Regarding the GOP proposed tax reform

[whocares1970]

From what I can see now, it will increase taxes for many in the middle class, especially for families with children. The increased standard deduction will not do that much, given that many are already filing itemized deductions. And repealing the personal exemptions will have a huge negative effect. Plus - they are removing student loan interest deduction and some other things. Overall, it looks like taxes will go down for those with higher income, some money will be given to those with lower income (for instance, via the increased refundable child credit), and the middle class will get the short end of the proverbial stick, we will be lucky to break even.

The Republicans in Congress will either have to adjust all that before they pass the bill, or be punished by the voters next November. I just do not understand why are they doing it this way.

Comments

[eta_ta]

why - because corporate tax will be halved. they are pro-business, and know who is the boss

the more i watch so called republican party, more disappointed I am

ps
don't forget the elimination of state tax credit. this will increase my taxes x2.
i pay federal + nys + nyc (see https://www.thebalance.com/new-york-city-taxes-3193281), which is already more than 50% in total

[whocares1970]

Oднa нaдеждa, чтo oни немнoгo пoдлaтaют прoэкт к мoменту принятия. Я, кстaти, уже пoзвoнил Трaмпу, выскaзaл свoё недoвoльствo. Нaшим сенaтoрaм и предстaвителю звoнить не нaдo, oни и тaк демoкрaты.

[eta_ta]

и что же вам Трамп ответил? "Учтём"?

ну прямо некуда [жителю НЙ] податься...

[whocares1970]

>> и что же вам Трамп ответил? "Учтём"? <<

Ну дa, где-тo тaк. У них тaм нa телефoнaх сидят дoбрoвoльцы, зaписывaют oтзывы трудящихся. Пoлaгaю, пoтoм передaют aнaлитикaм. A выжимки сделaнные aнaлитикaми испoльзуют кaк результaты oпрoсoв.

[gracheeha]

"Cut Cut Cut Act" вряд ли пройдёт. Хотя кое-какие deductions стоило бы снять, вроде, mortgage-interest.

[gingema]

If deductions of mortgage interest and state tax are cancelled, a lot of people will stop itemizing and go with the increased standard deduction. Btw, another thing that I expect people to do less when they don't itemize is donations.

[yury]

Neither mortgage interest nor charitable contribution deductions are eliminated.
State/local tax deductions, yes, they are gone.

"State/local tax deductions, yes, they are gone."

[e_clair]

They are limited, not gone, in states where there are state taxes.

Re: "State/local tax deductions, yes, they are gone."

[yury]

Not according to what I've read:
the GOP reached a deal that would allow people to deduct state and local property taxes up to $10,000 but not income or sales taxes.
So it looks like all of state/local income and sales tax deductions are indeed gone.
With the deductions still there for property taxes capped at combined $10K.

Re: "State/local tax deductions, yes, they are gone."

[e_clair]

so capped @ 10K is not gone

income tax is not the same as a sales tax

Re: "State/local tax deductions, yes, they are gone."

[yury]

Where did I argue that they are the same?

OK, I'll be as precise as I can.
Both income and sales tax deductions are gone. Completely.

What is not gone is deductions for property taxes, but they are capped at $10K combined.

Better?

Re: "State/local tax deductions, yes, they are gone."

[e_clair]

Actually, in CA income tax for 2016 on taxable income of 100K does not even reach 10K. It is 6700+ (1 person)

Re: "State/local tax deductions, yes, they are gone."

[yury]

But that is irrelevant, because income tax is no longer deductible. At all, whether it is greater than $10K or not.

Re: "State/local tax deductions, yes, they are gone."

[e_clair]

Но Вас-то это в любом случае не касается, т.к. согласно Вашему профилю у Вас нет W2 state tax вообще

Re: "State/local tax deductions, yes, they are gone."

[yury]

Я про себя не говорил. Я уточнил информацию о том, какие deductions остаются, а какие уходят.

Но на самом деле меня это очень даже касается, потому что работаю я в соседнем Массачусетсе, который не упускает возможности обложить меня своим налогом на доход.

"If deductions of mortgage interest and state tax are cancelled..."

[e_clair]

maybe it's better to read the proposed docs? because your info is incorrect.

Re: "If deductions of mortgage interest and state tax are cancelled..."

[whocares1970]

In case it is needed:
https://waysandmeansforms.house.gov/uploadedfiles/bill_text.pdf

[whocares1970]

Most people will stop itemizing anyway, since the standard deduction went up so much.

[eta_ta]

Yes, but the personal exemption got eliminated. Так что в сухом остатке - разница в полторы тыщи; а если ещё учесть что расходы на медицину больше 10% дохода тоже уже не повод для deduction, как и расходы на переезд в новый дом - то эта разница пропадает совсем.