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 ...
No, I think the $10,000 limit (per year) applies only to state & local real property tax (as of now).
Per the tax foundation, 19 of 51. They include DC. As I've noted on this and other threads, among the higher tax states, like WI, MI, IA, MO that it would be convenient for Republicans to win. If we hadn't last election, and tax cuts were an issue just like health care replacement and a wall, we'd be discussing President Hillary's tax the rich proposal. Not going to check your math, but if enough of your Ohio neighbors share your conclusion, not good. The Dem line that the bill provides tax benefits for the rich, and even the "rich", that's true. Which is OK.
>>> Further, by eliminating the deduction, there will be no incentive for localities and states to lower their tax burden on families. <<<<<
Whaaaaa??!
It gives every incentive to cut state and local taxes! Reelection will depend on it.
I’m not rich. My guess is a lot of Trump supporters who are donors in Ohio are in my boat. But I’ve got to wait for the real numbers. Some congressman on Varney said today he expects the senate to sweeten the pot. House could have played bad cop to the Senate’s good cop. We’re a month away from the conference committee
Seriously? States will feel so terrible for their overburdened subjects that they will rush through sales tax cuts? Instead of blaming the Feds and GOP for people falling into poverty? NOT A CHANCE.
I listened to Levin tonight, and a couple CPA callers proved that this proposal sucks. The GOP is stunningly out of touch.
Came out of retirement to say — this tax plan is a disgrace! It’s a tax increase for the people of California, I don’t want to hear anyone say “tax cut” because that’s not what it is. It’s redistributing tax burden to California, New York, and some other high-tax states.
What is Trump thinking?!? He may have lost CA, NY, etc. but he still has millions of supporters in those states. If this actually passes then CA might actually vote for succession.
Grow up.
Like healthcare, if this is the best the GOP and Trump can do after 8 years, for the GOP not Trump, of criticism, that's sad. Good for the GOP the opposition party is more inept than they are.
And IF you sell your home, you will have to pay the "new", still in place ObamaCare tax on the sale of said house, plus the same tax on the purchase of a new abode. Throw in moving costs, etc. and you come out on the dirty end of that deal. POOF goes your "dream" of buying a boat and early retirement.
Oh yes and then there is your imagined sangfroid re blue states going under. If/when that happens...there goes the economy and say hello to a massive, nationwide RECESSION at the least.
This POS proposal was NOT thought out well at all and gives far too much ammo, to use against us and the GOP and Trump, to the Dems.
As with the getting rid of the hated, unConstitutional, lousy ObamaCare...Trump cared about only one thing...CHANGE ( okay, the lowering of corporate taxes too, in this instance ) and 1)doesn't know enough to ride roughshode over Ryan and the House.
Forget "ruining" my day...this POS tax INCREASE has been out there, in bits and pieces, for a long time, so this has concerned me for a long time.
Today, Trump said that he was giving us a "great big beautiful Christmas present of a TAX CUT...which is a damned LIE!
OTOH...this is just the beginning and after this goes through its usual steps, it won't look anything at all like it does right now. And hopefully, your ox will be gored, when all is said and done. ;^)
And FWIW...I'll have less money, than you are drooling over and wish to expropriate, after having to pay a damned tax INCREASE; should this crap sandwich not be changed.
Wrong, CA pays more than its proportional share. I didn’t know tax and spend libs like you posted on FR these days?
He sure isn't cognizant of why the Reagan TAX CUT worked/was a for REAL "tax CUT" and the right way to do things!
Of course this is all going to change; the Senate will see to that and then the House will muck it up even more.
More than the mess that this tax thing is,what upsets me more, are the damned dogs in the mangers/SOCIALISTS/just gimme mine and to hell with YOUers, here!
Me? I want EVERYONE to get a tax cut; which IS what was promised !
do the republican party politicians even have a clue how much they are hated by their (potential) voters ?
Congress can go to hell and dont pass go
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