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Re: The Winners and losers in the GOP tax plan

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I take a big hit from this plan. The elimination of many of the itemized deductions will be partially offset by the elimination of AMT (a good thing). If that were it I would be content, however the plan also pushes me into a higher tax bracket. What kind of tax cut is this? 

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Re: The Winners and losers in the GOP tax plan

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Well,  I  am certainly one of the loosers, I guess that puts me in the category of the poor people in this country.

I  do itemize and now all my deductions will be gone. 
So, who knows what my tax bill will be in 2018 and on/

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Re: The Winners and losers in the GOP tax plan

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@rj72135989 wrote:

Current plan will allow temporary $300. deduction for each parent, that will be eliminated in 5 years. When that chicken feed tax 'break' is eliminated, the Estate Tax, benefitting the 1%, will be permanently eliminated.

No matter what your income, medical deductions will be eliminated. The little retired man with a $100.K income, paying $40K a year to the facility caring for his wife with Ahlzeimers....oh well, too bad, so sad.

And I'm still waiting for the big trickle down promised by Reagan and Bush. Or is this plan just "trickle on" #3. 

And as for Seniors, this Deficit Spending Billionaire Tax Cut will be financed by the cuts in MCR, MCD. and SS, on next year's agenda. And don't bother telling me Trump said he wouldn't he wouldn't touch MCR/MCD, the serial liar said he would eliminate Carried Interest Loophole on the campaign trail.

 

Per Bloomberg "The House tax bill released Thursday preserves the carried interest tax break -- paid to private-equity managers, venture capitalists, hedge fund managers and certain real estate investors -- despite President Donald Trump and GOP leaders’ promise to do away with loopholes for the wealthy."

 

Anybody think Trump and his kleptocratic family are in the "certain real estate investor" category?

 

Just happy I didn't vote for the grifter.

 


Good points, rj....thanks for your input.

 

Here's another "analysis".....

 

The GOP’s bill is ‘a sensible framework’ — but ‘still a deficit-exploding tax cut’ for the rich and corporations

 

Many of the ideas in the Republican tax proposal unveiled Thursday have found bipartisan support in the past and endorsements from economists who see a way to improve the U.S. economy. That includes plans to make the corporate rate more competitive, simplify personal taxes, curb several tax breaks of dubious value and provide more assistance to working families.

 

The controversy is over who will gain the most: the rich and corporations. The GOP bill would cut the corporate rate well below previous attempts, eliminate a tax on inheritance that affects only people with many millions of dollars, and take other actions that do not provide direct benefits to most Americans.

 

And the proposal represents a significant break with previous tax-rewrite discussions.

 

Republicans have in the past focused on the importance of not adding to the nation’s debt through tax reform. Democrats have favored overhauling the tax code to raise revenue to pay for needed improvements in America’s infrastructure or to provide services for the middle class and poor.

 
But in this case, Congress’s Joint Committee on Taxation estimated Thursday that the tax plan would be paid for by $1.5 trillion in additional borrowing over the next decade. Much of that reflects tax reductions benefiting the wealthy and companies.
 

Budget experts say the GOP’s decision jeopardizes what could otherwise be one of the great legacies of Republican-controlled government: fixing the U.S. tax code and improving the economy.

“I do think this is a sensible framework. It emphasizes the need for corporate reforms and how our tax system works,” said Maya MacGuineas, president of the nonpartisan Committee for a Responsible Federal Budget. “But this is still a deficit-exploding tax cut at a time when the deficit is at near-record levels.”

 

At heart, the GOP plan cuts taxes on large businesses and pays for those reductions by raising taxes on individuals, the exact opposite of what was done in the 1986 Tax Reform Act under President Ronald Reagan. Republicans have long held up the 1986 effort — which did not add to the deficit — as a model.

 

The cut in corporate taxes will deplete the Treasury by nearly $847 billion over the next decade, according to the Joint Committee on Taxation. The elimination of the estate tax — which is paid only by the small portion of Americans with estates worth more than $5.49 million — and related measures will cost $172 billion. The creation of a 25 percent rate for people who pay corporate taxes through the individual code — a popular way for the wealthy to reduce their tax obligation — will cost $448 billion.

 

The GOP offsets some of those costs by raising taxes on individual earners who use tax breaks such as the mortgage interest deduction and the state and local tax deduction. But critics say the GOP could have chosen to overhaul the tax code in a way that concentrated benefits on middle- and working-class Americans — and chose not to.

 

“You can very much achieve tax reform without giving higher-income earners a tax cut,” said Chye-Ching Huang, deputy director of federal tax policy at the left-leaning Center on Budget and Policy Priorities.

 

President Trump and top Republican leaders argue that the middle class and working poor will benefit from lower taxes of big businesses because corporations will use the money they save on taxes to hire more workers and pay existing employees higher wages.

 

“We will be creating jobs like you have rarely seen,” Trump said in the Oval Office, as he kissed a postcard of the House GOP tax plan, hailing it as a “great Christmas present.”

 

Invariably, overhauling the tax code creates winners and losers, and the writers of the legislation argued that they were making progress toward a top policy goal.

 

“None of [the critics] thought we would even get this far with tax reform, and they’re wrong,” Rep. Kevin Brady (R-Tex.), the chief author of the tax bill, said Thursday.

 

The plan contains several policies that have attracted bipartisan support before. The current corporate tax rate of 35 percent is far higher than those of most other wealthy countries, leading many companies to say they are at a disadvantage and must spend a disproportionate amount of time and resources on complying with tax rules. In his last year in office, President Barack Obama proposed lowering it to 28 percent.

 

The GOP has pursued a much lower rate, proposing on Thursday a 20 percent rate. Earlier this year, the GOP planned to offset the deep cut in the corporate tax rate by imposing a substantial new tax on imports, a move that was killed by retailers and other industries. The bill unveiled Thursday didn’t have many revenue streams from businesses.

 

Likewise, many experts agree the tax code contains numerous tax breaks that don’t provide much benefit to the economy. For example, while many existing homeowners may appreciate the mortgage interest deduction, research suggests that it disproportionately benefits higher-income earners and does little to spur home-buying. Democrats have proposed limiting its value before — just as the GOP tax bill on Thursday proposed allowing new home buyers to deduct interest on only $500,000 of mortgage debt rather than the current $1 million threshold.

 

 

The mortgage interest change, among other limits to tax breaks benefiting individual earners, would raise more than $1.25 trillion over the next decade, according to the Joint Committee on Taxation.

 

Alan Auerbach, professor of economics and law at the University of California at Berkeley and one of the country’s top tax scholars, said some provisions in the plan make a lot of sense. For example, he praised how the GOP proposal would allow companies to deduct the cost of investing in new equipment, which is likely to spur immediate spending in the economy. But he lamented how much the plan adds to the deficit, among other provisions.

 

The bill “has a pulse,” he said, but he’s “not sure it can be resurrected” into something that is good policy for the United States, especially after so many interests groups and lobbyists pressure Congress for changes in the coming weeks.

 

Republicans are pushing an aggressive timeline to get the bill to the president’s desk. The idea is to limit lobbying by moving quickly, but many are skeptical it can happen.

 

“The problem is we’re creating policy in an era of free-lunch economics,” MacGuineas said. “No one seems to acknowledge budget constraints and real choices.”

 

The GOP’s bill is ‘a sensible framework’ — but ‘still a deficit-exploding tax cut’ for the rich and ...

 

 


"FAKE 45 #illegitimate" read a sign at the Woman's March in Washington DC, January 21, 2017.
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Re: The Winners and losers in the GOP tax plan

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Message 54 of 60

Current plan will allow temporary $300. deduction for each parent, that will be eliminated in 5 years. When that chicken feed tax 'break' is eliminated, the Estate Tax, benefitting the 1%, will be permanently eliminated.

No matter what your income, medical deductions will be eliminated. The little retired man with a $100.K income, paying $40K a year to the facility caring for his wife with Ahlzeimers....oh well, too bad, so sad.

And I'm still waiting for the big trickle down promised by Reagan and Bush. Or is this plan just "trickle on" #3. 

And as for Seniors, this Deficit Spending Billionaire Tax Cut will be financed by the cuts in MCR, MCD. and SS, on next year's agenda. And don't bother telling me Trump said he wouldn't he wouldn't touch MCR/MCD, the serial liar said he would eliminate Carried Interest Loophole on the campaign trail.

 

Per Bloomberg "The House tax bill released Thursday preserves the carried interest tax break -- paid to private-equity managers, venture capitalists, hedge fund managers and certain real estate investors -- despite President Donald Trump and GOP leaders’ promise to do away with loopholes for the wealthy."

 

Anybody think Trump and his kleptocratic family are in the "certain real estate investor" category?

 

Just happy I didn't vote for the grifter.

 

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Re: The Winners and losers in the GOP tax plan

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@gordyfl wrote:

I benefit.  I do as well, but it's not about me.  I'm doing OK as it is now and don't need a tax cut.  Isn't this what is BEST for the country?  IMO, what's BEST FOR THE COUNTRY isn't a reduction in services, a cut in Homeland Security, cutting the EPA and an increase in water and air pollution and in the name of the almighty dollar.  It's sad so many are so self focused, especially the so-called Christian Right.  Hypocrisy much?

 

I don't itemize. My standard deduction will double according to their tax plan.

 

I haven't heard if they plan on eliminating the deduction for state taxes. Either way, it doesn't affect me. No state tax here.

 

I wasn't worried about the 401K tax breaks. Firstly, I don't have a 401K. Secondly, I knew they weren't going to include that proposal in their tax plan. Wall Street certainly would not allow them to do so. That I felt confident. 

 

I don't think the rich and powerful should be getting the bulk of the tax breaks. Our country is $$trillions in debt already. Surely they can afford to pass this time.  Apparently the debt is only used by the Right to attack the Left because they certainly don't care about doing anything about it.  They claim the growth of the economy will reduce the debt.....how'd that work when Bush cut taxes?  Not so much....  A truly responsible group would cut revenues slowly as the debt decreased and not make huge cuts and "hope for the best".   

 

Eliminating the estate tax....well, we know who runs Washington.  It's a BS argument, IMO.  The claim, "it's money that's already been taxed" is true with ALL money.  If you pay sales tax on a purchase, that money had already been taxed many times over.  The inheritance income a person has received, is NEW income to that individual and should be taxed accordingly.  The estate tax is far and just.

 

If it wasn't clear, I agree with everything you posted Gordy!


"FAKE 45 #illegitimate" read a sign at the Woman's March in Washington DC, January 21, 2017.
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Re: The Winners and losers in the GOP tax plan

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I benefit. 

 

I don't itemize. My standard deduction will double according to their tax plan.

 

I haven't heard if they plan on eliminating the deduction for state taxes. Either way, it doesn't affect me. No state tax here.

 

I wasn't worried about the 401K tax breaks. Firstly, I don't have a 401K. Secondly, I knew they weren't going to include that proposal in their tax plan. Wall Street certainly would not allow them to do so. That I felt confident. 

 

I don't think the rich and powerful should be getting the bulk of the tax breaks. Our country is $$trillions in debt already. Surely they can afford to pass this time.

 

Eliminating the estate tax....well, we know who runs Washington.

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Re: The Winners and losers in the GOP tax plan

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Hey CT—isn’t there a bridge—possibly a few—you would like to sell these gullible rubes??

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Re: The Winners and losers in the GOP tax plan

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Cent—At the risk of sounding like a broken record, I must once again I ask is anyone surprised?

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The Winners and losers in the GOP tax plan

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Centrist described one of the winners as "The super-rich."

 

Centrist, that cannot possibly be true. One of our forum members advised super rich people, like Trump, will NOT benefit at all by this bill. I asked him how he could possibly say that and I should have known what he was going to say. Trump told him (via a national broadcast) that he will NOT benefit from this new tax bill. 

 

Since he's a member of the Trump Cult, he believed his idol and leader.

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The Winners and losers in the GOP tax plan

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The Winners and losers in the GOP tax plan

 

Republicans unveiled their bill to overhaul the U.S. tax code Thursday morning, and there were some major winners and losers.

 

The top GOP tax writer, House Ways and Means Committee Chairman Kevin Brady (R-Tex.), foreshadowed just how hard it would be to craft the biggest rewrite of the tax code since 1986 when he said in August: “Tax reform is hard. It's the challenge of a generation.”

 

Here's a rundown of who is happy and who isn't as the details emerge regarding the “Tax Cuts and Jobs Act,” the centerpiece of President Trump's “MAGAnomics” agenda.

 

Winners

 

Big corporations. American mega-businesses would get a substantial tax reduction. The bill cuts the top rate that large corporations pay from 35 percent to 20 percent, the biggest one-time drop in the big-business tax rate ever. On top of that, companies would get some new tax breaks to help lower their bills, such as the ability to deduct all the costs of purchasing new equipment, as well as a special low rate on any money they bring back to the United States from low-tax countries such as Ireland. Many businesses have been holding cash overseas to avoid 35 percent U.S. taxes. Now they would get to bring the money home at a tax rate of 12 percent. The entire business tax system would also change from a worldwide system, in which money anywhere around the globe is taxed, to a territorial system in which it's mostly money made in the United States that is taxed.

 

Businesses have long lobbied for this change.

 

The super-rich. The estate tax, often called the “death tax” by its critics, would go away by 2024, meaning wealthy families would be able to pass on lavish estates and trust funds to their heirs tax-free. At the moment, only estates worth over $5.49 million face the estate tax (the GOP plan doubles that amount immediately until the tax goes totally away). The mega-wealthy also would get to keep charitable deductions, a popular way to lower their tax bills, and they no longer would have to pay the alternative minimum tax (AMT), a safeguard against excessive tax dodging that's been in place since 1969.

 

Anyone paying the AMT. The bill eliminates the alternative minimum tax, which forces people who earn more than about $130,000 to calculate their taxes twice, once with all the deductions they can find and once with the AMT method, which prevents most tax breaks. There is perhaps no better example of how much this will benefit the rich than that fact that Donald Trump would have paid $31 million less in taxes in 2005 (the one year for which we have his tax returns) without the AMT.

 

Hedge funds, doctors and lawyers. Many wealthy Americans hedge fund managers, doctors, lawyers and consultants would get a sizable discount on their taxes. The top individual tax rate is now 39.6 percent. Under the GOP bill, high-earning small-business owners would pay a tax rate of only 25 percent on 30 percent of their business income. This is a “pass through” business rate. Also, on the campaign trail, Trump said that hedge funds were “getting away with murder” on their taxes and that he would take away carried interest, the popular opening in the tax code these Wall Street titans use. But the bill does not change or eliminate carried interest, which is also used by some real estate developers.

 

Losers

 

Home builders. The legislation would cut in half the 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 be able to deduct interest payments made only on their first $500,000 worth of home loans.

 

Home-builder stocks are plummeting as a result, since many builders make a lot of their money from constructing high-end mansions. In addition to capping the mortgage deduction, the bill also caps the state-and-local-property-tax deduction to $10,000 a year, another hit to higher-end homeowners. That said, many economists and even some Democrats say these limits are a good idea because the housing incentives in the current tax code favor the wealthy. The National Low Income Housing Coalition says mortgages over $500,000 are rare: Only 5 percent of mortgages are more than that amount.

 

(Some) small-business owners. The National Federation of Independent Business, which represents 325,000 small businesses, said it would not support the GOP bill, because it “leaves too many small businesses behind.” The original idea was to lower small businesses' taxes to 25 percent, but the language in the bill allows small-business owners to pay only 30 percent of their business income at the 25 percent rate. The rest would be paid at the business owner's individual tax rate. Any individuals earning over $200,000 a year (or couples earning more than $260,000) would pay the rest of their taxes at a rate of 35 percent.  

 

People in high-tax blue states. Say goodbye to most of the state-and-local-tax deduction (SALT). Over a third of filers in many Democratic states such as California, New York, New Jersey and Connecticut claim the SALT deduction on their returns. Under the GOP plan, people would still be able to deduct up to $10,000 on the property taxes they pay locally, but they would no longer be able to deduct the other taxes they pay to state or local governments from their federal tax payments.

 

The working poor. While the bill includes lots of tax breaks for big businesses and the rich, the bottom 35 percent of Americans do not get any extra benefits, according to Lily Batchelder, who served on President Barack Obama's National Economic Council. They already have a $0 federal tax liability. Some argue a more equitable tax system would increase the credits (money back) that lower-income families get, especially those that work low-wage jobs. The GOP preserves the earned-income tax credit, a popular refundable credit for the working class, but the bill does not expand it.

 

Charities. The National Council of Nonprofits warns that charitable deductions are likely to go down under this bill. While the GOP enables the wealthy to continue deducting their charitable giving, many middle- and upper-middle-class families would no longer get that tax break, because they probably would stop itemizing their deductions. At the moment about 30 percent of Americans itemize, but under the GOP bill, the standard deduction roughly doubles from $6,350 to $12,000 for individuals and $12,700 to $24,000 for married couples, meaning fewer people would probably itemize. The GOP argues that middle-class people should end up giving more to charity since they will pay less in taxes.

 

More at:  Winners and losers in the GOP tax plan

 

Clearly, a "Christian" would never support a tax plan that benefits the rich and negatively impacts the poor.  Or would they?


"FAKE 45 #illegitimate" read a sign at the Woman's March in Washington DC, January 21, 2017.
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