Posted on 11/02/2017 7:21:40 AM PDT by GIdget2004
House Republicans will propose limiting the deductions for mortgage interest and state and local taxes in the tax bill they are releasing on Thursday, according to a summary of the legislation obtained by The Hill.
The bill, called the “Tax Cuts and Jobs Act,” largely follows the parameters that GOP leaders and the White House outlined in September. It would reduce the number of individual tax brackets, slash rates for businesses and eliminate a number of tax breaks.
In order to offset the costs of the legislation, Republicans are putting forward some proposals that are sure to be controversial.
The bill would keep the mortgage-interest deduction, but only for newly purchased homes up to $500,000. Homes bought in the past could keep the deduction regardless of price. The housing industry is sure to push back on that cap.
The legislation would also taxpayers to deduct their state and local property taxes, but only up to $10,000. It would not allow people to deduct state and local income or sales taxes.
Blue-state Republicans have fought to preserve that deduction, which is important to their constituents. It’s not clear how receptive they will be to the compromise.
“I’m still analyzing it, but right now, I’m strongly leaning no,” Rep. Pete King (R-N.Y.) said.
Several other controversial ideas that were floated to help pay for the bill, including limits on pre-tax contributions to 401(k) plans and including repeal of ObamaCare’s individual mandate, were apparently not included, according to the summary.
(Excerpt) Read more at thehill.com ...
I did not miss it. But how can I put any confidence in how they conclude that when they clearly are misleading in the SNAP cost chart.
In the SNAP chart, they imply the Mississippi is spending 4 times as much as CA on SNAP when, if you go by actual people on SNAP, CA is spending 4 times as much as Mississippi (2 million on SNAP vs 500k).
If this link is your only evidence, its not really evidence.
Wrong !
The present liability on the first $90k of married filing jointly taxpayers is $13,977 (not $18,247)
It couldn’t pass via reconciliation that way.
To DOD, maybe. The cuts to the other three wouldn’t pay for anything.
Medicare, Medicaid, Social Security and Defense. That’s where the money is spent. That’s where the cuts have to come. Trump has promised not to touch the first three and increase spending on the fourth.
So....there you go.
Dana Rohrabacher (R-CA) said he’s for the deal for the good of the entire country. All 14 CA GOP members of the house voted for the budget bill that proceeded this.
It’s looking like a tax increase on the upper middle class.
That’s a very interesting demographic for Republicans to target.
Maybe it is a populist party now and any family with a gross income over $120K is the enemy.
I grew up in D.C. with the kids of Congress critters and Pentagon big wigs. I learned 2 things early;
1. The name of the bill and its claimed intention are the opposite of what it will do.
2. The bigger the bill the bigger the lies it contains.
What percentage of Freepers will ever be impacted by the estate tax?
I find this a fascinating hill for Republicans to fight over.
I should have known the globalist Republicans were also into population control. Eliminating the exemptions for families is punishing those with children. There are no two ways about it. There standard deduction is a wash at best for me compared to itemizing (so SALT or no SALT means nothing to me). But losing that 20500 exemption makes the reduction from 15% to 12% look like nothing. To boot, losing the exemption will mean I will now pay 25% on the extra 20000 I’m over the 90k threshold.
Am I coming out ahead?
It can’t pass by reconciliation if you do that.
No one understands that they have to “pay” for this in order to pass with 50+Pence in the Senate.
In the northeast, high property taxes are seen as the tool to keep the local schools good and the riffraff out. It’s seen as a means of preserving property values.
I don’t think people are going to care about the state income tax, but they are going to flip over not being able to deduct their property taxes.
Good for you.
Raising the standard deduction to 24k (12+12) will eliminate the ability for MOST families to itemize. Not all, but most. That is the plan. That is how it gets done on “a post card”. It becomes 1040 EZ. MOST families today do not have over 24k in itemized deductions.
But then it wouldn’t be “revenue neutral”
Nah, go look at the Trump proposed budget. If he were allowed to implement his vision you wouldn’t have to gut some of the more beloved programs. One of the major things also is the fact that under a Trump vision you wouldn’t be paying for 10 of millions of Illegals to get those social programs (and a vastly reduced amount of immigrants). Sure, if you grow exponentially forever in terms of population there is not going to be a sustainable path no matter what is done. You have to slow the rate of immigration, kill some of the programs and dramatically limit some of departments. Moreover, cutting the EPA has more impact on the economy than just a dollar amount, it will allow the economy to grow and more money would thus come into the government.
See that’s what red state individuals don’t understand. The high tax rates are through the roof in New York state, I will give you that. But our public schools are 500% better than yours, our infrastructure is probably a million times better than yours... we attract some of the best and brightest doctors from around the world who want to live here. So yes our taxes are high, and it stinks. But we don’t have a lot of low life trash in the suburbs to hurt our schools and way of life.
I live in a red district in a very blue, very high tax state and I applaud this!
We never seem to be able to reach the threshold to itemize deductions. We're in the top few percentiles for both income and assets and we can't. We live in a fairly small house, have no mortgage, and I own a 20 year old Volvo with over 200K. My wife's 160K Honda actually has a rust hole in a fender.
Maybe it's "rich people" who are living the bazillionaire lifestyle who are taking all those deductions, because it's not us. I'm not sure who they vote for. Maybe it's not for Republicans.
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