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 ...
recalculate using $24k itemized deduction ...
I know, what I was referring to is same thing. Fm loans have 5% down loans with 620 fico scores mixed in with 825 scores with 30% down. And loan shopping makes a huge difference. I got 2.875% on my last loan and most of the big guys (wells, baml, etc) were 3.625% at the time. My folks got 2.5% 15 yr last year.
Yes and when they go from 28-35% marginal to 25%, that us going to discourage working vs today? Lmao
“Whatever the case, in the ACTUAL words of the plan and not CNN’s breathless propaganda, I see literally nothing about removing personal exemptions ”
Page 4 of the plan.
since you don’t know the breakpoints you are just blowing wind.
The expected break points have been leaked for ages, which are the current 15 (now 12), 25 (still 25) and 39.6 (now 35) which means 15, 28, 33, 35 and 39.6 go down vs today but it is possible the final bill will be different.
Geez, I don’t know. Looking at my own family’s situation and extrapolating a little more income and another child to make it a family of 4, I don’t see how a family making $60k a year can afford a $200k house, with all it’s expenses (like prop. tax), living expenses, auto expenses (we’ll assume 2 cars), other taxes, save for college, save for a rainy day, save for a new roof, and on and on. We are pretty frugal too: Over the air TV only, eat out only on special occasions, very limited fancy food at home (NO beef over $4/lb., and $3 meat rarely), very limited travel for pleasure, but “necessary” mileage does really add up, avg. mileage on cars usually over 100k, and always buy used cars w/ moderate mileage, careful budgeting in general...
Do you REALLY know how average income families live? And yet, most years I pay significant Fed & State income taxes - just one, after I got laid off & struggled to restart an old business, was Fed near zero.
I assume that 15 minutes doesn’t include compiling and categorizing all expenses...? That’s what kills me, time-wise. Computer or no, each has to be entered into a spreadsheet or whatever, one at a time.
I do agree with you though, that a lot of people in $100k - $150k houses end up paying significant Federal income taxes.
Corporate taxes just get passed on to consumers. Besides, whether or not the “super rich” get a little richer is less important than whether or not average folks can get good paying jobs with a future.
I might not mind seeing some form of tax “reward” for actually creating stable jobs, provided the employee is not laid off over some extended period. Unfortunately, I want to see a big decrease in the total size of the tax code, so adding another “incentive” counters that.
Depends on how.
they pretty much all hate Trump right?
Many private companies hate Trump. Schumer hates most companies and Schumer hates Trump. Raise taxes on Schumer?
Sure, but again it depends on how. Specific policy proposals are needed not slogans.
Agree, partly responsible for the decline of America. But so is everyone who pays a cable bill and watch the swill. Raise taxes on that!
Repeals personal exemptions
https://www.speaker.gov/sites/speaker.house.gov/files/Tax%20Framework.pdf
My comment was in reference to the "Fair Tax" not this new "tax cut" that is proposed without details.
You should finish reading the article, especially where it talks about changing (increasing) the child tax credits.
The article is really poorly written. And there are not many details about the plan. Or you can read post #115 for a copy of the parts regarding deductions and child tax credits. Few on this thread actually read the whole article and then started spouting the same sentiments you did about losing the child tax credits.
Oh ok. I was wondering where you got details from, lol.
Yeah, but with the democrsrs and RINOs, nothing will ever be fair. They can’t control the masses that way.
I read the info Paul Ryan put out on his Twitter feed.
They’re going to have to tweak that CTC by a heluva lot - and tweak the phase out too to make up for that huge chunk of extra taxable income (that’s being taxed at the HIGHER rate of 12% - seriously? WTF?)
Now where did my pitchfork go to?.....
And reading a person's post is also advisable. Scotswife wasn't talking about the child tax credit, which is supposed to be increased to an unidentified amount and which, amazingly enough, will be available for wealthy taxpayers as well. What she is talking about is the $4050 personal exemption which gives her family $28,350 in tax exemptions and which are being eliminated under this plan. So even if the child tax credit is increased to $4050 her family would still face an $8100 increase in taxable income. And if you think that the child tax credit will go that high then you're kidding yourself.
Admittedly this plan is empty of details at the moment, but from what we do know I, as a single person, will be faced with an increase to my taxable income of over $9000, the lowest tax rate I have is going up by two percentage points, and I will likely pay more in federal tax. And I will pay more in state tax as well since my federal deductions are reduced. So please tell me why I should be thrilled with this plan as it now stands?
Maybe, depending on the final outcome. But even if that’s true, the income levels that will trigger the tax brackets will be rising. So your income could fit into the lower bracket depending upon how it all shakes out.
For example, let’s say Tax bracket “A” increases it’s tax rate from 7-8% under the plan. But instead of that bracket starting at $100,000 of Taxable Income, it now starts at $120,000.
A lot of wrangling will go on between now and a bill that actually gets voted on (if we make it that far) so it pays to be optimistic and watch this....
In the initial proposal, yes. But the poison of compromise is giving the enemy just enough to make your goals virtually worthless. Those will probably be stripped from the final bill crafted. In fact, I'll bet on it.
I do it as the year goes by with the rentals in binders so its all organized. I use hrblock online every year so it rolls most of my data automatically.
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