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To: KC_for_Freedom
Middle class tax payers are expected to benefit from being put in a lower tax bracket (not known yet what they are) and the hike of the standard deduction. For me, I can itemize deductions only if I work hard at keeping all records, the doubling of the standard deduction will push me into the non-itemizing group and my tax preparation team will not have to work so hard. If they don’t drop my costs I can go back to doing my taxes myself.

That has nothing to do with the fact that eliminating the state and local decduction will screw over millions of middle class Americans in this proposed bill.

83 posted on 10/21/2017 3:14:38 PM PDT by SkyPilot ("I am the way and the truth and the life. No one comes to the Father except through me." John 14:6)
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To: SkyPilot

I agree about these deductions, same goes for other deductions. Those who use them will lose out unless the increase in the std deduction covers their tax payment. For example my county tax is $ 5 K. if the std deduction is 12 K and it is doubled to 24 K I would have no complaint about the county tax. Likewise for other deductions, one has to be able to claim the deduction for it to matter.

A fair way to go on this would be to use a phase in approach. Also likely to be considered is a means testing approach, for example, someone with a very high income may also have a very high mortgage to deduct. It may be that the mortgage was accepted based on the deductability of the interest. I could see how something like a 5 year phase out may help lessen the blow involved in the change. If the above person has a huge income perhaps the tax burden will not be critical, if the person is just getting by, then by all means keep the deduction. The truth is that I agree with the principle of a cut for the middle class and usually this also cuts the upper class. (after all, they pay most of the taxes) It is not fair, but we have long had a system of graduated taxes and Trump has said all along that he would not alter that. Thus, no flat tax.

The tax structure has always created these win and loss situations. A better way would clearly be to eliminate the congress created pathways through the tax system. I also would prefer a single interest rate and I would prefer that everyone paid taxes. I will not get my preference from Trump, but his plan is still a boost for the economy and that will help me and others. Do you not agree in general?


203 posted on 10/21/2017 10:25:10 PM PDT by KC_for_Freedom (California engineer (ret) and ex-teacher (ret) now part time Professor (what do you know?))
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