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 ...
I’m not seeing much discussion of business taxes.
As I read the “plan”, the corporate rate drops to 20% and the small business “pass-through” rate maxes out at 25%.
Sounds like the the small businesses that are helped are those whose income puts them into the 28% or 35% brackets, while those now in the 15% or 25% brackets get no help at all.
Trump was originally saying (and running on) a promise of 15% for both.
Thank you!
I think I’m going to have an aneurysm!
I didn’t even check to see if they’re going to try give us all this fantastic “relief” retroactively to tax year 2017 - or if they’re going to give us time to prepare for all this “relief”.?
And screw up my estimated tax payments.
Right? We’d have to come up with (rough estimate) an additional $4k between now & end of the year (while planning a wedding & filling out college applications)
GAWSH! Thank you SO MUCH republicans for all this RELIEF!
I’m heading out now to pick up some TUMS.
If it passes, which I doubt, the new Standard Deduction plus Personal Exemption amount will save me about $250. Whoopee.
Shoot, for the many people who don’t itemize deductions on Schedule A and don’t file Schedule C, but do claim the Child Tax Credit, the CTC may well be the most complex part of their return. That thing (CTC and Additional CTC) is a pain in the behind. I’d rather do a 20 item Depreciation Worksheet* manually, complete with figuring out Class Lives, which depreciation table to use, etc. I let IRS figure our CTC and hope they got it right...
* http://www.unclefed.com/IRS-Forms/2000/HTML/graphics/13081941.gif
*(I ended up having my wife create a custom spreadsheet, which at least eliminates calculation errors...)
Why on earth do upper income taxpayers need the child tax credit? The President is out there saying how this is the greatest thing for middle class taxpayers since sliced bread. Has he not read the plan?
I quote: “To simplify the tax rules, the additional standard deduction and personal exemptions for the taxpayer
and spouse are consolidated into this larger standard deduction.”
I’ll admit you’re technically correct if that makes you happy.
You still have yet to show how this will raise YOUR taxes, mostly because you can’t yet. Not until a bill actually reaches the floor. All you say is that you ‘doubt’ that the increase of a child tax credit will make up for a simplification.
Again, the media wants you to worry and be filled with anxiety; that’s how they sell their propaganda.
Of course, I do remember SOME of the screen names on this thread, and knowing their behavior during the election, I expect them to nitpick everything and slam EVERYTHING that the President does because they’re still bitter...
Those are rates. Not the breakpoints ...
Right, but the time spent during the year is still time spent. Then there is stuff like, oh, say I bought a couple cases of oil on sale, and used some in vehicle A at 42 % business usage (plus the logging & figuring of % business usage!) and some in Vehicle B at 29% business use. So to be accurate I gotta track how much oil I used in A and how much in B. I looked some years at using the std. mileage rate, but usually did worse with that — and one still has to log miles, etc. I probably ought to have Wifey also create a better spreadsheet for vehicle expenses, and try to keep up with it better, but I’m just so damn backlogged with bills & accounting & paperwork all the time anyway — and this is just for a silly little 1-person business.
Where’s that cartoon about computers “reducing” paperwork...?
Here’s my rough estimate so far...
Take exemption of $4080 & multiply by 7 family members ($28560)
NOW - address the deduction. Normally we itemize & have deducted anywhere from $14k-$15k. With the standard being raised to $24k - that allows to subtract approx additional $10k from taxable income.
So our taxable income is raised by nearly 20k - most of which will be taxed at a higher rate of 12% instead of 10% - and some may be taxed at 25% (depending on where the new brackets fall)
They have not given specifics on the Child Tax Credit.
I keep up with mileage most of the time but not much else related to travel. Just too small potatoes. Even during the year it’s not that complicated or time consuming. I get interest/taxes/hoa electronically in one place and I have depreciation figured out easily. I usually only have 0-2 repairs a year per property so its not too bad keeping up with those. But yes, paperwork sucks. I’m sure if I was more of a stickler I might save a couple hundred bucks but I’d rather do one consulting call @ $300 per hour or push for another promotion at work which would increase my pay $100k/yr than worry about the little things.
You keep leaving out the 10% bracket. On purpose?
Sigh, we’ll just have to wait and see. It’s cutting $1.5 trillion in taxes over 10 years - the vast majority of people are going to benefit.
One proposal I would have is to brute force reduce the number of characters in the tax code by 20% per year (over the prev. year) over a 10 year period. Acronyms count as the full name or phrase, so “ADA” is 31 characters, for example.
“I can do my taxes which includes multiple rental properties and multiple other sources of income in less than 15 minutes. “
LMAO!
Assuming the breakpoints are where I indicated (current 15/25/39.6) the 10% to 12% would add $373 in taxes *at the max*. And you’d fully recoup that once you hit another $12k in income and its all gravy after that point. Not everyone will get a tax cut in this deal but I’ll bet 90% will. Look, You don’t like this tax bill. We get it. I’m tired of talking to you about it. And we still are missing a lot of key details and things likely will change as they debate on it and rangle votes.
Whew, that’s rarified territory for most of us out here...
Laugh all you want. Took 20 minutes to my wife and I’s taxes as well as my sister in laws taxes this past year.
One would wonder why you are spending so much time posting here instead of pushing for that $100,000 promotion or making that $300/hr consulting call.
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