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They will resolve most of this if the Senate can get it to conference. For example if you live in a high taxed state you'll probably get to deduct 10k from property tax like the house bill to cover the middle class. Upper income may take a small hit in these areas though until these states smarten up and lower their tax rates
Hmm, I live in Texas (which has severely high property taxes), and this doesn't do anything for me. In the current code you have the itemized deductions + exemptions. Exemptions are going away, case closed.
Something in the senate budget rules forces them to make this plan effective for less than 10 years so in 2026 or 2027 it will be phased out. That's 8 or more years of tax cuts with the plan of extending the deadline further out as we get closer to that date. This is just a cheap trick used on uninformed people to say your taxes will rise 10 years from now.
And it is a fact I will keep more of my paycheck, it's called math and I've crunched the numbers. My family will save over 2k /yr.
That is exactly what will happen. We saw it during the Bush years.
But, hey, my dirt poor kid can be taxed on income he never sees from grad school - so the Comcast CEO can make another mil.
And those medical deductions? Welp - can't have those if all the billionaires are going to do away with the estate tax.
Money gotta come from somewhere and it will be coming right out of the pockets of the middle class.
You know, if this junk gets passed, I assume that the grad schools will have to somehow change from current waivers to actually making the tuition disappear for TAs and RAs. But how exactly I don't know. Another additional complication of doing that is that they would lose money, in cases when some portion of the tuition currently gets charged to research grants.
A lot has been made of the 1.5 trillion tax cut GOP just passed. But doing some simple math it seems like not that big a deal, whether you are for or against.
So in the last decade we've averaged about 3 trillion total tax revenue a year ( https://www.thebalance.com/current-u...evenue-3305762 ). Now that tax cut is over 10 years, or about 150 billion a year. 150 billion out of 3 trillion is 5%.
Am I right that all we are talking about is a 5% tax cut? If not, where is my error? If yes, why is this such big news?
Something in the senate budget rules forces them to make this plan effective for less than 10 years so in 2026 or 2027 it will be phased out. That's 8 or more years of tax cuts with the plan of extending the deadline further out as we get closer to that date. This is just a cheap trick used on uninformed people to say your taxes will rise 10 years from now.
And it is a fact I will keep more of my paycheck, it's called math and I've crunched the numbers. My family will save over 2k /yr.
The "something" is that they are trying to do this through reconciliation which allows it to pass with 51 votes, in order to use reconciliation they can't blow up the deficit more than 1.5 trillion in 10 years so they are expiring the personal tax cuts to make the math work. But why do you think they will be extended? Do you have some guarantee of that?
PS If you save $2,000 you are an outlier, most will save $0-$1100 I sure would like to see the math you used to come up with that.
Hmm, I live in Texas (which has severely high property taxes), and this doesn't do anything for me. In the current code you have the itemized deductions + exemptions. Exemptions are going away, case closed.
Most people are too stupid to realize that, they just crow about how the standard deduction is being doubled. Also, the personal exemption was very valuable because you could use it if you itemized.
A lot has been made of the 1.5 trillion tax cut GOP just passed. But doing some simple math it seems like not that big a deal, whether you are for or against.
So in the last decade we've averaged about 3 trillion a year ( https://www.thebalance.com/current-u...evenue-3305762 ). Now that tax cut is over 10 years, or about 150 billion a year. 150 billion out of 3 trillion is 5%.
Am I right that all we are talking about is a 5% tax cut? If not, where is my error? If yes, why is this such big news?
Some of the middle class will see a small tax cut that will be phased out in a few years. Some of the middle class will see an immediate tax increase. Corporations and some of the extremely rich will see a large tax cut that will not be phased out. That pretty much sums it up.
Something in the senate budget rules forces them to make this plan effective for less than 10 years so in 2026 or 2027 it will be phased out. That's 8 or more years of tax cuts with the plan of extending the deadline further out as we get closer to that date. This is just a cheap trick used on uninformed people to say your taxes will rise 10 years from now.
The cheap trick is using reconciliation instead of just passing budget legislation, but hey... Now ask yourself this: Why is it only the tax cuts for the little people who have an automatic expiration date?
If you need a tax deduction to afford your house or you need a tax deduction on your local taxes to afford the area you are living above your means and that is your own economic mistake. I do agree about the child thing though.
And if a business needs to have their effective tax rate cut in half in order to make a profit, then they are not good managers and should "own their economic mistake"
Mainly bc it shifts the tax burden around. Corporate entities will get big breaks, and a lot of middle class and lower class people will see an increase.
So for instance, my taxes are going down very slightly, but someone else with my income who has children, a mortgage, and lives in a high-tax location would see their taxes rise.
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The "huge" Tax Cut is actually about 5%?
