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. Its not clear how receptive they will be to the compromise.
Im still analyzing it, but right now, Im 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 ObamaCares individual mandate, were apparently not included, according to the summary.
(Excerpt) Read more at thehill.com ...
Mariner, you wrote — “For somebody losing $16k in exemptions, that $300 [credit] doesnt mean much.”
Definitely, as with starting by deducting $16k from my gross and then using $12k standard deduction versus losing the individual exemption it if I itemize means that I’m being taxed on $16k than I have in the past, even if there is no increase in my income for the year.
First, this bill didnt want to touch the spending debate. So it is a moot point. Secondly, it could be argued that you are advocating that the Feds should be able to tax us even more on our taxes. Its all about winners and losers, because that is how they chose to write the bill. I hope it fails miserably.
Repealing the AMT is BIG win. Reducing rates is a big win. Lowering the Corporate rate would spur economic investment and development the likes Ive never seen in my 30 year tax career. Not even under Reagan.
I find it sad so many here dont even see the big picture view that you were pointing out. All they care about is how much they will pay. I feel like I wandered into DU
I agree it’s not good enough, but I do think it’s a good start.
That fact that you guys keep sending liberal left wing loonies to Washington may have something to do with the disparity. We have finally started to recognize in Michigan that we are a donor state because we send liberals to represent us and expect them to help us with taxes.
Welcome the world of Paul Ryan. If this passes, the GOP could lose two dozen House seats, easily.
He’s getting those numbers from his derriere. I live in a 300k house in upstate and my property taxes are over 7k. I call hogwash on that.
the federales have been collecting unprecedented amounts of our money since...
why can't we just go back to the Bush tax cuts....
remember how we all cringed when they were not made permanent at the time?
OK, so for the first $90k in taxable income, federal taxes go down about $7k. That is in actual taxes owed. For someone to not come out ahead, they would be needing to lose around $45k in deductions.
How much SALT do these people in blue states pay if they are claiming there taxes are going to go up?!
Please elaborate on your 7k figure.
Going from 15% with a gradual increase on anything above say 80k VERSUS 12% on 90K doesn’t even come close to $7000 in savings. I mean not even close.
And to get to 90000....how about the elimination of exemptions? How much are we saving there? I mean c’mon now.
Who wants to guess how many of the 70,000 pages of tax code are still there?
Class?
I have no idea how you would conclude that. I absolutely agree that the spending issue is still to be resolved. And we have a huge debt so if we can reduce spending, maybe for a short time we need to repay that debt before getting back to "balanced" tax and spending. Regardless, we will never get to a 'fair' tax when any exemptions are made, and clearly people like their exemptions. getting to a fair tax is going to take a whole lot of people getting over their own use of the thousands of tax loop holes in the current system. And then there is the whole debate of taxing income vs taxing spending...
This is going to still get marked up more. My hope is that the tax code IS simplified (less deductions) but with accompanying LOWER RATES. Baby steps to a flat or fair tax. Though I a perfectly happy that the mortgage deduction is not going away as of the moment.
I’ve already sent Ryan a nastygram. Not that it will help.
I’m trying to think back - maybe one of my older children still had a college credit that helped us absorb it at the time.
Yes - the Bush tax cuts were very nice.
I think I even remember getting an additional refund check in the fall - out of the blue.
Thanks. I mean, I get the wallet mentality, and I hate to use the phrase “trickle down” but that’s what we’re talking about here.
Capital wants to be employed and it wants to be treated fairly. Capital will always grow and be put to use if there’s a reason to put it to use. You’ve got to give people a reason to invest and spend. Otherwise, companies like Apple, Google, Yahoo, and the big banks will continue sitting on WADS of cash.
If money were repatriated in large amounts in this country, it would be put to work. We’d have an economic expansion that would last 15-20 years with virtually no effort. It all trickles down.
There was another table at the link which shows taxes paid vs benefits received.
That’s the important one, and one you may have missed.
This bill is a no-go....Not even a decent first attempt.
Drawing board please advance to the front of the room.
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