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 ...
Enough already... the enemy in CA is the not conservative sick of paying half their income in various taxes. The enemy is liberal CA policies that every conservative Californian despises... especially open border policies that the entire nation pays for... we DO NOT support the liberal majority in Sacramento. Having said that, incomes are high because cost-of-living is high. A conservative Silicon Valley engineer making $200k annually and benefitting from sizable SALT and mortgage interest deductions likely has a significantly lower standard of living than a similar engineer in Austin making considerably less. Yet, the Californian pays more in federal taxes due to higher taxable income even after the deductions. Not slighting the TX engineer, but things are not as simple as you assert. Is conservatives in CA are fighting an uphill battle for policies that lower the cost of living, but without victories at the ballot box, we are stuck with what we perceive as paying more than our fair share as long as we are in this screwed up state. I know, no one is forcing us to be here, but the perception in much of the country that haughty Californians are living high on the hog while shirking our fair share of taxes is simply untrue.
As they should. The deduction for state and local taxes mainly enables the blue states to drag down the US economy with higher taxes. The deductions for large amounts of mortgage interest just changes consumption patterns, picking winners and losers.
Why do you hate corporations?
Cite your sources please... doesn’t jibe with my personal experience and colleagues in other parts of the country (I.e. I make more and pay more fed taxes while they live in MUCH nicer homes, etc.).
https://www.irs.gov/pub/irs-soi/15databk.pdf
http://www2.census.gov/programs-surveys/popest/tables/2010-2016/state/totals/nst-est2016-01.xlsx
https://www.irs.gov/pub/irs-soi/12databk.pdf
https://www.irs.gov/pub/irs-soi/11databk.pdf
http://www.census.gov/popest/data/state/totals/2012/tables/NST-EST2012-01.xls
Looks like CA and TX are about equal in per capita tax payments and ratio of the economy. Table includes all taxes not just income. Neither state holds a candle to Minnesota for tax payments. What's up with Minnesotans? They probably send in extra payments because it's the right Scandinavian thing to do.
And as far as "making it up in dividends and stock values added to their investment portfolios"; nobody touches their "investment portfolios" without then having to pay a tax on the sale of said stocks ( which would then raise their bracket, probably ), which doesn't make any sense. Also...FYI...stock values fluctuate; they just don't keep on going up and up and up! And since nobody knows what the future holds, a "paper profit" is MEANINGLESS; puts no money in your pocket!
If there is a boom in housing costs, in your neighborhood...without selling your home, do you then have MORE disposable money in your pocket? OF COURSE YOU DON'T!
The Fed Gov should stop spending on crazy "studies", over payments for for normal goods, crony deals, the damned ILLEGAL INVADERS, payments for so-called farmers, who really aren't framers at all, ever bigger government jobs/duplicate government jobs, and on and on and on.
This so-called "tax cut" mess DOES indeed "pick winners and losers", which it should NOT do!
After watching a republican get interviewed tonight I was left with the impression he thinks Americans don’t like EXEMPTIONS! Lol!
As if we prefer simplicity over a lower tax bill.
GAWSH - they’re always thinking of us & helping us out!
It merely changes winners and losers. People paying high rents are currently losers. They will get a more level playing field with mortgage payers.
People living in high tax states who benefit from deductions by definition have the means to move to a low tax state.
First of all, if, and it's a HUGE "if", people living in high tax states ( some conservatives, some RINOS, many libturds ) decided to just pick up and move to states where there is either no state tax and in some instances, also city taxes, those states would turn BLUE over night.
Many people live in blue states because their families are there ( sometimes meaning that they are looking after older relatives ) and so are their jobs.
Selling one's home is NOT easy, in many places and the money ( taxes and moving costs ) outweigh that idea; not to mention getting a new job.
What has "rent" have to do with anything? Renters in high tax states won't get any perks re those who are paying mortgages.
FYI...people with mortgages of over $500,000, will no longer be able to take all of the mortgage interest off; however, if they live in a high tax state, NEITHER will, as it stands now, be able to deduct their state and when applicable, city taxes off their Fed Taxes.
A REAL "tax cut" has NO winners and NO "losers"; it is a win win thing for ALL people! That IS what the JFK and Reagan tax CUTS were. THIS POS CRAP SANDWICH ISN'T WHAT WAS PROMISED; NOT BY A LONG SHOT! And it won't stand as is, so stop having all kinds of joy over the punishing of some.
The data you quote uses median household income, gross receipts including business, and total population. The mean household income is likely even higher, but the per capita income is significantly lower, as is the inter-state disparity of the same. Importantly, there is no reliable way to estimate the impact of unreported income of illegal aliens... also do not know if the census estimates household income of illegals, or only uses reported incomes for its median value (admittedly have not searched for details on that). The data in those sources neither support nor refute your claims.
This COMMUNIST tax bill is the worst POS I have ever seen, it’s about robbing Peter to pay Paul. If you’re Paul then you might be happy about it... but just wait ~3 years, then the Dems will be out for revenge and you’ll get soaked too.
Meanwhile this is going to cause a recession in CA, property values will collapse, you will see CA companies move to Canada or Asia. This is not even a tax bill, it’s an attack on California.
But yes, it IS, indeed, the singular worst POS imaginable and extremely stupid! Frankly, it's almost as "bad" as Obamacare; as it stands now.
What's worse, is that Trump is crowing about it; not to mention lying through his teeth, yet again, about his "wonderful gift" to us all!
The economy is chugging along nicely, as are the markets; this will stop that in its tracks...as it stands now. Of course, this crap sandwich won't pass the Senate, as is, so we'll all have to hold our collective breaths, to see just what, if ANYTHING, finally gets passed by both Houses.
I already hit it , I hope he gets the message loud and strong that if he signs this its his last term fo sho, the Repuclicans in Congress need to be tarred and feathered
This government is a P.O.S.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.