Posted on 12/16/2017 7:23:42 AM PST by Navy Patriot
The final plan lowers the top tax rate for top earners. Under current law, the highest rate is 39.6 percent for married couples earning over $470,700. The GOP bill would drop that to 37 percent...
A massive tax cut for corporations: Starting on Jan. 1, 2018, big businesses' tax rate would fall from 35 percent to just 21 percent...
You can deduct just $10,000 in state, local and property taxes: One of the most controversial parts of the GOP tax plan is the push to greatly scale back how much state and local taxes Americans can deduct on their federal income taxes.
Most Americans will pay less in taxes until 2026. The final plan lowers the tax rates for each income level and nearly doubles the standard deduction.
Working-class families get a bigger child tax credit: Thanks to a late push by Rubio and Sen. Mike Lee (R-Utah), the child tax credit would be more generous for low-income families and the working class. The current child tax credit is $1,000 per child. The House and Senate bills expanded the child tax credit, with the Senate going up to a maximum of $2,000 per child. The final bill keeps the $2,000-per-child credit (families making up to about $400,000 get to take the credit), but it also makes more of the tax credit refundable, meaning families that work but don't earn enough to actually owe any federal income taxes will get a large check back from the government.
The individual health insurance mandate goes away in 2019: Beginning in 2019, Americans would no longer be required by law to buy health insurance (or pay a penalty if they don't).
You can pass your heirs up to $22 million tax-free.
(Excerpt) Read more at washingtonpost.com ...
meanwhile, many will not even realize we're screwed....
but those people with those supposed kids in Mexico will get HUGE checks...and people that don't pay taxes will even get more money...
but I don't get this?:
Corporate rate would be 20% on gross earnings receipts”
Corporate tax rates should be zero imo .Trump wanted 15% max but got 21% so far from the senate.
What right do you have to Intel's profits? Intel can put a massive , automated , futuristic computer chip plant in the USA or in China .if you and communists democrats want to harass them taxes and regulations Intel will put that plant in China. D you think a massive Intel chip manufacturing plant would be good for the USA or better in China?
s
however, no such windfalls were in place when my kids were little...
we depended on the property tax and mortgage interest credits as are children left the house....these deductions have been in place for DECADES...
but now, all of a sudden, just as we are in going into retirement, they pull the rug out from under us...
totally screwed....
I have four also. And I wasn’t getting ANY before because of my level of income.
Not only did they double the credit.. (more important for me , they raised when it start fazing out dramatically)
For me.. I will get $8,000 back.
but I don't get this?:
Corporate rate would be 20% on gross earnings receipts”
Corporate tax rates should be zero imo .Trump wanted 15% max but got 21% so far from the senate.
What right do you have to Intel's profits? Intel can put a massive , automated , futuristic computer chip plant in the USA or in China .If you and communists/democrats want to harass them with taxes and regulations then Intel will put that plant in China. Do you think a massive Intel chip manufacturing plant would be good for the USA or better in China?
Bonemaker wrote: “And individual filers will have to wait until they do their taxes to see how badly they get cornholed.”
There is more than enough information to determine how individual taxpayers will be affected. My family will see their tax bill reduced by almost 20%.
I run my own business and I have the option of operating as a corporation or a sole proprietorship. Even with the tax advantages a corporation has, it’s still more cost-effective NOT to be one in my particular situation.
Most people miss the whole concept that the sole purpose of federal taxes is to pay for federal government services.
Want to reduce your federal tax bill?
Pressure your representatives in federal government to start swinging the axe on spending.
They retain $10,000 of the deduction. S
I don’t like that part, it should have gone down, not up.
Removing individual and dependents deductions will hurt. I am about to get soaked it seems. Guess I will wait and see the pain in 2019 when we file for 2018.
Yes. The current lifetime exemption per person is $5,490,000, so they basically rounded up by 10K and then doubled it.
The biggest example of a corporation moving its operations overseas is Apple. I am not talking about their manufacturing operations in China, which was motivated more by labor costs than anything else. I am talking about what they have done with their intellectual property. Apple formed an Irish subsidiary many years ago to take advantage of Ireland’s very low corporate tax rates. I believe their top rate is 14%. Apple then contributed virtually all of its intellectual property to this entity, so that every time someone buys an iPhone, iPad or computer from Apple, a significant part of the price is going to that Irish subsidiary, which has extraordinarily low costs. Ironically, that Irish subsidiary has most of its money sitting in US-based banks, but the US government cannot touch either the money it earned in the first place, or the interest that it earns in those banks, because it is all Ireland-based. Apple has now got approximately 250 billion dollars of earnings overseas that have never been taxed in this country, and never will be unless we give them a big break on repatriating those funds.
Frankly, even with a rate differential of 7%, Apple has no reason to disband it’s Irish subsidiary or to alter its operations in any way. The only thing that will make them do that is pressure from the public and its shareholders.
“The individual health insurance mandate goes away in 2019: Beginning in 2019, Americans would no longer be required by law to buy health insurance (or pay a penalty if they don’t).”
That sucks. Why two years? Why not now!
“Corporate rate would be 20% on gross earnings receipts. No exceptions. No accounting tricks either.”
While I cannot know for sure, it seems to me like you have never been in business before, but have always worked for others.
There will be more people paying no taxes because they raised a lot of higher middle class taxpayers taxes. Us. And I’m pissed about it.
Share buybacks rapidly increase share prices. That increases the wealth of every person that holds IRA’s or invests in mutual funds or has a pension.
Increased dividends are sent to stockholders. These are anyone that holds stock in companies and those that have IRA’s and Pension funds invested in mutual funds and stock portfolios.
These people spend their dividends and that too spurs the economy.
It is much more likely that a vast majority of corporations will use the money to invest in new plant and equipment as the bill allows for immediate expensing on new plant and equipment. That means instead of expensing a new press or plant over the decades of its’ useful life, a corporation could bring $50 million back from Ireland or Israel and invest it in a new set of production presses in Ft. Wayne, IN and instead of paying 39% tax off the top, they will be able to pay nothing as they would be able to expense the entire amount right away.
They avoid both the original 39% corporate tax AS WELL as the 21% new corporate tax because they do not have to expense the unit $2.5 million dollars a year over the next 20 years of the press equipments expected life.
This account trick just added hundreds of billions if not trillions of dollars into the domestic economy by incentivising corporations to invest in new plant and equipment, particularly since they can do so with profits they retain overseas and can do it tax free.
This is a major part of the bill that most people seem to be overlooking.
Maybe, maybe not. The individual exemption doubles.
4Ltr
Why wait?
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