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 ...
Well, to be fair - a few years ago I did some tax math with retirement - I expect my marginal rate in retirement (under the current tiers) to be either 15% or 25% depending on the year and today its currently 40% with fed and state so it always make sense to defer as much as I can handle today since it will be significantly lower in retirement.
So those with four kids as dependents will not get deductions for them I guess.To further simplify tax filing and provide tax relief for middle-income families, the frameworkrepeals the personal exemptions for dependents
And the "child tax credit" isn't explained clear enough to see if it will offset the large loss by essentially eliminating deductions for a family's children.
I haven’t read the whole bill or the whole thread.
What are those $4000 deductions, just for retired people?
TIA
Yes, and perhaps to the shareholder too. Maybe hitting the SALARY of the CEO would hurt them more directly?
That seems to be the problem. We don’t know where the 12% will end and 15% will begin.
Personal exemptions. On 1040.
Oh ok thanks.
I thought those were removed and replaced with the 12,000 for individuals and 24,000 for families.
Are you saying the personal exemptions will also be there still?
From what I read from the actual bill, a lot of the “good” things in it are VERY vague and will be expanded upon later by the politicians.
As usual, much is hidden from us and much will be put in that is negative to helping the people...and this will be done in the dark of night.
Yup, the devil’s in the detail. And the detail must be worked out in the congress. And the congress is generally a tool of the devil, so...
As far as I can figure with the givens and basic assumptions, looks like I’m personally more likely to have an increase of somewhere around 10% in tax liabilities rather than a decrease. That sucks.
But I can live with it if Trump’s overall agenda passes and works out. Whenever big reforms are made to flatten the rate structure or remove special interest deductions, etc, you’re gonna have winners and losers.
I’ve said all along that if Trump secures the borders and enforces the immigration laws, deports as many illegals as is possible and stops the incoming flood, successfully cuts the taxes for most people, drastically cuts the corp taxes, cuts regulations, cuts spending, actually cuts government, and also tightens up trade deals to be in our own best interests, end the idiotic war on coal gas & oil, etc, we will have a booming economy that will bring back investments, industry, manufacturing and jobs!
Then I would see this round of tax reform as just the starting point. Key is to start growing the economy, spur investments, put OUR people back to work, then cut, er, gut the bloated government so we don’t need to siphon off so much of the economy in taxes in the first place.
Prayers up!
>
After researching all suggestions and research about implementation, I realized, we don’t have the grit or stomach for this sort of radical change. It would be like changing from Miles to Kilometers and feet to meters.
>
I, too, am a huge advocate of the FT (not the ‘prebate’ crap though), but I don’t see the hurdle you do: What you make, you KEEP. What you spend, on initial/primary purchases, you pay the tax upon.
Pretty straight-forward. We go from the sh!t-storm we have today to:
- Paying taxes is voluntary (unlike income taxes)
- Promotes re-use/2nd-hand markets/trade/barter
- EVERYONE pays...the SAME
The supposed ‘con’ vs. retired is the same ‘logic’ the (D) use. There’s a plethora of examples of 2x-3x+ taxation (cars\tags, ‘gifts’, inheritance, capital gains\gambling, etc.), so what makes THEM *MORE* special than everyone else?
Sorry, but we ALL should be clammoring for the FT and away from the anti-Constitution/illegal 16th (violates 4th, 5th, 13th at least).
Anything where a Free Man can CHOOSE what to do w/ his property w/out govt 1st in line for its ‘cut’, having done NOTHING but attempt to enslave.
What are the $ 4,000 deductions.
$4000 exemptions on form 1040.
My father was/is a jack of all trades guy. He's always been right in the middle of the fairway on middle class as such. Once I hit corporate America, I decided to move up the chain I needed to specialize and choose Corporate Finance. Got my undergrad degree as an adult (Econ), T10 MBA program with a heavy focus on finance, shifted into corporate FP&A in the middle of the program combined with a ton of independent research and just took off from there. Thanks to a lot of hard work, some luck, and the brain God/parents gave me, my income has gone up 5x in the last 6 years now one step below the CFO level for a > $6b company. That said, don't ask me to fix my car or do housing repairs! I can't do them, while my father can do them in his sleep even though that's not what he does for a living!
That’s actually an unspoken part of my point.
:-) ... or then again, maybe :-(
I think it’d be better to break up the incestuous relationship between big business & gov’t. I’m open to ideas. Trump’s campaign position re: lobbyists might help a bit.
Well, God bless you and your success! I made the “mistake” of choosing (and loving!) a field in which there never was a lot of money (maybe a handful of exceptions), and in which the industry in the US collapsed about 30 years later. There are still niches, but it’s like lichen clinging onto a wind & sea battered rock. (Not to mention care of my P’s coming into the picture too — one has only so much time and energy!) It’s tough to restart when one is in their 60’s & has parents in bad shape to take care of.
That said, I have been blessed to have work I enjoy, there is still a little around, it makes or perhaps better said has made a lot of people’s lives a smidgen better, and I have a little talent for it. I’m not bitter!
P.S. I’m like your Dad — I might offer to fix your car or house, but, you already have him! :-)
I just read this. Look how the journalist twisted words.
Am I the only one who noticed?
It won’t work now because the military could not be funded. It does not use muskets anymore.
SOME Republicans may have supported a flat tax, most did not.
Good thing we have an expert like you to warn us.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.