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I predict this will be the first major legislation to pass. Much easier to pass this than R&R. Getting rid of the deductions on state and local taxes is brilliant. May force high tax states to rethink what they are doing. I don't think residents of other states should be subsidizing states like California's high taxes.
Raising taxes on the rich will won over moderates. And lowering taxes on everyone else is good for the economy.
The left does not get this. They think raising taxes and moving the money around is going to create some positive effect. It just creates a bigger bureaucracy and we don't need that.
The Left wants to raise taxes on large corporations and the wealthiest individuals.
This plan likely raises taxes for everyone who itemizes. That includes a broad swathe of middle income citizens. Expect a small tax cut to the lowest earners, a complete wash for the next chunk, then an increase for much of the middle, then a big decrease for the wealthiest & for multinational corporations--if they can pass it.
The Left wants to raise taxes on large corporations and the wealthiest individuals.
This plan likely raises taxes for everyone who itemizes. That includes a broad swathe of middle income citizens. Expect a small tax cut to the lowest earners, a complete wash for the next chunk, then an increase for much of the middle, then a big decrease for the wealthiest & for multinational corporations--if they can pass it.
This plan will raise taxes on the wealthiest individuals and eliminate deductions. Raising taxes on large corporations just means the move their money around to somewhere else. Better to have the best tax rate here.
As far as everyone else they are doubling the standard deduction and lowering rates for low and middle class taxpayers so I think you are wrong.
Plus the repatriation plan is good and will bring in a lot of money.
This plan will raise taxes on the wealthiest individuals and eliminate deductions. Raising taxes on large corporations just means the move their money around to somewhere else. Better to have the best tax rate here.
As far as everyone else they are doubling the standard deduction and lowering rates for low and middle class taxpayers so I think you are wrong.
Plus the repatriation plan is good and will bring in a lot of money.
The taxes on the wealthiest drop under this plan due to the lower upper bracket (if the income is large enough, that's the only thing that matters). Well that, and the taxes on capital gains.
As far as doubling the deduction, as it was already explained the exemptions are being eliminated, so it is not clear cut at all. Example: family with 2 kids, current standard deduction + exemptions = 12600+4*4050= 28800. Under the new proposal standard deduction - only 26000. So a lot will depend on the new brackets.
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..................
Big business is NOT a pass through entity but small business is.
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!
"The plan doubles the standard deduction, to $24,000 for married couples and $12,000 for single filers.
Doing so would drastically reduce the number of people who opt to itemize their deductions, since the only reason to itemize is if your individual deductions combined exceed the standard."
Even people who don't itemize because they don't have enough tax deductions would benefit.
Its good for old timers who paid off their houses and retain lower property taxes (not just in CA) but screws the younger middle class like me who just bought a house and raising a family. But hey at least they get rid of the estate tax for the elite.
Your already screwed by that high college debt. Because of it a lot of young people can't afford to buy a home but they'll still get a higher standard deduction without having to take on additional debt but if it doesn't pass they still have that high college debt and the low standard deduction while people in expensive housing enjoys the deduction.
You might get a tax increase with the new proposal. Especially if your state has a state income tax.
Which may be compensated by higher standard deduction. Every situation is different and too many variables. Rich people who can afford mulit-million dollar mansions sure won't be happy. Politicians who think the people are piggy banks won't be happy.
Big business is NOT a pass through entity but small business is.
"The rate-cut proposal still lacks important details, but it would apply to business income from many small firms as well as large global law firms, hedge funds and Mr. Trump's own real-estate and branding businesses."
"Of all pass-through income, more than half is earned by top-bracket taxpayers, according to estimates by the Tax Policy Center in Washington. The top brackets begin at $470,700 for married couples filing jointly and $418,400 for singles."
This plan will raise taxes on the wealthiest individuals and eliminate deductions. Raising taxes on large corporations just means the move their money around to somewhere else. Better to have the best tax rate here.
As far as everyone else they are doubling the standard deduction and lowering rates for low and middle class taxpayers so I think you are wrong.
Plus the repatriation plan is good and will bring in a lot of money.
The standard deduction is being raised, but the personal exemption is being removed, so the actual difference in taxable income will not be that significant. The lower bracket will also be taxed at a higher rate.
And how exactly are we going to pay for this. And I can't believe that his reasoning to eliminate the estate tax was to help farmers. This is geared toward the wealthy.
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