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King County can increase corporate tax rates and then reduce the property taxes on those affected.
Wouldn't that fix the problem?
I’m not certain you understand taxes and how they affect people based on your inane comments. Reciting tired punditry is so much easier, isn’t it? All the best.
The 24K standard deduction is offset by eliminating the exemptions. Now a married couple with 1 kid gets 24K in exemptions and standard deduction. If this bill passes, they get the same amount. Any more kids than 1 and they lose. The rates do compensate but not nearly enough, so that after 2 kids they will pay more taxes unless they are really lower income. The sweet spot is only for lower income middle class. The other side of the range will be paying potentially thousands more.
god forbid they have high medical spending because that is no longer deductible....
the means those currently upset over ACA out of pocket costs are going to be raging when they figure out that money is no longer deductible.
For some perhaps, but upper middle class people do not get child credits as it is income limited. It is people in the $120K to maybe $250 who are getting screwed over in this tax plan and this is one example. It starts to phase out at only $75000K for single people and $110 for marrieds. Under the current plan they get a $4000 deduction above the line for each kid. Under the new plan, they get nothing and pay taxes on that $4K for every child over one.
And the states can easily rectify this "problem" with a corporate tax that pays for a credit or deduction for the ones who take the loss.
Here in Seattle and King County, the median price for condos in downtown is around 600k (2+ bedrooms are usually over 1 million, and the median price for single family homes within 10 miles of downtown ranges from 600k to 2.2 million depending on the district. The county property tax is a little over 1% of assessed value (determined annually). Limiting property tax deductions to 10k and mortgage deductions to 500k can affect a lot of people in this region.
That is crazy expensive, yes I feel bad for you . Hopefully your able to put enough down to only have to mortgage 500k. But still deducting mortgage interest on 500k out of a 600k isn't too bad. I think the outrageous housing prices in that area is the bigger issue. You almost need a household income of 250k to responsibly afford a 1 bedroom condo and household income of 400k for a 2 bedroom. That's unreal
Your example is flawed because under the GOP plan current mortgages are not affected and you'd still be able to claim up to 10k in property taxes.
You are right for a couple with an existing mortgage (talk about intergenerational inequity).
For such a couple, you would itemize with a 28k deduction (10k property tax + 18k mortgage interest). So the result is a taxable income of $122k and a tax bill of 18,800--an increase of only ~$1,600 over current law.
What a stupid title. My family (middle class) will benefit from this plan. The uber rich will pay the same rate but the limits to state and local deductions will impact rich liberals who should be happy to pay more taxes. Everything about this plan feels fair and well thought out. Nice work for once GOP!
As far as I can tell from a quick scan of about half the bill and based on the Cliff's notes of brackets/deductions - cut my taxes by 30-40 percent (we are retired) - cut sons by more as he has 4 kids + lower bracket. Cut's daughter's taxes the most because she files single - the double deduction is a huge boon for singles.
Devil will be in the details but looks good for my 3 Middle Class family units and it gets rid of some loopholes that have driven me crazy that are purely for special interests.
I’m not certain you understand taxes and how they affect people based on your inane comments. Reciting tired punditry is so much easier, isn’t it? All the best.
You're so brainwashed to oppose and GOP bill, that you ignore the benefits.
Please explain why a state can't raise their corporate tax rate to offset any losses by the lower or middle classes.
god forbid they have high medical spending because that is no longer deductible....
the means those currently upset over ACA out of pocket costs are going to be raging when they figure out that money is no longer deductible.
HOPE i got this wrong..
No it's gone. I had 4K in health care deductions last year from insurance premiums alone. Obama cut that deduction down a couple years ago and now it is gone. Who gets hurt - people on Obamacare like small business owners, people who pay premiums from plans through work for family, early retirement etc and deduct those as well as people who have high medical expenses like nursing homes, chronic conditions.
King County can increase corporate tax rates and then reduce the property taxes on those affected.
Wouldn't that fix the problem?
no pedro, you are suggesting that we not only create dozens of differing corp rates, you would find that profits earned in King county would be subject to one rate, while the sale of goods 10 miles to the south would be taxed at another rate.
a corp would find itself charging all sorts of rates all across the nation. You are just adding to overhead and regulation.
furthermore it could result in a race to the bottom, with Corps forcing states and counties to bid against each other, thus eventually resulting in low to neg real tax rates.
No it's gone. I had 4K in health care deductions last year from insurance premiums alone. Obama cut that deduction down a couple years ago and now it is gone. Who gets hurt - people on Obamacare like small business owners, people who pay premiums from plans through work for family, early retirement etc and deduct those.
sounds like Trump does not care about anyone but himself.
Trump is set to reap huge savings through his roughly 500 pass through businesses.
i guess that is why he is so excited, He is likely to live long enough so that his estate pays NO estate tax on his death, and his businesses will now get to pay a much lower rate of 25% on the money he is actually taxed on..
great Tax cut for TRUMP. not so much for working Americans families.. i guess somebody has to pay for his tax windfall.
maybe trump will buy solid gold chairs instead of his gilded chairs.
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. Hopefully your able to put enough down to only have to mortgage 500k. But still deducting mortgage interest on 500k out of a 600k isn't too bad. I think the outrageous housing prices in that area is the bigger issue. You almost need a household income of 250k to responsibly afford a 1 bedroom condo and household income of 400k for a 2 bedroom. That's unreal
