quote:

Originally posted by nhtagmember:


You would never want a flat tax - you would end up paying a shitload more

You either do your own taxes or know how to do it. That's what I've been saying, too. ETA: nevermind. I see your post saying you do work in the tax business.

I like Trump's proposal. Unfortunately, as someone else opined, both Democrats and Republicans are out to derail Trump.

I would dearly love to see us get rid of the state tax deduction. Why should the rest of us subsidize the socialist states with high tax rates. Let the residents of those states feel all the pain of their state's tax burden and demand relief from their politicians.

quote:

Originally posted by jigray3:
I would dearly love to see us get rid of the state tax deduction. Why should the rest of us subsidize the socialist states with high tax rates. Let the residents of those states feel all the pain of their state's tax burden and demand relief from their politicians.

yep

quote:

Originally posted by chellim1:
. . .
Just take the $4 trillion federal budget... divide by the number of people.... about 330 million, and send everyone the same bill.
What does that come to?
$12,121.21 per person.

Sounds good, until my 10 and 11 year olds try to find $12,000 to pay their tax bill. They (like all children) make up a good portion of this population number, and have no ability to pay an annual tax bill in the five figures, when they have no income at all.

quote:

Sounds good, until my 10 and 11 year olds try to find $12,000 to pay their tax bill. They (like all children) make up a good portion of this population number, and have no ability to pay an annual tax bill in the five figures

Exactly so.
We would have to divide the budget by the number of adults, not the number of people which would more than double your $12,000 tax bill to $25,000, or about $50,000/year for a married couple.
I think people would be clamoring for less government!

So far so good; where there will be problems however, is that the bill also includes the repeal of an itemized deduction for medical expenses, a key provision for households with extraordinary health-care costs. It also repeals the tax credit for adoption and the deduction of student-loan interest. The bill also limits the home mortgage interest deduction: for new home purchases interest would be deductible only on loans up to $500,000, down from $1 million, although existing loans would be grandfathered.

A key issue will be the treatment of the state and local tax deduction, which lawmakers are proposing to cap at $10,000. That will not be enough for Republicans in some high-tax states, where middle-class families make heavy use of the deduction. As the NYT notes, "the compromise, as it had been sketched out this week, would preserve the deduction for property taxes, but not for state and local income taxes, and it appeared as if there would be a cap on the deduction. But at first glance, it did not appear as if that was enough to win over all of the New York and New Jersey members."

Here are the most notable changes:

Lowers individual tax rates for low- and middle-income Americans to Zero, 12%, 25%, and 35%; keeps tax rate for those making over $1 million at 39.6%
Increases the standard deduction from $6,350 to $12,000 for individuals and $12,700 to $24,000 for married couples.
Establishing a new Family Credit, which includes expanding the Child Tax Credit from $1,000 to $1,600
Preserving the Child and Dependent Care Tax Credit
Preserves the Earned Income Tax Credit
Preserves the home mortgage interest deduction for existing mortgages and maintains the home mortgage interest deduction for newly purchased homes up to $500,000, half the current $1,000,000
Continues to allow people to write off the cost of state and local property taxes up to $10,000
Retains popular retirement savings options such as 401(k)s and Individual Retirement Accounts
Repeals the Alternative Minimum Tax
Lowers the corporate tax rate to 20% – down from 35%
Reduces the tax rate on business income to no more than 25%
Establishes strong safeguards to distinguish between individual wage income and “pass-through” business income
Allows businesses to immediately write off the full cost of new equipment
Retains the low-income housing tax credit

A visual summary of the new tax brackets:



http://www.zerohedge.com/news/...ut-plan-ever-history

I think it looks good! pass it!

Then let's work on lowering the $10k deduction on SaLT over the next few years to $0.

Not ideal by any stretch...but it's a uge improvement over the current laws. Now we'll have to see how much gets bargained away to buy the votes needed to pass it.

quote:

Originally posted by esdunbar:
I think it looks good! pass it!
Then let's work on lowering the $10k deduction on SaLT over the next few years to $0.

I agree.... pass it!
Not ideal by any stretch...but it's a Yuge improvement over the current laws... pass it!

quote:

Originally posted by esdunbar:
I think it looks good! pass it!

Curious about the $112-190K bracket increasing by 5%. I was under the impression that this tax plan was intended to help the middle class. How exactly does a 5% increase to a big chunk of middle class folks help?

Pretty much everthing else looks OK though.

quote:

Originally posted by Gustofer:

quote:

Originally posted by esdunbar:
I think it looks good! pass it!

Curious about the $112-190K bracket increasing by 5%. I was under the impression that this tax plan was intended to help the middle class. How exactly does a 5% increase to a big chunk of middle class folks help?

Pretty much everthing else looks OK though.

I don't think an individual making 112 to 190 is middle class by definition.

quote:

Originally posted by esdunbar:

quote:

Originally posted by Gustofer:

quote:

Originally posted by esdunbar:
I think it looks good! pass it!

Curious about the $112-190K bracket increasing by 5%. I was under the impression that this tax plan was intended to help the middle class. How exactly does a 5% increase to a big chunk of middle class folks help?

Pretty much everthing else looks OK though.

I don't think an individual making 112 to 190 is middle class by definition.

I do.

All I can say in this case is thank God I'm married.

And I'm not too happy about the $500,000 home mortgage interest deduction limit either.

I think the diagram above does not have the most current brackets

https://www.scribd.com/documen...x-Bill-Text#download

joint return

25% lower bracket 90,000
35% lower bracket 260,000
39.6% lower bracket 1,000,000

quote:

And I'm not too happy about the $500,000 home mortgage interest deduction limit either.

While I understand that in New Jersey, New York and CA $500,000 might be just a down payment and your mortgage may be much higher.... the deductibility of BIG mortgage interest does two things:
1. inflates the "value" of real estate
2. causes people in places where real estate is more "reasonable" to partially subsidize what we may consider outrageous prices.
... similar to the SALT deduction.

Under this proposal the interest is still deductible on the first $500,000 of your home mortgage.

and the 500k limit is only for newly purchased homes, not existing mortgages

quote:

Originally posted by chellim1:

quote:

And I'm not too happy about the $500,000 home mortgage interest deduction limit either.

While I understand that in New Jersey, New York and CA $500,000 might be just a down payment and your mortgage may be much higher.... the deductibility of BIG mortgage interest does two things:
1. inflates the "value" of real estate
2. causes people in places where real estate is more "reasonable" to partially subsidize what we may consider outrageous prices.
... similar to the SALT deduction.

Under this proposal the interest is still deductible on the first $500,000 of your home mortgage.

I see. Thanks for the deeper insight. I can't say I'm apposed to it really.

What I have read looks good so far.

---------------------------------

Looks like I will lose a bit with this plan. I make about $105K. I have one child I can claim (divorced). My rate will stay 25%. I double my personal exemption to 12k. I lose $8100 in deductions (personal and child). I lose money state income tax deduction (about $5200. ). The increased child tax credit gets me about $100. Prior to this increase I was not eligible at all. Am I missing anything?

frayedends,

1. You will still be able to deduct up to 10,000 of state taxes (page 104 of the draft)

edit: Wash Post says this 10,000 limit is for property tax only. No deduction for state income tax. Need to learn more

2. You may have a higher standard deduction (18,300) if this applies:

unmarried individual with at least one qualifying child (within the meaning of section 7706)

Remember, I am no expert, just reading the proposed tax code


from Wash Post:

https://www.washingtonpost.com...ss/tax-bill-q-and-a/

A 12 percent rate would apply to individuals earning up to $67,500 and married couples earning up to $90,000

A 25 percent rate could apply to up to $200,000 for individuals and $260,000 for couples

A 35 percent rate would apply until $500,000 for individuals and up to $1 million for couples

A 39.6 percent rate would apply above $500,000 for individuals and above $1 million for couples

Doesn't look like it will affect me too much but I'm glad to see those fortunate to make a lot of money won't be penalized for their success quite as much.