http://www.businessinsider.com/trump-gop-tax-reform-plan-bill-text-details-rate-2017-10 A quick summary of the main points. I haven't had time to really read it, but at first glance it looks like it could have been worse. One of the things that jumped out at me is repealing the limitations on tax exempt non profits from making explicit overt political ads. So prepare for churches to make overt campaign ads ... coming to a TV near you! Maybe even a Trump rally at your neighborhood church. Curious to see what other peoples' first impressions are?
OK Flyoverlandians - just tell us how much more we "coastal elites" have to shell out to you now. I have my checkbook out.
The dumbest part overall is that it is cutting taxes at a time when the economy is booming. If there is anytime to raise taxes and run the government at lower deficits it is now.
But it does look like they compromised enough on protecting middle class exemptions to get this passed politically. Of course the core foundation of this is that new corporate tax rate. That's what this is all about. The rest is window dressing. Just reshuffling the cards. Creating a slightly different set of winners and losers. A nice bonus for people who pay estate tax. Also a boost to the child tax credit, surely a nod to God's commandment to be fruitful and multiply. Some of the new loser categories are students and people getting crushed by medical bills. Good luck ... those people don't vote GOP anyway. So while we reshuffle the deck a little bit, the main thrust of that corporate tax cut will go on the national credit card. They're just hoping to get the economy on a brief sugar high so they can use some of that juice in '18 and '20. They don't care about the long term systemic problems they're creating. I'm not even sure how strong this sugar high can be if it's accompanied by interest rate increases and possible uptick in inflation.
The response from Justice in Aging (a group I work with on occasion): Today’s tax bill from the House Ways & Means Committee is a full-fledged attack on the health and well-being of older adults today and will make future retirement security impossible for all but the very rich. As we’ve discussed, this is all part of the House Republican leadership’s two-step process. Step one is to cut taxes for the wealthy and drive up the deficit by $1.5 trillion. Step two is to use the higher deficit to justify additional cuts in the future to programs we all depend on, such as Medicare and Medicaid, Social Security and Supplemental Security Income (SSI), Older American Act programs, and many others. This bill will overwhelmingly benefit the wealthiest Americans and big corporations at the expense of everyone else. Once the tax cuts have done their damage, and left the country in dire financial straits, the money to pay for programs and services that older Americans need will have already gone into the bank accounts of the very wealthy. The program cuts that House Republican leadership will then push for will cause lasting harm to seniors today and in the future.
As with everything in this 100th & whatever Congress, they slap shit together like an overwhelmed 8th grader in homeroom with a report due the next period. Someone on tv said Reagan's took like 2 years of hammering out.
Take from Blue, give to Red. That is what this bill does. It is what you expect from a tribal party, run by a tribal President.
And Reagan's bill was done working hand-in-hand with Bill Bradley, so that the goal was actual improvement for Americans, as opposed to this year's model of taking money from Democrats to give to Republicans.
"We" are giving! The working stiff a few dollars a year break. About $1,290 a year. Think what you can do with that, Woohoo. For that we take a mere 3-4 Trillion. Next years budget we know we'll be short so it'll be time to talk about Medicare and insurance cuts again.
Someone crunched the numbers by NJ county. Billions in corporate & Flyoverlandia donations: What's $17 billion between friends? The Trump administration and House Republicans unveiled their proposed tax plan Thursday, and it includes a potentially major blow to New Jerseyans: the elimination of state sales and income tax deductions. No longer would those items be able to be claimed on federal tax returns. What's that worth? We crunched 2015 tax return data from the Internal Revenue Service and found New Jersey claimed about $17 billion in state sales and income tax deductions. http://www.nj.com/news/index.ssf/20...o_lose_the_most_under_pro.html#incart_m-rpt-2
This. The GOP don't want to govern. By hitting the gas now they leave no options for the next recession.
but by raising the standard deductions so much, there is less incentive to make charitable contributions to said churches.
Oh, and being a CPA 1. I will assure you that nobody is going to be doing their tax return on a postcard. 2. The middle class is relieved to have the estate tax and AMT removed.
Of course not. For the last four decades they have been saying that the government is the enemy. So when they get in power the most they are willing to do is to throw some goodies to their most important supporters (tax cuts, Gulf of Mexico oil leases). Look at the quality of Trump's cabinet and other appointees. I posted on another thread that either Cheech or Chong would make better DEA heads than some of the appointees the orange haired one has made.
I initially read that as serious ... my bad. Although my guess is that sometimes the middle class (upper version thereof) does run into the AMT.
It needs to go down more. It's like owning Best Buy -- an outdated business model, the company is working very, very hard just to hang on to its existing revenues. No thanks. Somebody else can chase that "bargain."
Americans are dumb and lazy. HR Block is going to be just fine. Their current business model makes them look more and more like a payday lender with every tax season.
It is REALLY hard to fall into the AMT at low income levels. Where I see it is with your mini-slumblords who own a few rental properties. They turn off a lot of cash and you get a huge deduction for mtge interest/taxes/depreciation (especially). If your regular income gets too high, or your passive (rental) losses get to high (Hello Mr. Trump 2004 tax return), you get tossed into the AMT. If you are just a W-2 and (regular) investments, you are not going into the AMT.
And probably not the $5 million level at which the estate tax begins. The Dems should hit that one hard. Whoever ends up with higher taxes from this proposal, which some certainly will, those taxes in part are going to cover the foregone estate taxes from multi-millionaires. How is that "massive tax relief for the American people," per Paul Ryan? Is is massive tax relief for those who need it the least, paid for by others. Make that point, again and again and again.