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 ...
And Trump just popped up on my T.V. screen, saying that he's "giving me a GREAT Christmas present TAX CUT". I want to smash the set...or better yet, spit in his face.
It IS “bad” ( for many of us ) and who knows what it will look like after both Houses get through with it. It could get worse...it usually does.
We used to get personal exemptions plus standard deduction plus state and local taxes deduction. Now we only get twice the standard deduction. The second standard deduction isn’t worth as much as the personal exemptions plus the state and local taxes deduction.
We got 1SD + PE + SL
Now we get 2xSD
PE + SL >= 1SD
When did I say anything to the contrary? I offered no support or opposition to the proposal... just stated that if the result of the change is that hordes flee high tax states, that I’d like to profit from that (independent of the fact that such an exodus would be horrible for the hordes’ destinations).
The extent to which dinks get hammered depends on how heavily they were hit with AMT otherwise. My kids do not impact my taxes significantly at all... the increase in CA state income tax for me would be 20x the increase in federal income tax based on my 2016 #s.
How would you, personally, "profit" from such a thing?
First of all, red states would no longer be RED, the exodus would probably crash the economies of the blue states, which could then easily go bankrupt, leading to defaults on all kinds of payment, with those governors then begging the Fed to bail them out.
Moving a company to a lower tax state also means that salaries get slashed.
There are a lot of other details that you haven't taken into consideration/thought about at all.
You originally stated that the brackets are screwing you, but now you are saying something completely different.
You now claim that that you are losing out on tens of thousands of dollars in state and local deductions that you can no longer take.
So, I see the problem as being with your state and local governments, not the federal government.
If you have kids supposedly we are getting a child tax credit. Somewhere between $1,000 and $1,600 per munchkin. Nobody knows about that one in detail. If you have no kids then no credits and no exemptions. Tough titties.
I’m not in a high tax state. Ohio is average. The issue is not getting a bracket break plus losing the personal exemption. I’ll let you know on Apr 15 how they actually construct the bracket numbers. I expect to pay approx 2500 more unless I’m doing the math wrong
What? No new millionaires? :)
Get yer drift... was thinking more short-term, local real estate appreciation & that collapse of blue states inevitable anyway. So, hypothetically, maybe cash out short-term real estate profits, invest in precious metals, buy a sailboat and retire to an uninhabited tropical paradise?
Get your old 2016 1040 out. Take line 38 AGI and subtract $24,000. I am assuming a joint filer account and your schedule B amount works out to be < $24,000(my Sch. B is < $24K). This is your new taxable income. Go to the tax table and calculate your tax or do the bracket math yourself.
Easy to figure out.
If you have a kid(s) you might, maybe, possily get a $1,000 tax credit per kid.
That whole business about kids helping with the tax burden only holds true if you are in EITC territory.
If you are in the 25% bracket, you’ve just lost $4080 exrmption per family member & the new standard & CTC doesn’t offset.
So now our large family gets a nice increase because we can’t deduct $4080 x 7 from taxable income (which was the only fun part!)
But hey! We can fill everything out on a postcard.
Yay for us!
Tax Foundation has some info on it. Pretty sweet if I’m reading it correctly; raises the threshold so upper middle class folks can use it.
Given that those with munchkins usually get the shaft, kinda nice to see them add some small incentive for perpetuating the species.
Does the WSJ infographic spell out whether the state sales tax deduction remains? I’m confronted with a paywall when I try to look.
Thanks
Might want to look into that anger. DJT didn’t wake up this morning with the intent of ruining your day.
Youre doing the math wrong.
The state and local income tax, as well as the property tax deduction in total will be capped at $10,000. In exchange your personal deduction will be doubled to $24,000.
Boo hoo. I’ll take your money and you can have my tax cut.
I don’t know, nopardons, jury is still out as details continue to emerge. I trust Trump...just not so sure I trust the politicritters.
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