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 ...
It appears as if Trump is already assimillating into the Swamp
I live in CA. and why in the HELL should the feds reward CA. with tax deductions when the DAMNED STATE is ignoring ALL immigration law, the state can’t possibly become more of a cesspool than it is now, as far as property values going down the property out here is so OVER PRICED the values NEED to come down I will be getting the HELL out of this state as soon as my mom passes!!! It is absolutely AMAZING to me that Regan was once our governor the ONLY damned thing good about this state is the weather it is a NANNY state through and through!!!!
Neither do I do FB, so that's out for me as well.
I'm sending snail mail, which works far better than email, when getting in touch with a pol.
Trump is getting THE worst advice ever and he doesn't know enough, sadly, to realize what an abysmal POS this proposal is for many. And his "happy talk", tonight, about how he is giving us THE greatest Christmas present...EVER, in a TAX CUT, turned my stomach! THIS ISN'T "WINNING" !
Goodies for the corporations, goodies for some, but BIG tax INCREASES for others, and four brackets isn't what he promised. And this is on top of the keeping of ObamaCare taxes, free stuff for some, and a totally USELESS, mealy-mouthed AG, Jeffy Sessions, in the face of all kinds of DNC/Hilary Russian collusion and FEDERAL CRIMES...are disgusting!
Remember? “I won’t let you down.”
Extortion Body Mortgage Care still in place, and won’t mention signing executive order exempting all, as O did for select such as McDonalds if recollect correctly.
NONSENSE!
2015
Total IRS Collections:
California: $405,851,295,000
U.S.: $3,283,920,138,000
Census:
California: 38,993,940
U.S.: 320,896,618
Collections/Population
California: $10,408
U.S.: $10,234
It’s exactly, what I said!
Income has nothing whatsoever to do with my statement about average taxes being the same, but in any case the fact is, average income is higher than average in California. Their minimum wage is about 50% higher than the federal minimum wage. Are you actually disputing that? Do you have a single source that says otherwise? I certainly would like to see that!
And what do illegal criminal aliens suddenly have to with this? Their unreported income or unreported income from anyone has absolutely nothing to do with revenue being collected by the IRS!
Unless a lot of these jobs are in infrastructure restoration rather than manufacturing of consumer goods I don’t see how the corporate side will generate million of middle class jobs. People are recycling more and buying less. Ever hear of the 700 mile yard sale? This will hurt the high end construction market. Of course, in some of our large cities developers have priced the middle class out of the market. Police, firepeople, teachers, hotel, hospital, and restaurant workers have to live out in the farther suburbs and commute into the city. Big problem with heavy duty weather getting them into town. Maybe developers will now have an incentive to build more middle class and worker housing like Trump’s father built to create the family fortune.
So move. Or smash your tv. Enjoy your sandwich.
Texas has high property taxes, too, by the way.
Section 1002 defines the standard exemption as $24,400 for married filing jointly/qualifying widow/er, half that for singles ($12,200) and three fourths of that for heads of household. It also (by implication) removes the 65+ and/or blind increases to the standard deduction.
Section 1003 removes the personal exemptions ($4050 each for 2017).
Section 1101 increases the child tax credit from $1000 to $1600, but makes only $1000 of that a refundable credit.
I ran the math for ordinary workers and retirees.
Single standard deduction filer: slight tax breaks up through 20000 AGI then more
Married no dependents filer: slight tax breaks up through 40000 AGI then more
BUT:
Single senior standard deduction pays more from about 14000 AGI to 24000 AGI
Married no dependents seniors: pay more from about 30000 AGI to 45000 AGI
And a married couple with 2 kids:
Pay more/get less refund from about 33000 AGI through 55000 AGI (and beyond?)
Thanks Brown Deer
If this passes, the GOP gets blown out in 2018. Trump gets impeached first quarter 2019.
And to be honest, I will be trying to figure out our budget after a 10% reduction, and will just smile.
Good point... they better be lowered... otherwise my taxes will increase significantly.... because if the brackets remain consistent with today... besides getting hammered by the reduction in itemized allowances... I will be moved into a higher bracket.... a double whammy.
All for lowering corporate taxes... but increasing it on families, particularly in the middle class, is not the answer...
Let’s see where this goes.
Too many rats and RINOs in the senate to get it passed. How will the republicans twist enough arms?
But here's the thing: I am willing to give up my tax deductions for a bill that lowers the corporate rate, because lowering the corporate rate helps everybody, not just me. Granted there is an argument that promoting home ownership helps society and the economy, but it also creates current winners and losers. Creating winners and losers in the tax code is generally bad for the economy, just like low interest rates are bad for the economy, just like welfare is bad for the economy. All of those are bad because they distort the economy.
This will be buried in all the 400+ comments but I’m going to weigh in:
1. This is a first class mess. Consider the source, Kevin Brady head of the House Ways and Means Committee. He was my congresscreep. I called him kevin BARELY in a rally and tried to get it to stick but it didn’t. I also told him we had to hold a mirror to his face to see if he could fog it except when he was hustling money. Other that that he was mostly dead.
2. The only real hope for simplification is to bull doze the tax code and start over. It is like an old house too worn out and messed up to even consider remodeling.
3. I yelled then laughed at Limbaugh and Hannity yesterday when they said this is the first “significant” tax reform in 30 years. NO! Tell that to the heirs of those who died on December 31 vs those who died on January 1 after Barky imposed the inheritance tax AGAIN. Before you get all jealous about anyone who has enough money to have an inheritance tax issue remember that it is NOT the governments money. Back in the days before the “death tax” was repealed I saw how it devastates a family that worked hard for generations to build a hard scrabble family farm on the harshest part of the High Plains. The Dad was killed in a truck wreck and the family had to sell much of the place to pay the death taxes. Had he died only a few years later the death tax would have been a non-issue. What is right about that? Destroyed under one regime while others are spared the same fate under another regime. That is not the way of nations but of dictatorships.
4. We can’t have a stable nation without a stable tax policy. In my adult life I can remember at least FOUR events that have caused a change in the way we do business and plan for our own futures. Just one of them was having to plan and manage for capital gains taxes on home ownership, then not and then having to think about it again after Barky reimposed that little jewel. Same with inheritance taxes, the changes in capital gains tax rates from 15% to 20% under Barky and the list just goes on and on all the way back to Kennedy in my working life time.
The tax code in this country is just a tool used by political hacks [all politicians] to favor friends and punish enemies. It is not the means by which the nation pays for services to the common good. That is just a by-product.
We live in a banana republic with politicians run amok and brain dead citizens. It is only the greatest country in the world because we say so and so many of the others are so terribly bad. I wish I could be dispassionate and taciturn but what we have sucks and keeps me angry and frustrated that nothing really gets better when it could be and should be great.
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