Posted on 11/02/2017 7:21:40 AM PDT by GIdget2004
House Republicans will propose limiting the deductions for mortgage interest and state and local taxes in the tax bill they are releasing on Thursday, according to a summary of the legislation obtained by The Hill.
The bill, called the “Tax Cuts and Jobs Act,” largely follows the parameters that GOP leaders and the White House outlined in September. It would reduce the number of individual tax brackets, slash rates for businesses and eliminate a number of tax breaks.
In order to offset the costs of the legislation, Republicans are putting forward some proposals that are sure to be controversial.
The bill would keep the mortgage-interest deduction, but only for newly purchased homes up to $500,000. Homes bought in the past could keep the deduction regardless of price. The housing industry is sure to push back on that cap.
The legislation would also taxpayers to deduct their state and local property taxes, but only up to $10,000. It would not allow people to deduct state and local income or sales taxes.
Blue-state Republicans have fought to preserve that deduction, which is important to their constituents. It’s not clear how receptive they will be to the compromise.
“I’m still analyzing it, but right now, I’m strongly leaning no,” Rep. Pete King (R-N.Y.) said.
Several other controversial ideas that were floated to help pay for the bill, including limits on pre-tax contributions to 401(k) plans and including repeal of ObamaCare’s individual mandate, were apparently not included, according to the summary.
(Excerpt) Read more at thehill.com ...
I thought I read it was....if not I apologize.
Got it.
You benefit because you’re over $250k and the AMT is being abolished.
Correct. Consumer spending drives large portions of the economy. Under these tax increases, consumers will have less money to spend.
Hope so! It appears the larger the family the worse off you are
I’m not sure about that deduction.
I agree, more jobs, better wages, IRS reform, this alone is masterful.
Take in the leasing out the Gulf of Mexico.
Let the good times roll...
Next social security. MAGA
“where then is my tax cut?”
Under the scenario you outline, you will pay more.
For later.
“Can you take the standard deduction along with any other deduction, or is it strictly one or the other?”
One or the other.
Yes me 2 and could get behind this (but no matter what this isn’t a huge windfall by any stretch).....but who knows.
I don't see it as an FU to the individuals and families. But I understand it will feel that way to some, including myself as I stated.
But, seriously, how else are we to put the blame for bad tax/spending behavior where it appropriately belongs, whether that be at federal or state level? As it is today, its blurred and I can argue that you are blaming the federal tax system, which is lowering rates, for the graft of a state tax system, which is happy to continue to raise rates and hide behind the federal tax deduction.
Thanks for a good summing up.
Only if you believe that every democrat in this state enjoys the high taxes they're paying.
Did you see the visceral reaction by Crook County voters to the "sugary tax" drink? That blew the lid (no pun intended) off of this state's high taxes ...
There were people on TV saying they knew they already paid the highest property taxes and sales taxes in the country, that pushed them right over the edge!
They got a lesson in Civics and IMO (hopefully...) are starting to figure out just how over-taxed and how corrupt this state is.
Oh c'mon, I can dream can't I?
“his is what is meant when you see the claim that the states with lower income taxes are “subsidizing” states with higher income taxes. “
Abject ignorance.
The blue states you’re referring to subsidize the most of the red states with their income taxes paid vs benefits received.
Simple research on the interwebs will edify you and prevent further embarrassment.
Not as long as Mike Madigan's breathing .... he isn't going to live forever.
They ditched the personal/dependent exemptions
Then I will pay more in federal taxes. Great.
If they ditched the personal exemptions then they can shove it 30 feet up their azz and the bill will get voted down as it should.
“the 25-percent bracket threshold would be $90,000,”
That confirms this will be a disaster for this lifelong Republican.
I placed my first vote for Ronald Reagan in the 1976 CA primary. And have voted Republican ever since.
With the loss of deductions in this plan, the Republicans are increasing the Net income taxes I pay (single, home owner) by $9,300.
If it passes I’ll never vote for another Republican, ever.
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