This is a horribly misleading article. There is no mention of the removal off personal exemptions - yet the so-called " doubling of the standard deduction is placed front and center. The reality is that for most families this increased standard deduction will not give much extra money at all. Even if you currently use the standard deduction, The combined deduction will only increase if you have no dependents (by $1600 for single and $3200 for couples). For those who have dependents, there is a net loss in deductions. For those without kids who currently itemize their deductions, but have less than $24000 in itemized deductions ($12000 for singles) there will also likely be a net loss of deductions. Mentioning the increase in standard deduction without mentioning the loss of exemptions is very deceptive and just babbling off GOP talking points.
2
As Winston Churchill would say "My dear chap, I had no idea you were so hard up."
"Well, Ah knows times is tough. The other day, I sees Zuckerburg and Gates sharing an Uber ride to the Davos after party.
1
Any net cut in tax revenue hurts everyone other than the wealthy, because it means less funding for necessary social projects: enforcement of environmental regulations, health and safety regulations (including safe work environment), public schools, science funding, enforcement of tax code (essential for revenue), law enforcement, and many other projects that benefit the vast majority of Americans. Republicans's goal is always smaller government so regulations are not enforced and so that the wealthy get wealthier. This is a detriment to society. Remember the sequester? And still Republicans want to reduce tax revenue. Reagan cut taxes and blew up the deficit, Bush II cut taxes and blew up the deficit, now Trump? And then democrats have to clean up the mess and get blamed for raising taxes to the level necessary for a functioning society. Our infrastructure literally is crumbling around us and climate change is devastating us, costing 100s of billions of dollars. Why are we cutting taxes AGAIN??
10
Here's a realistic and fair tax plan:
Tax corporations the same exact way that we tax individuals.
Individuals are liable for US income tax for all income that they earn overseas whether they bring their money home or not, (though we give them a foreign tax credit which wipes out much of the US income tax) .
Presently US corporations do not pay income tax on their overseas income until they bring that income home. Going forward let's deem as US Taxable Income ALL money earned by US corporations and their phony-baloney foreign subsidiaries and tax it, giving credit for foreign income taxes which were paid on that same money, just as we do with individuals.
At the same time we should reduce the corporate tax rate to about 18%. Do that and we will collect more tax revenue overall by holding corporate entities responsible for paying income tax on all of their income. No loopholes. That's fair. No more US corporate tax inversions.
As a bonus, foreign corporations in high-tax jurisdictions will move here instead of to places like Ireland, Luxembourg and the Caribbean.
As far as the Individual Income Tax goes, leave it alone, except repeal the detested and unfair Alternative Minimum Tax, "AMT" which should have been but never was indexed for inflation.
1
Corporations deserve NO tax cut. The tax cuts belong to the middle class and poor. This move by the Republican Congress is criminal and the majority of American voters despise Congress for their inappropriate and hateful maneuvers that benefit only their pockets.
13
Not trying to be flippant. I live in Florida yet have liv d in Ohio and northern VA..made low 100k. I get the 500k concern having lived in DC area on mortgage. I am laughing on all these people who want everyone to pay more federal taxes in theory..i.e. Sanders and Moore advocates. In reality you only want 'they' to pay more. Who 'they' are changes evidently.
You bragging about NY and NJ and CA..yet you stealing from the poor people all across the country with deductions which belong to the collective. You all have no interest in paying anymore than a republican.
2
Your article mentions the doubling of the standard deduction but does not mention the abolishing of personal exemptions. A family of 4 will see their net tax deductions go down by $4200, not double if they took the standard deduction. And remember, they will be paying taxes on this additional $4200 with at their marginal tax rate.
10
"Jobs, jobs, jobs...." the campaign mantra of the Great America party. Now they play their hand. Corporate rates reduced to 20% (eliminating loopholes as well). Since the Trickle Down theory has proven unworkable every time, why not incentivize businesses to invest, train and retrain, and create jobs for American workers. Businesses tend to take additional corporate profits and pass those dollars down to their management and their shareholders. So lets try something else: The business tax rate goes to, say, 27.5%. If the business takes that windfall and invests in infrastructure and employment, they can reduce their tax rate annually, up to a floor of 20%. Incentivize them just as their boards incentivize the management bonus structures. Don't just hand them a golden egg to pass on to their members. Make them do what the party has been championing -- take the additional profits, build more infrastructure, train and hire that group of middle class workers -- the ones who put 45 in office.
6
It appears to me that the stock market is booming which indicates that business is doing well despite the current tax rate. Then why do they require a tax cut from 35% down to 20% which is a reduction of over 40%?
9
I was open to this tax plan until I noticed one thing. If you have 2 children in 2017 you would have 4 exemption at a total of ~$16K. With the new tax plan you lose all exemptions but they double the standard deduction. Families with more than 3 individuals lose ~$4K per child. In addition you lose state income tax deduction and home interest over $10K. So they have finally found a way to penalized families.
I am concerned that most journals are not looking at actual taxes to compare details.
14
Student loan deduction is gone. How does this help new graduates just starting to pay their loans and long ago grads who are still struggling to pay off their loans?
12
I don't understand.
The article states: "....permanently cut the corporate tax rate to 20% from 35% - a change that is estimated to reduce federal revenues by $1.5 trillion..."
It also says "Lawmakers have been scrambling for days to find revenue to offset tax cuts that will cost trillions of dollars." (if you include loss of revenues due to personal tax rate cuts)
However for this bill to pass the tax plan must not add more than $1.5 trillion to the debt over 10 years. Well, the drop in corporate tax rate already totals 1.5 trillion so individual tax changes have to be a zero sum game.
Yes, the plan reduces the tax rate, but at the same time removes many deductions. So on the individual side, does the plan simply not robs Peter to pay Paul? Are taxpayers not being wooed by a shiny tax cut that distracts their attention from the loss of many valuable deductions? Is this tax plan in fact solely for the benefit of corporate America? And who will eventually have to pay for the added $1.5 trillion deficit? Corporate America? Or individuals through loss of services as Republicans return to demands of balanced budgets in the future? What am I missing?
10
One of the the obvious falsehoods of this proposed tax bill is the notion that cutting taxes to corporations will result in higher wages for workers. In any corporation that is not privately held, failure to reflect the extra profits in dividends would be considered a breach of trust and actionable by shareholders.
This is trickle down economics. It's pie-in-the-sky reasoning driving a grab for federal revenue by the rich and powerful. It will not improve the economy. It will not drive wages up. Just another short term stunt with long term consequences.
14
Where's the Financial Transaction Tax to pay for all the tax cuts corporations and wealthy individuals will enjoy?
7
When, o when will the Republicans finally accept the fact that their "trickle down" theory is a fiction, Cut corporate taxes and the corporations distribute their new found bonanza as stockholder dividends & executive bonuses. They do NOT use it for hiring new employees or for worker pay increases.
8
"Representative Kevin Brady, Republican of Texas and the chairman of the House Ways and Means Committee, said that the House plan had the “full support” of Mr. Trump and predicted that it would be on the president’s desk this year."
Where have we heard this before? DJT always gives full support to whatever legislation is proposed by his fellow republicans but it will remain unread and, of course, the consequences not understood.
4
It is a little disappointing that the New York Times did not do a more in debt analysis of this tax proposal. I too thought it look all right yesterday, but then I looked at my taxes and compared the numbers. The removal of personal exemptions for families may actually lead to an increase in tax for families.
7
Hey, I'm not an economist, but I wonder: can't middle-class families set themselves up as corporations?
5
...it still hasn't dawned on Congress yet that the only way to pass legislation is to NOT let Trump endorse it, tweet about it, or call it "historic" "beautiful" or "wonderful."
3
Landmine # 1 should be the allocation of cuts - twice as much to corporations as to individuals!
5
The great corporate welfare plan! This plan will benefit companies like Walmart who will be further enriched while their employees will continue to need public services, such as, food stamps because their employer doesn't pay them a living wage. For this great welfare package seniors and the disabled will receive less help from medicaid and medicare - what a disgrace! Democracy and capitalism have reached the point where they're no longer a symbiotic relationship. Capitalism is quite literally taking away our rights so that a few robber barons can reap even more rewards.
8
How can any tax cut be "permanent?"
4
A few weeks ago I was writing that they would trade temporary cuts in corporate loopholes for a permanent decrease in the corporate tax rate. I was wrong. They are not cutting the the corporate loopholes at all. The thousands of pages of tax code that were the excuse for this massive tax cut for the rich are staying.
So by cutting the official rate by ten percent, they will also lower the effective rate by ten percent. Those corporations paying zero taxes week get a subsidy from you now, and others will get a bigger subsidy.
The simplifications are all in the loopholes enjoyed by workers, which are few, and already subject to a two percent floor which means they are only useful if they are very large. So far example people with large amounts of medical debt will lose their deduction.
The media keeps talking about the increase in the standard deduction, and increases in the child tax credit (rarely mentioning they will be phased out in five years, but they are not talking so much about the loss of the personal exemption, which will add $4,000 ($8,000 filled jointly) to your taxable income before the deductions are calculated.
Only 14% of small businesses pay more than 25% already, and most of those are actually investment clubs worth few employees but huge assets, not family owned does and factories.
This tax bill takes money from the workers and gives it to global shareholders, like the Trumps and the Clintons.
11
There is almost silence in unison regarding the loss in exemptions for families. I am disappointed with the NYT and all of the others. Is this so good for them that they do not plan to report it fairly?
If you are a family of 4, you get $16K in exemptions. This paired with the loss in state tax deductions could bump some of us into higher tax brackets. So there is a net increase in taxes. Imagine a family of 6?
I am not a tax expert, but it seem that the middle class families will actually finance these cuts for corporations. This seems like a horrible injustice.
9
“They are picking rich Americans and corporations over small businesses and the middle class.”
I can't seem to follow the logic of this argument. From all that I've seen and read so far, "Rich" Americans stay in the same tax bracket. How are they benefiting. They along with everyone else "LOSE" the deduction for state and local income taxes. How is that helping them?
I can understand that representatives from the HIGH TAX states of the northeast and the west coast being against this loss. However, maybe, just maybe the folks living under this weird double, triple taxation system will wake up and see just how wasteful their elected officials have been with "their" hard earned money. They have a choice, live with it OR move to a state with a more reasonable government structure that spends YOUR money wisely.
So far what I see of this new structure, seems to make sense and folks whether just starting a business or the major corporations will find relief from the government burdens and start to put America back to work again.
I myself am tired of having to work over six months a year to pay for a lot of wasteful government.
4
It's all in the details. The tax rate by itself doesn't mean much.
And specifically what dot ou call government waste. Most of the federal budget is for defense which supports a lot of business and jobs. Local budgets go for schools and roads
1
I only worry when the bill comes in whether corporations will share the burden with individuals of tax increases. This bill is too costly unless real budget cuts are made.
less than $4 a day for the hypothetical middle-class family with an income of $59,000.
5
Republicans are just looking for a win. The truth is they don't care about blowing up the deficit and increasing the national debt to put it over $20 trillion by borrowing more money from China and Japan. Those corporations don't pay 35%. I wish the article had addressed how many corporations pay 35% corporate taxes. They get all sorts of deductions and business expenses where they can take clients out to expensive dinners while drinking alcohol. Also the article did not mention the estate death. I heard that the tax plan will eliminate it after six years. The only people who will benefit from that tax is people like Trump's family when he dies his heir will not have to pay taxes. Meanwhile if you win the Powerball or any other lottery they will immediately take a huge chunk of your money. I don't see the difference between inheriting money and winning the lotto. Both have to do with luck. The difference is poor people tend to win the lotto while rich people are the ones who transfer wealth to their heirs.
12
Businesses do not pay taxes. They can only collect taxes from those who buy their products and services.
Only humans can pay a tax.
Taxing an economic entity is a hidden tax on us all.
It's a cruel joke played by politicians who know precisely how this works. It is why they demonize business in public but privately say, as Hillary said to Wall Street, you can 'self-regulate'.
3
So let me understand this: I pay more taxes and Trump pays less?
17
Eliminating the estate tax violates the principles of capitalism.
The man or woman who creates great wealth in our capitalist system should be respected and rewarded. We believe that hard work and success deserve to be rewarded.
However, the children of these great capitalists deserve nothing. Letting them inherit great wealth, tax free, wealth they did not create for themselves harms our economy and belies our belief in competition and merit.
7
You have to admit that the GOP has been incredibly crafty at exploiting the shameful ignorance of their voting bloc to hoodwink them into believing that this tax reform bill is some kind of altruistic gesture intended to give a hand up to the common man when in reality it is a cash grab for billionaires who want to keep their vast wealth for themselves. A mere pittance doled out to the middle class in exchange for the millions that the 0.1% will pocket for themselves. This is "let them eat cake" for the modern age.
11
The 'D' like to tax the rich for show as the rich do not pay them. The rich avoid them by not have a paycheck and keeping money overseas. How does that help anyone? Lower taxes will grow the economy and raise ALL Boats.
Nothing new here. The Repub's and their greed help the well-to-do while the Dem's ACT like they help the less well-to-do, but rely just as heavily on corrupt, filthy money as virtually all politicians do. These politicos are ACTORS, desperately holding onto their seats, if they can, to keep the filthy money flowing into their pockets, thereby subverting, rather than serving, the will of the people. This has been the story for over a century. WAKE UP AMERICA.
5
The Republicans are again doing an excellent job fooling middle-class white America that their tax cut is good for working and middle class tax payers. The Republicans a re good at providing small tax reductions to these easily fooled voters while the wealthy and business classes are given the largest portion of tax cuts. This slight of hand has worked well in the past and continues to work for an unenlightened and ill informed white public.
10
As a 70-something tax payers, we put pencil to paper [as best I could], and figured we would be paying more taxes if and/or when this 'thing' is enacted.
The middle and upper middle class seem to be skewered on a spit slowly rotating over the open flame of a GOP business/elite oriented BBQ. The sad part is that too many regular folks do not realize it yet. They have been duped - again - because the POTUS and his lackeys spew stuff over and over again to the point too many believe it to be true. Can't wait until tax season when more folks realize they have been had.
10
We shouldn't have to wait; we should be able to compare now. Where is the Democratic Party alternative to give the Lion's Share of the tax cut to individuals not corporations? With that we could really see what we stand to lose.
2
I fear the GOP more than ISIS. They are evil and live among us, but they are affiliated with Putin.
14
Eliminating the state income tax deduction amounts to taxing people on taxes. This is the kind of 3rd world nonsense that caused the American revolution.
13
So, we must have paid off the wars Bush 2 started, right?
7
The shell game here is the notion that the wealthy pay taxes at the highest tax rate. I would like to see the evidence of how much tax revenue exactly is collected at that rate relative to their effective rate after deductions. Remember Romney..his effective tax rate when he was running for office was disclosed at 14%. Since trickle down as a "growth" policy has been disproven, this proposed plan is simply another version of it. Corporate tax savings will be spent to pay shareholders instead of increased wages and the middle class keeps getting squeezed. Where are the plugs for corporate loopholes? If corporations get a 20% tax rate, why not everyone?
11
Thanks to 8 years of President Obama the economy is now at essentially full employment. Corporations are sitting on mountains of liquid assets so they do not need any capital infusions to "prime the pump" (a phrase trump actually claimed to invent...) so this tax cut CANNOT be about "job growth" or getting companies going.
So that ONLY leaves filling the pockets of the oligarchs and stripping away needed and expected programs like Medicare and Social Security to pay for it.
Republicans in congress and especially in the executive branch lie. Almost always. It is now the trademark of their party. If a Republican says it, assume it is a lie until proven otherwise
11
GOP, the party of business interests not business principles.
2
Once again the middle class subsidizing the one percenters - any stimulation to the economy, if it occurs at all, will be short lived due to the increase in deficit.
A further widening of the gulf between the haves and the have nots.
13
Honestly, where do you get that? Try calculating your taxes at the current and proposed rates. Don't just quote the Times.
Well, here it is folks. This is what the Republicans stand for, live for, cheat for and lie for, Tax breaks. If you look at the business tax side, a reduction in tax rates for corporations might make sense if it eliminates loopholes and remains revenue neutral. For smaller, LLC and Sole Proprietor businesses, the tax break may be more problematic, but should allow these smaller businesses to have a similar rate to the bigger ones. I don't know if that is the case. That should be it. On the personal income tax side there are considerable tax breaks for wealthy, with modest tax breaks for upper middle and crumbs for the lower middle. But the point is to give wealthy a tax break. With the budget being busted, medicare, social security and other enlightened government help will be stressed. I have made good money in my life and don't care that much about the tax I pay as long as I don't have a big tax bill I didn't plan for. I pay the AMT each year and grouse about how that was to keep the very wealthy, which I am not, honest. But I payed it. It cost Mr. Trump millions of dollars, but now they are going to eliminate it. Was this tax reduction designed for him alone?
9
Fake tax reform. Robbing us citizens to give $1 trillion to businesses. Starving the federal government so it won't be able to pay for anything but the military. And Social Security is the next target of "reform." Nor great. Pathetic.
9
This con artist promised government surpluses, but the only debt he appears to be concerned with paying down is his own.
People who cried about the debt and have the gall to applaud this plan have no shame.
9
Please, please: raise my taxes, so I can do my part to help the billionaires.
Also, my grandson wants to do his part, too: he said, go ahead and borrow $Trillions from China, and he will gladly pay it back via higher taxes for the rest of his life.
Seriously: has half the country drunk the Kool-Aid?
7
I say lets's go "really retro" since that seems to be the desire of this white house in every aspect// lets return to the glory day's of the pre -Reagan tax cuts when there really was a healthy middle class and things actually got done for ALL Americans and not just a few.
crickets,,,,,
I didn't think so
6
If it walks like a duck, if it quacks like a duck, it's a duck.
1
Not sure what the lefties are shrieking about. I'm working-class and this plan would cut my tax bill by 34%. Of course the amount I save will just be piled onto the national debt, which is probably a stupid idea. But that's an issue separate from whether the plan helps people who work paycheck-to-paycheck.
2
Does this or does it not eliminate the personal exemption? If so this is a huge disaster!!!!
5
America is doomed brought to you by Trump and the GOP.
5
So the anti-abortion party eliminates the adoption tax credit. Of course they do.
10
SIMPLE: Reverse this Republican charade by congressional votes in 2018 then Replace the buffoon in 2020
8
The final death blow to the ever shrinking middle class.
Trump will get to pay even less tax with the elimination of the AMT. fill the swamp.
6
Tax Cut Explained.
KABOOM As the Walls come tumbling down.
2
At least the Democratic Party is honest about its intentions. These populist troglodytes are actually calling a tax increase a tax break. As a conservative, I don't suffer liars or fools easily, and the Republican clowns in Congress are a mixture of both. When you put your hands in my pocket to fund an estate tax phaseout to benefit semi-literate trust fund buffoons counting their money in idiot wonder, you quickly become my enemy. And the enemy of my enemy becomes my friend.
9
The “party of fiscal responsibility” is about to sink this country further into debt by trillions of dollars, and it doesn’t seem to care that it’s going to have to borrow much of that money from China just so they can save their pathetic jobs in 2018.
Thanks for selling our kids and future down the river, you short-sighted selfish Trump sycophants.
6
Trump could demo a before and after using his returns....nahh...
3
What a garbage “tax cut” bill from the Greed Over the People (GOP) Party! I am not going to pay more taxes so that the 1% can get a HUGE tax cut and companies, such as General Electric, pay NO taxes. Several years ago, General Electric made a $5 billion USD profit in the US, and received a $300 million refund from the IRS (my taxes helped subsidize GE). TOTAL INSANITY!!!
5
A disgrace! GOP self interest
Our country is being ruined by this president and all the GOP!
4
This guy Brady looks like Curly from the 3 Stooges and this tax plan is nothing but an episode of it. They are not fooling anybody with the sleight of hand tricks because we know this is nothing but a welfare check from taxpayers to the rich. The next thing they will roll out is cuts to fund this...Yes, cuts to Social Security, Medicare, and Medicaid. These worms only serve the rich, they have no care or empathy for anybody else. These GOP Con Men think America is stupid and can't see through this charade. Thanks to our abomination of a President, they will claim that this is a tax bill for the middle class but the devil is in the details and it is NOT. Banks like Wells Fargo and multinational corporations love this bill. Same folks that crashed the economy, same folks that cheat banking customers, same folks like this President who either pay no taxes or pay little taxes. They will even pay less and even get more. Disgusting pigs claiming to serve America.
5
Thanks "red states". Enjoy!!
3
Why is nobody talking about the payroll tax? If Congress was really interested in helping small businesses and the middle class, there would be serious talk about reforming this regressive tax that by definition is levied on lower and middle class workers, discourages hiring, provides 34% of federal revenue (according to the Center on Budget Policy and Priorities) and is a huge hurdle for small businesses. Maybe rather than lowering the tax rate just for C corps and very profitable passthroughs (which does nothing for small businesses), Congress could revise the payroll tax and tweak how Social Security and Medicare are funded, and really help the struggling middle class.
3
Sucking money from the permissible tax deductions, tax credits, Medicaid, Medicare, and social security programmes and benefiting the corporates, wealthy families, real estate conglomerates, hedge fund managers or the foreign investors through debt causing huge tax cuts of roughly $1.5 trillions over the coming years would only be a wealth transfer from the struggling lower income and middle class families through stealth and deceit but never a people centric tax code reform as claimed by Trump and his Republican minions.
5
Pennies to the middle class, thousands to businesses, millions to the wealthy and billions to a handful of inheritors from the wealthy. Did we really expect anything else from Republicans?
6
One and a half trillion dollars of new debt on the backs of our children and grand children; that is what I see in this new "tax" plan. It will drive less and less investment in all of our infrastructure, healthcare, education and social services planning and programs . The debt will drag is further in to second and third world status. Corporations and the very wealthy will make the most from this borrowed money. The middle class will get a bit. The poor will suffer as they always suffer.
This is no tax bill. It is a borrowing bill, and a decimation of our government's commitment to any public service.
7
What a joke. A family of four earning $59k would get a whopping $1100 tax break. Not even $100 a month? Yeah, that's gonna help out a lot.
If you are single and earn $70k in NY, you take home about $46k. What kind of benefit will those people get?
What if you are married with no kids and bring in $95k into the household?
They're throwing pennies at the working people and gold bars at businesses and the wealthy. It's really that simple. What's beautiful about that?
Every time I see reports on CNN and elsewhere interviewing members of Congress it's all this powder puff stuff going on. Throw a real example at them and demand to know why they see that as a "big, beautiful" tax cut.
The mortgage interest deduction is going to kill the market in working class NY and other high cost areas. You can barely get a condo for $500k these days.
8
I've had a sole proprietorship for 20 years. I pay self employment taxes, state taxes, property taxes, and local business taxes. When Republicans say they are cutting business taxes they are only cutting taxes for large corporations. People like me and many of my friends who are shop owners, restaurant owners and other self employed business owners will get nothing.
And what will happen when $1 trillion is cut from these corporate taxes? Shareholders and Executives will buy back their stock with this new savings, cut jobs and give themselves gigantic bonuses based on the stock prices.
This is what happened with Bush. This is why so many large corporations, making billions, pay fewer taxes than I do.
And once and for all let's stop pretending Republicans care about debts and deficits.
10
High tax States should think twice about what they are doing to their residents, i.e., stop stealing earnings. Also, most middle class home owners are not carrying mortgages in excess of $500K, so realtors protesting the mortgage deduction cut, on behalf of the middle class, can just stop. You’re whining about your pocketbooks, not mine.
2
Well this is quite a bit better than I expected. No shortage of hyperbole, hand wringing, and distortion in these pages as per the script, but the rate adjustments are aimed at the middle class. Using myself as example, if enacted as written, it works out to a nearly 17% cut. I’ll take it. The change in take home pay would be better than any raise I’ve received in the last 10 years. I’ve always just taken the standard deduction and see no reason for renters to subsidize home owners, and residents of low income tax states to subsidize residents of high income tax states. And frankly, to crib a Time's critique, both of those deductions primarily benefit the "rich" anyhow.
House Tax Plan Tilts Toward Business, With Sweeping Cuts? Does this mean there'll be justice for janitors at last?
3
The real problem with this tax "reform" is it assumes huge cuts in Medicare, Medicaid and income supports and creates deficits that will be used to justify further cuts in the future. All to give even more money to corporations and investors at a time of unprecedented profits and rising income disparity. It's obscene.
4
Trump and the GOP are clueless about the struggles most of us endure everyday to survive in this economy. The only thing they know how to do is increase loopholes and give tax breaks to corporations, billionaires, and multi-millionaires, the only Americans they consider "real people." They do not know how to write tax policy that helps the middle class or anyone striving to be in the middle class. The only thing that Trump and the GOP will do is endlessly promote corporate socialism (while blathering about "the free market") and punish the rest of us. In what reality (outside of the alternative reality that is Fox News and Trump's head and apparently, most of the GOP) is enshrining corporate greed with a permanent tax cut good for a vast majority of the middle class? In what way is preventing people from suing the criminal institutions that large banks have become good for a majority of the middle class? In what way has anything Trump or the GOP done in a generation benefitted the middle class?
5
This would appear to satisfy everyone except, of course Senator Schumer. But then again, Senator Schumer has not agreed with anything proposed by a Republican in his life. The truth is that this is a significant tax reform proposal. The plan will give this Country a huge boost in being competitive in this world. It makes sense, in particular the plan to limit mortgage interest. Why should I want to continue the mortgage interest deduction for mega mansions of the wealthy? Well thought out plan!
1
This tax plan very probably favors the Trump family. How can anyone vote for this plan without seeing Trump's back taxes?
5
It all sounds ginger-peachy but I don't believe these tax cuts will grow the economy enough to offset the decline in federal income caused by the cuts. This means that the Republicans will cut back on social programs to make up the difference. I would love to be proved wrong about this but I don't believe I will be.
4
The rich man in the White House has had an economic policy, since day one, of Robin Hood in reverse. He wants to give even more of the pie to the people who need it least. Not surprisingly, the vast majority of the GOP loves this approach (which benefits them and their 1% masters), and many of the people whose slice will be even smaller if this bill becomes law are still unable to understand what is happening to them.
4
Seems to me that business is getting a big break. With the government getting so much less in tax revenue where will the money come from? Why, from the middle class of course. Where it always comes from.
4
The tax plan could not be worse. It raises taxes on the middle class, in particular in blue states that already pay higher taxes than red states and where living costs are high, and causes the deficit to explode, while trump, wealthy gop congressmen and billionaire gop donors plunder the treasury together. Who is going to pay the mountain of debt, 20 trillion, owed to china and japan ? The middle class in blue states. The red states get much more federal funds than they pay in taxes. Medicare, medicaid, social security , health care and social programs for the poor are all going to get severely chopped while trump and the gop mob ruling the country steals trillions.
3
Senator Warren was on PBS saying that Wells Fargo is one of the companies that will benefit most from this new bill. I hope that every WF customer, who had "new" accounts opened, contacts their members of Congress.
4
Oh, here we go. Medical expenses ineligible. Sure does hurt seniors. No? And then, of course, Soc. Security and Medicare will need to be "trimmed" in order to pay for the enormous loss of revenue when "no estate taxes" goes through. From what I figure that's one of the few taxes billionaires can't circumvent. Grrrr.
6
Cutting taxes to this degree means hampering the government's ability to serve us in the future. The GOP's funders want government to be small so nothing can check their actions, even if abusive. When later, others come to power and seek to force the issue by spending reasonably regardless of available revenues, Republicans will cry and scream that they're "tax and spenders" who don't care about voters, and try to blame all the deficits on them. Kids growing up under that will believe the GOP because they didn't live through this current period, and they will buy the idea that returning the GOP to power will somehow be more fiscally prudent. And the cycle will be complete.
4
Can someone please address how this will affect single parents? Is the head of household status eliminated? If so, taxed go up significantly for single parents.
3
Its the Citizens United of tax plans. Its not going to increase jobs, increase wages or grow the economy. The republicans are trying to dupe the voters into giving a large subsidy to large corporations. We know its a ruse. They know its a ruse. I don't think its going to pass.
2
Honestly who can read this bill and comprehend all that is in it? I am sure there are some who can but I doubt most of our representatives can or will. Their staff will try and summarize for them. This bill is large, complicated and will have extreme impacts so why do they want to try and ram it through in a couple of weeks? I suspect there are things in there that they would rather not discuss the implications of. So Republicans if your so proud of what you have done then lets stop and do what we have traditionally done with large complicated legislation which is take our time, examine it carefully and weigh the costs and benefits. Give everyone time to look at this thing and maybe make changes or even suggest we don't do this at all. The fact that you wrote this bill in secret and are desperately trying to push this thing through in the shortest time span possible makes me suspect that if all the facts are known it is not going to be something most Americans want.
4
With all due respect, I couldn't care less:
"This plan appears to be lacking a provision requiring President Trump to immediately make public the last ten years of his tax returns."
Many commenters seem to think this is a big deal (even though it's NEVER been part of ANY tax plan, ever). But the fact is: most of us really don't care.
I care greatly about tax laws, but not about what Trump may have paid or not paid. Maybe I should, but I don't, and I suspect most Americans don't either.
Consider just letting this one go. Maybe take up "Russian collusion," or perhaps knitting or crocheting.
1
"As with President Reagan's tax ... tax cuts, this plan ... should end forever---finally--the Democratic lie that tax cuts grow deficits."
I'd not hang your hat on this one, at least until you look at some graphs that show what has happened to the deficit since Reagan's tax cuts went into effect.
Clearly tax rates were way too high years ago. When I first paid attention, the top bracket was 91%. All that did was to generate tax-dodge schemes. The 1986 tax code did away with most bogus deductions, which was good, but cut rates too much. Reagan's theory was "starve the beast," but beast just went out and borrowed more money rather than starve itself. And deficits ballooned.
What most Americans want is to stop growing the national debt, even reduce it. That calls for spending cuts. It doesn't call for tax cuts, unless spending is cut even more. Every President -- and Trump appears to be no exception -- pretty quickly concludes it's really fun to spend a lot of money we don't have. Voters like you better, and re-elect you. You just pass the cost on to future generations, who don't vote (or even exist).
The two major parties disagree on where the borrowed $$ should be spent, but they agree entirely that borrowed $$ should be spent. Trump appears to be falling in line.
It sounds good. But details are important. What I am seeing:
$1 Trillion goes to corporations.
$300 Billion goes to inheritance tax.
Only $200 Billion goes to the middle class. Over ten years that may be on the order of $100 a year.
Also, they are pushing the same "tax cuts to corporations will create jobs" lie.
And it is truly just a lie. They all know it. Corporations are sitting on a lot of money. It is not money. It is only increased DEMAND that creates jobs.
The $100 per year will not create that demand.
Nor does having more money get passed down to employees. We see that the last few years with corporate profits higher than ever.
In addition Bush gave corporations a onetime tax moratorium that was promised to create new jobs.
It did not. Studies afterwards show the money went to shareholders and for stock buy backs.
Stock buy backs raise the price of shares which benefit shareholders. It usually benefits CEOs also who get bonuses based on share price.
3
Besides the killing of the estate tax, which our forefathers created to slow the generational tyranny of royalty and the top 0.1%, the bounteous gift to corporations of a 43% tax cut is outrageous. With corporate profits and the stock market at all time highs and the cheapest borrowing costs in a generation, corporations need to pay their workers more and innovate their way to greater profits, not enrich themselves by starving the government of more revenue which will lead to cuts in services that benefit the poor and middle class. The classic trickle down argument, that the economy will only grow if big business is subsidized via less regulation and lower taxes, has been debunked many times. Real economic growth will only happen if the middle class has its wages growing faster than the cost of housing, healthcare, food and utilities. Tax cuts that favor the rich, encourage them to inflate these assets and make the economic treadmill for the poor and middle class that much more onerous.
The bottom line: follow the money. The tax plan rewards the biggest donors of the Republican party, pretty much a quid pro quo to consolidate power. While Obama should share some of the blame for not getting any meaningful infrastructure stimulus money passed after the the GFC, the majority of the reason we had tame growth over the last 8 years is because Republicans under Mitch McConnell made sure of it. Everyone thought Bush2's tax plan was greedy, Trump's is that one on steroids.
3
My first thought was, not as bad as I expected. But I think the proverbial devil is in the proverbial details: no more AMT, increased exemption for inheritance tax, then phase it out, new rate for pass through businesses (effectively an increase for sole proprietorships), and who knows what else.
I don't know if I will benefit or not- no mortgage, no children, no spouse- I expect to pay more. And I wouldn't mind expect my higher taxes aren't funding infrastructure, health care, education, parks, forests, etc. But I do mind-a lot- they're a thimbleful of dirt in the $1.5 trillion deficit hole dug by tax cuts for the rich and corporations. No direct benefit for me.
Nice try, but the only tax reform that will have any measure of substantial change in real fiscal ways is a total collapse of the financial system--too many vested interests in place, too few with courage.
Government hand-in-glove with social-fiscal policy and corporate-government inbreeding will grow until the last dime is squeezed from us all. Soon there will be goats and cows in the forum and marble carted away by day and by night.
1
If your bought a house expecting your property tax and state income tax to be deductible, and now they are not, you may no longer be able to afford that house.
2
Are you aware of the following?
1. The Republican tax plan will allow corporations to repatriate - without a dime of taxation - the $trillions they have been parkinf offshore for years to avoid taxation?
2. If these corporations were forced to repatriate - and pay taxes on - these $trillions, the Republicans could give a sweet tax cut to everybody else?
3. The largest US corporations, especially GE, EXXON and APPLE, don'tr pay a dime in US taxes, and are proud of that fact.
So what does a lowering of the corporate tax rate do for them? Nothing!
4. All of this means nothing to the Oakies that voted for Trump, since most of them are under the poverty line, on Federal Unemployment or Disability or Social Security. Yet they rail about THEIR taxes (what taxes?) going to support non-whites and immigrants; when it's obviously the other way around!
3
Well, so much for the middle class and the working poor. I don't understand how the Republican party (well, Democrats, too) can be so indifferent to them. But, we know what a BURDEN it is on the government to allow deductions for serious medical problems. So, yeah – let’s do those high-fives and happy, happy smiles for the cameras. What a jolly moment. Geez. Heaven forbid that corporations lose their special loopholes. Here's hoping all establishment Republicans along with their indifference to the middle class and working poor are soon replaced.
2
The proposed "pass through" business tax proposed at 25% will destroy most of your small pop businesses. The majority of these small business owners today net less than $100,000 and most fall into the 15% tax bracket with current allowable personal deductions. Small pass through businesses also pay both parts of social security (employer & individual) effectively raising their tax rate by an additional 6+%. Consider, depending upon the stats that you read, 73% of all small businesses today are Sole Proprieters (pass through) Small business makes up 99.7 percent of U.S. employer firms, 64 percent of net new private-sector jobs,
49.2 percent of private-sector employment. Kill the small business, kill the ideas, kill the jobs they provide.
1
1.5 trillion is being added to the debt and given to wealthy people and wealthy corporations. Many of whom are foreign citizens and foreign corporations.
If this passes, Putin won. Our economic growth will be slowed.
If he avoids impeachment and is reelected, we'll have a crash in his seventh year just like W's.
2
This bill was written just for the Family Trump. No more AMT. We know from Trump's 2005 1040 that the Alternative Minimum Tax resulting Trump paying $38 million more in taxes just that year.
Low taxes on pass through income are great for the Trumps, who are living LLCs.
But carried interest stays.
And real estate values go down if the mortgage deduction is reduced.
Even for greedy people, this is very greedy and unjust.
1
Over the last decade corporations have paid out over 7 trillion dollars in stock buybacks and dividends, most of which has flowed into the pockets of the wealthy where it is invested, not spent. Does anyone really believe that the extra corporate funds generated by the proposed tax break would flow anywhere else?
The additional deficits created by such a foolish and counterproductive tax reduction will ultimately be taken out of the pockets of the already stressed pockets of working families and the poor, creating even more fear and radicalization of the public.
Can the rise of demagogues and loss of human rights be far behind?
1
Obviously nobody in Washington or congress is concerned about the deficit. I guess we'll have regular government shutdowns and service disruptions, similar to that of the Soviet Union in the 1980s. I guess our idea of making America great again is making people wait in life for a loaf of bread they may or may not get.
1
I'd like to know what the loopholes will be. Under this proposal, will Trump ever pay taxes?
1
This month Verizon talked me into paying 3$ a month for more "data." Meanwhile Apple began charging me $2 more a month for the cloud with no explanation. Multiply that $5 times how many customers, I dunno just say 500,000 and how much money are they pulling in through nickels and dimes alone? I am so sick of corporations and their power but am part of the problem because dependent on their stuff. Feels awful to live in a country giving so much privilege and entitlement to them. Disgusted and exhausted.
2
So far, I see Americans talking excitedly about who gets what cut. Let's hope the conversation eventually turns to the GOP plan to add $1.5 Trillion to the national debt. Obviously, there can be lots of goodies to give away when you're putting it all on the credit card. Aside from the staggering hypocrisy of the Republicans steering us deeper into debt, the practical consequences of our children and their children working to make the interest payments should be in the forefront of the conversation.
3
I guess we can thank the founding fathers for creating a political system where small, more rural states can gang up to victimize bigger, more urban ones. I can hardly wait for states like California and New York and New Jersey to attain the prosperity of states like Kansas and Mississippi and Alabama, true models of success for our nation.
2
The whole premise (actually, lie) the GOP is selling is that the tax cuts to businesses will encourage them to invest more in the US. But there are two problems:
1) So many major corporations are awash in cash already that they are NOT investing, but are parking, usually overseas, or using to buy back their stock, or for acquisitions. None of these things are investments in job-creating expansion of the economy. So this new plan is just giving them MORE cash at the people's and their future descendants' expense.
2) How is NOT taxing overseas profits, only domestic profits, going to encourage companies to repatriate offshore cash, like Apple's $200+ billion, or GE's $80 billion?
Clearly, this tax code is exactly the sham accelerating the concentration of wealth into fewer and fewer hands, which is what it always was meant to be.
Every bit of news coming out of DC since the election a year ago. has been nothing but dreadful. These are very depressing times to live through, watching our great democratic republic being deliberately deconstructed by Trump and the totally acquiescent Republican leadership in Congress. Democracy dies with a whimper.
1
This tax plan is tax relief for the rich. The brunt of the burden remains on the middle class. Don’t expect corporations to stimulate the economy. Didn’t work with Regan administration. Expect evaporation of funding to government programs that lower/middle class people depend upon.
To the rich: what more do you truly need? Just remember, when you die you can’t take it with you. What was that other bible saying?? It’s easier for a camel to pass through a needle’s eye than a rich man to enter the Kingdom of Heaven... Just food for thought.
2
My concern is the elimination of medical expense deduction. I was calling for allowing full deductability without itemization, not elimination--this is not a luxury. Health care insurance and costs are killing me.
1
This tax legislation so obviously benefits corporations and the wealthy at the expense of the middle class and immigrants that it leaves no doubt as to who the puppet masters of the Republican Party are. Trump and Ryan want to establish a new plutocracy where only the very wealthy have power, and this tax plan is the natural result of that goal.
3
Big surprise. Major win for corporate profits and some for shareholders with no stipulation to return some savings to jobs and growth. The rest of the Trump Tax plan is heavy on benefit to the wealthy. Sadly, the working class will be content with crumbs as many were content with a substandard president.
2
Another bill drafted in secrecy by the Republicans in Congress, sprung on the American people with a goal to bum-rush a bill that impacts the whole economy before they realize how it harms them. Where I have seen this movie before?
The middle class should not be focusing on the meager tax cut they might get under this bill (and even that is questionable for many). That is chump change to the Republicans who drafted this bill, a shiny object to distract you.
The real loss will come when, having lavished trillions in tax cuts on corporations and the 1%, and seeing deficits skyrocket because the "trickle down" effect fails to materialize (it never does), Republicans will put out a clarion call for deep cuts in Social Security, Medicare and Medicaid. To cover the deficit they will have created.
That's your future middle class, if the Republicans have their way: Trillions to the 1% paid for out of your future Social Security, Medicare and Medicaid.
1
The bill has a clause that permits a fetus - or "the unborn" in the bill's terminology - to become the beneficiary of 529 savings plan. The bill defines "unborn" as "a child in utero at any stage of development." That would seem to me to raise a number of uncomfortable questions.
A typical Republican blueprint. Sell the middle class some peanuts, and let those more fortunate dine on steak and lobster. When the bill comes due, take the peanuts away. The little discussed “pass through tax break” amounts to a 14 1/2 percent cut, going from 39 1/2 to 25%. If the Republican plan is about the middle class as they keep saying, why don’t they just cut the middle class tax rates? They never do, and this is no different.
1
You missed a big one: they propose eliminating the dependent care credit. Anyone who pays for daycare gets to have the full amount taxed. Yippee!
"The bill is heavily weighted toward business, which would receive about $1 trillion in net cuts, or two-thirds of the total...."
As a business person, I feel that the burden of counting the extra money is unfair. When added to the task of managing this extra money, and then on top of it all deciding what additional luxuries we need, life gets very pressured. Something isn't right here.
2
Tax cuts do not create jobs.
For proof, W. Bush gave us two tax cuts for the “job creators” and the economy created 3 million jobs.
The subprime melt down occurred in November, 2008 and we lost 1.5 million in the last two months of Bush but stick with the 3 million as independent of the Great Recession.
Obama repealed the high-end marginal tax cut for the job creators and gave us the “jobs killing” Obama-care and the economy created 10 million jobs
Really 16 million jobs but 6 million were jobs that came back after the Great Recession and the 10 million is the number to compare to the 3 million of W. Bush.
In addition, W. Bush took a balanced budget, zero deficit, from Clinton and gave Obama a whopping $1.1 trillion deficit – the one year budget shortfall.
That was signed October 1, 2008 before the sub-prime meltdown. The actual number came in at $1.4 trillion.
With Obama raising taxes and the economy coming back, Obama got that down to $550 Billion and still more than 3 times as many jobs.
Nobody has said this but my guess is that some of the jobs came from Obama-care. Spending on healthcare should create jobs just like spending on infrastructure.
Republicans are still getting away with promoting this lie. Everybody needs to call them on this.
It will only leave deficits for our children and grandchildren.
1
over the long term -- raising the standard deduction .. cutting the corporate tax and eliminating the AMT for all but the wealthiest is the correct thing to do.. Totally eliminating the AMT is a mistake as is the inheritance tax for + 5 million of transfer.
Taxing corporations is inherently unfair as it hurts domestic at the expense of international ... there is so much misinformation I don't think the truth is possible. I know many people with what should be simple taxes ave ing to pay $600 to pay someone to file ... it's crazy.
Republicans came out of the closet. They are 100% owned by corporate. They are insensitive to the struggle of the masses to survive in a Country that gives all the breaks to corporations.
How about this,"you" WANT to be the corporate "persona" and buy Our elections, then "you" pay the individual tax rate. No one gets 2 votes, so decide, stockholders lose their vote if "you" act politically. Also, the bank that owns 50% of our house should pay 50% of the property tax . WE need to get real about taxes.
1
It won't be long before a gaggle of white men meet for a Rose Garden press conference and Trump crows about how "incredibly well crafted" the tax plan is, even though we all know he hasn't bothered to read it.
2
This bill is for the rich! some of the middle class benefit to some degree & the poor are being seduced with a mere $1,200 carrot. Why is this bill not focused on billions spent on the infrastructure; where real jobs will be made? This was a Trump promise but since his presidency, haven't heard this word at all...
"building our Infrastructure creates jobs, Mr. President."
2
To all those who voted repeatedly for GOP candidates I hope you enjoy your tax increases and inability to own a home.
This is blatant theft. Banksters have taken over the government, and they are working hard to skew the demographics of who controls our nation's resources. Their goal is to make the United States like France was in 1789.
1
The Times's reporting is unconscionably bad. Any mention of the rise in the standard deduction to 12,000 must note that presently the standard deduction ($6530) is supplemented by the personal exemption ($4050). So the "doubling" (which is itself inaccurate!) is in fact
NOT A DOUBLING BUT A a 12% INCREASE.
Not so exciting, is it?
Moreover, all those retained deductions -- mortgage interest, property tax, charitable deductions, are worthless unless they top $12,000. If I had $10,000 of such deductions in the old system, I would take them plus my standard deduction, for $16,530 in deductions.
THUS I HAVE NOW LOST $4,530 IN DEDUCTIONS.
Why can't the Times explain that?
1
Why can't we just pass another federal gas tax at 10 cents a gallon and we'd have more money than we'd know what to do with?
It would be refreshing if someone would be honest. You want to stimulate the economy, give lower taxes to people earning 70-$250,000. that will give some more cash to working families and most small business owners with pass through. Reform corporate tax by closing all loopholes and lower that tax by whatever that brings you, 25-28% tax rate. The large companies do not need additional cuts to their tax rates, they are making more money now than ever. Classic conversation, Tim Cook, Apple, if I got lower tax rate I would hire more people? LIE, they have 280 billion dollars in their bank account! Yah think they have enough to hire more people if they need to? As for taking away state and local, property tax deductions hurting certain states? How about we also take away the massive aid, through subsidies, that all red states get? then we can have a discussion about fairness. As for total estate tax repeal?. $20 million exemption takes care of 99.9% of all families. I really do not think The Waltons of Walmart, worth 140 Billion dollars, and get 100's of millions of dollars in dividends income every year!!!!! at 20% tax rate, need any further tax cuts. Their estate planning people have them in special offshore shelters anyway.
1
No one is talking about the total elimination of the medical expense deduction. The GOP Wants to repeal healthcare coverage and now wants to repeal the medical expense deduction.
This is an assault on the middle class. We need to respond to GOP members by letting them know that their re-election is at risk.
This tax cut bill is very harmful to people that have serious health conditions!
Tony Sassi
1
Once again, the minute this crew is back in power "deficits don't matter".
Trump promised surpluses. Another promise broken.
I'm a Republican and a conservative, and this plan is an affront to our party and our principles.
I can't believe I'm saying this, but I think we need a Democratic House to provide a check on these irresponsible charlatans who have wasted the public's trust in them.
1
Government of corporations, by corporations, for corporations
1
Nixon, Reagan, Bush I,. Bush II, Trump ---
Cut corporate tax.
Cut the 1% tax.
Increase the size of government.
Take America to war based on Government lies.
The last decent American Presidents were Eisenhower. Kennedy, and Obama.. Ford was honest, but not very bright. Johnson was not entirely honest, but nothing like Hollywood Reagan. Ford wasa simply a nothing.
Perhaps the Times could take a moment to acknowledge that Business' employ people. If the government takes less of their income they have more to spend on people.
1
Yeah, great. And how are they going to pay for it?
1
Two immediate thoughts on the proposal. First, the federal government is effectively defunding governments from economically functional states and channeling those taxes, and the fiscal decisionmaking that goes along with the taxes, to themselves. Secondly, there are a whole lot of accountants for business owners and others with flexibility beyond a paycheck who are going to spend a whole lot of time figuring out how to report an income under $90,000.00.
2
This so-called reform, the earners up to $24K a year would pay no income taxes, which means, I think, that no social security or medicare would not be taken out, so how are they to prepare for retirement? Is this in fact another way to bankrupt thee two programs?
Why wouldn't they give large tax breaks to companies that plowed money back into their companies, otherwise, tax them at the highest bracket?
Isn't that what works, not giving them free, no-strings-attached money to hope they do the right thing, considering corporations are sitting on trillions of profits right now they aren't spending?
Repeal of the student loan interest deduction seems especially cruel. How about forgiving student debt. THAT would spark the economy.
2
Why does this bill limit the state and local tax deduction to just property taxes? Because Texas has no income tax and makes its revenue almost entirely from property taxes. The goal is not to raise the taxes of any state that voted for Trump. This keep Trump's electoral margin intact, regardless of the votes he loses in states like California (which will never vote for him anyway.)
3
The tax cuts are not permanent; they can always be changed by congress later.
These cuts aren't delivered yet since neither hous of congress has passed them.
I guess by "plan delivers permanent..." you mean this is yet another failed scheme by the Republicans to enrich the wealthy at the expense of the poor, like repeal and replace ObamaCare, or like Trump's plan to build a "big beautiful wall" that Mexico will pay for or the Republican plan to balance the budget (whoops, that was never even a plan).
The GOP says businesses should be able to deduct state and local taxes, but individuals should not. Why? Because they stated that they didn't want to run business into bankruptcy. But by inference, they find it acceptable to bankrupt families. Thus, they prove that they are opposed to the middle class, and anti-family.
2
I don't understand the process. So this is their proposed tax bill. Drastically cutting America's income. So how specifically are they cutting way back on budget items...which budget items...which services are they cutting that help and save lives. How can they be so gleeful about cut, cut, cut?
2
There are over 2000 comments from readers of this article. Most find significant and genuine problems with the proposed Republican tax bill. Without rehashing all salient points, I urge every person who objects to this piece of proposed legislation to contact their members of Congress TODAY and express their objections to them directly. Along with the opportunity to freely express opinions, we must exercise our rights and obligations to support our representational democracy. Your members of Congress must answer to their constituents and you must give them your opinions in order for them to do this. Contact them today.
3
Some good things. But maybe be less good to the ultra wealthy and not add trillions to the deficit.
Bravo GOP. You have managed to take a step back on the old tax plan that would have basically torn middle-class families apart and allowed a golden age for big corporations. Now it seems to most that this new plan won’t be nearly as bad as originally thought with $1 trillion in cuts for big business (that’s a lot). However, with this new blueprint, there are more benefits for middle-class families which is what people like to see. This means we’re all good right? Wrong. What people don’t realize is that this plan is going to be catastrophic in the long run with huge cuts in overall revenue for the government. This will again slowly but surely erase some of the current benefits middle-class families have enjoyed. While this plan might just appease the population for now, we need to be thinking ahead people.
2
I just watched Rep Brady on TY saying what a great tax cut this is.
Having just recalculated my 2016 taxes to confirm this, I discovered my federal income taxes with go up by 17%.
I'm not in the top 1%.
Great tax cut!
Lets see what other problems the Republicans can fix.
The notion that tax cuts will free up money that will be spent by consumers and invested by capitalists and businesses which will result in greater economic growth and more wealth in which everyone will share, and it thus a strategy for accelerating economic growth just is not supported by the facts. Mostly tax cuts are undertaken when there are not surpluses from revenues collected, and deficit spending is needed to keep the common services provided by government functioning. This happens because of the fact that stimuli must be based upon real likelihoods that the economy can make a lot more goods and services which will be sold with good profits, and people are not psychologically presupposed to accept loses and gains with the patience of experienced traders, that they will not avoid losses and opt for certainties which distort their behaviors. If an economy is roaring as the U.S. economy was from WWII to mid-1970's, the behavior of business people and capitalists will be to follow the expected results, those supported by empirical and mathematical evidence. If the economy is in deep recession and stagnation, then something very different happens. People overestimate the bad and underestimate the good, and their actions exaggerate the bad and minimize the good. The way to overcome this is to have an agent act on the everyone's behalf to act according to the expected outcomes, government, until the economy has recovered, then shift the control back.
Translation..."I'm from the government and I'm here to help you". Good luck with that one.
Donald Trump and the Republicans are telling the American people that with this tax break a business making clothing, for example in China, which pays $62 a week/$248 a month will now create jobs in the US that pays for example, $8.00 an hour/ $64 a day/ $320 a week/$1280 a month. If this passes I wonder if Ivanka Trump will relocate her clothing line to the US and live up to her father's promises. I suspect what will happen she will continue to manufacture her clothing line in China and take advantage of the tax break which at 20 percent after deductions will be around 4 percent.
2
The teachers unions should be rallying their members. Teachers are also bringing supplies into their classrooms. I don't think the new bill will allow for non-reimbursed employee expenses to be deducted. I find it curious that the President doesn't realize that some of the tax changes affecting properties over $500,000 will probably hurt the Trump Organization. Also, with the changes about alimony - is he already thinking of wife number 4?
How can any congressperson consider this fair?
The deduction for charitable donations...a totally optional consideration...continues in full force.
The deduction for medical expenses exceeding 10% of income ends.
Regardless of all but the very highest incomes, this is a cruel and painful element of the proposed tax plan.
Thus, a family with a $50k income can presently claim a deduction for medical expenses that exceed $5k.
A family with a $100k income can presently claim medical expenses that exceed $10k.
Both families are in a state of medical and financial distress, and now congress proposes to make it worse by fully eliminating the medical deductibility, while removing the estate tax and the alternative minimum tax.
How can anyone approve such a tax plan?
1
The highest tax bracket will be absolutely meaningless.
Everyone making enough to be over 25% bracket will simply morph to a pass-thru business (at 25%). There will be nobody left to be taxed above 25%.
Kansas did this and everybody switched ... and the revenue bottom fell out.
After the revenue bottom fell out, Kansas robbed the highway funds, Medicare and Medicaid funds.
After high earners switch to pass-thru business, guess what's going to happen to Medicare and Medicaid to compensate for the dropoff, folks?
2
They cut taxes.
But they increase the deficit.
Which is to say they really put the tax cut on our credit card and those of our children and grand children.
And 2/3 of those cuts we will be paying for are the corporate tax cut that will not create jobs. You can argue they will but come back in a year and show me the numbers.
Only demand will create jobs.
The only jobs Google and others have in Dublin that might come back are a bunch of accountants. Not enough to make dent in the 150,000 to 200,000 jobs per month the economy has been creating for a few years now.
Pay attention voters. The cuts will be in programs that benefit the lower and middle classes. This is a giveaway to those that don't need it.
Vote progressive in all local, state and national elections.
1
The GOP has NO credibility on policies sold as 'wins' for the middle class. To the extent that the wealthy (donors that front our representatives on how to vote) actually value the middle class, they're votes are bought off for a few thousand dollars, while the donors and their corporations get millions for their "corporations-are-people", while also removing the estate tax from the ultra-wealthy. America came into being fighting for independence from the wealth and capriciousness of the British crown. 220 years later, the GOP appears to represent the creation of a new American aristocracy, in control of government, for the "corporations-are-people" crowd. It is the project of merging the distinction between the public interest and private power. The more we're convinced that the private power of corporations is the same as the public interest, the more we accept that our public institutions will act in the private interest. Our public institutions will become a corporate tool for managing our so-called democracy. Market fear, manage the message. Always demand public accountability for it's own sake. The public interest in survivability of society necessarily trumps the private interest of a return on investment.
If you had a choice between a long life as a non-wealthy person, or a short life as wealthy person, which would you pick? Your answer determines the kind of government you should accept as a consequence.
Taxing workers at higher rates than business owners is not a middle class tax cut.
No one will pay 39%, People will reclassify and treasury revenues will plummet causing huge deficits and draconian cuts to social security, Medicare and Medicaid.
2
lets add an additional 10% tax for those making $10mln or more a year? $20mln? $30mln? this will help narrow the deficit, wont affect the growth prospects of the economy and these high-earners wont be feeling the pinch as a result.
In terms of the distribution of benefits, the house tax proposal on the surface does not seem as bad as earlier feared. However, with respect to corporate taxes, I would favor a tax policy that provides incentives to companies to actually create jobs rather than issuing dividends, buying back stock shares and other activities that do not necessarily benefit workers or the economy. Assuming that typical Americans will benefit from this tax proposal through the benevolence of Corporations does not seem realistic.
1
With the reduction in the corporate tax rate, does this mean that those huge companies that now pay 8% and less will actually pay more? Don't think so.
Thank you Senator Corker for bringing up what should have been eliminated, corporate tax loopholes. That was always supposed to be the quid pro quo for a corporate rate deduction. Instead of eliminating these corporate tax credits, the plan eliminates individual and family tax credits to pay for the corporate rate deduction. The middle class will see some of the tax cuts directed at them but not these other increases and only realize later that in many cases their taxes will go up, not down.
1
Supply side economics has always had one fatal flaw. Giving investors more money to invest doesn't mean they will invest it in creating jobs here in America. In fact, the last supply side tax cut gave investors all the money they needed to be able to pay to move their factories from here in America overseas to India and China. Giving investors more money through corporate tax cuts and repatriation of overseas capital today will have the same effect.
The only thing that ever drives economic growth is demand. Giving American workers more money to spend will drive the American economic engine. Then the money overseas will come home all on it's own. Tax cuts direct to the poor, working poor and middle class along with increases in wages and benefits is what will result in more consumer spending, more demand and more growth.
Moving expense deduction is more important than mortgage interest for the millennial generation. Doubling the standard deduction helps with those making more than 100k and with student loan debt since you can't deduct your student loan interest after 77k, but if you need to move for a job, now the company will have to foot the cost entirely.
Ava California
Great comment
1
This is great. We [the middle class] will pay more in taxes but it will only require filling out a post card to do it! We are indescribably stupid!
14
Those haters opposed to a corporate tax cut put themselves in the position of wanting each poor mother to help the store pay its taxes with every visit she makes to get milk or diapers for her baby. Are you SURE you want to go there?
The years of lectures training new leftists were supposed to be about the point when the company actually paid the bosses, or so we thought. THAT was supposed to be the moment when spasms of rage and anguish were expected to wrack the trainee progressive's brain, no?
1
City dwellers in the blue states will get the shaft in the new tax plan to the benefit of the rural red states.
I guess it’s Republican payback for our progressive values.
14
There should be a special tax applied to all of the net Federal money pouring into red states that are unable to pay for their own programs/infrastructure because they failed to adequately tax their residents. It's not fair that blue states have to bail out these parasites and have to doubly pay taxes via state income tax too.
Why do all Republican tax cut plans remind me so much of all those Nigerian (419) Scams?
10
Dear republicans;
Instead of making sure vulture capitalists, like Manafort, can spend more than $800,000 on some clothes (These poor guys really need a tax break, bigley!). How about "finally" raising the social security checks so they can actually keep up with the cost of living that old timers are struggling with? I'm sure they would like to buy a whole loaf of bread instead of having to ask the store to cut it in half.
Do something that helps this country, instead of looting it to pay your "owners"!
18
This is not a good plan if you have a decent job. Of course we knew the Republicans could not possibly mean that they were looking out for the working class.
5
This tax deal is a really bad deal for middle class overall. This is why. Middle class tax cut for the most part reduced from 28% to 25% but when you factor in the removal of exemption, limit on property tax and so forth, middle class will take a hit; Versus, corporate taxes going down from 35% to 20% which is 15 points lower. much greater amount. Now what corporations will do is subsidize all their CEO and other corporate officers living, they will buy expensive apartments or houses in NY, pay for expensive meals, perks for the corporate officers and write them off as normal business expense. So basically the corporate officers are supposedly getting only their stock holding value and they are not going to cash it. everything will be business expense at taxpayers' dime. just watch.
10
The Alternative Minimum Tax will be gone- that's the only reason Trump paid any income tax in the one year of partial tax returns we can see. The Estate Tax exemption will double, so a couple can leave $22 million tax free this year, and eventually that will go away entirely. Donnie's family will save millions on that. None of the tax loopholes Donnie uses so he pays little or no income taxes appear to be cut. Sounds like a pretty good deal for the Trumps.
17
"It puts such severe limitations on home buyers ability to use the mortgage interest deduction that home values will fall,” Mr. Howard said."
==================
I mean, every industry wants to protect THEIR subsidy. But this is a tacit admission that home values are artificially inflated by the tax code. Homes would be less expensivewere it not for the tax break.
2
seems they take away personal exemption? which was $4050 in 2016. So that means MOST of doubled standard deduction are OFFSET. What a joke
4
claims that this preliminary version of the tax bill favor the rich are bogus... i'm one of those evil Americans and, as a Californian, my tax bracket hasn't changed but my very high state income and property tax deductions have nearly gone away... that means significantly higher federal taxes for me... so save your fake redistributionist anger, Sanders folks, and do the arithmetic
1
I am reminded of a cartoon... surviving Roman soldiers standing as 1 in 10 of their number are slaughtered... “... hey, this ‘decimation’ thing isn't so bad!”
If any GOP “tax reform” doesn't have the effect of shoveling ever-greater piles of money to the already super-wealthy – from the pockets of the middle class, I'll eat my hat.
: ) L
14
The end of alimony deductions is so unfair since agreements were negotiated with the deductions in place. So single divorced men pay higher tax rates yet have a dependent like marriage.
9
This bill is horrible for anyone in the middle class who has a mortgage and pays state and local taxes. These are significant tax deductions for most people but the GOP doesn't seem to think the Middle Class needs them. Again Corporate America hijacks the people's government for their benefit.
34
I would pay more taxes, but support the bill.
We can't be in the situation where we encourage local governments to tax and business to go overseas.
We can't ruin the country for our own selfish interests.
What an astronomically incredibly timed release of the public bribery to vote for them next Tuesday and an exceptional news diversion away from the Monday indictments in the Russian collusion, potential conspiracy story. How long did you say the Republicans have been working on this tax legislation?
11
I care more about tax reforms and what it means for me. For me, the Russian investigation is the diversion
“With this plan, we are making pro-growth reforms, so that yes, America can compete with the rest of the world,” said Speaker Paul D. Ryan of Wisconsin.
What is he smoking? I thought business were doing just fine here already. Why do they need more bailouts. Do we want a society devoid of public spending? No parks, No fire stations, No Police, No public education, No road repair. Who is going to pay for all these if they cut taxes to everyone?
34
We'd be like PR. Everything's broken. Nothing to fix it with. So remember, hurry and vote for it before "they" find out.
It is imperative that Americans know, now, what effect the repeal of the Alternative Minimum Tax will have on Trump's personal tax payments. From his last income tax record publicly available, he paid the A.M.T. With its elimination, will his tax liability zero out? Then there's the proposed total elimination of the estate tax in several years, benefiting his heirs enormously.
Forever the huckster/con, the Fake Prez gushes about an inconsequential $1,200 per annum tax cut for the middle class family under this bill, the cost of a couple of nights lodging at a Trump Hotel, meals not included of course. Make America Gilded Again!
27
It’s about time! No jobs, no stuff. Business keeps this country running. It pays all the bills.
1
And how is that different from any other civilization in human history, exactly?
Over simplify much?
You need to learn a few things. There is a good article on FT.com about coroorate tax cuts.
If we learned anything from the Amazon HQ contest, (and even Cory Booker said as much) huge corporate tax breaks means businesses will consider your state and if chosen will bring loads of jobs and tax revenue to the state offering them. Go through the news stories on the proposals and you'll see that blue states offered huge corporate tax breaks to Amazon to come to their states. Low or no corporate taxes is not a democratic vs republican ideological argument. It's just a fact
2
This discussion is about federal taxes. They apply in every state.
That's just 1 company though.
Of course tax breaks lure business. But those kinds of one-time incentives are self-limiting and at some point these businesses have to start paying regular taxes just like everyone else. This is unlike the proposed tax reform, which makes these tax cuts PERMANENT.
Trying to sign the most significant and far reaching tax bill into law in six weeks?
If the claims made by the GOP are true, there should be no problems allowing at least 6 months to a year to thoroughly examine every aspect of this bill, by all members of congress, by attorneys, accountants and yes, the public.
To rush it through, just so Trump and the GOP can tell their voters that they accomplished something, is stupid, reckless and insane. I point out the health care (Trumpcare fiasco). Have we not seen how Trump operates...again and again?
I say: put on the breaks and allow as much time as necessary to examine every page of the tax plan, size up it's advantages and disadvantages, it's short and long term effect on the country and economy, demographically how all will be affected and than, open this up for debate.
Again, to rush this through is insane without proper and involved examination is insane and downright stupid!
29
So what is the promise the Democrats will make that they will fight ,lie ,steal or con to get for us like the Republicans do for their owners the 1%?
How about if we give them power again they will raise the 1% taxes to 75%.
They will close 3/4 of the 800 bases around the world.
The elimination of the alternative minimum tax will save Trump millions of dollars. We found this out when Trump's partial tax return was made public. Talk about giveaways. The Dems should jump on this.
18
Bill is not tax reform but saves Trump $50 million a year and Trump family $4 billion estate tax bill. But families making $125,000 get 20% tax increase.
14
KILL THE PASS-THROUGHS and let all income go through Income Tax, Payroll Tax, and Unemployment. Get rid of Tax-free Municipal Bonds and other loopholes that the rich use. This bill gets rid of most people's "loopholes" that allow them to get by, such as Mortgage Interest, State and Local Taxes, Property Taxes, Charity, Medical Expenses, Student Debt, and gets rid of the Personal Deduction.
I'll give Corporations a 20% tax rate but they can only use loss carry backs for so long and would not be able to write off eliminating employees or moving operations off-shore. Stock Options would get an extra 25% tax for anyone over $500,000. Corporations paying employees so little that they have to go on public assistance get an extra 15% tax. (And other tax adding to corporations to reign in their greed and power. I'd add an extra tax to oligopoly businesses and the big banks to break them up.
You want me to write up a better tax plan? I'm 80% there. My plan is out there!
7
Businesses will need the tax cuts as they take over all our public services. Can't have the life-saving corporations go under.
Education, on the other hand, really is only suited for those who deserve it. The academies for the upper crust will do well seeing who can charge the most because tuition costs will outweigh test scores. It's all about the status, Gladys. And some teachers will finally get their payday!
Social mobility will be a costly free-for-all for the bottom 95%. The top 5%, of course, will make sure only they can afford the best services.
And if you can't, it's your own fault you didn't pull harder on those bootstraps. Or at least lived with such virtue that God blessed you with rich material rewards.
Remember, folks. It's all about Jobs, Jobs, Jobs. (long O)
Your mistake if you thought that meant work or employment instead of just another right-wing Bible reference. Don't worry, the boils aren't as painful as they sound. And remember, the less you have, the less they can take. So learn to simplify!
8
That Republicans can put forth, with a straight face, a proposal that lowers (and phases out) the estate tax, while saddling many regular Americans with tax increases (and leaving our children monumental debt), speaks volumes about the sad, sad state we are in. Seriously, the ESTATE TAX?? And no closing of the carried interest loophole? One doesn’t have to look any further than those to see that this is a nonstarter, though of course there is much more to quibble with. My mind is blown.
11
Given the rich benefit inordinately from our commonly built, commonly held, 37 trillion dollar national infrastructure (without which no one gets rich, and no one stays rich), they haven't paid their fair share in return for everything they get since the Kennedy Administration.
Start by doubling taxes on the rich while cutting taxes on everyone else, then we can talk. Anything else is shilling for the wealthy.
The GAO and CNN Money, hardly bastions of progressive economics, report that the *effective* corporate tax rate on corporations making more than $10 million a year, is 12.6%. That rate needs to soar.
Like I said, when the rich start paying for what they get, then these discussions will have meaning. Everything else is dross and nonsense.
9
Anyone notice how fewer tax brackets means people on the low end pay more and people on the high end pay less? This is not simplification; it's just another tax break for the rich, and tax hike for the middle class.
14
Corporates are not individual souls. They are a front for the ceo and board. So any tax cuts for corporations will only make it the ceo and board pay themselves more. They won't reinvest or pay their employees more.
Stop blaming corporates and instead blame the ceo directly. They are the decision makers.
4
Not as bad as you feared? Do not be fooled by the game of low expectations, barely exceeded. This proposal offers yet another debt-fueled Republican bender -- blowing a $1.5 trillion hole in the deficit and adding to the national debt. As a 56 year-old, this will be the third such tax cut in my lifetime: Reagan's, W's, and now Trump's. Each time, just when the economy was positioned for growth and a balanced budget and significant inroads into the national debt were within reach, Republicans gave tax cuts to the wealthy -- tax cuts that we in the middle class ended up paying for. Now, after recovering from the Bush financial crisis and recession, the economy back and growing without further stimulus, but the deficit and debt ballooned (as it should have - thanks Keynesians!) to compensate for the recession. As a result, this is no time for tax cuts. With interest rates still low, it might be the time to borrow for infrastructure improvements. But, the proposed tax giveaways will hamper the ability to finance infrastructure investments that we desperately need and that will pay real productivity dividends. So, in sum, the Republican tax proposal would: redistribute wealth from the middle class and future generations to the wealthiest Americans, increase the budget deficit and national debt at a time when both are at unprecedented levels, and constrain the government from making the investments in infrastructure development we need for sustained growth. Resist!
17
"Mr. Brady said, “We’re going to prove them wrong once and for all.”"
'Prove them wrong'?? When has the GOP ever been right on fiscal matters?
The GOP screamed at Bill Clinton's modest tax increases. The economy boomed. They praised Bush's tax cuts. The economy tanked. They decried Obama's modest increases. The economy grew steadily, in spite of GOP sabotage.
Meanwhile, everywhere a state cut taxes for corporations and the well-to-do and also deregulated, Kansas, Missouri, Michigan, North Carolina, have been turned into a financial basket cases. There is NO evidence this approach, lowering corporate taxes, eliminating the estate tax, while maintaining most of the corporate loopholes they've ALWAYS taken advantage of, will work. None. So much for the states being the 'Laboratories of Democracy'. We now don't listen even when they tell us something important.
11
I'm not as concerned with the changes to the taxes I would pay (marginally higher) but I am very concerned about what the ballooning deficit caused by the tax cuts for corporations and higher income filers would mean for necessary social programs.
6
This plan favors big companies over small businesses to a remarkable degree. Big business can enjoy a 20 percent corporate tax rate but the small business owner can only get that on 30% of profits. So big companies pay a much lower effective tax rate than small businesses. Why does that make sense? Small businesses are typically much more effective at creating jobs. The tax distributions from a small business come directly out of the cash needed to pay the employees and invest in growth. No wonder the independent business group has rejected this plan as unfair to small business!
6
We all should support the Peterson Foundation's position -- which is to oppose any tax cut that would add to the deficit. This one clearly would. We should be trying to cut the deficit, not make it bigger.
3
America has a revenue problem. We spend more than we take in and this plan will take in so few tax dollars that sweeping changes and reduction to services will be necessary. Which is the republican plan all along
In what way is it moral or ethical to tax the wealthiest among us at lower rates than workers?
6
This tax plan is very bad for our country's future prosperity. This is going to be especially bad for our aging population that is needing Long Term Care services. The cost of those services will no longer be tax deductible along with any other medical expenses. That will likely push many more people into needing Medicaid services as they age and their health deteriorates. No one is talking about this but it should be very frightening to those on Medicare. You know the people who trusted Trump and Republicans to do the right thing.
7
Cap the mortgage interest deduction?
I hadn't heard that's on the table. I'm for it, though it would hurt me greatly. House prices would get hammered, but only in pricy areas (such as SF). It wouldn't have much effect in most areas.
Strikes me as a good idea. I doubt real estate lobbyists will agree.
Gonna be interesting as to what the Real Estate Expert-in-Chief will think about it.
This hurts the middle class. I suspect the vast majority of pass through businesses don't earn enough for this plan to be anything but a significant tax increase. Families with multiple children loose out through the loss of the personal exemption. In order to pass this bill they have proposed to cut hundreds of billions of dollars in spending on Medicare and Medicaid. These cuts will help pay for the elimination of the alternative minimum tax and the estate tax. Also a reduction in corporate tax rates (most small business are not corporations). This just a well disguised cash grab for the elite and big business.
8
Oh well, Medicare was doing nothing but keeping me alive anyway.That's okay who wants to listen to the whiney baby's temper tantrums that he is the only one who matters, any longer.
So corporate profits, which constitute most of the top . 01%'s income, will generally be taxed at 25% instead of 39.6%. That's a better-than 1/3 cut. And all most commenters here can say is "thank you Sir, that's not so bad, may I have another?"
Pathetic!
7
That is a very good point.
Just another typical Greed Over the People (GOP) tax cut for the wealthy and corporations!
7
Citizens: Just remember that the real aim of this “reform/cut” is to balloon the deficit and put the country in financial peril. And then, when things get really bad and the country teeters on the edge, the AynRandites who are pushing this “plan” can then gut Social Security, Medicare and Medicaid, and other socially responsible programs. That’s their real goal. They don’t give a ratsass about all the “little people” and other peasants who will suffer. Helping the middle class, etc., etc., that’s all smoke from the voodoo economic fires stoked by the GOP.
34
Of course the government cares about the little people. That's why there's a Small Business Administration.
Sorry, I heard Brady interviewed on the radio today and everything out of his mouth was a lie. He lies as much as trump! "The US is not doing well" lie, "This tax plan will lower the deficit" lie!. "Taxes in the US are the highest in the world" lie! Do not fall for it....Greed rules the day and republican lies!
7
Republicans tank the economy; Reagan, Bush, Bush.
Democrats revive the economy; Clinton, Obama.
Trump is a Republican...any questions?
12
This is why I was devastated not to have Hillary win
It's nice to see the Republicans reinstating the "marriage penalty" that they whined about for so many years on the Rich.
1
I hope all those people who voted for the donald because of taxes enjoy the $20/week "paper towels" he just tossed at you. Use them in good health. You won't be able to afford a doctor.
7
There's no such a thing as a permanent tax cut. It's permanent until they pass laws un-permanenting it.
2
Crumbs to keep his base happy, juicy cuts for the top 1%
2
Supply side economics is the theory that says tax cuts increase economic growth. Tax cuts do provide a boost, but only in a short term and in an economy that is already weak tax cuts provided an immediate boost. (Source: "A Dynamic Analysis of Permanent Extension of US President´s Tax Relief" US Treasury Department July 25, 2006.) But you must read the full article, because there are caveats to this theory. www.thebalance.com
Seems like click n bait for middle and lower class families. Even though they are getting tax relief the 1.5 trillion deficit means less money for govt programs and eventually middle class has to pay out of pocket or increase in tax down the lane.
3
One of the most interesting (to me) aspects of reading the actual document of the House proposal is the allowance of people to designate a fetus as a beneficiary of a 529 account...
How that will work without having a birth certificate or SSN is beyond me... Maybe a doctor's note?
2
A minority administration, and a minority Congress (the Republican congressional majority has received a MINORITY of national votes since 2012) don't deserve to make such sweeping changes to our fiscal and economic system! This is absurd!!
1
Tilts towards business? That's an understatement. The proposal turns the country into a banana republic for the benefit of the billionaire class. https://www.bestcashcow.com/republicans-are-pushing-dangerous-banana-rep...
1
Too many of us have planned our lives around taxes: buy a house, take a large college loan, or move to the suburbs for good schools despite high local taxes. The current tax code has shaped our lives and our local social structure. Radical change may sound appealing to narrow minded ideologues like Paul Ryan, but his gang are out of touch with the realities of every day life. Real people decide to buy a house because of the deductions. Real people take on college loans rationalizing that the interest will be deductable. Its a value judgement. Imagine the poor kid who just took out a 100K college loan expecting to deduct interest on the loan over the next twenty years? Our lives depend on little certainties. A small tax cut (a thousand dollars or so) means little against large social disruption. Many are already sick over the possibilities that this bill might cause for their every day lives. What to do? Sell one's house? Move to a suburb with higher taxes for good schools? Or move away? Community college, not private college? The irony is that so many of the men in suits, Trump supporters sitting on the LIRR or Metro North, mid level bankers and money lenders, these men in suits will also feel the social disruption caused by this bill.
14
Actually, once you make more than 77k, you can't deduct your student loan interest. So that poor kid who took out the 100k loan already couldn't deduct his taxes unless he stayed poor and made less than 77k. Now he has to do what everyone else has to do, make more money.
I see the "loopholes" eliminated for working families, were are the loopholes eliminated for corporations? Did we get rid of depreciation?
3
The effective tax rate of corporations is the lowest in the world tied with Turkey. American always wants to be number one. This rewrite of the tax code should put the U.S. right on top as the lowest effective tax rate in the world. Talk about squeezing blood out of a turnip just so top executives and hedge fund managers can make billions more. Those donor checks will be rolling in for the Republicans!
10
This tax plan exemplifies the worst crony capitalism plan I have ever seen.
Think of a tax system that says all taxation on inherited wealth will be entirely phased out, while federal taxes will still be assessed on income that has already been paid to the states.
This monstrosity only exempts state property taxes, not state income taxes.
This tax scam deepens the disparity in treatment between investment income and wage income, and shifts the federal reliance further to regressive payroll taxes.
It provides the biggest tax break in America for Donald J Trump and his ilk by favoring passthrough LLCs and subchapter S corp income over the income a 6 figure professional earns.
Why exactly is that? What is the rationale?
Remember how every time some wealthy person is revealed to pay a relative pittance in taxes compared to people who make far lower and they just say - well, that is what the law allows.
In this case, we have a President refusing to release his taxes, refusing to put his assets in a blind trust, attempting to codify tax policy that favors him above nearly every other American.
I guess this is the devil's pact the GOP made to work with the Kremlin to install a President corrupt enough to sign such a mess.
20
The GOP could at least try to be honest about this reverse Robin Hood tax plan. It is a tax cut for millionaires and billionaires. Nothing more, nothing less. Don’t these people know you can’t take it with you?
I have dutifully followed the rules my entire life. I pay taxes on my earnings and have saved for my retirement. I have been a good citizen, donating my time and income to my community, country, and the world. My taxes will go up .
In the meantime, I have an elderly parent with Alzheimer’s, requiring 24/7 care. I am selling off her assets to pay for this. At least I have been able to offset the stock sales with the health care deduction. No more. I guess she’ll end up in a facility on Medicaid. Except that is being cut along with Medicare ( which I will soon be eligible for) and social security. And why would they cut adoption subsidy credits? Great. Old people and children on the street so the Koch brothers can die richer.
This is what I get for playing by the rules.
14
Sorry about your plight however I could have plugged in the millions of Americans who were lied to and still can’t afford their health care premiums and co/pays. So it really cuts both ways and I highly doubt the Koch Bros have anything to do with this. BTW Medicare is not being cut, the rate of growth is being reduced.
Let’s eliminate ALL deductions based on choice. So no deductions for the house you choose to buy, the charities you choose to support, and the city or state you choose to live in.
1
Trump want to destroy healthcare, per his past actions.
Now, the proposed Tax Cut bill completely eliminates the Medical ex
2
How can any congressperson consider this fair?
The deduction for charitable donations...a totally optional consideration...continues in full force.
The deduction for medical expenses exceeding 10% of income ends.
Regardless of all but the very highest incomes, this is a cruel and painful element of the proposed tax plan.
Thus, a family with a $50k income can presently claim a deduction for medical expenses that exceed $5k.
A family with a $100k income can presently claim medical expenses that exceed $10k.
Both families are in a state of medical and financial distress, and now congress proposes to make it worse by fully eliminating the medical deductibility, while removing the estate tax and the alternative minimum tax.
How can anyone approve such a tax plan?
Looting the Treasury for the benefit of the wealthy: note the elimination of the Alternative Minimum tax, the Tax that snared Donald Trump in 2005! Also, eliminating the deduction of state and local taxes will hurt many middle class families struggling to get by.
2
Actually eliminating state and local tax deductions is totally fair. NY, Calif, Ct, Md, Ill, and NJ are states that are not run efficiently and effectively thus they over tax their residents. A family of four in Ca or NY pays far less in Fed taxes than a family of four in Texas. Assuming these families earn the same , the NY/Ca family pays far less in Fed tax. They should pay the same regardless of how their states are run . #fairness
Brian
You should also consider that most of the blue states pay more than they receive. Most red states take more than they contribute to the federal coffers... $ to $.
Not only does the United States have the most lunatic medical system, now the republicans want to strip medical deductions. How is that lowering taxes for the middle class and anyone in the throes of hospitalization or an ongoing illness.
They expect us to swallow this putrid elixir whole?
Before we focus on getting trump out of office, there's the rest of the republican congress we have to deal with first.
7
For those who complain about high ambulance fees, worry more- they are about to skyrocket.
A page of Mr Trump his 2005 Tax return was leaked, that year he paid $38 million in taxes, $31 million of which was the alternative minimum tax (AMT).
The republicans tax plan will get rid of the AMT, which would save Mr. Trump $31 million. No surprise, Mr. Trump kissed the plan during a meeting at the White House today.
8
The rush to get this done reeks of the same games the R played with ACA.
If Trump wants this signed by year end then the bill does not go into affect until after 4.15.18. The changes work on the next tax year.
Tax advisers, accountants, those that do their own taxes will have time to properly assimilate the changes.
The tax governing bodies will have time to update their websites, paper tax forms and instructions.
This will of course expose the changes to intelligent scrutiny by all americans and once the true reach into the wallet is shown, the con is blown.
with record profits being recorded daily by American businesses, i need to have it explained to me why they are in need of a 43% decrease in their tax responsibility? I also need it explained to me how the costs of this gift to us will be paid for?
7
what about "carried interest" surely in a middle class tax bill this sop to the rich should be eliminated but it is conspicuously absent- no mention. amazing that they eliminated medical deductions, state and local taxes but keep carried interest
I love it! Time to get rid of the welfare for over paid realtors who just drive up housing prices. Does someone with a $500K-$1M dollar mortgage need a tax break? NO. This sector gift has got to go. That and all the other tiny rip off deductions that do little but make the code so complicated that most people have to pay someone to get their tax forms filed. Maybe with a decent corporate tax rate we won't have all our corporations searching for offshore tax havens for their headquarters. That would be a refreshing windfall for the USA. And the whining about state and local tax deductions being eliminated should be remedied for most but the very well off by the increased standard deduction. Every year I have to pay for Turbo tax and sometimes an accountant to figure out how much I need to pay. Simplifying this code is well overdue and should be considered carefully before the knee jerk NO reaction that Democrats typically have to anything from Republicans. How about joining the discussion and start legislating again? There is always room for negotiation and I'd like to see a return to the times when the parties hashed out their requirements and each compromised to get some of what they wanted. Otherwise my senator Bennet could be replaced with a software program, he does nothing but vote NO on anything from the other side. He's the same guy who claimed he worked and reached across the aisle last year when running for election. Time to start living that promise.
1
babaganoush wrote
" How about (Democrats ) joining the discussion and start legislating again?"
Well, as with the various GOP plans to "Repeal and Replace" the ACA, the Democrats weren't invited. Neither were the American people, who will be affected by these Tax law changes into the foreseeable future. The GOP deliberately structured this Tax law (I won't call it a tax cut because it's not for most of us) using the Reconciliation Process, to exclude Democratic input, and public hearings. The GOP can just pass it with their 50 +1 majority in the Senate. Here it; is our GOP tax plan, and we will jam it down your throat, by Christmas to please our donors.
Since it appears that with this administration, up is down, my guess is this will pass easily without many republicans putting up a fight. After all, they need to say they accomplished something. And since they don't really have to worry about losing elections (republicans will never ever vote for a democrat no matter how poorly they're treated), they don't even have to work hard to sell it. And those of us in NJ can keep subsidizing all those wonderful real Americans in Alabama, Mississippi etc. while they complain about the welfare roles.
1
Create ASAP a parallel government that runs the land. Do everything opposite what the Trump government does : tax the rich, not the poor, restore regulations on the environment and finance, a job program , Medicare for all,...
You may say I’m a dreamer but the Trump way leads to dystopia. Get on board the dream train before it’s too late.
3
Here's a realistic and fair tax plan:
Tax corporations the same exact way that we tax individuals.
Individuals are liable for US income tax for all income that they earn overseas whether they bring their money home or not, (though we give them a foreign tax credit which wipes out much of the US income tax) .
Presently US corporations do not pay income tax on their overseas income until they bring that income home. Going forward let's deem as US Taxable Income ALL money earned by US corporations and their phony-baloney foreign subsidiaries and tax it, giving credit for foreign income taxes which were paid on that same money, just as we do with individuals.
At the same time we should reduce the corporate tax rate to about 18%. Do that and we will collect more tax revenue overall by holding corporate entities responsible for paying income tax on all of their income. No loopholes. That's fair. No more US corporate tax inversions.
As a bonus, foreign corporations in high-tax jurisdictions will move here instead of to places like Ireland, Luxembourg and the Caribbean.
As far as the Individual Income Tax goes, leave it alone, except repeal the detested and unfair Alternative Minimum Tax, "AMT" which should have been but never was indexed for inflation.
1
If it repeals the tax credit for alimony will it then make said alimony payment non-taxable to the person it is paid for?
If not, then that amounts to double taxation.
2
Despite what the real estate industry says, the proposed bill will make housing much cheaper and more affordable for future home buyers.
1
Maybe in your town. We have too few housing and many cash buyers. This might be a boon to uber wealthy- foreign and domestic. investors.
When corporations save money, they do not give it to their employees. Corporations are in the business of saving and making money, not giving it out.
Corporations that save money through tax cuts will invest in technology that eliminated employees.
7
Corporations have shown us they keep giving their executives huger and huger bonuses and perks and packages. Zero to employees.
Republican's plan to deliver this "permanent corporate tax cut" was predictable once corporations were declared to be people and money equal to speech via the Supreme Court's 'citizens united' decision. So much for small 'd' democracy.
6
Corporations (e.g. Apple) already have more cash put aside than they know what to do with, yet today's Republicans feel that they need even more. Who knew that today's Republicans are determined to massively inflate the national deficit? Having failed to deprive their 'base' of affordable healthcare they now plan to reduce federal revenue to such an extent that to pay for it they will have to deny their base access to Medicaid, Medicare and Social Security.
It seems it is entirely possible to get turkeys to vote for Thanksgiving.
5
They should make the corporate tax rate 25% at least. There is no need whatsoever to drop it all the way to 20%. That just adds unnecessarily to the deficit. In general, the bill is a lot better than I thought it would be and I hope after some compromising it will be even better (maybe even good enough to pass).
I see a benefit of $25 weekly. I'm buying steaks,bubba!
I actually think cutting corporate tax rates was a good idea, even Obama suggested cutting corporate taxes (to 25%), however I'm against the cutting of the top marginal tax rate and I think we should've implemented carbon taxes to make up for the lost revenue.
As others have said, no tax cuts until we see how it affects Trump himself.
These cuts would be a major conflict of interest for hiim, his family and most of the members of his cabinet (not to mention many members of Congress.)
3
Those in the center of the country also pay a good deal of money in local and state income tax. Turning it into a red state-blue state issue distorts the discussion. Many middle and upper-middle income people in both places will be paying more taxes and the funding of state and local services may decline as voters seek tax relief.
1
Don't see anything about HSA deductions. That's a big loser for the middle class since those lucky corporations with the reduced tax rate are shedding costs by throwing everyone into high deductible health plans.
Notice that there is nothing about taxes on capital gains or dividends. The uber wealthy make most of their income with investments so they must be thinking "sitting pretty with a 15% or 20% rate". It doesn't take much more than 90k before the wage earner pays at higher rate than the Mitt Romneys.
4
Isn't the much-touted doubling of the standard deduction almost completely offset by the lost of the personal exemption - and doesn't it just raise the threshold for being able to itemize deductions? Why isn't this being discussed? Am I missing something here?
1
You are not missing anything. The Republicans are hoping no one notices the shell game.
Property tax and SALT should be deductible. The $10,000 combined limit of property and SALT can stay. This would benefit the middle class.
Eliminating a deduction for SALT except for property taxes favors one tax style over another. Combine them all under one cap.
2
Amazingly, and as a slightly upper-middle class left leaning reader, after reading the basics of this bill, my gut feeling was the same as many readers: RELIEF! My 401k is untouched!
But then, as I read more, I realized the crux of the question - the bottom line of this bill are the pass-through entities whose tax rate will be deducted in half. Corporations are getting a windfall.
Us, middle-class folks, will pay slightly more or see tax returns not significantly altered. But nothing good can come from this for public services.
For those saying that the bill is good bc it's good for their small business, consider that what applies to a small business does't apply for corporations, with multiple resources from which to draw money.
For those saying that the bill is good for business in general, consider Kansas, whose tax cuts sent the state in a deep recession, and in which wealthy individuals started declaring as pass through entities, further decreasing state revenue.
Unfortunately, we're still in Kansas, Toto, before said tax cuts were vetoed by the state's legislature republican majority.
Clearly, the bill is a boon for the non-productive sector of the economy.
It is also inconsequential that the uber-rich tax rate will stay at 39.6%; because, if the Kansas experiment told us something, is that the uber-rich are already asking their accountants to get ready to creat pass-through entities for them.
No, this is not good.
13
I see lot's in this bill that hurts me, and little that helps. I live in a high-cost, high-tax area and the plan seems tailor made to stick it to me and my neighbors. Still, I could possibly accept seeing my tax burden go up and seeing the value of my family's largest asset (our home) go down if I thought it was the best thing for the country. But swallowing this pill so the deficit can go UP? Or so the estate tax can be eliminated? If you are going to redistribute my wealth, send it downward please! Any family with an estate worth more than 5 million dollars (even if it's a family farm) does not need my help!
By the way, a $600 increase to the already-laughable child tax credit falls far short of genuinely helping parents. With three children, our childcare costs alone (before food, diapers, clothes, lessons, medical expenses, etc.) have exceeded $20,000/year. And apparently a single parent will get a smaller credit than my two-parent household does. That's odd.
33
It's Republican "Families Valued".
I can’t tell for sure, but it sounds like this bill eliminates the marriage penalty. If it does, that would be a great outcome. Does anyone know for sure?
2
In their zeal to pass a new tax code ,it seems they forget the mission. Our Country certainly needs a more simplified code, a fairer code to all, a keen eye for the incentives ( loopholes), that actually work for our Country to grow and prosper and a budget that allows our IRS to have the ability to do their job, effectively. We have a great Country, How we fund ourselves and how we do that responsibly are not found in this bill. We are running record deficits, for many reasons but to add to that deficit with this plan , at this point is irresponsible and disregards who we are and what we want to be , Strong. Trickle down has not and never will work, so we need to find what drives our economy most ,and put our combined efforts into producing a bipartisan bill crafted to make us fiscally strong, morally re-engaged and able to govern ourselves to lift us all to a better place. Going faster to say you did it hardly ever gives you a better product. Do it right the first time, PLEASE. We can't afford to many more mistakes.
2
This is not a tax cut, for most of us. This is a services cut. Clean air? Clean water? Oh, Republicans are 100 percent for them, except, dagnab it! We can't afford them now. Safe bridges? Road repair? Building toll booths for those provides construction jobs! This tax plan is the first step taken to drag government down to the bath tub, where Grover Norquist is waiting to drown it. And most of us will STILL pay higher taxes!
8
Why are we listening to tax code revisions from a man who refuses to release his own return?
28
Do you really need to see his return? He does not pay "regular income tax" because the losses from his real estate businesses give him zero taxable income. The AMT is the only reason he pays any taxes and he will be tax-free upon its repeal. Whoopee for him, not so much for the rest of us.
I am sick and tired of watching Republicans and Democrats finagle ways to decrease the tax burden, thus pleasing their constituents and/or corporate sponsors, and getting themselves reelected. I know of no instance where anyone, at any income level, has been impoverished by having to pay taxes. Yet, year after year, from Reagan on, the parties endlessly debate when and how to cut taxes. Why don't they look at it from a fresh perspective. What kind of Federal government do we want and what do we want it to accomplish -- then we figure out how much that costs -- and, finally, we join together to pay that cost!!!
17
At last- Sanity - thanks Richard Jewett.
3
Republicans have moved past the flat tax to their dream, inverted marginal tax rates.
4
Talk about burying the lead . . .
Only in the second sentence of the 29th paragraph do we learn the proposal repeals the estate tax.
There is no economic argument, not even a bogus one, for this. It is an enormous gift to the super wealthy.
15
Yes, there is. This money has already been taxed. So to do so again is nothing less than an envy-driven money grab. They earned it, they have every right to keep it. I’ll make my own money, thank you.
And it repeals a benefit for the disabled. Does it get any more heartless?
1
Inherited wealth is not earned. Even Andrew Carnegie understood that. Taxes exist to create social benefits. One of them that is reasonable is mitigating against a ballooning upper class of inherited wealth. If you think we deserve what we make then your children should also make their own way. And if you have an estate of over $5M, I would suggest — assuming you “earned” it all yourself that your labor is grossly overvalued. Plus it’s just basically selfish.
3
The Republicans have presented this just in time to coerce voters in five days. The pain of program and benefit cuts will probably come just after the Republicans win more elected positions and long before the next election next year so people forget.
It's the Republican payoff season!
3
The only good thing about this tax proposal is that maybe the working and middle class people that voted for Trump will now clearly see that he and his party are working against their and the country's best interest. Completely shameful.
9
You're optimistic. I don't have confidence in their ability to see through this. They seem to vote for them over and over. If they didn't see through Trump's con job, I doubt they will now. I hope I'M wrong.
6
If this tax revision passes as is, Election Day 2018 can't come soon enough!
If you want real economic growth at a cost of 1.5 trillion dollars, then forgive that exact amount in student loan debts, which would send crashing ripples through the economy over night. Until then, all this talk is simply code for “debt increase” with a few paltry morsels thrown into appease the middle class.
7
JDBoston
Excellent comment re student loans!!!
Nestled within this bill is a special rule that would allow churches to endorse political candidates, leveraging their tax exempt status to benefit campaigns rather than charitable works. Let that sink in.
27
So who gets to tell the big multinationals like GE, Verizon, etc. that already pay zero corporate taxes that they are getting a tax increase to 20%?
As if...
3
Ryan said the $1,000 tax cut for a married couple will help with college. When is the last time he looked at college tuition rates? An inexpensive class is 3,000.
That is just one class. So with the new cut, a person can pay for 1 class after 3 years.
3
Or, you could buy a car!
My question for all of us, for all of Congress, for all the Trump voters out there: Will you be better off under this plan? We are all protecting our own lives, our own families and our own communities as we should, and as the richest, most powerful and entitled among us will do and are doing as well.
Information and the access to it, will be critical on this budget fight. i hope truth wins, but I will not expect it to. Selling tax breaks to the poor are nothing more or less than trickle-down economics. or selling patent medicines to the addicted.
1
I don’t know if this is feasible but what would be helpful to middle class families is a “trial” formula where a person/ family could enter their income, standard exemptions, and whatever other credit/exemptions are allowed to see how their taxes would be affected. This would work similar to sites that calculate what your car loan payment would be depending on interest rates, down payment, and amount financed.
Also Trump must be required to release his tax returns.
2
Do you think they really want you to know how much they are increasing your taxes?
AARP or the Democratic Party could and should create that web site!
Some changes that would make this proposal fairer are:
1 - Eliminate the preferential capital gains tax rate and tax capital gains at regular income rates, since most capital gains (pensions, 401(K) plans, etc) are already taxed as income. Then reduce the tax bracket rates.
2 - Stop taxing gains such as mutual funds distributions until people actually sell their shares.
3 - Bundle all potential deductions together except charitable donations (state and local taxes, real estate taxes, etc) and allow any of them to be deducted up to a capped amount.
4 - Keep the estate tax.
3
5 - Keep the AMT. Make the wealthy pay their fair share of taxes. The 39.6 percent tax rate for "millionaires" is irrelevant to people like 45 with huge tax deductions and losses that reduce their taxable income to minimal amounts or zero. If AMT is repealed, they pay NO taxes.
I don't know if people realize this in DC, but there is a way to reduce the tax burden on the lowest income earners and offset that with increases on the highest earners. Why do I never see a tax plan that achieves that. Why do the top 1% need any tax cut at all?
I keep seeing that emphasis that they are keeping the top tax rate for high earners at 39.6%, but the key is that that rate doesn't apply until income reaches 1,000,000 for married couples. That is a massive increase from the current cut-off of incomes above $470,000. This saves the highest earners $24,000 per year in taxes. Why is this necessary?
6
There are very little tax cuts, if any, for the middle and upper middle classes.
Huge tax breaks are being given to upper income taxpayers. For example,
taxpayers with taxable income of one million and more get a $20,000 break.
The estate tax elimination gives millions more to the upper .1% like Trump
, Bill Gates , and many others on both sides of the political spectrum. This
is a shameful bills that pretends to give a significant break to most taxpayers.
6
As I face retirement I thought I was prepared. I have no pension, but I saved the top amount in my 401k for the last 20 plus years. My house is almost paid off so I could afford retirement. So now comes this tax plan and it is a set back. How do I live in my house when the state taxes and my property taxes are reduced to 10k deduction? I don't have a big house. I paid off my house so the mortgage exception to $500k is no help to me. If I need a nursing home I will no longer be able to exempt those monies.
AARP, I have been a member for years, you need to step up and advocate for all of us now or we will need to retire in a foreign county.
10
As a single mother making very low six digits, I lose. I itemize but I have reasonable state taxes and property taxes (that sum to about 10k). The increased child tax credit is still phased out for me. If I earn the same amount next year, my estimated tax bill goes UP about $3200 or 17%!! I don't imagine I'll see a raise from my employer (the state) for the predicted increase to the economy (nor do I believe it) , but maybe a portion of my very small stock investments will increase their dividend payout from their tax bounty. All in all, this is a corporate tax reduction on the backs of the ITEMIZING middle class.
24
As usual, single people get the LEAST benefit. Its not fair.
19
Republicans measure everything in dollars, including "Family Values".
1
Why do the headline and precis for this article not mention the elimination of the state and local income tax deduction? Particularly in New York, this is not just a detail.
With the elimination, the proposed changes are NOT a tax cut for the middle class, as the headline says. Middle-class New Yorkers (and middle-class taxpayers from other states with high state and local income taxes) would see a tax hike, not a tax cut.
The headline is very misleading.
16
I agree entirely but I think the rationale is obvious. High tax states tend to vote Democratic. Low tax states, which also tend to be net tax dollar recipients, vote Republican.
This is a tax cut for Republican voters in states that prefer to let the Federal government foot the bill while neglecting the wellbeing of the majority of their citizens, and hypocritically, railing against the government that supports them.
3
MY understanding is that cowards like McConnell and Ryan ducked that one and removed any change on that score. Different outlets are saying different things.
Well.i personally did not know you in these states were taking money away from the collective to fund your state. You sound two faced. Bernie and Michael Moore want you to pay more and now you can. Or..drop your state taxes.
Perhaps i missed it. Again How would they pay for this bill?
12
Allan, it's voodoo economics (as recently displayed in Kansas). The fond hope is that lowering tax rates on the rich and on corporations will magically produce economic growth and higher wages for working people. In turn, higher tax revenues will magically appear. By the way, "voodoo economics" was a term apparently invented by the father of G.W. Bush, who turned a balanced federal budget under (Bill) Clinton into a massive deficit to fund his pet wars.
2
That's the next Democratic administration.
They haven't worked that out yet. So,TBA, but if they keep it under $1.5T, they don't involve the Democrats.
Paul Manafort is set to make oodles. The funny thing is he won’t be able to spend it. Now THATS funny!
7
But blue chips sell real estate.
Why does the US media continue to report any Congressional action or proposal as something done by one or the other political party? ("Republican lawmakers today proposed ...") Political parties are not mentioned in the US Constitution or laws having to do with Congressional composition. They are external membership organizations, with no more governmental legitimacy than the AARP, NRA or Disney Movie Fan Club. So the fact that one Senator is a member of a party should not be the lede. Perhaps mention it in paragraph four? Your obsession with party identity further divides our nation, forces lawmakers to put party before country, and propagates the myth that we must be a two-party society.
3
It's not a myth, even though as you say it's not in the Constitution. The GOP has gone out of its way to push through on their own laws such as this tax "reform", by use of the so-called reconciliation process. None of that is in the Constitution, which compromised a lot on slavery (3/5 was one of those compromises) and didn't mention the underlying tensions.
2
Blue states like my state Maryland - already receive about $.70 for every dollar we pay to the fed., while the Southern Red States (Alabama, Arkansas, Mississippi) get around $1.30 for every dollar they pay to the feds.
We in the blue states don't complain yet we receive no thanks from the "takers".
Now Trump and company are taking away our deductions!
18
Call your representatives and demand they start playing hardball then. Seems like every few months we have another debt ceiling showdown. Maybe it's time for blue states to demand that there be a limit on how much more a state can get from the Federal government than it contributes in exchange for votes.
3
Well..your statement could be misleading. If you all writing off your real income in deductions to state and local..are you really paying your share to the collective? What a great way for Michael Moore and Bernie Sanders supporters to finally pay more.
The final bill should require that the President release his tax returns. Wait for the veto
19
Gee fellow readers...elections DO have consequences!
There is so much fury, anger, anxiety, frustration in every comment on every story involving the GOP’s attempt to keep all the wealth going to themselves and their overlords the .01%.
How I wish that every one of you had this much energy that you would have voted in the 2010 midterms (23% voted), 2014 (again about 23% voted) and Dem candidates REFUSED to back Obama, and then in 2016 half of us STILL didn’t vote! (Oh they’re BOTH awful candidates--I refuse to vote!)
As politicians and philosophers say over and over. “We get the government we deserve."
So don’t blame Paul Ryan, Mitch McConnell, djt, and the Freedom Caucus.
Look in the mirror and ask yourself “How was I complicit in allowing these people to run our country? Did I go along with the crowd and say how I was “tired” of the Clintons? Did I even bother to read Hillary’s website of her ideas for helping fellow Americans once she was POTUS?”
Or did I spend more time talking about the Kardashians, Kanye, Jay-Z and Beyonce. Was I more excited about “Star Wars” returning than getting to the polls or defending our Democratic candidates. Hillary didn’t lose as much as the rest of us just didn’t get involved in our democratic process.
It’s too late to blame the GOP. Time we did some soul-searching as IT IS ALL ON US!
23
I voted in all of those elections, so this is definitely NOT "on me"
3
Ryan says the average family of four would save $1,182 annually.
Do the math. 1182 divided by 365.
A savings of?! $3.24 per day.
Sweet. I can super size my fries.
15
Most of the "average" saving amount results from the huge savings for the 1%
1
That's a whole $.81 per person per day on average.
“The people of New York City deserve a tax break.”
Maybe... but why should the rest of us have to subsidize your high city and state taxes? My city and state get along fine with neither.
You want a tax break? Talk to your governor and mayor, not the taxpayers.
3
Florida is dependent on those winter seasonal people spending their winter months here spending money... lot’s of it in Sunny Florida. Our economy is totally dependent on real estate and retirees. Everything revolves around that. Our GOP Congress just killed the first part of that formula. Next year they will attach the largest component of the deficit. Social Security and Medicare.
2
Chris, don't worry about NY, your own state will be under water soon and you will still have to pay your property tax which are only deductible to $10k under this plan.
1
@Chris: Excuse me, where do you get the idea that YOU are subsidizing OUR "high city and state taxes"? Florida receives about $4.50 from the federal government for every $1.00 Floridians pay to the federal government in taxes.
So, how about if Florida residents make do on 1/4 of what you're currently getting from the federal government - doesn't that sound fair to you? It sure sounds fair to me! THEN we can talk about state & local tax deductions, b/c I think you'll find that your state and local taxes will go through the roof.
2
Clearly the younger folks are out to get us boomers.
4
Do Americans not understand that, without taxes, our schools, infrastructure, environment, and social safety net will collapse????
14
Really???? Who is proposing eliminating the income tax?
1
What? Are my taxes going to ZERO? I don't think so. The sky isn't falling, take a deep breath.
Thanks for letting me know that the country was living in utter chaos until the income tax was created in the 1920s.
According to Citizens United, corporations are people. So why are they getting a disproportionate break compared to other folks?
Oh wait - this is a GOP bill. Never mind.
9
All corporations do is pass tax costs along to their customers. Or else leave the US in search of less costly tax havens, which they must do when competitors do the same to remain competitive. The math is pretty simple here.
Corporations don't pay taxes, their customers pay the taxes, in the form of higher prices.
just like sales tax
You guys are funny. As if taxes were the only thing corporations react to. Prices are set by the market and competition or didn’t you know? Demand drives business decisions and profits are pocketed or returned to shareholders. Corporate taxes are not sales sales taxes. This is a redistribution of wealth from wage earners to owners of capital.
Roskam is my congressman unfortunately and now he's gotta go!
3
This proposal is like one of those credit card offers that I used to take when I was dumb, stupid, and crazy, but I no longer do. For a tax cut for a whole bunch of other people today (which will turn the deficit into MegaDeathicit), I can sign up for a nut crushing debt that will still be ballooning when my grandchildren are dead.
Ryan and crew: You guys need to start going to meetings. You have a problem. Face up to it.
10
How do you rationalize increasing by 2% the tax rate of those making under $10,000 and decreasing by 4.6% the tax rate for those making over $400,000????
22
From the political point of view, as a Democrat supporter, I am okay with eliminating medical expense deduction. Most of the people using this deduction vote for the Republican party, only out of their fear of Immigrants and hatred of blacks and browns. Let them fight to preserve it. Democrat should not worry about it.
It seems like a good set of compromises, with a little room left to work out some issues. The Republicans definitely deserve credit for this and hopefully some Democrat votes, and not the usual Schumer/Pelosi Poopoofest.
1
Certainly the GOP is relying on highly optimistic growth rates to pay for this extreme tax slash.
Trickle Down Theory whereby corporate tax cuts benefit the middle/poor classes:
Fake News.
12
This is a Paul Ryan/Ayn Rand tax proposal. No thank you!
12
The silver lining here is that taxes will increase even for GOP middle class families.
4
Let's not believe anything until we see the real final version -- the version sent to the WH for signature. Just because the Repubs say they're going to do it this way -- which admittedly is not as bad as predicted, but still bad -- doesn't mean the slick Repubs won't try to change things as it goes along, making it worse for middle class Americans.
I hope the pro-consumer groups like the Realtors can get some things changed, but we need to watch the swamp rats to make sure they don't go backwards on some of what they've announced here.
Watch the swamp rats -- which cheese are they chewing on?
1
Gee thanks, Trump. As a middle class wage earner in a high sales tax state with three kids, looks like my taxes are going to go up so we can give more money to rich people through estate tax & AMT elimination! Yay!
10
Wait... who’s fault is it that you live in a “high sales tax state?”
Moving is an option. So is petitioning your governor and legislators for tax relief. Asking me (and other federal taxpayers) to subsidize your choices should not be an option.
1
GOP doesn't like disabled people:
Who uses medical deduction..families with disabled, chronically ill or folks in nursing care that medical needs are not covered under medical insurance like
home modification after stroke, cognition therapy for folks with brain injuries,etc.
GOP budget cuts trillions from Medicaid and Medicare which is used heavily by the disabled.
GOP's Mulvaney wants to cut Social Security for disabled, Meals on Wheels, etc.
Trump, GOP and their voters are evil, incompetent and not cost effective...
6
Meals on Wheels is not a government program. There is nothing in the article about cutting social security. If you make things up expect to be called out for it.
1
Memo to Corporate America: Stand and Deliver...the lost revenue to pay for services that will have to be cut. If in doubt, contact Kansas.
3
Where is the Tea Party in all this? I thought they were freaking out about the debt and told Obama he couldn't do a spending bill because we had no money, yet this adds to the debt by 1.5 trillion? Shouldn't we make either spending cuts, or increase taxes elsewhere to make this at least cost neutral? Please don't tell me they think this will "pay for itself" with magical growth? The way it didn't happen in Kansas?
7
I am disabled from the 9/11 attack on the WTC. I will now have to pay tax on the $848/year I am over the proposed limits, and my medical expenses that are not covered by the WTC Health program will no longer be deductible?
This bill is a travesty, and it hurts me, personally. I can barely make ends meet as it is. It has been 16 years since the attack, and I have yet to receive a Victim Compensation Fund award. That award is now tax-exempt, but I suppose they want a cut of that, too. Hey, as long as the Koch brothers get a break, right?
7
Everyone should send Buffet Brady a pound of bacon. He deserves it.
Funny how there has been no mention of what corporate tax deductions have been eliminate or reduced, yet they are sending the rate to 20% from 35%?
But the kicker today, Trump appoints a Yellen lackey to run the Fed to keep the cap rate on Trump's investment properties low.............. Savers are again hosed by greedy debtors and the Fed.
A double dip today for rank and file Americans with Brady and Ryan sticking it to them. The Koch's fortune is secure. Happy days are here again.
This fellow doesn't look like he could make a hard decision even if he tried.
You want to eliminate a deduction? Eliminate the one for charitable contributions. No one has to incur these expenses. People do so voluntarily. As such do it on your own dime.
6
Agree. And living in an extraordinarily high tax location like NYC is also a choice. So let’s stop subsidizing choices. All choices.
1
Looks like the plan also aim to penalize singles, especially singles with kid.
4
Hey! Corporations are people, too. They are just immortal and get better tax rates than everyone but the least fortunate of US citizens.
Wonder why they don't have the sliding percentages based on income like we do?
1
This plan RAISES my taxes.
I am middle class.
The government would be taking my money and giving it to Paris Hilton and Trump Jr.
The headline and entire premise is an outright lie.
Stop stealing from the middle class!
7
What happened to the deficits? Are we going to agree to a tax cut that overwhelmingly benefits the wealthiest Americans and corporations who need it the least? Where is all the money going to come from to pay our bills? Of course, they will borrow it and stick the working class with the cost. The interest on these loans enrich the wealthy even further and the hobble working class with higher taxes ultimately. It's hit-and-run economics. When the budget shortfalls become unavoidable, Republicans will use this as an excuse to gouge Medicare, Medicaid, and Social Security.
They never mention raising taxes on the real money (the people who pay for them) that owns everything. Republicans' idea of small government is cutting everything that benefits the people in need and making us pay for a government that only benefits big money. You talk about terrorism? How many people will suffer and die because of this cruel policy fueled by perverse greed?
This "cut taxes to stimulate the economy" lie is almost 40 years old now. The issue is it only has benefited the wealthy. It's just not doing much of anything for the working class! Don't believe a word of their sugar-coated lies! The whole political circus with healthcare was to wear us out. This was their real intention all along. Shameful! Have YOU no honor at long last?
3
All of the tax cuts go to corporations. All of the tax increases goes to the middle class workers. Cut, cut, cut the throats of the middle class and you will kill the American economy.
4
It would be very useful to have a computer tax filing program like Turbo Tax release a version that would "run the numbers" from my 2016 return on this new bill. That would end a lot of speculation.
4
I'll be happy if there is a program that can run this year's taxes before Aprill 15.
It ain't gonna balance the budget. Ever. So, it just stinks.
Eliminating the estate tax is simply grand theft from the treasury for the benefit of the 1%. Just part of the program for the kleptocracy...
5
At first blush this tax plan looks like an increase for a lot of middle class parents with 2+ children.
3
Okay.....Rya says they need to increase economic growth. To do so, we’ll need all Americans participating in the workplace. Which means women, who the republicans are doing their damndest to drive away. Without legislation to cover childcare expenses, universal insurance coverage for effective contraceptives (women need to be able to control their fertility on order to ensure they will be able to meet responsibilities of their employer, while handling the needs of their families, as women are often handling both with little or no support) the republicans will not be able to cover their bill’s inherent deficits.
Then there’s the content. Looks moderate on the surface, but when you look at it closely you gotta wonder if anything else can be swept under this rug.
One should not have to worry about taxes like this will impose on old age, when fortunate enough to pay for extended nursing care and long term care after serious illness. That’s just heinous.
1
What happened to the republicans of yesteryear who wanted to balance the budget, not run it into the next stratosphere?
Who are these people and why are they referring to themselves as republicans?!
3
If anything close to this passes, the GOP can kiss all their reps in California, New York, Illinois, Florida, Pennsylvania, Maryland, Washington, Oregon, Colorado, Minnesota, and Wisconsin goodbye. Get it done quick, limit debate, so average families will be distracted by the time fall 2018 comes around.
"Sweeping" is a good term for something you sweep under the rug. Like this proposal.
3
If corporations are people, they should be taxed at personal rates.
3
So, now I will be taxed on the tax that I already paid (state tax)? Is not that rediculous?
3
The deficit is what stuns me the most. Trump is going to bankrupt our country just like all those businesses he ran into the ground.
5
The deficit, which the GOP screams bloody murder about when the Democrats are in control, will increase 1.5 trillion over ten years, and the Republicans will then say that social security, medicare and medicaid have to go. Instead of complaining about the deficit they'll complain about "entitlements."
It's the same old shell game they've been promoting since Saint Ronnie was president.
5
“Contrary to their assertions, the Republicans are picking winners and losers,” Jerry Howard, chief executive of the National Association of Homebuilders, said in an interview. “They are picking rich Americans and corporations over small businesses and the middle class.”
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One of the initial assumptions made by some voters, was that electing someone who is already a "very successful and rich" businessman, in this case Donald Trump, would mean that he cannot possibly be corrupt, because he wouldn't be tempted by money, bribes etc. Because, you know, he is rich, so why would he need more?!
That same belief and idea, was repeated as Trump filled his cabinet with billionaires and multimillionares. The Trump administration would be impervious to greed and self-interest, because you know, they are already rich, so why would they need more?!
I think it's safe to say that the behaviour of Donald Trump as well as that of some of his cabinet members, especially Tom Price and Steven Mnuchin, should normally disabuse people of such notions. But in our current climate, that hasn't happened and most likely won't.
Looking at this wishy washy, muddled and unclear tax reform bill, it may be that people are about to be soaked in some cold water as a new ugly reality dawns on them. One in which the very wealthy and corporations are favoured and catered to even more than before, while they are forgotten.
2
Since the purpose of this bill is to stimulate the economy, where are the details explaining that aspect? With jobless rate of about 4 percent, where will the workers come from? How will the administration incentivize workers to reenter the labor force? How will it make up for the retiring baby boomers? Will there be new immigration legislation?
Oh, never mind. Silly me.
1
There is no excuse for the change to the estate tax though. Five million wasn't enough?
5
This tax bill apparently favors "middle class" people with annual taxable incomes > $450k. For married couples with a median income...about $59k annually... who have more than 2 children and/or high property taxes and/or medical expenses and/or student loans, this tax plan is a killer. It is also a killer for elderly people, who have a little income in addition to social security. Property taxes and/or medical expenses will mean higher taxes. For parents of disabled children, this bill is a nightmare. Many people, except the very wealthy, will gain nothing. The rest will pay more taxes so US corporations can pay very little. As for the trickle down theories pushed by GOP reps and senators, we've heard all that and it is just as dishonest now as it was before
4
No matter how they try to make it palatable, you can count on the fact that with today's government (or non-functioning one) any tax plan will benefit the likes of Trump at the expense of the middle and lower classes. The Republicans do not care a whit about the majority of Americans - they care only about their own crooked wallets.
3
What happened to Trump's campaign promise to eliminate the carried interest loophole, a factor big enough to have budgetary impact and gross enough to make your head explode? Remember Trump saying he knew those private equity and hedge fund guys and THAT was going to go, believe me. And so it goes.
2
Voodoo economics, supply side economics, trickle down economics. Bad economics! I'm 51 and have never seen any of it work for working class families.
4
The devil is in the details. As a retiree on a fixed income with very high property taxes (original purchase price of lot and house 25 yrs ago was a lot less than $500,000) I will see a huge tax increase based on the info so far. I am sure there are many more like me who live in areas where the state and local governments have been using real estate taxes to pay for services that should be covered by the federal government. This Republican tax plan will be taking more money from me to give to those with much more income than me. OUCH!!!!
3
4 ways Trump and his family will benefit under the Republican tax plan
1. A lower rate on business income
2. Repeal of the estate tax
3. More generous write-offs on capital investments
4. Repeal of the Alternative Minimum Tax
Trump had to pay an additional $31 million on his 2005 return because of the AMT. In 2005, he would have had to pay only $5.3 million if it weren't for the AMT.
3
This article neglects to mention the elimination of the personal exemption. Losing this deduction means that effectively the standard deduction is NOT doubling and may in fact actually be increasing for some middle class families with multiple children.
2
Can we start over at the beginning and address foundation of nonsense this whole tax ‘reform’ is built on? That nonsense being: increasing the deficit by $1.5 trillion over ten years for the purpose of cutting tax revenue today.
The 2017 federal budget deficit was $666 billion. All other things being equal, under the Republican plan next year’s deficit will be $150 billion worse. This isn’t a tax cut bill. It’s a tax shift bill. Tax revenue is reduced today and changed into a debt to be repaid later.
This whole thing is lunacy from the very outset. Republicans are harming our national finances in service of a fantastical tax cut ideology.
1
i see many of the commenters are falling for the old Republican tax cut con. You know, the one where they say they are going to make very large tax cuts for the wealthy and then after "consideration" they "just" make large irresponsible tax cuts. Then we get all thankful and appreciative that they weren't hugely irresponsible. As Lincoln said, you can fool some of the people all of the time. What he didn't say is that for the rich and their politicians, that's more than good enough.
2
The carried interest loophole remains untouched in the proposal despite a lot of noise on the campaign trail by Trump last year about its unfairness. This is a very basic litmus test for whether Trump and the Republicans are really willing to go after unfair tax treatment at the top of the income scale. Not surprisingly, they aren't. Carried interest should be taxed the same as wages and not as capital gains. With all the rest of the provisions tilted to help the wealthy, even getting rid of the carried interest loophole would not have saved the proposal from stacking the deck for the wealthy against the middle class. But leaving it in just shows that Trump and the Republicans don't care and think we are too stupid to notice and do anything about it. Of course, the fundamental problem with the proposal is that it doesn't pay for the $1.5T in cuts. It will blow a hole in the budget and add to the national debt - a debt that our children and grandchildren will be paying off for years. This is NOT tax reform. It is another Republican debt-fueled bender for the rich, the third of my lifetime.
The question always is “pro-growth” for whom? It is hard to even understand at this point what is
being proposed. But the code words for cutting benefits for middle and lower income segments of society are in place. The language for heaping benefits on the most affluent are also in place. The
Laffer Curve has always been a disaster, ever since Reagan. This proposed legislation needs to be carefully considered. To try to cram it through by the end of December is ridiculous and possibly dangerous for the economy. Congress should take its time to review the whole proposal carefully and continue a careful review well into next year.
On the surface it looks to target blue state deductions while protecting red states. Blue states depend much more on the mortgage interest deductions because of the higher costs of housing. Blue states also charge more in state and local taxes. I imagine the education deductions are also used more in blue states. It feels like they studied tax revenue info and tried to stick it to blue states.
4
Wow, the adoption tax credit would be eliminated. I don't know what world the author of that provision lives in, but in mine, every child deserves a home. To the author of the anti-adoption tax credit, I post this quote and say, shame, shame on you: "You can easily judge the character of a man by how he treats those who can do nothing for him."
24
The new tax bill is not for the people. The majority did not choose it and Congress had no right to choose it for us. We need to out them.
18
@CdRS
What a juvenile comment.
Whom do you believe “the people” work for?
A basic grasp of macroeconomics would do Progressives so much good.
Or we could become State Capitalists like China.
The only thing that matters in tax policy is which approach encourages the greatest velocity of money.
Leave social policy out of it. It’s a separate matter.
1
Check the current tax brackets. Most of the middle class will receive a 3% cut, some might receive a 10% cut. Capping the mortgage and state tax deductions will make it a wash for homeowners. Congress also wants to reduce the maximum 401k contribution from $18k to $2400 which will also reduce deductions. Can anyone say shell game?
4
Alternative Minimum Tax should not be eliminated wholesale-that's a giveaway to the rich. Rather, it should be revised so that it does not reach as far as it used to. It should phase in gradually for incomes starting at $200k, for example, and hit its maximum effect by $350k, for example.
The Mortgage Interest Deduction (MID) distorts the free market for housing. It's an unnecessary gift to the Finance, RE, and Insurance (FIRE) industry that renters also pay for, sans any benefits. If the purpose of the MID is to help first-time buyers, as the RE industry claims, it should only be applicable up to the average price of housing in a particular state.
4
Does this plan eliminate the carried interest loophole that allows wealthy hedge fund managers to pay the low capital gains tax rate on their INCOME instead of the income tax rate? If not, WHY NOT?
8
Remember, Trump promised to close this loophole. And remember that Democrats Dodd and Schumer -- the senators from Wall Street -- repeatedly turned a blind a blind eye to this travesty. If Trump carries through on this pledge...he will have done one good thing. But don't hold your breath.
2
A little history might be helpful for this discussion. The issue of fairness arises when both higher tax rates for the wealthy and inheritance taxes are discussed. By what right does the community claim rights to take more from some than from others for the same common wealth and services? It seems like the many who have not been exceedingly successful are just confiscating the hard earned wealth of those who have.
The reason requires considering the common welfare of all the people who make up the community and the continuation of the community. The amassing of greater and greater proportions of the new wealth means that those with more under their control determine how it may be used or set aside. The effects over time can be well illustrated by France under Louis XVI. The regime collapsed from civil unrest and the inability to afford to off debt incurred. One reason, the Roman Catholic Church began receiving gifts of land from private individuals to assure they or their loved ones of getting into Heaven easier, and the gifts went on from the 500's through the 1700's. All that land became untaxed land owned by the Church which mostly rented it out to peasants who farmed the land and compensated the Church not the state. In the end, France became insolvent and it's economy was simply not able to serve the government and the people any longer. The Church prospered but it's prosperity did not spill over into the nation states where they owned so much property.
1
There is discussion about eliminating the itemized deduction for state, local and real estate taxes. Those deductions should remain intact because they are fair.
The Tax Code involves some social engineering. The Tax Code allows Itemized Deductions of various sums for various reasons.
For instance we allow deductions for charitable contributions because this encourages people to give. If we did not have that deduction contributions would decline and the charities, such as the diseases, the arts, those who help the poor, would go to the government begging for support.
We allow deductions for medical expenses to give afflicted people a break.
We give deductions for mortgage interest because we want to encourage people to own their own homes.
These deductions are deduction from income. These are not deductions from tax.
When it comes to State and Local taxes we allow deductions because it is fair. State and Local taxes are sums which are IMPOSED upon us by state and local governments and MUST be paid. The itemized deduction on Schedule A of the 1040 removes from your income these taxes which are paid to State and Local governments because we have no choice but to pay them. These are sums which are involuntarily taken from us and are not available to us to support our lifestyles. While it makes sense to tax peoples' income it is unfair to tax people on income which is confiscated from them by state and local governments.
10
There not telling us enough,This isn't the full picture. Increase will be need to fill Tax- cut for State and local taxes. Plus there no addressing the deficits to entitlement and education. or correcting what made the problem in the first. Like the 4+ Trillion dollar setting in overseas account . That we bail-out from what they did not tell us in the first place. Repeating the mistake makes no sense. And we don;t have the checks and balances or safety -net in place to stop it . Growing there offshore accounts from are Tax-cut and deregulation. That will grow 4+ trillion to what 8 or 10 Trillion or more .
It is still difficult to evaluate this plan when there is no mention of personal exemptions. CNN Money is reporting they are to be eliminated. If so, even with an increase of 12K on the standard deduction, a family of 3 has already seen that advantage, subsequently, completely consumed. This could amount to a "one child" tax policy.
5
They are eliminated. You have to dig into the details. Taxes ended up being a push for me with this change.
Okay, so you line the pockets of corporations that have been offshoring jobs (and will continue to do so), disincentivize home building (wherein jobs cannot be offshored), massively reward the super-rich, who are likely to offshore a large portion of their loot, and raise taxes on the upper middle class, who tend to spend most of what they have at home. And we do all this and push the $1.5 trillion bill down the road to our kids and grandkids in order to increase jobs at home. Makes sense to me.
2
Rather than responding to the hyperbole online right now, I re-estimated my 2017 taxes under the GOP plan. Married, filing jointly with 2 adult children at home. The result was a modest decrease in tax burden. The tax proposal is clearly not targeted at this middle-class tax payer.
5
Much better than I thought it would be. It has a lot of interesting business incentives for keeping money in the US. It also makes it more profitable to keep money in the company instead of paying it out as dividends.
Reducing corporate tax breaks should even the playing field a bit between big and small companies. Tax breaks generally have a barrier for entry that keeps small business from using them.
The devil is in the details but I am hopeful this will keep money in Main St and not just send it into the Walstreet casino like previous tax cuts.
1
Why would a company bring their money back home if it is to be taxed, even if it’s at a ‘lower’ rate than currently. They pay NOTHING by keeping it abroad. They won’t bring it back and that’s why this whole thing is a giant corporate give away. My taxes will either stay the same or go up in several years AND our deficit will sky rocket with absolutely nothing to show for it. At least when the Dems increase the deficit there are people that benefit. Oh wait, corporations are people too. I forgot. Republicans are the biggest hypocrites EVER when it comes to being ‘fiscally responsible’. In fact, they make me sick. Liars, all of them.
4
The Republicans' constant clamor for lower taxes considers only one side of the equation. What do the non-wealthy lose in exchange for a "tax cut"? Adequately funded everything: infrastructure, EPA, FEMA, NIH, CDC, secondary schools, universities, etc.-everything that is federally funded and useful. Is it worth sacrificing all of that (essentially a functioning society) to have an extra $1000 in your pocket? Good grief.
5
Just think, these tax cuts for the wealthy would not have been possible if not for the overwhelming support of evangelical Christians. Blessed be indeed. Might I suggest however that they change their name from evangelical Christians to capitalist Christians, given that they have turned their back on the ill, the poor and the suffering. I'm open to other suggestions. Big money Christians, Trump Christians...? Or even simpler take out the Christ and just call them Ians. After all, they've pretty much taken his teachings out of the equation.
6
Everyone can use last year tax return to calculate the financial effect of the proposed plan on them. At 25% bracket with no kids, the proposed plan will save us $3,000.
I've just done the math for my own taxes, and I don't like the results.
I'm definitely one of the middle class losers under Trump's tax plan. Not only will I not be getting any tax cut, I will actually be paying 25% more income taxes than I would otherwise pay under today's tax rules. All to make certain that billionaires like Trump, Mercer, Koch, and their friends can get their huge tax breaks.
I am an older, single home-owner with a large mortgage, a modest adjusted gross income of under $30,000, living in a high income-tax state, and paying high property taxes. My itemized deductions plus individual exemption are far in excess of the proposed $12,000 single person deduction. Not only will I lose my state income tax deduction and the portion of my property taxes that exceed $10,000, but, instead of a 10% federal tax rate on my income, under Trump Tax, my very modest income will be taxed at a higher rate -- 12%. More of my income will be taxed and at a 20% higher rate.
This is indeed a reverse Robin Hood tax.
10
This is the time for the Democrats to clearly explain how this bill will affect individuals. The DNC shoud upload a tax calculator to its website that would allow an individual to compare his or her present tax situation to taxes that would be paid under the new bill.
My suggestion - pay a company like Turbo Tax that already has the software to create an easy to use tax calculator. Then focus advertising on states where a Republican Senator might be vulnerable.
Let’s go Democrats. This is important. Spend some money.
5
Stop Welfare for Billionaires. This Republican boondoggle has been tried before? The Republican ten-year Tax Holiday for the elite donors led directly to the Bush Depression.
Hey, Republicans! Patriots PAY their TAXES!
5
Maybe in 5 generations it will trickle down to poor Americans.
1
Finally ... The comments here annoy me to the core, I am hearing MORAL principles not FINANCIAL reasons for opposition. What kind of moral exhibitionism is on display, the purpose of the taxation power is to fund government, not a tool of social justice ... Ask Venezuela how that fairs in the end.
A Financial reason for opposition? When the bills authors are struggling to keep the bill from losing $1.51 Trillion in revenue, then that's an issue.
And basing the plan's benefits on "expected future revenue from economic expansion", let me know what company lists "expected revenue" on their actual profit/loss statements...
Why was the carried interest loophole left untouched?
5
Will it be greatly advantageous to get divorced and file single? That would put me in the second tax tier and my wife in the lowest tax tier. Rather than our combined in the third tax tier. Win-win. The end of marriages in our country. Go Republicans.
3
I wonder what this statement means in the new tax plan:
Special rules for employee stock ownership plans
1
"The Republican House bill would entirely repeal credits for alimony payments"
Wow. Instant pay raise for every alimony recipient, and instant pay cut for every alimony payer. Totally unfair.
Better write to your Republican lawmakers. You can be sure there is no lobbying group out there advocating for fair laws for alimony payers.
3
Odd, most corporate deductions will be eliminated except two. One of those is, Low-income housing investment credit. I wonder who that helps, Ivanka and Jared? What a blatant rip off by the king of flim flam!
8
"Modest savings" for middle-class earners, indeed. Such savings is nothing more than a calculated buy-off, to reduce dissent from a large swath of the middle class population, which might affect elections, and not caring about dissent from the working class or the poor at all. The wealthy might as well have said "Let them eat grass and dung," as has been spoken by conquerors and thieves for centuries.
Ultimately this corporate tax cut is going to benefit the wealthy in massive dollar flow, and will not stimulate growth, as we know from experience that trickle-down economics is both a myth and a lie. All this will do is ensure greater upward movement of wealth, as if the rich did not have enough already. They know full well that government policies and tax regulations are heavily slanted in their favor, yet continue to cast dispersions upon the "lazy and feckless poor."
What is needed in this country is a true reckoning, and the reorientation of appropriate priorities, but this will not happen so long as the American population continues to be divided. This of course is also abetted by the wealthy, who continue to pour money into media efforts to sow such divisions and keep the "rabble" distracted.
What we have today is not even an oligarchy. It is pure, propaganda-driven kleptocracy. And so it goes, throughout history.
8
One this bill becomes law, the Republicans will declare that the huge budget deficits caused by it represent a national crisis that can only be resolved through severe cuts to Medicare, Medicaid, Social Security and other social programs. That’s pretty much the game plan.
14
It is rather humorous to watch the Republicans high-five and celebrate a piece of legislation that hasn’t passed either house. Remember the Rose Garden?
5
Why must corporations, a handful of powerful people and politicians dictate our lives to us? What happened to for the people by the people?
4
Why aren't you talking about the Medicare/Medicaid cuts tied to this bill?
6
House plan makes corporate tax cuts permanent. That is irreverent needs 60 votes in senate to become permanent
I am sorry but the people of NY City do not deserve a tax break. They pay absurd amounts to live in the city and perhaps tax deduction limits will serve to bring down the purchase price of of real estate in the city. I have little sympathy for those that pay $10 million of a condo and then want me to subsidize there purchase.
2
NYC pays more taxes to the federal government than it gets back. Th actually subsidize everyone else...
2
I live in suburban Kansas City where Gov. Brownback has essentially done what much of this bill calls for. In my community I see a lot of very wealthy Baby Boomers, some wealthy Gen X-ers that work for their parents or really enjoy networking and then there’s everybody else, many of them Millennials that can barely afford their first apartment let alone their first home. Opportunity isn’t abundant here; it’s a jungle where sales tax is outrageously high, property tax is laughable and the wealthy live in a bubble. If you want to see inequality baked-in ever further, follow Brownback’s lead. Another fast-track to Downton Abbey... “more tea and crumpets, M’Lord?”
7
So most slum lords, doctors, lawyers, business owners and Trump see their tax rates slashed from 39.5 to 25%, corporations bring their monies home at 12%, have their tax rates slashed to 20% and now have zero tax liability for any profits they shift to entities outside the US?
And those making a million or more get a tax break on half a million dollars, the income from 500k to their first million each year.
Plus the estate tax exemption doubles to $11 million, $22 million for a couple? And goes away completely in six years?
All of this sets the stage for gutting Medicare, Medicaid and Social Security, right? And all this while taxes in the US are lower than every other developed nation other than Ireland which uses super low rates in a desperate move to attract corporations like those that will enable profits from the US to completely escape US tax liability under Trump's plan?
8
I guess what I want to know is how will decreased revenue affect the responsibilities and duties of gop
Why are do people buying into this tax plan. Trickle down economics does not work. You give 2 trillion dollars to big business and you think they are going to share it with the people that work for these companies? If anyone can show one time in history that this has happen please let us know. The only people who will win with this tax bill are the rich.
8
Corporations have been doing quite nicely for a few years now and it has not led to them filling positions purged in recession and wage growth. Pure bunk.
4
Looks like our federal taxes will increase about 25%.
3
All you need to know about the people behind this is the proposal to eliminate the tax credit for disabled retirees over 65. How much money is that going to save versus, for example, the money lost by doubling the estate tax threshold? It's just a symbolic gesture of cruelty.
8
This bill will never pass without recanting the Mortgage W/O change and State and local tax exemptions remaining in place.
1
The big question is what does it do to the deficit. Eliminating the estate tax only help 40 of the Riches families in America, yet cost the government hundreds of billions of dollars each year and fall on the middle class to make up. This Tax Bill is a total disaster for America just as all the other tax cuts by republicans have been. Every time they do a tax cut the country goes into a recession shorty after.
4
Keep my money. I would rather live in a functioning society with some notion of social responsibility than feel like I got sold out for the price of a few hundred dollars.
7
Eiiminate the new pass through loophole and keep the inheritance tax aobe $11 million. These do not increase jobs but just help the wealthy. Taxpayers, the money for these will come from your grandkids in the form of crushing US debt.
5
Anyone who believes Paul Ryan when he says "...American can compete with the rest of the world" is incapable of objective reasoning. If you leave America and travel to any other country on this planet they'll all tell you the same thing: they're trying to catch-up to us. The notion that somehow America isn't competing or can't compete without the GOP's gift-to-the-rich tax plan is an insult to intelligent people everywhere. The real effect of this tax plan is that the rich get richer and the poor get poorer. You would think that civilized people would raise the minimum wage while handing out a corporate tax break. but we're talking about Republicans, not civilized people.
6
Someone making $900,000 a year gets a 6% tax cut, while someone making $19,000 (with no children) a year gets a 20% tax increase. Need I say more?
13
Uh, with a standard deduction of $24,000, the individual making $19k would pay nothing in federal income tax...nice one though.
3
Actually, you have a point, but not the one you made. A single person's deduction would be $12,000, up from the current $10,400 deduction and exemption. So they would pay taxes, and at 12% on $7,000, not 10% on $8600. In this case, then, they'd pay $840 instead of the current $860, so you are correct that their taxes would go down 2.3%. Thank you for (sort of) pointing this out.
3
The problem is that when an individual makes $30K a year, whereas now they pay $1960 in taxes, under this plan they will pay $2160 or a 5% tax increase. In sum: this plan transfers more taxes to the poor, at least when they are single.
2
what is up with applying the 35% tax rate to unmarried people making $200,000 when the bracket applies to married people at $1,000,000. Half of $1,000,000 is $500,000 ... do we need to ask the Supreme Court for anti-discrimination protection for single people?
6
Many seniors who pay for their nursing home care liquidate assets to do this
Now they can’t deduct their care as
Medical expenses so they will liquidate 30% more to pay the taxes and the care
Shame on the GOP
There is no limit to their greed or the people they will pauper to give more tax breaks to those that don’t need it and won’t spend it
11
Thank you for pointing this out.
This Republican/Trump tax proposal is about more than the number of people who will be hurt by it, it represents a turn in our country towards fascism. By the Republicans/Trump making all their financial laws permanent, its as good as a soft coup by the upper 1%, financed and payed for by the wealthiest people in the country for their own benefit.
4
According to a June 2017 Time CNN Money article:
There were 73,110 individuals in America in 2016 with a net worth in excess of THIRTY MILLION DOLLARS ($30,000,000).
That is an increase of 6.7% from the year before. The total is roughly the equivalent to the seating capacity of New Orleans’ Superdome.
Another way to look at it is that one in every 4,500 Americans now has an ultra-high net worth, defined as $30 million or more.
That is individuals not married couples. Te estate tax needs to stay.
http://time.com/money/4833875/ultra-wealthy-americans-millionaire-billio...
I like it very much though not eliminating the Estate Tax. A small sliding Federal inheritance tax based upon amount is both fair to recipients as well as fellow taxpayers. This element is a clear and obvious give away to the uber wealthy for which a thorough explanation of the reasoning and need to do this would be welcome. Having said that, I hope that a bi-partisan agreement can be reached. If all votes for this bill are Republican, than the Dems will be seen as out of touch with the middle class which will prove ill in 2018.
Jeff Bezos, CEO Amazon, who lives pay check to paycheck , is currently worth $97 billion. The Estate tax rate, currently 40%, will be 0% in 2024, reducing thre Bezos tax liability by more than $50 billion.
A middle-class tax cut for sure
2
"eliminating the estate tax ... an obvious give away to the uber wealthy for which a thorough explanation of the reasoning and need to do this would be welcome."
---------------------------------------------------------------
The rich need a safe a secure means to pass wealth to future generations of progengy. Tax evasion and avoidance induces risk. It is easier to kill a tax - Estate or Succession taxes, than to hide wealth in tax havens and use other agressive tax planning that few can afford to underwrite.
A minority of voters elected the Twitter King POTUS. His Highness loaded his cabinet with the wealthy folks. They 'kindly' work as $1 per year "patriots". In return, they will do everything they can to make America safe for the very small wealth class that already owns the majority of America's key assets. (Bill Gates, Warren Buffett, Michael Bloomberg and other 'living trust' billionaires are likely NOT concerned w/Estate Taxes.)
Theory has it that people are not economically literate. The Twitter King (AKA, The Lier-in-Chief) spun a plausible storyline - just kidding :) - that if Americans 'give' the world's wealthiest (mostly American) corporations tax breaks, profits will rise, and, 'magically', so will your income rise!
We call it a 'head fake' in hockey.
The game is elimination of Estate Tax. No economist worth his/her Ph.D. would support Trump Tax Theory: lowering corporate taxes will increase personal real wages is plausible, but highly unlikely.
the one huge issue i have is the lowering of the mortgage interest deduction. This will KILL home values and place many people in a short sale type of situation. No one will buy a house over 500K. How about eliminating the right for foreign interests and corporations to buy single family homes?
6
There is no proposed reduction to the deductibility of existing mortgage interest for a primary residence
0-19,050 tax rate from 12% t0 15%, this doesn't make sense, this range of people shouldn't pay tax anymore.
3
My husband and I have 8 children; some with significant special needs, and fall squarely in the middle class income range. This tax plan will significantly increase our tax burden, no question. Any family with more than 2 children will likely be worse off tax-wise under this plan, and I am not sure why there has not been more of a focus on this glaring hole in the story of this supposed "middle class tax cut" from Congress.
8
So how are we going to pay for this with its cost of $1.5 trillion over a decade? I'm in my twenties and I'm very discouraged by repeated policies that seem to "kick the can" to the future selves of younger citizens while older citizens can reap the benefits immediately without as much worry about the future.
6
One more time- STOP blaming older Americans. We are not running the country. All the boomers I know did not vote for trump and are not Congressmen trying to pass the criminal piece of legislation. Paid off politicians are trying to inflict damage on all generations that are not wealthy.
This bears more study, but the plan sounds like a disaster for middle class homeowners in high tax states like NY and NJ. The mortgages on many homes exceed $500,000 and the folks involved really are middle class. The wisdom of capping the interest deduction is questionable because although it can be argued that subsidies are unjustified, changing the rules in midstream may cause families to lose their homes. Or, these people may do the smart thing and relocate to other states. it's not a big secret that more people are moving out of NJ than moving in. I'm not sure if the same hold true for NY. Notwithstanding. all state and local taxes should be deductible from federal taxes because double taxation is just plain wrong. If the Feds need more revenue, cut back spending on endless unwinnable wars, a useless wall on our border with Mexico, etc.
11
The limit on mortgage interest deduction is for new purchases not existing mortgages on primary homes.
With the aid of Republicans in congress, Trump will ultimately do to the American economy what he did to his Atlantic City casinos. Promise the sky and wind up in bankruptcy.
14
Is "carried interest" addressed in any way by this plan? That kind of income is a huge windfall for a small number of people.
8
I did not see this addressed in the Ways and Means summary that was released (the 80 page summary of the 400 page bill). I agree this was a (deliberately?) missed opportunity.
1
I'm middle class, and my taxes would go up drastically under this plan. I've done the math, and any reduction in taxes I enjoy from the elimination of the AMT would be much more than offset by the loss of the deduction for my NYS and NYC income taxes and the limitation of mortgage deductibility to loans of less than $500k.
So how can The Times have a headline that calls this a middle-class tax cut?
9
So a couple who currently use itemized deductions of $18K instead of using the $12K standard deduction should be happy to not needing itemization and instead getting a $24K standard deduction? - No because currently they have personal exemptions of $8K + itemized deductions of $18K for a total of $26K. So they are net short $2K in reduced taxable income, when you calculate their loss of exemptions into the equation. Approximately 85% of those who currently itemize don’t exceed the new standard deductions – and many of them would find a substantial loss overall.
The combining of the 10 and 15% brackets into a 12% bracket has the effects of increasing taxes on couples with incomes of $59K or less (taxable income of $35K after the $24K standard deduction).
This is not a middle class tax cut – even though they have made it complicated enough that most people don’t realize it. Shame on any journalist or news organization that fail to point this out and let the GOP narrative flow past them without a challenge.
17
Don't be fooled by the following assertion... "roughly doubling the standard deduction for families". What this fails to take into account is that the personal exemption deduction is being eliminated. Thus the so called doubling of the standard deduction is a rouse when looking at the whole picture. Under the current law, the standard deduction plus personal exemption for a married couple is $20,800. Under the proposed law it will be $24,000. The total deduction increases about 15%, not the 100% the headlines would have you believe.
The other big issue I have with this bill is the elimination of the deduction for medical expenses as an itemized deduction. As a retiree we pay all the premiums for all medical related insurances plus the out of pocket costs for items not covered by Medicare. It quickly adds up to a significant amount. I could live with the change if businesses were no longer allowed to deduct the cost of medical related insurance provided tax free to employees or if employees were taxed on the premiums paid by their employer. The elimination of the medical deduction on the personal tax return is clearly discriminates against those who must pay medical insurance with their own funds.
After taking these items into account I find that our taxes will increase 22% over the prior year. I wonder how they can consider this to be a tax decrease for a middle income taxpayer??
13
Absolutely agree
Family of 4 , non itemizer, now have 4 exemptions = 16200 and 6350x2= 12700 standard deduction
Total 28900
Under Trump’s plan they would only have 24,000....
Funny how so many red state Trump supporters will pay more as well as we do here in NE
Scary that no one has mentioned this in the news yet...
2
This plan offers candy to please the sweet teeth of all but by focusing upon cutting tax rates without concern for the means to offset the costs, it actually tends to constrain growth in our domestic economy and eases the rapid moment of capital globally, in effect encouraging capital flight for short term gains. It does this by making the costs of health care, home buying, and taxes for the residents of the most productive states who pay more Federal taxes than revenues received back much higher. The accumulative effect is to reduce the ability of consumers to support a faster growing economy and probably will slow the current one down. The focus upon easily verified data about money without any attempt to breakdown how the money gets to where it goes means that the accounting is incomplete. A dollar spent on education by individuals or tax payers in the overall returns more wealth by about twice to that spent, and well functioning public infrastructure and public administration make it far easier for most people and businesses to prosper than if it is breaking down or works inefficiently. These kinds of issues are glossed over in the calculations, but they shouldn't be. Policies which make prosperity harder for most to achieve constrain opportunities for capital investments to provide timely and handsome returns, but these kinds of factors are simply ignored. But when investors find that American consumers are full, they will take their money abroad to make more of it.
2
It is easy to write a tax bill that is not too bad for anyone, as long as it includes a huge tax cut. However, having the government borrow $1.5 trillion in order to give people this tax cut will be bad for most people in the long run. Even with this huge tax cut, some people in the middle class will certainly have their tax bills go up with this bill.
5
And Medicare & Medicaid cut.
2
Only about 11,000 people file for the federal estate tax each year. I believe there is another reason Republicans are so adamant about repealing the estate tax.
There is a related provision called the Gift Tax. You must pay tax on any amount over $14,000 per year that you give to any individual (except your spouse). The Gift Tax is meant to prevent an end run around the estate tax, by which you could otherwise give all your money to your family tax-free while you were still alive. The Gift Tax applies to everyone, not just those who would be subject to the federal Estate Tax.
The Republicans want to eliminate the Gift Tax. That way wealthy people could spread their money and assets to their families in an unlimited fashion.
But wait. There's more. Without the Gift Tax limit, an individual could effectively make an end run around any campaign finance restrictions by giving money to other individuals, which they would in turn give to political campaigns. Without the Gift Tax restriction, campaign contributions by wealthy individuals would be effectively unlimited.
5
The Plan does not "deliver" anything. It proposes something, and that something is based on manipulation of facts. The plan is immoral, plain and simple.
12
"The House plan, released after weeks of internal debate, conflict and delay, is far from final"... It would be more accurate to call it the 'House Republican Plan' and to emphasize that the internal debate was within the Republican Caucus behind closed doors. This is not normal. We aren't supposed to legislate in the dark.
7
Why are we even talking about tax cuts?
The economy is chugging along (albeit with slow growth). Meanwhile, the national debt doubled under each of our last two presidents. And our national infrastructure is crumbling. It's not raining today. It is time to pay our bills.
I see many comments here asking, "Where is my middle class tax cut?" or "Why are the wealthy getting a bigger tax cut?" You are falling into the trap of taking it as a given that tax cuts are the correct policy in the current economic environment.
Again, why are we talking about tax cuts in the first place?
It is time to pay our bills.
14
38% of the voters in this country need to refresh their basic math skills. This is a boondoggle for the rich at the expense of the not-so-rich. Corporations in other countries may have favorable tax rates compared to ours, but the "second paragraph" of that argument should look at the hefty tax rates imposed on individuals in those countries.
7
Not surprised but disappointed that the carried interest loophole was not addressed and even less surprised that the preferential treatment for "real estate development" also untouched.
While these two giveaways may not plug the larger and larger deficit, it shows that the special interest lobbyists (like the inhabit at 1600 Penn) are alive and kicking.
5
I wish reporters would include information about the loss of revenue when writing about these tax cuts. Cuts this big either mean huge reductions in government services or huge increases in deficits, both of which would have negative consequences for individuals and the economy. Focusing just on who gets most of the spoils from the tax cuts and shifts misses the rest and possibly most damaging part of effects of this money grab.
7
80% of be benefits goes to the richest 1%.
The cost of oligarchy.
9
Adding 1.5 trillion to the national debt and expecting growth to cover this? We have seen this shell game before. Inflation, here we come.
7
So this is so sad. One has to wonder how the people who thought this up can be so cruel. It is the job of government to provide certain services for the people. None of those functions can be realized without cash and that comes from taxes. However, if you tax the middle and lower middle class so much that they have no money to spend then the economy will sink BECAUSE there are more of us and we actually spend more money. If we have no discretionary income companies like Apple, the cable companies, sports franchises not to mention all the other business that vie for our dollar, will fail.
Yes, it really is that simple.
3
Corporations are doing just fine right now including the corporation I work for. Yet my salary is stagnant. This will not boost the economy or fix our roads or move us into the 21st century like the rest of the world. We won't have any money to do anything except build a useless fence along the border to keep us from escaping this 3rd world country we're building. This bill also takes more money away from the thriving blue states and gives it to the struggling takers in the red states. I'm all for helping the poor, just as long as they know their help is coming from the left, the right has long abandoned them.
8
One of the provisions is to allow property taxes to continue to be exempt, but to eliminate state and local taxes as a deduction.
Could this have anything to do with Kevin Brady (R-Texas). Texas has high property taxes and no state income tax. Ditto Florida, New Hampshire, Nevada and a passel of other states where Republicans either feel utterly save, or where they want to make inroads.
By contrast, California, New York, New Jersey and Minnesota among others are blue states with high income taxes.
Anyone who believes that this bill is not partisan is foolish in the extreme. The bill is designed to make Democrats (especially middle and low income Democrats) pay for tax cuts for the rich. Period. There is no other conclusion one can draw from this bill.
6
Waiting for the OMB analysis. Looking at this the only way they stay under $2.2 trillion is with repatriation and foreign investment taxes. The Dump admin may not be aware that there is a body of international law that limits unitary taxation as part of trade agreements or that foreign governments can engage in tax warfare as well.
This is a situation where corporate lobbyists will win the battles because international taxation is more difficult to execute than fleecing the bottom 98%.
As to Dumps promises regarding Social Security and Medicare we have the attempt to convert both to block grants to the states and now the aged, but most importantly the middle class children who may be supporting them, lose medical deductions. How is that going to help those funding their parents care?
3
This is a bad deal for big families, those caring for adult dependents, those with big out of pocket medical expenses, people in states with substantial income taxes, and owners of truly small businesses to (partially) pay for massive tax breaks for owners of huge private companies (like the Trump Organization) and public corporations.
On it's own it is bad enough. But because this proposal gives away much more in tax breaks for the wealthy than it recovers from the less wealthy, the trillions in projected deficit increases are being used to justify big cuts to social services and increased fees for public institutions and services -- representing a further burden to the working class and the disabled.
In a moment of unexpected honesty, Trump once described the Republican proposals to repeal and replace the ACA as "mean." This tax proposal is meaner.
4
I'm alarmed by the medical cost deduction ending. Baby boomers are at the age where medical expenses are increasing significantly and this will not allow many people from deducting these expenses from their taxable income. I spend more than $28,000.00 a year caring for a wife with dementia. This tax change will be a very unfair penalty for me and many others now and in the near future.
4
Not all 'middle class' folks are home owners and in this scenario renters get the short end of the stick, as always.
People working to make money to live and without money to make more money aren't going anywhere but down.
And without the state income tax deduction you get big disparities. In Oregon, we pay 10% state income tax on all come including social security, other states pay NONE, and how is this good?
2
Eliminate corporate taxes, but dramatically increase capital gains taxes on the very wealthy.
Hard to see how some high tax states, and those like NY with equally high city taxes, won’t have an exodus if this goes through.
Lower housing prices may be a very bad thing for sellers, but for everyone priced out of the current real estate market and forced to live in ever more expensive rental apartments (which are becoming increasingly unaffordable) or at home it could make buying a home or condo way more appealing as long as interest rates stay down - plus more people buying homes will then have a positive effect for renters in that apartment rents would go down as more are available after people buy. Yes, the realtors, and those with expensive properties probably hate this - and $500,000 does seem too low given the cost of housing in urban areas ($700k seems like a better number) - but the bankers should be happy selling more mortgages. Another plus would be having more affordable houses and apartments (after rents start coming down due to more vacancies after people buy) which could also reduce rampant homelessness that’s soared the past few years.
The biggest negative - and most cruel - seems to be hitting those with disabilities with having fewer medical deductions: really perfect coming from a political party intent on taking away people’s affordable health coverage. The GOP really is cold and heartless about anyone with medical problems and wants to let them bankrupt themselves and their families.
2
The UK is a hugely in debt. But per head of population the USA debt is more than twice the size. The USA is only able to carry this size of debt for as long as the rest of the world continues to keep faith with the US dollar as the world's currency. Currently this happens through the free decisions that make up the world's money markets. Adding $1.5 trillion to the debt is an act of madness. But it could be the action which succesfully undermines the world's most powerful nation and precipitates the irreversible collapse of the US economy. This of course has always been the ultimate aim of the Trump/Putin Presidency.
3
Maybe I'm missing something here, but doesn't the imposition of a global minimum tax of 10% effectively encourage corporations to 'stash' their profits overseas instead of paying the proposed 20% tax in the US? And the Republicans are still offering businesses the chance to repatriate their earnings at a 10% tax rate. The least they could do is make them pay the new tax rate of 20%, and provide incentives (penalties) if they continue to shelter their money in overseas tax havens. Bottom line, they couldn't find enough acceptable cuts to not balloon deficits, so the hypocrites that were outraged at Obama's deficits are now willing to explode the debt.
3
Net net on standard deduction of $12K for single tax filer is only +$2K. Elimination of the standard deduction of $6K and exemption of $4K leaves only a gain of $2K. Big deal!
1
The headline is wrong: the plan doesn't tilt towards business. Businesses will continue to invest in producing products and services that make money, whether or not they have to pay taxes on it.
It tilts towards the *rich*. They get a big tax break from a much higher start to the 39.6% bracket. They get a big tax break from a huge reduction in pass through rates. They get a huge break because corporations will take the extra money after taxes, and pay it out as dividends, not give it to their employees (look at Apple's $250 billion in cash -- they're not paying that out to employees, are they?). They get a huge break from the repeal of the estate tax.
Middle income people, on the other hand, are going to get shafted. The loss of the personal exemptions, the loss of state and local tax deductions, and the limitations on property tax deductibility, will all negatively affect middle and upper middle class people. And this bill also adds significantly to the deficit, and you can bet that Paul Ryan and other Republicans will then use the deficit as an excuse why he has to cut Medicare, Medicaid and Social Security.
This is a pure gift to the wealthiest 0.1%
5
The Republicans devised a large tax increase by eliminating the personal exemption. This affects every taxpayer, with a greater impact on families. For some, it is offset by other changes. For many, it is simply a tax increase.
4
The Republican Tax Plan's increase in the standard deduction is substantially offset by the elimination of the personal exemption in section 1005 of H.R. 1. For example, the current standard deduction for a married couple filing jointly is $12,700, and those two people also get personal exemption deductions of $4,050 each ($8,100 combined). Those two deductions total $20,800. The Republican Tax Plan will eliminate the personal exemptions entirely and substitute a new standard deduction for married couples of $24,000. That's an increase of $3,200, which works out to be a 15.4% increase, not a doubling.
1
This tax proposal is designed to hand money over to corporations and the extremely wealthy Republican donors, at the expense of the middle and upper middle class in already expensive blue states. The cap on mortgage deduction and elimination of state and local income tax deduction is aimed at punishing states like California, New York, New Jersey and Massachusetts. Any Republican from these states who supports the tax bill is supporting party orthodoxy over their state’s citizens. Please call your Republican reps in these states and urge them to represent their state’s interests over wealthy donors and corporations.
4
To those whom support this plan I hope you are part of the 1%. For if my net worth was over a million dollars a year I would support this plan for it would benefit my wallet or bottom line. If not then one is supporting something against their own self interest. The politicians work for those who donate the most to their political campaigns in the form of donations i.e. legal bribes. The political system and the current tax code is already rigged against the middle class. Yes, they will lie, deflect, and talk a good game but at the end of the day they serve their true masters. Corporations and the ultra wealthy see your elected leader as an investment vehicle for their special interests. When you contact you local congressman you get put on hold if you are lucky. When the 1% reach out, your local congressman picks up on the first ring and bends over backwards for them. There will never be a 'fair' tax policy in this country where the powerful and the elite can get loopholes and exceptions carved out for them at the detriment of everyone else. Our tax code should work for the public good, not just work for the good of the ultra wealthy among us.
3
So much for the Republican party being the beacon of fiscal conservatism. The US spends 20% more than it collects--> with an aging population, unless issues of entitlements are addressed--> today's tax cut is tomorrow's tax hike. The flat tax ala Laffer is a farce. 20% ratio of government spending to GDP does not pencil out.
1
AS a single middle class woman, with no children who makes $70k a year, I will receive ZERO changes in my tax bracket - they already take out 25% from my paycheck and that is with me claiming one standard deduction. In fact, I will end up paying MORE in taxes, because of them eliminating the personal deduction, they will be taking MORE out of my paycheck every month - the higher deduction that comes with yearly filing doesn't make up for that. in addition, I'll no longer be able to write off state income tax either.
How does this help me? Where is my tax break? I am solidly middle class, but I get nothing. Donald and his rich cronies will sure get the benefits though.
Maybe I should just pop out some kids that I can't afford. Oh wait, then they would say that I'm a welfare Mom.
4
Since the days of the sainted Ronald Reagan the republican mantra has been trickle down. Cut taxes at the top and the economy will explode with growth and everyone will be in fat city. The last 40 years have proven that this is nothing but smoke and mirrors. It seems that most of the eliminated tax breaks are those that affect the middle class just as they did during the great reform under Reagan. Some things, especially republican voodoo economics never change.
2
This proposal borrows 1.5 TRILLION from our children and grandchildren and gives it to already wildly profitable corporations. Trump personally benefits by the repeal of AMT which he paid 38 million way back in 2005 (only year we know anything about). No wonder he is a big fan.
The repeal of the estate tax will enrich current west wingers by BILLIONS!
It saves money by cutting out the only deduction no one has any control over - medical expenses.
If it were such a good plan for the rest of us it would have support of both sides of the aisle in congress.
3
Why no talk of the adoption tax credit? Seriously, this is such a small line item, but has such a huge impact on adoptive families. Over half the kids adopted in this country have special needs and this credit helps make adopting these children within the reach of the middle class. By adopting kids, who likely would have required a huge amount of government services, adoptive families are saving the government money. Removing this credit makes adoption out of reach for so many in the middle, even upper middle class, for such a miniscule savings....
2
So this is a revenue reduction of $1.5 trillion over a decade. Where will the cuts to the budget be made? Let me guess. Not to the insatiable military-industrial complex or to the countries we buy weapons for their own protection or to buy their friendship, but to the meager retirement income of middle-and low-income workers and the affordable medical insurance they have paid for all their working lives and will need most after age 65. So this sounds great until today's workers reach their "golden years." Those without good pensions or enough earnings to save a half-million for retirement in their 401Ks will be losers. But, hey, that's then. Today, celebrate!
3
This is a nation of citizens, not businesses. Keep their hands out of our government! We all will suffer, while big business gets even bigger, providing fewer and fewer options and becoming more and more intrusive in our lives.
2
If this passes, I'm going to tighten my spending and drop my income to zero tax level, even if I have to dip into savings and quit all discretionary spending. That will be my protest. Hitting the lowest on the economic ladder is guaranteed to ruin the economy. Duh.
2
If the Republican House wants support for this tax bill coming from both sides of the aisle, I would suggest making the passage of this bill contingent upon the impeachment of 45.
1
NOWHERE in this article does it mention that personal exemptions are eliminated! This almost completely negates the effect of the increase in standard deductions. How can you write an article breaking down the major elements of the bill and leave that out?
4
Losing the medical care deduction would be disastrous for folks like my dad, who is spending over $80,000 per year to live out his days in a memory care unit.
3
Like many, I'm surprised that this tax plan not as bad as advertised. Return the state and local tax deduction and get rid of the abolishment of the estate tax (and kill the doubling of the amount that can currently be shielded), put more limits on the business pass through tax changes and this might very well be ok-ish for upper middle class people.
Let's hold back on the high fiving until some independent analyses come up with an unbiased estimate of the true cost of this measure which, in the absence of budget cuts, will simply be piled on to the national debt. This will force more borrowing by government making less money available for business investment. Where are all the Republicans who railed against Obama for adding to the national debt? Have they all miraculously changed their minds?
2
Can I pay for the cuts to my Medicare with the $400/yr of tax cuts I'll see?
3
I am middle class and this bill will clearly RAISE my taxes. Elimination of the Medical expense deduction means I cannot deduct my large medical insurance costs, among other things. An what do we gain? The top 1% already have more than 40% of the wealth. We should be raising their taxes. Not this obscene give-away.
4
Let’s call this what it really is- an attack on specific geographic regions, based upon their voting history. This plan will decimate the state economies of these states, which is something these Republicans certainly know. This is, finally, the opportunity that they’ve been waiting for.
2
Winners:Big corporations. The bill cuts the top rate for large corporations from 35% to 20%, the biggest one-time drop tax rate ever. The super rich: The estate tax is going away by 2024, wealthy families will be able to pass on lavish estates and trust funds to their heirs completely tax free. Anyone paying the AMT: The bill eliminates the Alternative Minimum Tax, which forces people who earn more than about $130k to calculate their taxes twice, once with all the deductions they can find and then AMT method, which prevents most tax breaks
Many wealthy Americans hedge fund managers, doctors, lawyers and consultants will get a sizable discount on their taxes. The top individual tax rate is 39.6%, high earning small business owners will only pay a tax rate of 25% on 30%.Losers: Home builders: The legislation would cut in half mortgage interest deduction. People in high-tax blue states: Most of the state and local tax deduction (“SALT” states like California, New York, New Jersey and Connecticut) claim the SALT. And of course The working poor: The bottom 35% of Americans do not get any extra benefits. Why Republicans hate charities? Nobody really knows they supposed to be compassionate Christians…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 will no longer get that tax break because they probably will stop itemizing their deductions.
3
Now that corporations are considered on the same level as individuals, it only makes sense that Republicans would pander to their vote!
1
It would be surprising if some Democrats don't back this. Top tax brackets unchanged. The middle part from 20-200K will all see lower taxes. Local tax loophole eliminated, which benefits almost everyone that doesn't live in either NYC or CA (and is rich).
Democrats are going to have a hard time spinning this as a give away to the rich.
1
Not really. It IS a giveaway to the rich.
tool tax bracket has changed. It doesn't go into effect until your income reaches 1,000,000. That is much higher than under current law. This gives people who make lots of money a way larger tax break than anyone else.
Representative Dan Donovan, a Republican from New York, said he remained concerned about the impact of the state and local tax deduction as he left a briefing on the bill but said he would assess the proposed changes on their entirety. “I’m looking for a benefit for the people I represent,” he said. “The people of New York City deserve a tax break.” "
I can not understand why there are ANY republicans elected in states such as NY. Can there be enough gerrymandering to get a Republican elected in a Blue state ? Donovan will undoubtedly vote for this tax cut for the 1% that steals healthcare & money from the 90%. Can this bill be reversed in 2019 with a Democratic majority in Congress ? I hope so for the sake of the 90%.
1
Repealing the AMT would be a travesty; on the one Trump tax return that was leaked recently, only the AMT forced him to pay some fair taxes on the huge income he had that year. And does anyone care that this bill will increase the already huge 21 trillion dollar national debt?
1
Part of the law should be that companies who accept these tax deductions should have to lower their prices by at least that amount AND lower the compensation for all highly placed employeesm by twice that amount, like CEOs, CFO, upper management, raising the wages of all lower compensated employees by 5X that amount. Then we can lower their taxes every 6 months, as long as they keep to their half of the bargain. If a CEO ever gets a raise of more than one one hundredth of a percent of inflation, the company will have to raised all lower employee wages by 100 percent. Eventually those who make the companies’ money will be getting their proper share, while those who practice their putting in corner offices will be poor, down trodden bozos.
Well, we could just nationalize those companies, seize all their assets, and put trusted public employees in the place of top management.
I'm sure they'd be happy with civil service wages and a public pension, just to run a multinational company. It is of course not too much to ask.
I think this bill will eliminate the higher standard deduction for the blind! If so, that's one more outrage...
1
Have never thought that I'll vote for Democrats in my lifetime, but I will - starting next cycle. Double taxation of state/local along with student loans and property taxes cap of 10K - that is what they call relief for middle class? I hope this bill will be defeated and next November we'll make a right choice.
4
During the early 1960's, I was really surprised to read that the majority of government believed that great fortunes had to be broken up -- by means of the estate tax. (Something about that idea didn't sound right; but, the longer I thought about it, the more it looked democracy-friendly.)
It appears that I was the only one of my generation reading at the time.
I didn't understand either when, by the late 60's, "back to Genesis" and "back to nature became hippie fads. That appears to have evolved into a "Repeal the Estate Tax" frenzy.
Where are those wealthy aristocrats TR and FDR now that we need them? Apparently, all the rich folks' kids have taken over the family business.
aside from all things pointed out, the plan as outlined totally turns elderly and others into paupers with the change of medical deductions. as one gets older the cost of medical care including surgeries increased. insurance doesn't and never will cover it. but of course this doesn't concern the wealthy or the Congress people who obtain total expenses covered.
then there is the fact that purchasing a home or apartment even of a 1 BR size can greatly exceed $500K in many cuties and suburban areas of the country. but bothering to look at the disparities in different parts of the country seems to be beyond the mental capabilities that are possessed by the writers. indexing to the local prices might be one approach. but it's possibly to complex a thought.
as with so much coming from the Republicans and the current administration, data does not seem to enter into decision making.
1
A simple proposal. A 10% tax on stock buy backs, dividends and corporate loans to foreign entities. If corporations are going to use this cut for investment in the US to generate increased economic activity they should have no objection.
1
The tipoff to the ripoff is the assumptions underlying the corporate tax cuts. Three points:
Mr. Ryan suggests that American companies are not competitive with those in other countries due to our corporate tax rate. While Ryan is correct that our statutory *rate* is higher, U.S. companies actually *pay* at a rate much more in line with other OECD countries. So if the new plan yields about the same amount of corporate taxes that are paid now, how does this increase competitiveness?
If our goal is to directly compete with — say China — we should look not only at taxes, but wages. Would Mr. Ryan propose an average wage of $10,000 USD per worker and 12 hour workdays? That would certainly make us more competitive with China, but I’d be surprised if U.S. workers would find this helpful.
The trend over the last several decades in the U.S. has been rapidly rising corporate profits, but until recently declining or stagnant real wages for the average worker. Assuming that lower corporate taxes means more profit for businesses, what makes Mr. Ryan think that these profits will translate to higher wages? Why now?
I am all for fair taxes and a simplified tax code. However, citizens should beware of the claims being made that these changes will benefit middle class people. Much of the “trickle down” rhetoric that is part of this plan has not worked in many years of actual practice.
1
Very well said!
The 1986 tax reform was intended to be revenue neutral. They lowered individual rates ( and got rid of special rates) and actually offset this by raising the corporate rate.
In contrast, this new plan is designed to reduce revenue by $1.5 trillion. So what comes next? Almost certainly, huge cuts in social programs, starting with Medicaid but likely also Medicare.
Their plans for cutting spending should be at the top of the list when discussing this tax plan. This tax cut is step one of a bigger plan that will harm most Americans.
2
Am I the only one who thinks tax cuts at a time like this are unnecessary. The economy behaves in expansion and contraction phases. We should be increasing taxes to reduce our deficit (and prepare for economic downturns) during expansion phases and decreasing taxes to spur growth during contraction phases. Why is our government so keen on spurring economic growth and increasing our deficit when our economy is already performing so well?
2
What about the carried interest deduction? Although it may not be of huge consequence, for many getting this removed is a litmus test of whether tax code changes are fundamentally fair. The symbolism of not removing it would make people cynical about the outsized influence of the super rich on policy makers. Removing it would have an outsized positive effect on the credibility of the entire package of tax code changes.
1
Trump said he wanted to get rid of the carried interest deduction because hedge fund managers were using it to"get away with murder". But now there is no change in the carried interest deduction. Was that just another of Trump's lies?
The wealthy do not usually make much 'income' and are therefore unaffected by income tax rates. The way to get them to pay-up (and they should) is by raising the capital gains rate. THAT would go a long way towards ensuring fairness.
If the GOP is so confident that this bill will lead to runaway, deficit-reducing economic growth, then let them introduce a provision that just in case in the off chance it doesn't, then all the tax cuts are restored and taxes are raised on the super-wealthy to cancel out the budget deficit.
2
Taking away the SALT Deduction = Paying Taxes on Taxes
3
Tax cuts on the 1% are all bad, but the reduction of the maximum mortgage interest deduction is an excellent idea. It should be abolished. Forty-five percent of households in this country rent, and they receive no help in saving for a home. So the MID helps people who have more assets.
If house prices go down, this is also good for them
1
Wealthy real estate developers don't own any of their assets in their name. Each property is owned by a separate LLC or LP, with the individuals as members of those entities. The income to the owning LLC is "passed through" to the individuals who own those LLCs. If I understand the proposed tax code correctly, tax will be reduced significantly for these pass through entities. This is, in effect, is a big tax cut for the wealthy who receive income from LLCs. And I think it's pretty obvious that whether a real estate developer or some other business, the wealthiest people don't own their assets in their name, but in the name of LLCs controlled by them.
12
Actually, that's not quite what the article says. Rather, it notes
1- a flat rate of 25% on profits from pass-through entities like s-corps and LLCs, which is higher than the proposed full corporate tax rate as stated here.
2- an increase in the the base tax rate for wages received from a pass-through entity. So the individual who receives money as wages or some kind of compensation that way will be taxed at a higher rate than those who receive their compensation from some other source.
3- Keep in mind that pass-through entities have caps on the amounts of money that can flow through them and keep their pass-through designation according to the IRS. The ones most affected by these new rules will be small and mid-sized business owners, not the large ones that must use other business structures.
This is not a tax break for the wealthy. On the contrary, the proposal imposes higher taxes in small and mid-sized business owners than they are paying now.
While all of the provisions of this tax code modification should be scrutinized, please focus on the medical deduction. A reduced tax rate and doubling of the standard deduction will not make someone "whole" by the loss of the medical deduction. For example, a nursing home resident with an income of $200,000 may have medical expenses of $180,000 per year. (The average cost of a nursing home in Massachusetts can run between $12,000 - $15,000 per month.) With the House's plan, that nursing home resident, who previously had a small (or no) tax bill, now may have a federal tax bill. And as an aside, the faster the nursing home resident depletes his or her savings and income, the sooner he or she will need Medicaid to pick up the tab.
20
if your in a nursing home and have $200,000 in income you are a multi-millionaire with investments paying $200,000. pay your taxes.
2
This is a slash and burn tax proposal for anyone making less than $100,000. Under the current tax system, at least corporation paid 18% of their income in taxes. By dropping the corporate tax rate to 20%, most companies will use the same tax accountants and attorneys to lower the effective tax rate to below 18%. The spread between the proposed tax rate for overseas operations and domestic income will narrow, but it will still be in the range of 6% (12% overseas rate versus 20% domestic rate), and even lower after deductions. By lowering their corporate tax rate to under 18%, corporations will be indifferent to whether their money is in the US or overseas. These concerns arise, the real damage to the US economy will be the deterioration of current programs that fund infrastructure projects, education. health care, and the social safety net. For what? So that the 80 families who paid the estate tax will be free of this burden? This proposal is as complex and contentious as the repeal and replace of the ACA. That one failed, and I expect this tax proposal to fail as well.
14
This plan as I see it will cause an immediate big tax increase for my family.
For those of us in the tri state area with 2 working parents bringing in about $300k, it seems like we are rich. Until you factor everything in. If you are like my family you are paying Fed and State income taxes, Local property taxes, Sales tax, and you have to shell out for every conceivable expense, including $15 to cross local bridges, etc., etc.
If you are like my family you are looking at something like a 10 to 20k hike fed taxes through: a) 2% increase in the nominal rate, b) loss of State income tax deduction, c) capping of local property taxes at 40k. This to be offset by 5 to 10k in givebacks from the elimination of the AMT.
If you get 26 paychecks, you're looking at an increase of $200 to $400 a check. For what? Who's giving me my raise to pay for that? No one.
98
Adam, your situation very much mirrors mine, only I’m in SF. I’ve been running these numbers all day, drawing similar conclusions and results. Our taxes will go up by thousands of dollars, and we’re hardly rich.
To what end? Why? So the country can do a further $1.5 trillion in debt? So Republicans can sink our regional economies?
Respectfully, Adam from NYC, $300,000 household annual income does seem significant to the rest of us when you know that the "average" U.S. income is $89,000 (an average heavily influenced arithmetically by the truly richest of the rich) and the "median" (half above, half below) income is $54,000. Presumably you and your family have chosen to live in NYC to meet your family's needs. In South Carolina the median household income is roughly $39,000. You will have to excuse many citizens who believe you are in the top five percent and should pay at least your fair share.
You mean capping of local property taxes at 10k right?
Middle Class Tax Cut?
Well, for a single taxpayer, over 65, it is a tax increase:
Using $36,000 as an example. No itemization.
A 65 year old, or blind person, gets two exemptions, so they are now taxed on an extra $2450, at a higher tax rate of 12% instead of 10%.
Current Tax Law:
36000 - 10400 - 4050 = 21550
Propose Tax Law:
9750: 10% 975.00 - 0 - 9750
11750: 15% 1762.50 - 9750 - 38700
975.00 + 1762.50 = 2737.50
36000 - 12000 = 24000 * .12 = $2880.00
The result a tax increase of $112.50.
If the senior is blind it increases their taxes even higher.
This is not a tax cut, in any shape or form.
10
Didn't Obama give a tax cut in 2013 that was twice as large as Trump's plan? Of course the Big Liars in the GOP would never admit that.
2
There is no middle class tax cut. Who writes your headlines. The loss of major deduction along with cuts to essential serves is the largest tax hike in history!
5
If my taxes stay in my state then no problem but if they go, then no, I don’t wanna play this game no more
7
I think the title of this story on the home page is misleading about cutting taxes for the middle class. Yeah, right.
5
This is what happens when you allow endless political donations and voter suppression actions from our dinosaurs on the Supreme Court.
This is also what happens when a fake news network such as Fox is given a license to lie.
This is what happens when bigots are rewarded with a not bright, unethical, dictator-admiring president.
Putin has to be ecstatic at the caliber of our Congressional reps.
12
I saved and planned for 2 years to afford MAJOR dental work. This has included having about 20 exposed nerves from grinding my teeth away -- in part related to alifetime without dental insurance. This was a medical necesity -- not merely for cosmetic purposes. I began my procedures January 2nd and will be all done in a month. The total out-of-pocket cost was about $35,000. I did this with the underatanding that I could deduct the amount of this that exceeds10% of my income from my taxes, per the current law for 2017. I SURE HOPE that they are now going to tell me now AFTER THE FACT that I that cannot deduct these valid dental expenses! If so, I will never vote for another Republican... and I consider myself a Republican. This is INSANE!
8
It is very unlikely that this bill will have any effect on 2017 tax returns.
Who told you life has guarantees and no risk? Sounds like you needed the work regardless of taxes.
1
What can anyone say about your very difficult situation except that
1- You voted for them all, and
2- We told you so.
Paul Ryan is a fraud. He wouldn't qualify as an intern for Ways and Means.
10
This article has the brackets wrong, these are teh correct ones:
The 12 percent bracket: This rate applies to single filers starting at $12,000 up to $45,000. For married joint filers, this applies after the $24,000 deduction up to $90,000.
The 25 percent rate: This begins at $45,000 for single filers and $90,000 for joint filers who are married.
The 35 percent rate: Single filers reach this bracket at $200,000. This rate applies to married filers at $260,000.
The 39.6 percent rate: This rate applies at $500,000 for singles and $1 million for married couples.
So, for single people, you pay 12%, on 12,000 - 45,000, and 25% on $45,001 - $200,000. With all the changes, your taxes will go up if you rent, and go down if you have mortgage and pay property tax.
The New York Times needs to correct this article.
9
Renters don't deduct real estate taxes or mortgage interest. The standard deduction is going up. How does this increase the amount of tax renters pay?
This is simply punishing blue states to further finance red states. The times needs to show the real effect on taxes based on states. Republicans in blue states claim to vote republican because they are fiscal conservatives. That argument won't hold any longer. Unless they really are driven by cultural issues and are closet racists.
28
It’s not only blue states. I live in very blue Washington State. We enjoy NO income tax here so the elimination of the state tax deduction will not impact us as hard as New York. This said I’ve lived in sometimes Red Ohio and always Red Georgia and they have high state taxes and this will definitely impact the middle class in those red states. Its a very complicated problem because the tax system is a huge mess. Generally I’m for a simplified system...but this will add hugely to the deficit.
61
“…Republicans also plan to expand the child tax credit to $1,600 from $1,000 and add a $300 credit for each parent and nonchild dependent, such as older family members, though that credit would expire after five years…”
___
A non-child dependent, huh? Given my 25-year old parrot believes she runs the household, has a daily entrée and fresh fruit in addition to her seed, if a version of this bill passes, I’ll be curious to find out if counting her as a non-child dependent would fly?
8
As a federally-licensed tax practitioner for four decades, I am enjoying this remake of “Tax Reform, Changes are Coming”, with the familiar carryings on from some posturing politicians and so-called media “tax experts”, (many of whom know as much about how tax laws work as I might with respect to building the neutron bomb). However, absolutely none of this cast of characters has mentioned one word whatsoever about how the sale of the assets of middle class people will be taxed under this new proposal.
That said, I will give you a case study from our own firm file. My client “Phyllis” (age 93) lives in a “nice” town in Connecticut in a home built from scratch in 1952. Phyllis now incurs nursing expenses running several hundred thousand dollars per year. Every year, we liquidate enough of her assets just to pay for her care. As sad as a situation that this is, it is made somewhat better by the fact that just about all of Phyllis’ medical expenses are federally tax deductible, thus causing her liability to be zero. Shall Phyllis need to sell her home, the sale exclusion would wipe away a substantial amount of any taxable gain.
Now shall she live to see tax reform, Phyllis' would become a highly taxed individual, primarily due to the loss of the medical expense deduction and a lesser residential sale exclusion.
Once again, this "simplification" movie has its usual unfair ending, while providing so much comparison work for us to last years, (if not decades).
28
This may sound callous, but I can't muster much sympathy for a 93 year old with hundreds of thousands of dollars worth of annual medical expenses.
Ridiculous. We need Democrats to retake Congress and stop all of this lunacy. Their healthcare proposals were opposed by most medical experts, and now economists oppose the GOP tax plans. No intelligence or heeding of expertise to be seen here.
13
This is a vicious strike against Federalism.
Do I mind paying taxes? Actually, no. I'm glad to. Loving in NYC, I pay quite a lot.
Do I want to support small-government red stater politicians who funnel my money to their cronies while their constituents live in poverty, sans education or the information necessary to shed their oppressors?
Big fat no. I'd rather leave the Union at this point.
28
Cuts middle-class cuts???
5
WSJ headline: "House GOP Plan Sticks With Big Corporate Tax Cuts"
Vs. your euphemistic headline based on Republican talking points (as your first paragraph acknowledged before that acknowledgment was cut).
Why not just go full-on Trump propaganda outlet and change headline to "Terrific Cut Cut Cut Cut Bill"?
9
We're being trickled on again.
27
If you want to see how this "plan" will be used to choke the government, see the state of Kansas and their tax fiasco.
13
Plutocracy 101
9
Get rid of the AMT. Maybe it made sense in 1966. Now its the biggest scam going.
3
This article could have been written by a 5th grader. Is a house costing 500,000 or a mortgage interest of 500,000 the limit? What about state and local taxes besides real estate taxes? Come on guys - this is just arithmetic.
9
You need to read better. Mortgages are capped at $500k. The cost of the house is not mentioned.
“With this plan, we are making pro growth reforms, so that yes, America can compete with the rest of the world,” said House Speaker Paul D. Ryan of Wisconsin.
Paul Ryan is a liar and a fraud.
24
With this new tax cut, the Trump family will be benefiting at a tune of 4 billion more in their pockets and slither back into the swamp.
13
tRUMP. must show his tax returns before signing anything that could so extremely benefit himself & family. likely biggest personal benefit ever signed by a "president" ... at least in a real democracy.
I think plans for tax cuts and plans for Medicare for all should come with what the cost is and who will bear the cost, or they’re just garbage.
2
The article should have paid more attention to the repeal of the Johnson Act, which will allow churches to form super PACs and spew their hypocritical nonsense without ever paying a penny in taxes.
Allowing mega churches to avoid all taxes while increasing taxes on the elderly, disabled, and poorest Americans should make every citizen's blood boil.
28
If you can't give a rich person back double his money why should he hire you?
4
Going after middle-class homeowners to fund corporate tax cuts seems to be a political loser.
9
Stephen Kurtz -> How did Obama balance the budget
Cynical manipulation of a gullible public- but what else is new. The Russians do it and get away with it while the craven GOP congress says "me too". It will require successive Democratic administrations to begin unraveling the damage these liars are wreaking on our nation. Obama helped get us back on the right track but the trolls would have us think the opposite. How can we protect our country when the people in power are liars and cheats?
7
We are now a banana republic. https://www.bestcashcow.com/republicans-are-pushing-dangerous-banana-rep...
3
Student loan interest and medical expenses not deducted? Well I guess if you have a medical condition and went to college you better just die quickly. They say the only thing that is certain are death and taxes but this tax plan will make death certain or certainly welcome.
156
I agree. Eliminiating the medical expense deduction would be a major mistake.
Why should anything be deducted? Why not just reduce taxes across the board. We don't need a 100000 page tax code with a million different deductions and loopholes.
The medical expenses proposal would be a travesty!
Kevin Brady is a liar, and a bought-and-paid for republican. look at his district - backwater Texas that has not even one major metropolitan area or major corporation. He has no interest except to protect those of big business republican donors. This is a shining example of what's wrong with our country.
22
Woo Hoo! Naw, that means $ 25 more a week for me! Ahm buy'n steaks! Woo Hoo!
Kansas, here we come.
23
I'm a business owner in Kansas. Our tax experiment had disastereous results for the state!
8
Does the fact that Congressman McCarthy was walking into the men’s room when he made his comment have any relevance? If not, why is it mentioned?
2
Isn't the men's room where the tax plan was written up? What better place for hasty work?
2
As Melania once explained, "It's just boy talk" and not to be taken seriously.
1
How is it that US corporations appear to be getting away with not filing Foreign Bank and Financial Accounts with the IRS? I assume that US corporations based in this country who have foreign bank account systems set up must declare the value of goods and services as income. Are they, have they? Or have the US corporations been operating as a bunch of slim shaddies, having their foreign banks forward money to them and their boads as needed without paying any tax on this fundage. But as the speaker of the house ryan and president trump have indicated; if you return all your rat holed dollars we'll give you a big fat exemption from paying any owed pass tax. Brother can you spare a dime?
3
Ah yes! Just in time to sway voters in five days.
2
The only bright note I’ve heard all day. Swaying republicans to the democrat side that is.
Does not help small business owners. See
http://www.nfib.com/content/press-release/national/nfib-unable-to-suppor...
5
Not as awful as I had anticipated.
We do need to keep businesses here, competitive and paying their fair share
Estate tax elimination is unamerican as it perpetuates the aristocrac. Grandkids and great grandkids never have to be productive Americans living off the work of their ancestors?
2
Like anyone you know?
Most business pay far less than 20% with all of the loopholes. They are not leaving because taxes, they are leaving because they don't want to pay a living wage.
Walking into the men’s room? As an Aerospace professional woman this was a wall I absolutely became infuriated with. As a journalist you might have spared to men’scroom detail. Grrrr
4
It was easy to follow the article until I came across the following head-scratcher:
"Walking into the men’s restroom, Representative Kevin McCarthy, Republican of California, said of his colleagues, “It looks very positive, these people are excited.”"
Do we need to qualify Rep. McCarthy's comments with a statement about his bathroom habits?
Funny.
2
Funny how? Funny HaHa, or funny that other way?
This plan seems to use the elderly and sick as piggy banks for sole proprietorships, like Trump Companies. Why am I surprised?
9
This GOP Tax Scam will lead to a bigger collapse than 2007. Cash and gold people!
5
"Walking into the men’s restroom, Representative Kevin McCarthy, Republican of California, said of his colleagues, “It looks very positive, these people are excited.” He added: “this is why they came to Congress.”"
The men's restroom? What???
2
The next time the DNC rigs a primary and the NYTimes orchestrates a blackout on the winning candidate and claims their flawed shill has a 92% chance of victory then blames said loss on Russians, don't go there.
If you feel The Bern now, don't blame Trump. Blame the Deep State.
8
No mention of AMT, does that stay or go away?
3
What about the Amt!
2
Make room Kansas. Here we come.
4
Sounds like she old creepy dude in a beat up Chevelle showing us pictures of candy for us. Oh boy, greed for the middle while the top make out like the, no the biggest heist in history. Without the AMT no one in the top 5% will pay tax of any kind.
5
Perhaps this plan would be better labeled " THE PRESERVATION OF WORTHLESS PLAYBOYS ACT ". I , for one , find it OUTRAGEOUS that some lucky self-centered moneyed people go telling that they are just Ma & Pa Kettle trying to save the family farm from the Commies.
6
Why was this reported in double-speak ? Headline "Cutting... Middle Class Taxes" ?! Very irresponsibly presented.
8
Repeal of the Alternative Minimum Tax: The Donald J. Trump Tax Cut Provision
Repeal of the Estate Tax: The Cohn-Mnuchin-Ross-DeVos-Tillerson Tax Cut
Provision
The "Pass-Through" Business Tax Reduction: The Goldman Sachs Tax Cut Provision
Well, you have to hand it to our Fake Prez. He boasted that this tax legislation should be called the "Cut, Cut, Cut Tax Bill" and it certainly is, for America's millionaire/billionaire class! Happy Days are here again! They will be running out of champagne buckets on Wall Street Street tonight.
7
This is anti-blue state war.
25
I would like to see a link to the actual bill
4
check https://apps.npr.org/documents/document.html?id=4172077-Tax-Bill-Text
1
Kevin Brady...issue of daddy warbucks and reptile of your choice.
5
Republicans are "excited" about adding $1.5 Trillion to the natdebt. Is there no end to their hypocrisy?
22
This is no surprise to me. But what I need to know is HOW do we open the eyes of the thoroughly-brainwashed, Fox-News-parroting, media-loathing, science-distrusting, magical-thinking, Chump-loving, Bible-banging-while-defiling-Christianity-with-every-action-and-word Republican voters who put these asses into office in the first place?
27
Get rid of Electoral College. Vote even in the “small” elections. Contribute, even a small amount to the association or representative of your choice. Write your Congressman detailing your priorities!
The Fox robots are in the minority!
We need to get rid of gerrymandering, which places more GOP reps than there should be, given small amount of GOP voters. Stop the rigging of voting districts.
If you are physically able, protest. Protest voter suppression laws and the hackable dysfunctional voting machines in some states.
4
Kudos on the number of adjectives describing deplorables. Democrats have to win in spite of them. Trying to reason with them will always fail.
2