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Let's see what the CBO has to say after crunching the numbers.
Never gonna pass, for the same reasons R&R failed. No honest Rep can support huge tax cuts for Big Business and the Rich, while increasing Deficit spending and the National Debt, and at the same not actually giving the middle-class any relief. My favorite part was how they increased one deduction then turned around and took away another, basically one nullifying the first action with the second, do they think people really are that stupid. The tax bill, as written, is DOA. So once the GOP sees they cannot repay their owners what will be the next failure, Infrastructure, Trade Agreements, a Wall we cannot afford? Are we still Winning..................
I have not read, are they squashing the Federal Real Estate tax deduction?
They are proposing to eliminate the deduction for state and local taxes. So yes, real estate taxes will not be deductible, but even further, your state income taxes won't be deductible for federal purposes.
However, the standard deduction will increase by quite a bit and should offset the loss for most families. This plan has quite a few tossups- some people will be net losers, some will be net gainers, but many will win in some places and lose in others.
I agree with the OP- it seems like the CBO will have an issue based on how heavily the rates are coming down.
They are proposing to eliminate the deduction for state and local taxes. So yes, real estate taxes will not be deductible, but even further, your state income taxes won't be deductible for federal purposes.
However, the standard deduction will increase by quite a bit and should offset the loss for most families. This plan has quite a few tossups- some people will be net losers, some will be net gainers, but many will win in some places and lose in others.
I agree with the OP- it seems like the CBO will have an issue based on how heavily the rates are coming down.
Even with the higher standard deduction and lower tax rate (if we go from 33 to 25%), looks like I will be a net loser. Unless they can drastically increase the childcare tax which is currently capped at 3,000 per child. BOO. They should at least cap the real estate tax deduction and not eliminate it.
I like it. Doubles standard deduction, lowers middle class taxes, no real benefit for the rich in high tax states as the state income tax deduction will SOAK them. Simplifies everything, Makes us more globally competitive. As a middle class person living in a low taxed state 2 thumbs up from me!
More of the same. They will push some numbers around and rename some rules and nothing will change.
That's my overall feeling of this "reform". It's mostly just adjusting a few numbers here and there. The corporate tax will change significantly though; I work for a large multinational and we stand to gain on the reduced corporate rate but a major loss in the one time forced repatriation (the "transition tax"). We would be very happy to be able to bring cash back and forth across the US border though, which is a MAJOR limitation of our present tax code. As it stands, we can invest our profits anywhere in the entire world except for the US, so it would be nice to be able to invest in the US again.
It won't prevent us from moving jobs overseas or cause us to bring any back. People think that this is a tax issue but it's an economic issue- even a zero percent tax rate won't make it cheaper to hire an American over someone in eastern Europe, Latin America, or parts of Asia.
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