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Doubling the standard deduction? Not really... the current standard deduction for a single filer is $6350 plus a personal exemption of $4050 which adds up to $10,400. The new tax plan eliminates the $4050 personal exemption and lifts the standard deduction to $12,000 - $12,000 minus $10,400 = $1,600. $1,600 is not twice the current standard deduction. The thing about doing taxes on a postcard, that's because after people lose the $4050 exemption which could be used on itemized returns or non itemized returns they will no longer benefit from itemizing. That does not mean they would pay less in tax, a good number of them will pay more.
See..that wasn't hard at all. As far as reducing exemptions for business?
Is this what you consider a 'reduced exemption'?
"The plan would create a new 25 percent tax rate for “pass-through” businesses — sole proprietorships, partnerships and S corporations that currently pay taxes at the individual rate of their owners. Pass-throughs now make up about 95 percent of businesses in the country and the bulk of corporate tax revenue for the government. Most pass-throughs are small sole proprietorships currently paying less than a 25 percent marginal rate. But a few are quite large — 1.7 percent of pass-through businesses generate more than 40 percent of all pass-through income and are taxed at the top 39.6 percent rate." https://www.nytimes.com/interactive/...-tax-plan.html
Did you catch that? A small business is not just a mom and pop store; The National Football League, Fiat Chrysler, the Koch brothers’ Georgia-Pacific subsidiary, The Washington Post’s owner and more than 500 Trump entities would qualify for a substantial tax break under the proposal. https://www.washingtonpost.com/busin...=.f41de78820bd
I just read the corps can still deduct state and local taxes. If that’s true, we are getting hosed. This is not a tax cut for the middle class. It’s a tax cut for the corporations and a few lucky ones. The rest of us are getting screwed. For once, I hope the Dems win out and squash this like a bug.
I have always agreed with Republicans fiscally and Democrats on the social issues. This plan has made me open my eyes.
I think it's only around 30% of households that currently itemize, so I think it's a bit of an exaggeration to suggest that most middle class families itemize their deductions. I think everyone should have to use the same standard deduction, but if they are going to allow people to itemize then they should cap it to around 30k total. Allowing people to deduct mortgage interest is totally absurd in my opinion. It would make more sense to allow people to deduct their grocery and utilities expenses.
Do you think that corporations will be prohibited from deducting interest on real estate holdings? I'm really confused when someone finds that deducting interest on a residential mortgage is somehow absurd but it's hunky dory for businesses to deduct anything and everything and this tax bill does NOTHING to change that
Do you think that corporations will be prohibited from deducting interest on real estate holdings? I'm really confused when someone finds that deducting interest on a residential mortgage is somehow absurd but it's hunky dory for businesses to deduct anything and everything and this tax bill does NOTHING to change that
Yeah because the corps need those deductions. Us middle class families working like crazy to keep up with all these taxes and growing expenses and inflation larger than our raises somehow don’t need it. Whatever. Sickening.
Aren’t these corps getting a 15% tax deduction? How about we make it 12% and let us middle class keep our deductions? Better yet, 12% tax cut and they lose those deductions. Why are we always on the losing end of the stick?
Do you think that corporations will be prohibited from deducting interest on real estate holdings? I'm really confused when someone finds that deducting interest on a residential mortgage is somehow absurd but it's hunky dory for businesses to deduct anything and everything and this tax bill does NOTHING to change that
I really don't think people will realize how bad this bill is, and they won't realize it until 2019
I thought the point of deducting real estate taxes and state taxes is double taxation. Being taxed on money you paid for tax. Am I wrong? You are being taxed twice or three times on the same money!
there is double taxation when the same authority taxes you twice or more. state and federal are not the same taxing authority. so there is no double taxation.
the principle of deducting expenses in business is "it should be ordinary and necessary"
most jurisdictions don't allow any deductions on salaries except standard deductions because you don't incur any ordinary and necessary expenses to earn your salary. only those in business can really claim these expenses
but of course, legislatures can enact any law they want
The devil is in the details and I think the average America is in for a major screwing.
If corporate tax cuts are intended to encourage corporations to bring jobs back to the US then why not tie the tax cuts based on the jobs, manufacturing facilities, and other business entities they actually create on US soil?
This tax cut for corporations will result in the draining of the last of US holding. Could it be that the republicans are trying to bankrupt the country in order to end all entitlements including Social Security and Medicare?
(Is anyone looking at the national debt)? 20 trillion! Can you really call this a budget?
taking away personal exemptions will hurt families regardless if they itemize.
It sure will, the existing standard deduction plus personal exemptions for a family of 5 is $32,950. $32,950 is more than $24,000. And if that family has any kids aged 16 or older they won't get the child tax credit that is supposed to offset the huge cut in deduction + exemptions
just under 47% of ALL filers have a zero or negative tax liability
this tax plan helps more than it hurts
this tax plan will give 90% of those making under 90k a tax break
this plan, which streamlines the tax code, making it easier, is a good plan....not a great plan, but a god plan
will some people have to pay more...yes..... mostly the upper-middleclass and upperclass (not the super rich).....those over 200k
the whole point of deductions it to encourage some behaviors, like owning a home and saving for retirement and to ensure that people with special circumstances are not unduly burdened with taxation.
it is a super simple idea. most of your life and maybe all of it, you will have no large medical costs. but at times when you unexpectedly do, providing relief from some of that burden is a good moral and economic choice for the gov to make.
moral , well because we all know it is the right thing.
economic , (the big one) well it helps people stay in their homes, helps the kids stay in school , it means parents who might have to pick paying for meds or paying the tax, or gas bill are more likely to be able to pay them all.
It is super important for the gov to catch people BEFORE they hit the ground. tax relief is one tool to do this When we fail, we pay so much more over the longer term. Kids who move for economic reasons often dont do as well. families that lose their home often break up, become homeless , etc.
so the smart move is to figure out where and when to intervene and how to do it with a gentle hand.
tax relief for study purposes, for medical , for housing are all smart long term economic choices made by smart leaders who play the long game.
Ryan Mitch Trump are all in it for the wrong reasons. Ryan wants to gut everything, mitch wants a win and Trump wants to sign anything big so that he does not close out the year as the only POTUS in history not too.
It is easy to knee jerk and think up a rebuttal or just call me a liberal bleeding heart. but we all know that removing these deductions is going to hurt some folk a lot and cost much more than it saves long term. just as we all know that retaining them is the smart economic choice too.
the whole point of deductions it to encourage some behaviors, like owning a home and saving for retirement and to ensure that people with special circumstances are not unduly burdened with taxation.
it is a super simple idea. most of your life and maybe all of it, you will have no large medical costs. but at times when you unexpectedly do, providing relief from some of that burden is a good moral and economic choice for the gov to make.
moral , well because we all know it is the right thing.
economic , (the big one) well it helps people stay in their homes, helps the kids stay in school , it means parents who might have to pick paying for meds or paying the tax, or gas bill are more likely to be able to pay them all.
It is super important for the gov to catch people BEFORE they hit the ground. tax relief is one tool to do this When we fail, we pay so much more over the longer term. Kids who move for economic reasons often dont do as well. families that lose their home often break up, become homeless , etc.
so the smart move is to figure out where and when to intervene and how to do it with a gentle hand.
tax relief for study purposes, for medical , for housing are all smart long term economic choices made by smart leaders who play the long game.
Ryan Mitch Trump are all in it for the wrong reasons. Ryan wants to gut everything, mitch wants a win and Trump wants to sign anything big so that he does not close out the year as the only POTUS in history not too.
It is easy to knee jerk and think up a rebuttal or just call me a ******* bleeding heart. but we all know that removing these deductions is going to hurt some folk a lot and cost much more than it saves long term. just as we all know it is the smart economic choice too.
We will see what happens. I think the goal though should be to cut taxes, not to encourage or discourage certain behaviors. If I lived in a high tax state I'd be ticked at the local politicians, not the ones representing red states in Congress. Still, I understand the frustration for repub voters in blue states. I'm actually in the process of moving from a blue state to Indiana, and local politics and taxes were definitely factors in our decision. I think that the current system penalizes savers in red states who tend to buy their homes with cash.
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