Posted on 11/02/2017 4:41:47 PM PDT by Mariner
House Republicans released a sweeping tax overhaul Thursday that would limit or end many of the most popular tools used to minimize how much Americans owe— particularly in high-cost areas like California -- including lowering the cap on mortgage interest deductions and eliminating write-offs of state income taxes.
The much-anticipated rollout launches a grueling legislative process that will test GOP unity in the coming weeks as the party struggles to deliver one of President’s Trump’s top priorities.
The plan would immediately slash the corporate tax rate to 20% from 35% and streamline individual rates from seven brackets into four.
In addition to ending write-offs of state and local income taxes, mortgage interest deductions would be limited to new loans of no more than $500,000, down from the current $1 million. Deductions for second homes would no longer be allowed. Property tax deductions would be capped at $10,000.
Popular 401(k) retirement savings plans used by many Americans were untouched by the bill, despite some efforts to restrict those tax-deferred accounts in a effort to pay for cuts elsewhere.
House Speaker Paul D. Ryan (R-Wis.) said the plan — the most ambitious attempt to overhaul the U.S. tax code in generations — would save the average American family $1,182 a year.
President Trump praised it as a “massive tax cut for American families” that will lead to the creation of more jobs. He wants Congress to pass the legislation by year end.
“We’re working to give the American people a giant tax cut for Christmas,” Trump said at the White House.
(Excerpt) Read more at latimes.com ...
The problem with Californians migrating to other states is that they take their wacky politics with them and turn red states blue!
When you say “get back” do you mean through welfare and healthcare and education etc? If that’s the case I’d say cut those programs and reform them but subsidizing there ridiculous housing prices and and high taxes isn’t a solution. Also, I’m sure the “red States” would be better off if their economies weren’t decimated by silly environmental regulations. When you kill a state’s economy (coal, oil manufacturing) you shouldn’t be surprised when that state becomes a burden. If my understanding of what you’re saying is wrong please clarify
I think we are all guilty of that at some time, as we are all passionate about something.
Taxing the same money twice is not a bug it’s a feature.
“GOP House tax bill would deliver blow to California homeowners”
This is BS. If you own your home free and clear you don’t get a deduction anyway. Why are so many people living beyond their means? They should buy a home that they can afford to pay off and get it paid off! Why do so many people build some equity and then get a second mortgage and party off the money? Or, use it to fix up their house and end up paying higher property taxes because of the improvements.
If you are a rich man why don’t you own your house free and clear? Why do so many people need to buy a home so expensive that straps them to make payments every month?
“GOP House tax bill would deliver blow to California homebuyers”
There, I fixed it.
Actually, I think it is going to get worked out in the end. Trump is the best President this country has ever seen!
I don’t think there should be any income tax at all! To tax a person’s labor is a very unfair tax. A little over 100 years ago, before the 16th Amendment was passed, custom duties (tariffs) and excise tax were the primary sources of federal income…
Hard to like something that may hurt you but face it - if we want to get Constitutional, this is a good step - don't let States impose burdens on their own people and then expect other States to keep paying for it....
In every state in the union.
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Alimony is NOT allowed in many States.
... a higher standard deduction. Don’t see anything like that here.
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Have you not read that the standard deduction would be doubled?
Even an idiot can see from this bar chart that HHS is out of control.
Yearly spending has doubled too, from 2 trillion to 4 trillion since 2001.
Rather than cut spending the GOP wants to stick it to MIDDLE CLASS taxpayers and give corporations a break, and pass it off as a TAX CUT
OUTRAGEOUS!!!!!
Spousal Support is “awarded” in every state.
Whether temporary, or the permanence of Alimony, the IRS treats them the same.
And both USED to be deductible.
“The States with the ridiculous tax burdens, which the rest of us have been helping to pay for, “
There is NO taxpayer in any other state that “pays for” any deduction in CA, NY or NJ.
Not one, not ever.
All three are “Donor” states that pay more in Federal Income Taxes than they get back in Federal Expenditures of any and every kind.
These three states, along with a few others, subsidize every other state in the union.
Edify yourself.
If these people are deducting state taxes at exhorbitant amounts, wouldn’t that mean they are paying less federal taxes meaning the rest of us are paying more just due to the government being further in debt and paying more interest for the money borrowed?
If their own States didn't bleed them, it would be a different story.
Believe me Bubba, that don't get close to my mortgage(s) deductions.
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