Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
They double the standard deduction but you lose personal exemptions. They raise the bottom rate. So basically a tax increase on the bottom and cut for upper side.
Nice cut for Trump on pass through entities as well.
This is going to drive the deficit much higher if passed as is. Not good tax policy.
And it's funny: deductions for State & local taxes drive more fiscal power to the States. For a party that in theory opposes federal control, this would be a giant federal power grab. Republicans might be happy with that while they are in power, but will they be happy with it when they lose power?
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.
And it's funny: deductions for State & local taxes drive more fiscal power to the States. For a party that in theory opposes federal control, this would be a giant federal power grab. Republicans might be happy with that while they are in power, but will they be happy with it when they lose power?
How does a deduction for state taxes on a federal return drive more power to the states? Are you suggesting that the states would charge less in taxes if their taxes weren't deductible for federal purposes?
Not necessarily disagreeing, just curious how the two are linked. If you had said that the deduction is a federal subsidy of state governments, I'd understand that. But not sure I get the power link.
How do you know whether it lowers middle class taxes if they haven't released the income brackets for the new tax rates? All you can do is guess. They need to release the tax brackets that go with the new percentages. Does annual income get fully taxed at the new tax bracket rate, versus tiered tax brackets/rates that exist today? This could result in a tax increase for middle class if the new tax brackets/rates aren't tiered.
Because it's similar to the plan that leaked a while back. I'm assuming they're using those #s. 170k/450k for the 2 higher brackets.
How does a deduction for state taxes on a federal return drive more power to the states? Are you suggesting that the states would charge less in taxes if their taxes weren't deductible for federal purposes?
Not necessarily disagreeing, just curious how the two are linked. If you had said that the deduction is a federal subsidy of state governments, I'd understand that. But not sure I get the power link.
Ultimately both federal and (especially) state & local governments derive their powers and fiscal health from that of their citizens. By allowing a deduction for State & local taxes, the feds are lowering their own fiscal receipts to accommodate the needs of States and local jurisdictions. All of these taxes come from the same pockets--all of ours. If the feds decide not to accommodate the needs of States & locals, then those pockets will be a little less deep and something will have to give. States & locals could lower their own rates. Or people might spend less on houses, entertainment, household goods, etc. Which, of course, would decrease sales & property tax receipts by States & locals.
I'm watching Trump in Indiana talking about taxes. He said a foreign auto maker will be announcing five factories to be built in the US but didn't say who. The company will announce.
I might save $1000 if this tax reform goes through. Fingers crossed!
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.
Bringing jobs back to the US is supposed to be the purpose of lowering corporate tax. You just debunked all that.
The final tax bill is going to be loopholed to death.
There will be A LOT of migration, business and individuals, if the state tax deduction is eliminated. Can't analyze this in a vacuum. States will respond with their own adjustments to remain competitive. By the nature of it, that makes it a more free market approach so I'm inclined to support although not sure yet if I win or lose in the short term.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
