The tax plan? Seriously, dems have lost their collective minds


#1

Okay, who is the middle class? This tax cut doubles deductions and does away with deducting state taxes paid from federal taxes. Seems like a balance to me.
If anything this will be better for the majority of tax payers.

Still when you add it up, it will only touch the ones making hundreds of thousands a year. It is a tax hike only for those making well above the average income. I mean we are talking an additional 6-12,000 dollars in deductions.

Furthermore no deducting interest on mansions that cost millions. I MEAN A 10 GRAND CAP on deductions? Ten grand in interest per year? And this: “The bill would create a new “Family Credit” and expand the child tax credit used by working families. The child tax credit would grow from $1,000 per child to $1,600 for each child.”

Who are the dems protecting? Rich blue state democrats.


#2

The legislation would cut in half the popular mortgage interest deduction used by millions of American homeowners, changing the deduction’s rules for new mortgages. Presently, Americans can deduct interest payments made on their first $1 million worth of home loans. Under the bill, for new mortgages, they would only be able to deduct interest payments made on their first $500,000 worth of home loans.

Simply put, millionaires can afford it or they do not need the home.


#3

WTF is going on with the pass through business changes? Passive owners of pass-through businesses would get the 25% rate, but those actively involved in the business would have a different standard. For professional services forms, the rate would be 100% labor income, meaning they would get none of the benefit of the 25% rate for pass-through businesses.


#4

We need this for a more complete picture:


#5

So have you checked the business deduction rates?


#6

They were just talking about it on the radio. Maybe I heard wrong?


#7

I am checking, it may affect me.


#8

I foresee a constitutional challenge to the cap on SALT deductions. Affected businesses will contend that only net profit after deduction of state & local taxes can be subjected to federal income tax. Only net income is taxed under the 16th Amendment, so income diverted by local taxation is exempt.


#9

Nothing in the tax code is really constitutional. Well it wasn’t until they gave themselves the power to tax the crap out of the citizens.


#10

Create a New Tax Rate For
‘Pass-Through’ Businesses

The plan would create a new 25 percent tax rate for “pass-through” businesses — sole proprietorships, partnerships and S corporations that currently pay taxes at the individual rate of their owners. Pass-throughs now make up about 95 percent of businesses in the country and the bulk of corporate tax revenue for the government.

Most pass-throughs are small sole proprietorships currently paying less than a 25 percent marginal rate. But a few are quite large — 1.7 percent of pass-through businesses generate more than 40 percent of all pass-through income and are taxed at the top 39.6 percent rate.

Source: *Alternative Minimum Tax | Tax Policy Center model, 2016
The bill includes a rule to help prevent wealthy individuals from incorporating as pass-through companies to pay a lower tax rate on their income. As a result, certain personal service businesses like law, accounting and consulting would not be eligible for the rate.


#11

I need to study this a bit.


#12

#13

IF they REMOVED the EBT from Illegals tomorrow, made mandatory 1 year ONLY Free Ride for the deadbeats, there’d be PLENTY of money.

But did you notice? Not ONE of the DC Pigs has mentioned that?

Our taxes are high because WE are paying for the deadbeats, who contribute NADA!!

ZERO EBT users pay tax


#14

What needs to be clarified is that the income stated is after deductions.

A person with spouse, 2 children could make 28.9K with the personal deductions and pay no income tax.

Of the 148.6 million tax returns filed, nearly 36 million of them had no taxable income whatsoever. Another 16.1 million had taxable income, but didn’t end up owing any income tax due to credits, deductions, and other adjustments.

The short answer is that the average American tax return resulted in a tax bill of $9,118. During the most recent year for which we have complete data (2014), there were about 148.6 million tax returns filed, resulting in approximately $1.355 trillion in tax liability, after applying credits. Dividing the two numbers gives us the average.

However, the averages don’t tell the whole story, so let’s dig a little deeper.
35% of Americans don’t have to pay federal income taxes

Of the 148.6 million tax returns filed, nearly 36 million of them had no taxable income whatsoever. Another 16.1 million had taxable income, but didn’t end up owing any income tax due to credits, deductions, and other adjustments. For example, when I was in college, I worked and had substantial income every year, however the tax credits for tuition resulted in no federal tax liability for those years, so I would have been included in this group.

The example:

Income Range (AGI)
$1 to $25,000

Average Tax Liability
$208

Effective Tax Rate (% of AGI)
1.7%

Bit of an eye opener isn’t it.


#15

It always infuriates me when politicians says they’re going to give the taxpayer “a break”, they act like they’re doing us a favor by giving us our own money.

How about cutting some departments, programs, staff, trips, conferences and investigations?

It isn’t your money.

Bloodsuckers.


#16

What did they call it, down sizing, right sizing, re-engineering, phasing out, scorched earth, early retirement.

Words never used in government.

Why is it when we have a recession, business cuts expense (people) however government never gets smaller just hires more employees or contractors.


#17

#18

Context please. I was talking about effects on business.


#19

Now you do realize that those are just one set of projections. The plan is to increase the tax base.


#20

Not to worry, it will never get past the Dems in the Senate.

What do thy call them, the party of no? The party of obstruction?