New Tax Plan

It now looks like it will pass the Senate as Corker and Rubio have come on board. The only questions is the health of two Senators and whether they can make the trip to DC to vote. We shall see on that. Many thanx for Rubio for standing firm on the Child Tax Credit for middle class wage earners. This does not apply to me, but I saw it as important piece of the puzzle if this bill was truly a tax cut for the middle class.

Of course the idiot dumms will not vote for this, but who needs them anyway. Losers.

Here is a summary of the changes.

Here are key changes to U.S. tax law for individuals and businesses that have emerged from the final Republican bill that’s headed for votes in the House and Senate next week.

Individual Tax Rates

(Note: Individual rate cuts would expire after 2025.)

Current law:

Seven rates, starting at 10 percent and reaching 39.6 percent for incomes above $418,401 for singles and $470,701 for married, joint filers.
Proposed:

Seven rates, starting at 10 percent and reaching 37 percent for incomes above $500,000 for singles and $600,000 for married, joint filers.
For joint filers:
10 percent: $0 to $19,050
12 percent: $19,050 to $77,400
22 percent: $77,400 to $165,000
24 percent: $165,000 to $315,000
32 percent: $315,000 to $400,000
35 percent: $400,000 to $600,000
37 percent: $600,000 and above
For single filers:
10 percent: $0 to $9,525
12 percent: $9,525 to $38,700
22 percent: $38,700 to $82,500
24 percent: $82,500 to $157,500
32 percent: $157,500 to $200,000
35 percent: $200,000 to $500,000
37 percent: $500,000 and above
Corporate Tax Rate

Current law: 35 percent

Proposed: 21 percent, beginning in 2018.

Corporate Alternative Minimum Tax

Current law: Applies a 20 percent rate as part of a parallel tax system that limits tax benefits to prevent large-scale tax avoidance. Companies must calculate their ordinary tax and AMT tax, and pay whichever is higher.

Proposed: Repealed.

Individual Alternative Minimum Tax

Current law: Individual AMT can apply after exemption level of $54,300 for singles and $84,500 for married, joint filers, and the exemptions phase out at higher incomes.

Proposed: Increase the exemption to $70,300 for singles and $109,400 for joint filers. Increase the phase-out threshold to $500,000 for singles and $1 million for joint filers. The higher limits would expire on Jan. 1, 2026.

Expensing Equipment

Current law: Businesses must take depreciation, spreading the recognition of their equipment costs for tax purposes over several years.

Proposed: Businesses could fully and immediately deduct the cost of certain equipment purchased after Sept. 27, 2017 and before Jan. 1, 2023. After that, the percentage of cost that could be immediately deducted would gradually phase down.

Repatriation

Current law: The U.S. taxes multinationals on their global earnings at the corporate rate of 35 percent, but allows them to defer taxes on those foreign earnings until they bring them back to the U.S., or “repatriate” them.

Proposed: U.S. companies’ overseas income held as cash would be subject to a 15.5 percent rate, while non-cash holdings would face an 8 percent rate.

Pass-Through Deduction

Current law: Pass-through businesses, which include partnerships, limited liability companies, S corporations and sole proprietorships, pass their income to their owners, who pay tax at their individual rates.

Proposed: Owners could apply a 20 percent deduction to their business income, subject to limits that would begin at $315,000 for married couples (or half that for single taxpayers).

Obamacare Individual Mandate

Current law: An individual who fails to buy health insurance must pay penalties of $695 (higher for families) or 2.5 percent of their household income -- whichever is higher, but capped at the national average cost of the most basic, low-premium, high-deductible plan.

Proposed: Repeal the penalties.

Standard Deduction and Personal Exemptions

Current law: $6,350 standard deduction for single taxpayers and $12,700 for married couples, filing jointly. Personal exemptions of $4,050 allowed for each family member.

Proposed: $12,000 standard deduction for single taxpayers and $24,000 for married couples, filing jointly. Personal exemptions repealed.

Individual State and Local Tax Deductions

Current law: Individuals can deduct the state and local taxes they pay, but the value is subject to certain limits for high earners.

Proposed: Individuals can deduct no more than $10,000 worth of the deductions, which could include a combination of property taxes and either sales or income taxes.

Mortgage Interest Deduction

Current law: Deductible mortgage interest is capped at loans of $1 million.

Proposed: Deductible mortgage interest for new purchases of first or second homes would be capped at loans of $750,000 starting on Jan. 1, 2018.

Medical Expense Deduction

Current law: Qualified medical expenses that exceed 10 percent of the taxpayer’s adjusted gross income are deductible.

Proposed: Reduce the threshold to 7.5 percent of AGI for 2018 and 2019.

Child Tax Credit

Current law: A $1,000 credit for each child under 17. The credit begins phasing out for couples earning more than $110,000. The credit is at least partially refundable to qualified taxpayers who earned more than $3,000.

Proposed: Double the credit to $2,000 and provide it for each child under 18 through 2024. Raise the phase-out amount to $500,000, and cap the refundable portion at $1,400 in 2018.

Estate Tax

Current law: Applies a 40 percent levy on estates worth more than $5.49 million for individuals and $10.98 million for couples.

Proposed: Double the thresholds so the levy applies to fewer estates. The higher thresholds would sunset in 2026.

My head hurts!!!!

I believe that any of the congress critters who do not vote for a new tax plan will pay dearly for it in their next run for office.

8 years of BO didn't work so the dems want to keep trying the same thing, reinforcing Einstein's definition of insanity!!
Mike

Still the fake news continues the narrative that this tax plan is bad for the middle class and seniors. In true Alinsky fashion they prey upon the ignorance of the masses. They claim the elderly will lose medical deductions and the middle class loses deductions on mortgage interest. The truth is, you need to itemize your deductions in order to get these tax breaks and the vast majority of those under 75K a year do not itemize. More fake new from the phony liberals and their lap dog media.

I was messing around with a site for a CA dem governor hopeful and was sent this email:


Tammi - Republicans in Washington just released their final version of the tax bill, so we know a vote on this thing isn't far behind. Could be our last moment to stop them from passing the bill - and we seriously need to stop them, because this plan could just wreck the economy for the middle class and take away health coverage for millions of families.

So again, really need to hear your voice on this before it's too late. Will you go to this link and let me know what you think of the GOP tax plan?

Take the survey
Thanks - really appreciate you moving fast.

G

---------- Forwarded message ----------
From: Gavin Newsom
Date: Fri, Dec 8, 2017
Subject: this was a disgrace, Tammi


I can't believe what the Republicans in Washington are trying to pass off as a functioning democracy, Tammi.

Their tax bill was never for the middle class or working families or anybody they said it was for. It was 100% designed to benefit the rich lobbyists who wrote it.

I mean, just take a look at some of the "highlights" of the bill: Private jet owners get an extra tax break. Teachers who have to use their own money to buy classroom supplies can no longer write off that expense. There's even a sign-off on oil drilling in Alaska (because at that point in the bill, restraint is already out the window). It makes me sick - which is ironic, because the bill also guts a major part of Obamacare and could cost 13 million people their health insurance. Unreal.

But here's the thing: This sham bill isn't law - yet. We've got a small window to make our voices heard, so let's raise 'em as loud as they'll go and tell the GOP what we think of its tax "plan" while we still can:...... then they ask for money....

People believe this stuff. The only correct thing on this is that the job write offs on the Schedule A are gone. But the standard deduction is so high few people will be itemizing their deductions. But of course they don't say that.

S-noWonder said:

I was messing around with a site for a CA dem governor hopeful and was sent this email:


Tammi - Republicans in Washington just released their final version of the tax bill, so we know a vote on this thing isn't far behind. Could be our last moment to stop them from passing the bill - and we seriously need to stop them, because this plan could just wreck the economy for the middle class and take away health coverage for millions of families.

So again, really need to hear your voice on this before it's too late. Will you go to this link and let me know what you think of the GOP tax plan?

Take the survey
Thanks - really appreciate you moving fast.

G

---------- Forwarded message ----------
From: Gavin Newsom
Date: Fri, Dec 8, 2017
Subject: this was a disgrace, Tammi


I can't believe what the Republicans in Washington are trying to pass off as a functioning democracy, Tammi.

Their tax bill was never for the middle class or working families or anybody they said it was for. It was 100% designed to benefit the rich lobbyists who wrote it.

I mean, just take a look at some of the "highlights" of the bill: Private jet owners get an extra tax break. Teachers who have to use their own money to buy classroom supplies can no longer write off that expense. There's even a sign-off on oil drilling in Alaska (because at that point in the bill, restraint is already out the window). It makes me sick - which is ironic, because the bill also guts a major part of Obamacare and could cost 13 million people their health insurance. Unreal.

But here's the thing: This sham bill isn't law - yet. We've got a small window to make our voices heard, so let's raise 'em as loud as they'll go and tell the GOP what we think of its tax "plan" while we still can:...... then they ask for money....

People believe this stuff. The only correct thing on this is that the job write offs on the Schedule A are gone. But the standard deduction is so high few people will be itemizing their deductions. But of course they don't say that.

Click to expand...

Bingo. More and more lies and half truths (which is really a lie) from the left.
It never ends. Unless this tax bill was set up in such a way as to give huge entitlements and create a permanent lower class, which would vote for them, they would not be happy anyway.

I am NOT a CPA, I am an Electrician, but I know enough about numbers to know what they are telling me is horseshit.

Like you said, the doubling of the standard deduction is huge.The way I see it it will effectively make itemizing a moot point for anyone making less then 75K a year. They will need to take advantage of the full tax credit on home mortgage to make it work. This simplifying of the tax code is a plus too.

My only bone of contention in all this is I wish they had expanded HSA to 10K for families and 5K for singles. Not sure what the rules will be on this after 2018.

Oh, BTW, Gavin Newsome is a douche bag.

TiredRetired said:

2018.

Oh, BTW, Gavin Newsome is a douche bag.

Click to expand...

You don't know how funny this is. I asked them to take me off their emailing list. They asked the reason and I said...because he is a douche bag! True story!

S-noWonder said:

You don't know how funny this is. I asked them to take me off their emailing list. They asked the reason and I said...because he is a douche bag! True story!

Click to expand...

Poor Gavin. Not.