Corrected title: Now the GOP has accomplished massive tax reform

[K1052]

Another small problem...tax hike for low income folks by 2021 and gets worse when the sunset hits.

The revised Senate Republican tax proposal would lead to a 13 percent tax hike on Americans making between $20,000 and $30,000 per year by 2021, according to an analysis by the Joint Committee on Taxation.


Those earning from $500,000 to $1 million would see the biggest cut in taxes -- 8.5 percent -- by 2021, the JCT said Thursday.

The hit to the $20,000 to $30,000 cohort complicates the Republican message of widespread tax relief for working Americans. Other recent studies show that plenty of benefits would go to the highest earners -- and some middle-class taxpayers might actually pay more. Senate Majority Leader Mitch McConnell and House Speaker Paul Ryan have walked back guarantees that no one in the middle class would see a tax increase under their plans.


After 2021, earners making from $20,000 to $30,000 would continue to see a tax increase -- rising to a 25 percent hike by 2027. That year those making less than $75,000 would see a tax increase, the JCT said. Meanwhile, those earning more than $75,000 would still see small cuts.


The revised Senate plan released late Tuesday would sunset individual breaks by 2026 and in 2019 repeal the Obamacare requirement that individuals have health coverage to comply with the Senate’s rigid fiscal rules.

The negative impact on incomes from $20,000 to $30,000 may result from the provision to repeal the Obamacare individual mandate. Without the mandate, millions of lower-income Americans are projected to drop their insurance coverage, according to the Congressional Budget Office. That means they would not be eligible for refundable tax credits under the health-care law.

https://www.bloomberg.com/news/arti...-taxes-by-2021-on-some-lower-incomes-jct-says

 

[MomentsofSanity]

Another small problem...tax hike for low income folks by 2021 and gets worse when the sunset hits.




https://www.bloomberg.com/news/arti...-taxes-by-2021-on-some-lower-incomes-jct-says

It doesn't talk about those who might KEEP medical insurance (let's face it, if you're only making that much you won't be having any). They are going to see huge increases in their premiums with the individual mandate being dropped. That only mentions losing the tax credits if they drop insurance.

 

[K1052]

It doesn't talk about those who might KEEP medical insurance (let's face it, if you're only making that much you won't be having any). They are going to see huge increases in their premiums with the individual mandate being dropped. That only mentions losing the tax credits if they drop insurance.

Yes, that's a separate point covered by the CBO's statements on the the mandate repeal consequences. All insurance premiums will rise.

 

[Jhhnn]

They should be eliminated entirely. They cost us something like $20 billion a year for the purpose of subsidizing large corporations not because they are necessary, but because rural areas and megacorporations have disproportionate political power. To put it in perspective the individual mandate that Republicans want to eliminate costs something like $32 billion a year, so you can view farm subsidies as something like health insurance for 8 million people or so.

You quoted me & completely ignored my argument that subsidies stabilize food production & prices. They're a part of New Deal economic policy that has served us well since the 30's. There are a lot of aspects to it too complex to really discuss in this thread.

I mean, it's Republicans, right? They can't help but fuck it up if they mess with it at all.

 

[K1052]

House is voting on their version of the tax bill now.

Edit: Passed

 

[yllus]

I can't believe your country is so blatantly stabbing itself in its side. It's an incredible thing to watch from afar.

 

[K1052]

I can't believe your country is so blatantly stabbing itself in its side. It's an incredible thing to watch from afar.

It's what we do best these days.

 

[IronWing]

House is voting on their version of the tax bill now.

Edit: Passed

Ryan likes to shove the crap to the Senate before anyone can nail down just how bad it is. Expect Ryan's typical "the House did our part" bullshit by the weekend.

 

[zinfamous]

Ryan likes to shove the crap to the Senate before anyone can nail down just how bad it is. Expect Ryan's typical "the House did our part" bullshit by the weekend.

It really should be his motto. He should wear it on a t-shirt.

 

[K1052]

Ryan likes to shove the crap to the Senate before anyone can nail down just how bad it is. Expect Ryan's typical "the House did our part" bullshit by the weekend.

An argument which has never moved the Senate anywhere. They've got real problems with this in the other chamber. Even if they pass something crafting the compromise out of conference is going to be Thunderdome-like.

 

[Jhhnn]

I can't believe your country is so blatantly stabbing itself in its side. It's an incredible thing to watch from afar.

Decades of poisonous right wing propaganda have finally come to a head with Trump & the current Congress.

The saddest part is that the deplorables are actually capable of more than the mindless & self indulgent emotional ranting of Trumpism. They've just been horribly manipulated by the world's greatest con man & astoundingly ruthless propagandists. Poor bastards are half fucking crazy from it but they're holding on to it all for dear life. It's basically mass hypnotism.

 

[Puffnstuff]

Now that Trump is back from his Asia trip I wonder how long it will be before they completely ram this down our throats? Judging by the way the House just pushed their version through I would imagine the Senate won't be far behind and once they iron our their differences the fuhrer will sign it in record time.

 

[IronWing]

Now that Trump is back from his Asia trip I wonder how long it will be before they completely ram this down our throats? Judging by the way the House just pushed their version through I would imagine the Senate won't be far behind and once they iron our their differences the fuhrer will sign it in record time.

I'm counting on Trump to tweet self contradictory stupid shit and derail the whole process.

 

[fskimospy]

There is also apparently a new tax break inserted for people who own or lease private jets.

That’s right. Private jets.

 

[fskimospy]

You quoted me & completely ignored my argument that subsidies stabilize food production & prices. They're a part of New Deal economic policy that has served us well since the 30's. There are a lot of aspects to it too complex to really discuss in this thread.

I mean, it's Republicans, right? They can't help but fuck it up if they mess with it at all.

If the goal is to stabilize food production and prices there are about a million better ways to do that other than throwing giant bags of cash at megacorporations. It is bad policy.

 

[K1052]

There is also apparently a new tax break inserted for people who own or lease private jets.

That’s right. Private jets.

Hey now, my G6 isn't going to tax break itself.

 

[fskimospy]

Hey now, my G6 isn't going to tax break itself.

I like how they eliminated the tax break for teachers who buy their own supplies for their classroom and added this one instead.

 

[K1052]

I like how they eliminated the tax break for teachers who buy their own supplies for their classroom and added this one instead.

It's a gross product but that's to be expected. Hard to believe that keeping the adoption credit was actually a point of contention.

Hoping this effort collapses in the Senate again or the product of the conference is hated by everybody.

 

[fskimospy]

It's a gross product but that's to be expected. Hard to believe that keeping the adoption credit was actually a point of contention.

Hoping this effort collapses in the Senate again or the product of the conference is hated by everybody.

You know it’s a bad situation when normal people are hoping they just go back to the standard GOP plan of throwing a bunch of debt financed tax cuts at rich people and leaving everyone else alone.

 

[Thump553]

I'm counting on Trump to tweet self contradictory stupid shit and derail the whole process.

Don't count on it this time. This directly affects Trump's income. It is also THE core issue to GOP big donors. His daycare workers will be sitting by his elbow 24/7 for foreseeable future.

 

[K1052]

You know it’s a bad situation when normal people are hoping they just go back to the standard GOP plan of throwing a bunch of debt financed tax cuts at rich people and leaving everyone else alone.

That could still end up happening.

 

[Paratus]

Hey now, my G6 isn't going to tax break itself.

I like how they eliminated the tax break for teachers who buy their own supplies for their classroom and added this one instead.

I believe the tax negotiations looked something like this.

 

[K1052]

Pulling up that ladder a bit more after themselves...

Government analysis shows House tax bill would increase the cost of college by $71 billion over a decade

The repeal and revision of higher-education tax benefits in the bill passed Thursday by the House would cost students and families more than $71 billion over the next decade, according to an official analysis by Congress’s Joint Committee on Taxation.

In a letter obtained by The Washington Post, the committee provides individual scores of the education provisions in the House bill. Those that directly benefit current students, borrowers and employees seeking college credentials amount to tens of billions of dollars in revenue for the government, but lost savings for taxpayers. The committee tallied the costs at the request of Sen. Patty Murray (Wash.), the ranking Democrat on the Senate Health, Education, Labor and Pensions Committee.

Graduate students, for instance, mobilized to fight against the proposed repeal of an exemption from taxes on the waivers that cover their tuition. Many have argued that counting their tuition as taxable income would result in a tax burden they could not cover with the money earned from working as teaching or research assistants. Repealing that exemption would yield the federal government $5.4 billion in revenue over the next decade.

Another hotly contested House proposal involves the elimination of the student loan interest deduction, which lets people repaying their student loans reduce their tax burden by as much as $2,500. Getting rid of the deduction would cost borrowers more than $21 billion in the next 1o years. More than 12 million people took advantage of the deduction in 2015, according to the Internal Revenue Service. That’s about 3 in 10 of the 44 million Americans with student loans.

Millions of Americans also take advantage of the three higher-education tax credits — the American Opportunity Tax Credit, Lifetime Learning Credit and Hope Scholarship Credit — that House Republicans want to consolidate. The government would get $24.1 billion in revenue by repealing the Lifetime Learning Credit. But that money would come at the expense of graduate students who under the proposal would be largely shut out of the consolidated tax credit.

Although policy analysts agree that tax credits should be streamlined, many worry that consolidating them without a meaningful increase in funding or expansion of the criteria would prove detrimental to people paying for college. They also worry that House Republicans are discouraging workforce development by proposing the repeal of an exemption that prevents the federal government from taxing tuition assistance provided by employers. Eliminating that statute would yield $20.6 billion over a decade, which taken with the other three repeals amounts to $71.5 billion.

The irony of Paul Ryan making it harder for people to pay for college by axing government support is pretty fucking amazing. He wouldn't have a degree without government assistance.

 

[K1052]

I believe the tax negotiations looked something like this.

Came very close to posting this myself lol

 

[Doc Savage Fan]

Looks like we'll be keeping the ACA individual mandate.

Edit: Maybe not....looks like the Senate bill repeals it.