Corrected title: Now the GOP has accomplished massive tax reform

[K1052]

My suspicion is they will eventually give up on most of this and settle for the one thing they can all agree on, giant, debt financed tax cuts for rich people.

I agree this is the most likely outcome.

 

[K1052]

Off to a rousing start:

 

[zinfamous]

Get ready for all that trickle-down, folks!

the pee tapes are being released?

 

[Fanatical Meat]

Off to a rousing start:

The plans "framework" has been leaked to Fake news CNN.
Surprisingly nothing shocking sorry no link handy

 

[sactoking]

Being an accountant and finance guy I'm interested in how this will affect me. Based on the vague information that's been released and a few reasonable assumptions I'm looking at a tax hike of between 6% and 12% for a married family of 5 with less than $100,000 gross income.

 

[Engineer]

Being an accountant and finance guy I'm interested in how this will affect me. Based on the vague information that's been released and a few reasonable assumptions I'm looking at a tax hike of between 6% and 12% for a married family of 5 with less than $100,000 gross income.

Not sure of percents but if the details on CNN are true and it's passed, I would also likely be paying more. Losing the personal exemptions will hurt. Depends on where the rates fall on the dollar scale.

Also heard that there is a proposal floating around about taxing 401k / IRA's up front (essentially turning them into Roth's). Fuck that....

Edit: Leaked information states that the 401k / IRA deferral will not change.

 

[snarfbot]

wow lol i got alot of hate for that!

just so were clear, the prevailing position here is that, although trump says he will cut taxes for the middle class. what he means by that is he will actually raise their taxes, enormously!!!11!!111

based on nothing but pure speculation...

lol okey dokey, well carry on i guess.

 

[Jhhnn]

Being an accountant and finance guy I'm interested in how this will affect me. Based on the vague information that's been released and a few reasonable assumptions I'm looking at a tax hike of between 6% and 12% for a married family of 5 with less than $100,000 gross income.

All hail the right wing Lootocracy!

 

[sactoking]

Yeah I itemize now and deduct about $17,500, plus we get $20,250 in personal exemptions. Under the proposal that combined deductible of $37,750 ends up dropping to the standard deduction of $24,000. That increase in taxable income in not even close to being offset by a reduction in rate from 15% to 12% on most of our income.

 

[IronWing]

wow lol i got alot of hate for that!

just so were clear, the prevailing position here is that, although trump says he will cut taxes for the middle class. what he means by that is he will actually raise their taxes, enormously!!!11!!111

based on nothing but pure speculation...

lol okey dokey, well carry on i guess.

Those who will not learn from history are suckers.

 

[fskimospy]

Yeah I itemize now and deduct about $17,500, plus we get $20,250 in personal exemptions. Under the proposal that combined deductible of $37,750 ends up dropping to the standard deduction of $24,000. That increase in taxable income in not even close to being offset by a reduction in rate from 15% to 12% on most of our income.

It seems that from what is released so far this would be a large tax increase on the middle/upper middle class, especially in high tax states or states with high housing costs.

 

[jayzds]

Yeah I itemize now and deduct about $17,500, plus we get $20,250 in personal exemptions. Under the proposal that combined deductible of $37,750 ends up dropping to the standard deduction of $24,000. That increase in taxable income in not even close to being offset by a reduction in rate from 15% to 12% on most of our income.

I agree the offset is not good. But, I don't think it will be that way at the end of the day. There will most likely be another sort of adjustment besides increasing the child tax credit over the $1,000 that it is now. I know my tax would go up the way it sits now...I will be very surprised if it stays the way it is stated currently.

 

[Ajay]

Truth finally coming into the open....

+1000!!!

Already saw on MSNBC this morning that the 'Tax reform' **cough** will cost 5 Trillion dollars over 10 years.
Other changes to the code 'should' draw back approximately 1/2 of that for a net cost of $500B US per year for the next ten years! We are already in debt - stupid tax plan starts off stupid 😳

 

[Jhhnn]

+1000!!!

Already say on MSNBC this morning that the 'Tax reform' **cough** will cost 5 Trillion dollars over 10 years.
Other changes to the code 'should' draw back approximately 1/2 of that for a net cost of $500B US per year for the next ten years! We are already in debt - stupid tax plan starts off stupid 😳

It's not stupid if your goal is to destroy the govt of the people & put even greater power in the hands of the financial elite.

 

[Bitek]

wow lol i got alot of hate for that!

just so were clear, the prevailing position here is that, although trump says he will cut taxes for the middle class. what he means by that is he will actually raise their taxes, enormously!!!11!!111

based on nothing but pure speculation...

lol okey dokey, well carry on i guess.

Your assumptions are based on Trump being honest and keeping his word...

And this is somehow different then all the other GOP attempts at "tax reform"..

Which position is the crazy one?

 

[BigDH01]

Your assumptions are based on Trump being honest and keeping his word...

And this is somehow different then all the other GOP attempts at "tax reform"..

Which position is the crazy one?

“When someone shows you who they are believe them; the first time.”
- Maya Angelou

 

[SMOGZINN]

I'm 100% in favor of eliminating the mortgage interest deduction and the state/local tax deduction but we have to be smart about it and phase these things in gradually, not in a giant 'fuck you' to people in blue states or states with high cost of housing.

Tax 'reform' like this is almost never put in right away. The tax cuts for the rich go into effect the next tax year, the tax cuts for the middle class (if there are any) get phased in over a few years (that way they have time to remove them before they actually happen), and the big tax increases are phased in over 8 years so the politicians that voted for them have enough time to distance themselves from them before they start hurting their constituents.

 

[UNCjigga]

Oh hey look everyone--economic expansion under Obama actually HELPED minorities and those without college degrees see their greatest gains in wealth (roughly 30-46%) over the past 5 years. Oh and guess what--it did NOT happen at the expense of rich white people (their wealth still went up 17%!) Wait...all of that happened under Obamacare and WITHOUT huge tax cuts for the rich? Good to know!

Fed Reserve picked a great day to publish this info. Trump should thank Janet Yellen!

https://www.washingtonpost.com/news...gains-in-wealth-federal-reserve-report-shows/

 

[Engineer]

Cheeto states that millions of small business owners will now be able to pass their hard earned business to their heirs without them having to sell to pay the estate taxes. Only 0.2% of the people have to pay the estate tax. The problem is that his base will believe everything he says about this crap.

Only the estates of the wealthiest 0.2 percent of Americans — roughly 2 out of every 1,000 people who die — owe any estate tax. (See Figure 1.) This is because of the tax's high exemption amount, which has jumped from $650,000 per person in 2001 to $5.49 million per person in 2017.May 5, 2017

 

[obidamnkenobi]

Sounds like some changes:
https://townhall.com/tipsheet/katie...eedom-cause-supports-trumps-tax-plan-n2387396

Mortgage deductions stays, yuuge surprise! A solid handout to the rich so why would that be removed..
Since the rich pay more in taxes (obvi) removing some deduction could be good. Could..


-The lowest federal income tax bracket for individuals will sit at 12 percent, an increase from 10 percent, but will be offset by an expansion of the child tax credit. There will be three brackets total, down from seven, with the other two at 25 and 35 percent.

-The small business tax rate will drop to 25 percent, the lowest in America since the 1930s.

-The corporate tax rate will be decreased from 35 percent to 20 percent, prompting American money to come home from overseas.

-The child tax credit will be expanded. Administration officials nor the President will provide an exact number and will rely on proper congressional committees to come up with one they deem appropriate.

-Rewriting tax regulations so Americans can complete their taxes on a single page.

-Getting rid of double taxes, including the death tax.

-Eliminate itemized deductions

-Eliminate state and local deductions

-Charitable deductions are not changing

-Retirement taxes will not be touched

-Mortgage deductions will not change

 

[fskimospy]

Cheeto states that millions of small business owners will now be able to pass their hard earned business to their heirs without them having to sell to pay the estate taxes. Only 0.2% of the people have to pay the estate tax. The problem is that his base will believe everything he says about this crap.

And remember, that's owing ANY estate tax. Only the portion over the $5.5 million (or $11 million for couples) is subject to the estate tax, meaning an even smaller fraction of people owe any meaningful amount of estate tax.

 

[Stokely]

Seeing as how the last total reform took 2.5 years....and Trump has enough patience to wait 2.5 days before getting on twitter effectively sabotaging whatever he wants done...I have my doubts about this going anywhere.

 

[fskimospy]

Sounds like some changes:
https://townhall.com/tipsheet/katie...eedom-cause-supports-trumps-tax-plan-n2387396

Mortgage deductions stays, yuuge surprise! A solid handout to the rich so why would that be removed..
Since the rich pay more in taxes (obvi) removing some deduction could be good. Could..


-The lowest federal income tax bracket for individuals will sit at 12 percent, an increase from 10 percent, but will be offset by an expansion of the child tax credit. There will be three brackets total, down from seven, with the other two at 25 and 35 percent.

-The small business tax rate will drop to 25 percent, the lowest in America since the 1930s.

-The corporate tax rate will be decreased from 35 percent to 20 percent, prompting American money to come home from overseas.

-The child tax credit will be expanded. Administration officials nor the President will provide an exact number and will rely on proper congressional committees to come up with one they deem appropriate.

-Rewriting tax regulations so Americans can complete their taxes on a single page.

-Getting rid of double taxes, including the death tax.

-Eliminate itemized deductions

-Eliminate state and local deductions

-Charitable deductions are not changing

-Retirement taxes will not be touched

-Mortgage deductions will not change

They are trying to sell it this way but remember, doubling the standard deduction is a backdoor way of eliminating the mortgage interest deduction for the vast majority of people. It would basically be a way to keep it for the rich and no one else.

 

[Engineer]

They are trying to sell it this way but remember, doubling the standard deduction is a backdoor way of eliminating the mortgage interest deduction for the vast majority of people. It would basically be a way to keep it for the rich and no one else.

Or eliminating the personal exemption. Works great for two people, OK for three people but for a family of four, you start losing.

Wonder why no mention of removing the personal exemption or was that lumped into his "we're eliminating many deductions that are unfair!".

 

[Engineer]

LOL...cutting taxes will make us great again. One word - Kansas.