First details emerge of GOP's sweeping tax bill

The Hill ^ | 11/02/2017 | NAOMI JAGODA AND SCOTT WONG

[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.

[Mariner]

“Alot of people don’t even know the difference between exemptions & deductions.”

Then take away their vote.

[NYFreedom]

Eliminates personal exemptions: Today you’re allowed to claim a $4,050 personal exemption for yourself, your spouse and each of your dependents. The House bill eliminates that option.

[mrsmith]

You’ll never vote Republican again because the Democrats in your state are taxing you outrageously...

Sure, what could be more rational than that!

[Mozzafiato]

If you itemize, own a home, and live in a high tax state, you are going to be paying more in this bill because they already told us they are eliminating or limiting certain deductions.

I don't disagree about the potential negative effects in those states, but perhaps those folks should stop voting for high tax politicians. There seems to be an inverse benefit to high state taxpayers currently, by allowing them to offset those taxes in their federal filing...which is, in effect, a subsidy at the expense of low tax state taxpayers.

[Magnum44]

The blue states you’re referring to subsidize the most of the red states with their income taxes paid vs benefits received.

I am not sure I believe that, though I hear the blue state governors claiming such. Show me the stats. California is sucking resources for illegals and bad policy, and I am not so sure that the income taxes paid by the silicon valley crowd are nearly enough to compensate for that. If you can produce numbers, I am willing to listen. But simply saying that CA or NY provide more tax revenue than other states does not answer the question. The answer includes how much the illegal alien burden is costing in medical, public housing, school tuition, and other welfare costs, as well as "high speed trains to nowhere". All of these things are federally subsidized, thus canceling out additional tax revenues.

[MMaschin]

If you itemize, own a home, and live in a high tax state, you are going to be paying more in this bill because they already told us they are eliminating or limiting certain deductions.

The changes they want to pass into law will also have a devastating effect on the housing industry and real estate prices in many states (CA, NJ, NY, CT, etc.) That is why many mortgage and home building groups are opposing the bill.

Since a home is many families biggest asset, and a healthy real estate market insures economic growth, the bill will be poison pill to many.

Thanks.

I'm 48yrs old, and own my own home (made the final payment earlier this year). It's 3k sqft, 4/3.5, built in 2002, in Austin tx, and I purchased it 14 years ago for 250k. I think it's a travesty that home values are being artificially driven up in blue states. The tax and spend policies in those states create local inflation, which strangles the middle class.

I read an article in a British newspaper where the author was trying to determine why, when everything they heard was about how rich the northern States were, and how poor the southern States were, why were people moving from the north to the south? He went about looking at people in the same careers, and looked at their standards of living, and found out that while people in the north made a lot more money, people in the south had a much higher standard of living.

Yes, people can move, but when big problems occur, such as the housing bubble bursting, it effects everyone, not just the blue states that created it - and yes, there is another housing bubble building.

All the things that you mention are true, but in my perspective, I don't see that as being an overall bad thing. Right now the left has control of the blue States because there is more political clout with those wanting free handouts, maybe if that clout can be changed over to people demanding lower taxes at the state level, things will get better in those states.

Eventually there will be economic parity between the states, will it be what the blue states want, labor unions (higher wages), high taxes, high inflation, high cost of living, or what the red states want, right to work (lower wages), lower taxes, lower inflation, and low cost of living? My preference is for the later, and I believe this bill, in part, is attempt to move things in that direction.

[Mariner]

“Who said the $4,050 per person exemption is going away?”

the Republican Tax Plan.

[ConservativeMind]

Knowing nearly half of the country pays no income tax, do you support more of those people paying tax and having benefits reduced?

[Lisbon1940]

This is going to be the signature Trump legislation?

[central_va]

Then my taxes go up. Sucks.

[NYFreedom]

This bill to me helps very few people not considered a corporation, upper middle class and above, and the poor.

What kind of garbage is this?

[NYFreedom]

Throw this pile of manure in the trash and start over....better yet I like when they don’t do anything at all...at least then they can’t come up with this turd pile. Congress look yourself in the mirror and realize how much you suck!!!

[redgolum]

Dubuque is a good example.

Higher tax, and very “blue” in this purple state.

They are already screaming about this bill.

Cost of living is lower though.

[ConservativeMind]

“and a healthy real estate market insures economic growth...”

You have that @$$-backwards.

[Mariner]

“You’ll never vote Republican again because the Democrats in your state are taxing you outrageously...”

It’s the Republicans in Congress that increasing my net taxes.

To argue otherwise would make a person look real stupid.

[NYFreedom]

I’m not sure the democrats version would be much worse for the middle class....just saying.

They are punishing families.

[Scotswife]

I wish I was wrong. I guess they figured we wouldn’t notice?

[Mariner]

https://www.theatlantic.com/business/archive/2014/05/which-states-are-givers-and-which-are-takers/361668/

Again, the very large, very blue states are subsidizing the majority of the red states.

Read it and weep.