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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!
I'm afraid you don't understand the plan, if that's your analysis.
The combo of the lowered corporate rate and elimination of inheritance tax is a major 'giveaway to billionaires' that you don't seem to have mentioned or accounted for.
Keep everything the same except make the 12% bracket go to $50,000, keep the estate tax, and make the corporate tax rate 25% instead of 20%.
Nobody forces people to live in Los Angeles and pay $1 million for houses. Maybe this tax plan will help reduce demand and stabilize housing prices. Sucks if you just bought recently but oh well that's life.
I suspect the estate tax phases out after his term to give the next guy time to reinstate it
The National Federation of Independent Business announced its opposition, citing restrictions lawmakers included on which small businesses can claim their lower tax rate on unincorporated "pass-through" firms. The issue has been one of the most difficult for lawmakers to work out, and could prove to be one of the most contentious going forward.
Though lawmakers would reduce the rate on those businesses to 25 percent, there would be limits on which firms could take advantage, provisions designed to avoid gaming by wealthy individuals.
Your son with 4 kids (married?) is losing 6 personal exemptions (24,300). The loss of exemptions exceeds the almost doubled standard deduction by ~$12,000. The incomes will be rare where the loss of exemptions is made up for by the bump in child tax credits--especially if your son used to itemize.
Your daughter will likely benefit, depending on income. Assuming she used to take the standard deduction, she will go from a $10,400 deduction/exemption to a $12,000 deduction. So that's $1,600 less in taxable income. As long as she doesn't have kids or buy a home, she will benefit.
But her marginal rate on the first 9.3K above the deduction was 10% and now it is 12%. The savings don't accrue until you get past that. So if she is at the lower end, she will probably pay more.
So, if higher taxes will cause a corporation to move to a lower tax region, wouldn't international corporations seriously consider moving from a country with a 35% tax rate to one with a 15% tax rate?
It should really be 15% across the board, for everyone over the poverty line (and for the amount over the poverty line).
I will pay thousands more under the Trump bill. I don't live in a high tax state, don't own a million dollar home. This bill is going to stick it good to anyone who makes over 90K a year where the 25% bracket kicks in. The new standard deduction barely makes up for the loss of exemptions not to mention the rest of the deductions that we have had. No!
Under Obama I lost deductions and paid more and you leftist supported and defended it so I can't say I'm feeling bad for ya if what your saying is even true.
The point of the GOP plan is to provide tax relief for the majority of the middle class. This proposal accomplishes that.
Disagree.
There was no singular "purpose." It's like most bills, there are many competing interests who want different things.
At the end of the day, if the goal was to relieve the middle class of tax burden, they would've eliminated FICA taxes and other wage-based taxes and replaced it with some type of tax on capital. As it stands, what they did was reduce corporate taxes and inheritance taxes for estates over $5.5 million.
Now I'll grant, this tax bill isn't "anti-middle class." For the most part its a wash. But is sure isn't pro-middle class either.
Keep everything the same except make the 12% bracket go to $50,000, keep the estate tax, and make the corporate tax rate 25% instead of 20%.
Nobody forces people to live in Los Angeles and pay $1 million for houses. Maybe this tax plan will help reduce demand and stabilize housing prices. Sucks if you just bought recently but oh well that's life.
I suspect the estate tax phases out after his term to give the next guy time to reinstate it.
I think people live in LA/Silicon Valley and NY b/c of the specific industries there that pay well and kind of prop up the entire nation. AS soon as La, MS, and KY get a similar non-opioid related industry to cluster there maybe some people may consider moving there.
But her marginal rate on the first 9.3K above the deduction was 10% and now it is 12%. The savings don't accrue until you get past that. So if she is at the lower end, she will probably pay more.
If those 4 kids go to college...she loses a $2500 tax credit per year for each of the 4 years in college for all 4 kids. That's a $10k/tax credit CUT per kid if they go to 4 years of college. If all 4 kids get bachelors degrees, that's $40,000 lost in tax credits. Not tax deductions, tax credits.
Anyone that has a kid in college(or if they are adult paying for their own college) Trump's tax plan means they lose $2500/year in tax credits for each year of college. This tax credit goes away. Trump said he loves the uneducated, right?
So, if higher taxes will cause a corporation to move to a lower tax region, wouldn't international corporations seriously consider moving from a country with a 35% tax rate to one with a 15% tax rate?
but they DON'T pay 35% and have not in many decades. the effective rate is somewhere in the mid twenties but the exact number is argued a lot.
our competitors also charge about the same. This stuff is fought over at an international level all the time. only a handful of nations charge low rates and they are small nations.
I am not against low taxes, i am against this wide giveaway. between corp, pass through, estate taxes going away and the repatriation tax corps and high earners must be laughing their heads off.
11. Thinking about converting your Roth to a traditional IRA? Do it before December 31 because that goes away under Section 1501.
Is this recharactetization of Roth conversions this addresses? I’m unfamiliar with converting a Roth to a tIRA.
Thanks for any clarification you can offer.
Edited to add: I just looked it up, and yes, this section refers to recharactetization.
Last edited by Goin' Coastal; 11-02-2017 at 01:45 PM..
Reason: Clarification.
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