Posted on 12/21/2017 3:22:10 AM PST by central_va
President Donald Trump and his Republican colleagues in both the House and Senate are continuing to work on overhauling the US tax code, and it is now looking increasingly likely that their efforts will be successful. The vote on the final version of the GOP’s tax plan, known as the Tax Cuts and Jobs Act, is expected to happen later this week, with the Republican-controlled House expected to pass the bill on Tuesday before the Senate then votes on the bill either later in the day on Tuesday or Wednesday.
If not when we see the actual new tax rates?
What about the $500/dependent credit? Is is gone?
No exemptions?
Yes, the proposed on that link are the final brackets. 2k/kid child tax credit. Personal exemption is gone and std deduction 2x. Salt capped at 10k.
New plan will cost me $2500, due to New Hampshire’s high property tax.
New plan will cost me $2500, due to New Hampshire’s high property tax.
That doesn’t sound right, unless your property tax is like 20k. I lost 10k in itemized deductions, net, plus 8200 in personal exemptions, and my taxes are still dropping 3.2k
My tax goes from $1000 to $3200. They didn’t change the rates for qualified dividends, but I lost deductions.
Jokers have the 35% bracket starting at less than half the income (for individuals) that it did in 2017. Sick.
They should do a fix through budget reconciliation next year: 12% for incomes covered by FICA taxes, 25% for portion if income above FICA to $1,000,000, then 33% for portion above $1,000,000. Same standard deductions, re-instate the personal exemptions for self, spouse and all dependents. SALT deduction not capped at $10,000, but equal to 1/2 * (income + sales + property). UNLIMITED charitable contribution deduction. Corporate down to 15%, with repatriation down to 5%. Head of household multipliers = 1.5X, not 1.33 or whatever happy horsecrap they’re using.
True tax reform, baby!
The good news is it’s likely your dividends will get much larger next year as corporations will see much larger free cash flow on lower taxes and improved economy.
https://www.calcxml.com/calculators/trump-tax-reform-calculator
Good ol’ Soviet Red Hampshire. Some people in Texas will feel the burn (Bern?) from the salt CAP, contrary to all the FReepers cheering on suffering in the blue states, since Texas property taxes are high, also.
The 35% bracket didn’t even really exist - it was only for 2k in income.
Not many - with standard deductions doubling and no state income tax, you would need a truly massive property tax to see an increase, especially if married. Only about 5% of filers are seeing their taxes go up next year (almost entirely in blue states), with 80% decrease and rest still the same (mostly 0)
In theory, the new withholding rate tables should take effect with your first paycheck in 2018. However, it could take some time before your employer and payroll companies like ADP and the like can update their software. I’m sure they are working OT to get it done, but in my experience as a PR professional, don’t be surprised if you don’t see the new rate tables reflected in your paycheck right away.
What about the $500/dependent credit? Is is gone?
Personal exemptions are gone. “Today you're allowed to claim a $4,050 personal exemption for yourself, your spouse and each of your dependents. Doing so lowers your taxable income and thus your tax burden. The GOP tax plan eliminates that option.”
But the standard deduction doubles. For me as a single person, I win, I’m not so sure about families with many children, however the child tax credit increases “The credit would be doubled to $2,000 for children under 17. It also would be made available to high earners because the bill would raise the income threshold under which filers may claim the full credit to $200,000 for single parents, up from $75,000 today; and to $400,000 for married couples, up from $110,000 today.”
This is a pretty good overview.
http://money.cnn.com/2017/12/15/news/economy/gop-tax-plan-details/index.html
Is exploited by the Democrats and allows them to say low wage earners get nothing.
When you think about it, if people in this tax bracket had to pay 0%, they would take a huge hit once they crossed that threshold.
In order to make it fair ... that workers at this low wage pay less taxes, they would have to create about 10 bracket just for $1000 to $10,000 per year earners.
The point is, no matter what the schedule, the moment they cross the taxable threshold they take a giant hit. Like if they made $1-$25,000 0% taxes, and $25k-$50k %10 people would have to be earning 28k just to make as much as they made at $24,999.
They try and solve problems like these with deductions.
But when you factor in the fact that Cow Hampshire has no income tax *or* sales tax you're very probably *still* way ahead in the game.
For example...I bought a new car a couple of years ago and given that my "trade" was a total (which is why I bought it in the first place) I paid just over $3,000 in sales tax here in the Gay State (Massachusetts).Also,one of my pensions is taxed at about $2,300 a year by Gay State hacks.And when I was working....well,you don't even want to know!
And out of curiosity...how much do you pay in property taxes? I have a nice,but far from huge (or luxurious),condo that I pay about $3,000 a year to Town Hall.
They should make the availability unlimited, IMO, but this is a good start.
Amazingly enough, that all falls in under that hideous $10,000 cap.
If the following excerpt is true, the Republicans may want to fix this:
Married? Middle class? Californian? Get ready to be a loser under Trump’s tax plan
BY THE EDITORIAL BOARD
sacramento bee
DECEMBER 20, 2017 05:54 PM
UPDATED 6 HOURS 1 MINUTES AGO
http://www.sacbee.com/opinion/editorials/article190933689.html
For example, heaven help married Californians. The new tax bill includes a marriage penalty by capping at $10,000 the amount of state income and local property taxes that filers can deduct from their federal taxes.
People wed for love, not money, but say you’re an unmarried couple and earn a combined $150,000. Each partner would file separate income tax returns and claim $10,000 each in state and local tax deductions, $20,000 in total. Good for them.
Say you’re a married couple with a couple of kids and a mortgage, earning that same $150,000. You’re making ends meet but not eating at fancy restaurants. Under the tax bill, married couples will be able to deduct no more than $10,000 in state income and local property taxes, half of what an unmarried couple could claim.
It’s one of many ways that Trump’s tax bill, the one that 12 of 14 California House Republicans supported, will harm Californians in the middle.
Marking. Thanks for link
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