduction used by most Americans.
“Today, we move one step closer to fixing our broken tax code," House Speaker Paul Ryan, R-Wis., said. "This is our best opportunity in a generation to deliver real middle-class tax relief, create jobs here at home, and fuel unprecedented economic growth.”
The framework plan calls for increasing the standard deduction to $12,000 for individuals and $24,000 for families, which essentially doubles the amount of personal income that is tax-free.
Congressional Republicans describe the change as creating a larger “zero tax bracket.”
(Excerpt) Read more at foxnews.com ...
Yes, but in every scenario except the first $18k income (up 2%), you are at *worst* equally well off as today and in most cases (15%, 28%, 33%, 35% and 39.6%) better off than today.
Yes, it does.
Another article:
Trump Proposes the Most Sweeping Tax Overhaul in Decades
https://www.nytimes.com/2017/09/27/us/politics/trump-tax-cut-plan-middle-class-deficit.html
Will Congress pass it?
“well if you are a homeowner you should care because this plan would cause the real estate market to collapse making the home you are living in worth less than you owe possibly.”
collapse is kind of an extreme prediction. There are only a few states in which the property taxes are so high that not being able to detect them would be a problem. Especially given that the standard deduction doubles.
We all don’t live in your neighborhood. Prices vary.
“it says it removes ALL deductions except mortgage interest and charity ...
“which would mean no more deductions for health plans provided by your work”
What page do you deduct this on? I believe they are talking about deductions on schedule A only. My husband pays for health insurance pretax, so there isn’t even a deduction on the tax form.
“no more child tax credits”
A credit and deductions are not the same thing. The credit is taken off on the back page of the 1040.
“no more deducting contributions to retirement accounts”
This isn’t done on schedule A either. I believe it is on the front page of the 1040. It is not considered a deduction, but an income adjustment.
“What a pansy-assed group we turned out to be.”
Seems like most are only interested in how it affects them. How it affects the country doesn’t matter.
It’s a good thing our founding fathers didn’t have this attitude.
Good call...
Love your post!
“I keep warning people about the New Jersey level of property taxation in Texas. All the Foghorn Leghorn bragging in the world won’t overcome a tax hit like that. Conservatives relocating who have some discretion as to where should look at other, lower cost conservative states.”
Exactly. We mistakenly move to Corpus Christi from California. With the confiscatory property taxes in Texas, we paid more in taxes there than we did in California, including the state income tax. Property taxes were about 3 1/2% and rising. And this was in 2000!
Needless to say, when we were looking for a place to go Galt, Texas wasn’t on the list.
I appreciate it.
“I keep warning people about the New Jersey level of property taxation in Texas. “
If you buy under $150,000 and live in a community with no development funds and especially if you are a senior you pay essential no property tax.
“Yes, but in every scenario except the first $18k income (up 2%), you are at *worst* equally well off as today and in most cases (15%, 28%, 33%, 35% and 39.6%) better off than today.”
Not me and a lot of others with mortgages.
“Especially given that the standard deduction doubles.”
Yes. No incentive to carry a mortgage which makes owning a home more expensive! Higher costs >>>>> ?????
I am sure you can fill in the blanks.
Why didn’t your read before posting. AMT is dead.
“The nonpartisan Joint Committee on Taxation (JCT) and the Internal Revenue Service (IRS) Taxpayer Advocate have both recommended repealing the AMT because it no longer serves its intended purpose and creates significant complexity. This framework substantially simplifies the tax code by repealing the existing individual AMT, which requires taxpayers to do their taxes twice.”
Since you don’t know the new breakpoints your conclusion is ill-found.
“Because on $210k mortgage with 3.5% interest rate is only $7.3k per year in interest even if you didn’t pay it down at all ($210,000 *.035 = $7,300). “
I just checked. It is $235,000. And I have no idea where you are getting 3.5%.
004 CYPRESS-FAIRBANKS ISD 127,600 Certified: 08/11/2017 1.440000
040 HARRIS COUNTY 237,600 Certified: 08/11/2017 0.416560
041 HARRIS CO FLOOD CNTRL 237,600 Certified: 08/11/2017 0.028290
042 PORT OF HOUSTON AUTHY 237,600 Certified: 08/11/2017 0.013340
043 HARRIS CO HOSP DIST 237,600 Certified: 08/11/2017 0.171790
044 HARRIS CO EDUC DEPT 237,600 Certified: 08/11/2017 0.005200
045 LONE STAR COLLEGE SYS 80,000 Certified: 08/11/2017 0.107800
506 HC MUD 419 10,000 Certified: 08/11/2017 0.940000
617 HC WCID 157 10,000 Certified: 08/11/2017 0.465000
633 HC EMERG SRV DIST 9 179,400 Certified: 08/11/2017 0.053310
“Doubling the mortgage interest deduction is fixing the code?”
Normally I’m in favor of anything that reduces cashflow to DC, but this will simply raise the price of housing.
OK, 12% is a wee bit better than 15%. Avoids burdening the broad base of the working poor and the lower middle class. The doubling of the personal deduction only benefits the very bottom rung, and is a marriage benefit (gay and straight) and takes the money from those only slightly higher up, especially the single, who are already not benefiting from double income no kids. Worst hit, single parents who have just entered the workforce and are trying to get ahead. Instead of two people living together with two incomes getting a break, they are living with one or more kids on a single income. Why not make it even tougher for them? Still, better than the last one.
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