Perhaps its should be called the "Ways of Being Mean" committee.
10
In theory, tax cuts make sense, but cuts can only be made if expenses are reduced to offset lower tax revenues. The only expenses that Congress and the Republicans seem interested in reducing are the tax benefits currently available to middle class families.
Many of the very middle class families that will be negatively affected by the proposed tax changes are themselves Republicans. The real mystery is why these Republican families aren't rising up in outrage. Are they so blinded by the lies of Trump and Congressional leaders that they can't see that this plan is going to cost them money? What will they say when the reality hits them in a couple of years as they send additional money to Washington?
We know and understand that Trump and his cronies care nothing about Democrats and are more than willing to turn this tax bill into a method of punishing blue states. The question then is why they are willing to hurt their own supporters who will be raped by this bill? The answer is simple: Trump and his cronies must find a way to concentrate more of the country's wealth in their fellow one percenters. They say this will cause vastly increased investment by these corporate leaders. If corporations wanted to invest, they could use the nearly three trillion dollars of cash deposits they are sitting on. Those companies have not invested their cash, so why should we believe they will invest new cash generated by tax cuts for them?
12
As an outside observer I have.wondered for years why the residents of the poorer areas of the USA so reliably vote against their own best interests. I realize in recent years it is due to incessant propaganda from hard right wing media but really people.
Somebody made the suggestion that if it only took $100,000 for the Russians to swing the election on Facebook, why csnnot the Democrats do the same thing.
6
Since tax preparation is such a pain in the nether regions, these changes will definitely negatively affect the sales of TaxPreparationH.
Trump took a $900 million loss against income, his casino worked a deal to keep $22 million in tax receipts from NJ, and he is the self proclaimed only one that matters, so no surprise his party would help itself to maximized tax cuts for themselves at the expense of the poor suckers, losers and marks that they consider the public to be - their lawful prey.
3
This tax bill is literally an assault on middle and low income Americans. It is blatant in it's pandering to the wealthy. It will increase taxes on the lowest earners and cut taxes on the wealthy. It's just one more republican obscenity, proving yet again that the republican party is a treacherous greedy psychopathic organization, and that republicans are selfish greedy and immoral.
4
Democrats in Washington should enter into the Congressional Record, with the utmost publicity possible, every "Paradise Papers" investigative article on secret, off-shore tax shelters, now being published by The Times. This outrageous scandal, bursting with sleaze and bad actors, should be the main topic of every Democratic House and Senate news conference right up to the votes on the Republicans' obscene tax scam.
Remember when the Democrats defiantly "occupied" the House floor not too long ago? I think that it's well time for a repeat. This avaricious beast must be stopped!
1
For family of four it is a loss of 16,400 in deduction. If you are taking std deduction, that loss is not made up by increase in std deduction. If you are itemizing as many NY times readers, you are SOL (loss of SALT, loss of student loan, property tax capped at 10k but worst is 16,400 loss in personal exemption.
Really surprising that tv, print, internet - everywhere this huge loss is hardly gets any mention.
3
What chairman Brady and the other House Republicans failed to realize is that the doing away with medical deductions is like a death sentence for many people who use them. I fall into that category. I cannot believe the average blue-collar Republican who is over 65 years of age will buy into this legislation. If this is what these people want, they are getting it in an exaggerated version.
7
Makes sense that the higher end of the middle class will pay. We are the only one's with anything left to take. Pelosi was right when she called it looting.
5
I am a retired 62 year old, who will experience about a $6,000 increase in taxes due to the elimination of the medical expense deduction. What's really irritating is the fact that the current administration did everything they could to make my insurance costs go up, and then they took away the ability for me to deduct a portion of my medical expenses.
Here's a challenge...have the President or Congress produce a person making $500,000 or greater whose taxes will go up like mine. One person..just one.
6
My taxes will be raised in year 1, and will be raised most likely my whole life under the republican plan. I did the math -- I would pay 1,200 more next year, and in 10 years, I would be paying something around 3,000 more a year.
And I am not rich, but rather comfortable upper middle class, and I don't have any unusual or unusually big tax breaks.
2
Nothing is 100% ... keep telling my friends ... elections matter. Well .. winning elections matter.
I was just listening to the Dem leaders .... they don't get it.
1
Voting doesn't matter...it is the COUNTING of votes that matters....and suppressing undesirable voters...a GOP Speciality
4
What don't Dems get, that the poor/middle-class should get screwed over & quietly take it because #45 "won?" (Did the GOP follow your behavioral model for the 8-years Obama was prexy? If so where's Supreme Court Justice Garland these days?) He promised he'd go after the "hedge-fund guys" who were "getting away with murder." Do you see any elimination of the fraudulent carried-interest tax rule which takes a commission salary and turns it into investment income basically taxed at 20% max? GOP leaders stonewalled Obama when he was trying to do right by Americans. Dem leaders should protest when #45 attempts to harm Americans & most everyone else.
4
Robbing Peter to pay Paul. And it appears Paul is a lot richer already.
7
Isn't it great? All the middle-class tax deductions are cut or vastly reduced so the richest can get their tax cut immediately. We, the little people, are supposed to wait for the rich's newfound prosperity to "trickle down."
I hope all the Trump voters who thought he was going to be so great for them finally realize he only cares for himself. This tax bill is a massive gift to the president!
What a farce!
12
The only "trickle down" I anticipate in my household will come from plumbing problems.
2
Are Republicans able to do anything other than hurt working people and transfer more wealth to those who don't need it and are already hiding their money in offshore accounts?
9
Increases go into effect long after current Repubs voted out of office. Then...blame the poor state of affairs on the Dems. Newt's plan is coming into effect.
Taking away money from the pot and then telling everyone that the pot is bigger than before just doesn't make sense.
2
Everyone complaining here -- Are you writing your Republican Congressman to complain and to threaten to vote against him next time? Why not? Do you think posting something here accomplishes anything?
I've written my Republican Congressman and emailed 250 people on my Village's tax list to do the same. (I voted for Rep Lee Zeldin in 2016 and he won only very narrowly.) I've told him that -- if the SALT or mortgage interest deductions are limited in any way, or if my Fed tax bill goes up at all, I'm voting against him in 2018 and for the Dems forever. --
You please do the same with your GOP Congressman. Or don't complain here in April when you get slammed.
11
Finally...reality speaking! Amen Brother, ..A-MEN
you are spot on. in NY we have a local congressman who is the king of placate and vacate. He is a muddling self-serving Trump minion. and yes I called and wrote him saying I would go door to door to have him defeated in 2018. He has no problem with 270 million guns in our country.
a motivated citizen from setauket, ny
1
Here's an idea. President Trump and the GOP claim that most people will pay less taxes under their proposed new plan. Well, if they are so sure, let's call their bluff. Let's insist that they put a provision in the law that says that individuals can calculate their taxes both ways - the old way under the old tax law and the new way under the new tax law. Then each person can choose which return they want to file. If the GOP is so sure the new way will result in lower taxes for individuals, they should have NO PROBLEM PUTTING THIS INTO THE LAW. Otherwise they are lying to us.
18
I wish I could wait until 2024 for our taxes to go up, but based on the current proposal, we'll be paying more starting next year thanks to the loss of the state income tax deduction and the cap on the property tax deduction. The increase in the standard deduction is not enough to cover these losses.
And does anyone really believe that taxpayers in high tax states sit around saying "please state and local tax authorities -- go right ahead and raise my taxes. After all, I can deduct them!"? Of course we don't, and if you expect those taxes to go down as a result of the loss of the deduction, you're not thinking straight.
In the case of NJ, we pay high state and local taxes in part because we receive relatively paltry federal funding. We get back about $0.50 in federal program monies what we pay in federal income taxes -- even after so many of us itemize to get the SALT deduction. Our high SALT compensates for the lack of support we get from the federal deduction.
If people in high net federal spending states want to reduce their dependence on federal money so we don't have to subsidize them and our own programs, well, that would be great. Then maybe we could all pay less. But as long as some states get back 50% or more on the dollar in federal money, you'd better leave our SALT deductions alone.
6
Is it far-fetched to suggest the 2016 Election interference by the Russian billionaire oligarchy was also supported by non-Russian multi-billionaire wanna-be oligarchs? Even American-based billionaire wanna-be oligarchs? Corporations have record profits, and shares. Do the corporations (or the 1 percent) need these tax-breaks and more money? YES, because money is power, and they cannot have enough. The intent here may be to hamstring the Federal government financially (and legislatively) and render it ineffective. The conservative right (Gríma Wormtongue’s for the rich and well-connected) always depict the Federal government as a malevolent force bent on denying liberties and rights. The Federal government is the only entity that stands up for the average individual against the tyranny of the rich and well-connected and big corporate. Historically, the Federal government stops/ punishes corporations for polluting the environment, stops the corporations from stealing the resources of the average citizen, prevents average citizens from being steam-rolled and defrauded by the rich, and big corporate. The Koch brothers e.g. know that They should be in charge, and that decisions should always go Their way. I believe this is the latest attempt to make that happen. The end result of this kind of tax reform could result in an American ruling billionaire oligarchy, which makes world decisions with other ruling billionaire oligarchies. What a fine world that would be.
5
I have seen the Chairman and the President holding up this card implying that they have enormously simplified the tax code but the fact of the matter is, with tax preparation software like TurboTax, preparing and filing a return has been made extremely efficient and easy. No arithmetic errors. All tax laws automatically interpreted.
So, in this digital age, simplifying the tax code preparation should not be a driving force for the changes. Policy objectives should be the driver although the Chairman keeps saying they have simplified the tax code which is a lie. They have not so much as touched the rules/exemptions for high earners, especially those deriving their income from pass through entities, capital gains and carried interest.
I will be paying a higher tax for 2018 if this bill passes because I live in California, pay a considerable mortgage interest and not allowed state/local taxes or personal exemptions. The Republicans have figured out that to enrich the rich, the money has to come not from the poor/middle class of the Red states for they have no money to start with but from the middle class and upper middle class of the Blue states.
8
Taxes are how we pay for government spending. That seems like an obvious statement, but this whole discussion of tax reform seems to have divorced the revenue collection from the spending.
Say you’re in a restaurant with a group of friends. Do you really discuss how much each of you is going to chip in without seeing the bill first?
At the end of the day, a tax debate should focus on the fairest way to divide the bill for government services. Except in an emergency, tax revenues should cover current government expenditures.
Talk of “tax cuts” is phooey. I’ve lived through several ballyhooed “tax cuts” that have not lowered my tax bill but have added to the national debt that is hanging over all of us.
So let’s go back to figuring out the best formula for providing the government with the resources it needs to provide us with the best defense, law enforcement, education, infrastructure, etc.
9
Why should anyone's taxes go up if this is a tax cut? If they do, then it should be a fair distribution of incomes that will also have an increase. Is anyone making over $250,000 going to see any sort of increase? Someone is going to be hurt by this.
2
I may be reading things incorrectly, but it seems that the AMT may also be on the chopping block, so actually, no...it looks like many over 250K will not see an increase in taxes (and in Trump's case, a multi-million dollar decrease). This is on the surface at least.
When the bill hits the Ways and Means committee you can bet that proposed AMT slash will not be taken off the bill vs other proposed tax cuts.
2
My family income is between $200 and $250K. We live in one of those evil, high tax blue states. We're currently estimating that between loss of state income tax deduction, cap on property taxes and "compression" of tax brackets, our tax bill may go up by as much as $10K, or about 5% of our annual income.
Our income is earned at jobs (not investments or carried income). We don't have any kids, so we don't typically get hit with AMT now. Our effective tax rate seems like it will go from around 14% to close to 18%.
Taxpayers in NJ already get back in federal programs less than 50% of what we send to the federal government in taxes. With these limits on state/local tax deductions, it wouldn't surprise me if we end up getting back $0.40 or less of every dollar we send. Much of which benefits people in states with low state and local taxes.
Think about that next time you want to make a joke about NJ.
3
Taxes and tax cuts for that matter need to take into account regional differences. A family of 4 in San Jose or San Francisco making $200k is barely middle class. Housing eats up more than 30% of income, child care is anywhere from $2-3k per child, gas is expensive, dining out is expensive. You can penny pinch and still find yourself barely living a middle class life.
Republicans may be hoping to punish Democrats but they are punishing people who are simply living in SF, NY, Boston and other pricy places that have jobs. Jobs are what bring people here and keep them here. If there were jobs in the rust belt, I am sure people would move there.
2
Draconian. Especially the disallowance of larger medical expenses that will inevitably result from the to date failed Republicans’ repeal and replacement of ACA. Like I wanted my preexisting conditions so I can now stress out even more about this impending tax disaster and further aggravate my health. Speaker Paul Ryan is a charlatan tax policy wonk. He wants us to believe the proposed tax refund scraps coming our way (that declines over time, crafty, Paul) will somehow cover the loss of our currently imperfect but better than what’s in store for us healthcare system. Outrageous. And incredibly dishonest. Wait! Maybe he thinks we won’t be able to put it together because the shiny object tax cut obscures all. If only the moderator would permit a few well placed f bombs I would enjoy a brief reduction in the stress hormone cortisol. Many thanks for letting me blow some steam. Treadmill here I come!
2
So what. It helps him and his golf buddies. And he gets big tax deductions from the expensing out the Secret Service protection.Also gets to buy all new golf carts and take huge deductions. Sick and sad.
I'm sitting here at my desk reading this column online. How many of the people negatively affected by this tax bill a) read the New York Times b) will have access to this kind of reporting? How do we get the Trump base the information they need to figure out (or care) if they are voting against their self-interests? Unfortunately I think most of the excellent reporting here is preaching to the choir. I wonder how we can change this.
3
Add to this the loss of the ability to deduct unreimbursed business expenses, a significant factor for some of us. It appears I will be among those seeing a tax increase. I wouldn't mind, but it is all to pay for the big tax cut people like Trump will get, not increasing government services or cutting the deficit.
Shame on the GOP - yet another scam.
2
Please do some analysis on effects of the tax proposal on one-person households. There are as many of us, if not more, as there are married with children households.
2
One of the cornerstones of the modern GOP way of thinking is that people with disabilities do not belong in society. First, they want to gut Medicaid. Second, they don't want to continue the medical tax exemption. Don't any of them know a single disabled person?
6
I'm a "middle-class" retiree who will be clobbered by the Republicans' latest "tax cuts for the rich" tricked out as one for people like me. First, the elimination of SALT, state and local taxes, would hurt me in high-tax New York. Second, the $10,000 cap on real estate taxes would really be painful in sky-high real estate tax Long Island where I currently pay almost $24,000/year. The very idea that corporations already averaging well under 20 percent in taxes with record high profits and stock prices need a tax cut is simply outrageous and nauseating. And why do the super-rich need to have the AMT removed? OK, Trump would then have no taxes to pay. So, I'd be paying more than the President on a fixed income of an annuity and social security for myself and my wife, also a retiree. Maybe Trump or Mitch McConnell would like to buy my house because I'll have to sell, but they'll be no one to buy it. I know; I tried this past spring and only had one offer at $100,000 less than its valued for tax purpose, but the town still rejected my petition to have my real estate taxes lowered!
3
Good work, Times. Much better than your article the day the plan was released where you called it a tax cut for the middle class.
3
eliminating the alternative minmum tax is an immediate $40,000,000 per year gain for donald trump
4
This 'tax cut' shell game reminds me of of the old sidewalk con game Three Card Monte.
This is an obviously blatant attempt to throw crumbs to some middle class taxpayers while providing YUGE breaks to corporations and moguls.
What is not getting enough attention is that this is also being done on a credit card - to the tune of 1 1/2 TRILLION DOLLARS!
Rest assured, interest rates will go up and the children and grandchildren of the middle class will be burdened with paying for Trump's fat cat tax holiday.
2
Regardless of what they say, Republickers since Reagan have been firm believers in deficit spending. Use deficits to finance tax cuts for the rich and make the rest of the country pay for their gifts.
Just the opposite of FDR.
1
Please provide better graphics to explain your data. The majority of adults are visual learners. If you want to TRULY educate the masses please provide better graphics.
Thank you!
"broadly defined as those earning between two-thirds and twice the median household income, or between about $50,000 and $160,000 per year for a family of three. "
What a ridiculously broad definition. Stop the statistic shenanigans. When you say half of this group would pay more in 2026 which half do you mean? And exactly how much more? Seems to be mostly those clustered near the 160k. Also, a family of 3 making 50k pays no taxes at all after earned credit/child etc. In fact they will get significant money back at the end of the year when you look at the bottom line. So do you mean they will get less money back and you are terming that as increased taxes? Be transparent and honest show us the full breakdown in at least one graph. Why is that so hard?
1
The analysis makes it clear that the tax increase is not based on income as much as the lack of deductions. Read the article.
And the article doesn't even discuss the geographic impact of the tax increases.
1
This bill is just the latest manifestation of Repub disdain for the poor and middles class working folks and their abject favoritism towards their wealthy contributors.
it is now obvious that all their claims of budgetary restraint and moral superiority were just the hollow words of hypocrites ,grifters ,liars and charlatans.Thats why they should be labeled from here in as the Failure and Ignorance Party.
5
What a surprise - the GOP is lying about the distribution and benefits of tax cuts. The evidence from the Reagan and Bush tax cuts could not be clearer -- the economy does NOT grow faster and the deficit explodes and the middle and lower income people get shafted while the top tier become fabulously wealthy. We borrow money from the Chinese to give to the richest 1%, and the rest of us have to pay for it with reduced services for the most needy and a debt that our great grandchildren will still be paying off. Tell me again - why is this a good idea?
How about a simple scenario? How much will Trump family gain from this? How much will Koch benefit from this? How much will hedge fund managers benefit? What will be income distribution inequity look like in 20 years? and how many more politicians will the billionaires be able to buy with their ill-gotten wealth?
11
but not on families named Trump, Koch, Mnuchin, Devos or any member of Trump's 1% cabinet. I- on the other hand, a middle class American will get slammed. Nice work GOP- wait until your lemmings figure out that their wallets will get picked too.
10
Getting caught up in the game of figuring out winners and losers with the tax cut is a chumps game, a red herring that obscures the fact that tax cuts deprive state and federal governments of the revenue needed to pay for programs, services, initiatives, etc., the age-old business of "starving the beast", In this case, that means benefitting corporations and the well-off at the expense of the rest of us and the programs we depend on (bad word, "depend", to those who harp on "individual responsibility", i.e. those who see programs such as Obamacare, Medicaid, Medicare, and Social Security as the government taking their hard-earned money and giving it away to "them"). Tax reform is indeed needed, as anyone who files an annual tax return knows, but tax reform doesn't have to mean tax cuts. It can mean more responsible and effective government, "governmental responsibility", if you will, rather than the obscene picture of multi- millionaires and billionaires slobbering at the feeding trough, "feeding the beast", so to speak.
20
I am a 52 year old self-employed engineer. My income is just over the cut-off for financial assistance on Obamacare, so I pay full price. Health insurance premiums for my family of 4 are my largest expense. More, even, than the mortgage payment on our So Cal home. I have built a consulting business after being layed off 3 years ago. Removing the ability to deduct this crippling insurance cost will make it impossible for me to continue with my business. And this after failing to take any action to reduce the cost of healthcare? Middle-class con job indeed!
10
Here is a question I'd like to see answered. If this passes, how quickly can it be repealed by a full Democratic sweep? Can we impose a 90 percent tax on the 1 percent (or something similar to Eisenhower rates) at the next possible moment?
20
The Tax Policy Center also found that broadly across the country the average person (not family, but individual) will save between $50 and $400 per year when the plan goes into effect (though some as indicated in this article will pay more, especially over the next decade).
And the average personal tax savings for those in the 1% will be about $120,000 per year per person. And corporations and businesses get about 70% of all the tax savings.
Typical repub plan. Peanuts for average people, massive increase in wealth for the already rich. Yet their voters seem oblivious.
7
My upper middle class taxes will SKYROCKET next year if the tax plan goes through. My wife and I have 3 kids and will lose all 5 exemptions, a $20,000 increase to our tax burden. We don't take the standard deduction, so no help there. Our property tax deduction will be cut in half (another $12,000 increase) and we will lose our state and local deduction (maybe $15,000)
So we are looking at a close to $50,000 increase in taxable income. At a 35% marginal tax rate that's about a $17,000 increase. Terrible news for people like us. And we're by no means rich. And I work myself to the bone.
36
You get twice the current standard deduction ... but yes, you lose some items .. As will I. I just have a hard time explaining to people at our factories when they ask me why they should pay for my deductions. The in out to the federal government from NY is often touted as one sided .. but if you look at it closely .. really not.
Maybe NYC should spend less money?
So many complaints here from the middle class folks expressing their fear that they may have to buy second hand cars and drink less cokes. Also think of the Royal Families in Saudi Arabia who without warning suddenly lost their palaces and Swiss Bank Accounts. We did vote for Trump so do take some responsibility.
2
That's rude, Rudolf. No one is equating the effects of this tax proposal with what happened in Saudi Arabia. As for me, I do not drink coke and I have never had anything but a second-hand car (my present one is 12 years old). But I will see my taxes rise significantly if this all goes through, which I can ill afford. The tax reductions for some middle-class people are a pittance -- the increases for some are a disaster. While the giveaways to business and the rich are immense and reprehensible.
4
I didn't vote for Trump, I will never be able to afford a car that isn't second-hand, I drink water and tea, and my taxes would increase considerably under the new plan. Please don't generalize when you perhaps don't know any middle-class people.
2
my taxes, like many others', will go up with this plan. i would gladly pay higher taxes, if that money was used to help disadvantaged people, or for funding badly needed infrastructure projects. but not to simply give it away those who need it least, which is what republicans always want to do, and with this plan does.
This plan clearly targets blue states with the elimination of state and local tax deductions. Any Republican from California, NY, NJ, etc. who votes for the plan is committing political suicide. Targeting those reps is the best strategy for defeating the plan.
9
Please NYT provide a follow up article on how this horrible tax bill hits the average family by eliminating the medical deduction. This tax bill- together with threats to reduce Medicare and Medicaid- will throw our vulnerable and elders under the 0.1%'s gilded bus. Families will have even more struggles trying to make ends meet a time when family emotional and financial stress is already enormous. How many more medical bankruptcies, destitute retirees? Thanks for the introduction to the new demagoguery, you cruel self serving Republicans who swore an oath to represent constituents, not wealthy campaign donors.
10
After reading this article, my thought is of a family whom has adopted children who have medical issues and have limited employer coverage.
The elimination of the adoption tax credit and the medical expense tax deduction is cruel. Combining this with preserving the tax shelters used by hedge fund managers and others as well as eliminating the Alternative Minimum Tax is unconscionable.
Corporate taxes need to be harmonized with the corporate taxes in the European Union, Japan and other nations. Corporations should make investment decisions not influenced by national tax policy but by the educational level of their future employees, transportation infrastructure and other factors. In an era of global corporations and the free movement of capital and ideas across the globe, maybe someday there will some sort of global corporate taxation to finance the relocation of people whose nations have been submerged by climate change. But that is not likely for several decades.
1
"Supporters say [the tax plan] would simplify taxes so that millions could file their return on a postcard." Okay. Show me the postcard. Seriously. If that's the selling point, then it doesn't seem unreasonable to demand to see the postcard. But I imagine that postcard is as invisible as the middle-class tax cuts, the replacement for the Affordable Care Act, and President Trump's tax returns.
4
We're still missing an important piece of this tax equation. The bill also promises to eliminate tax brackets but we don't know the income levels yet. A $12 or $24 thousand standard deductible along with fewer deductions pushes people away from itemizing their tax return.
Let's take the $75,000 household as an example. If the income break between 12% and 25% is $50,000, you're stuck in the 25% income bracket unless you can deduct $25,000 or more. The household now needs to accomplish this with fewer options to itemize. As a result, you'll lose more than just the deductions explicitly eliminated in the bill but also the deductions that are now rendered useless. Mortgage interest comes to mind.
The $24 thousand standard deduction is really only benefiting a narrow slice of the population depending on where those breaks fall.
3
No surprise here, when you look at Kevin Brady, you know when ever he is moving his lips that he's lying.
Typical of the Republican's the raise taxes on the wrong people, the one's that can least afford it, and give tax breaks to their wealthy friends and donors.
1
Typical Republican effort that kicks people when they are down. Removal of the medical deduction is down right mean! Really makes self funding of long term care less of an option. More elderly will be opting for the medicaid spend down if this change is made. I do not have a clue how many of the cancer patients will survive their high drug costs. More bankruptcies will be on the table with the removal of this deduction.
2
The entire Republican tax plan is a lie, just like every piece of legislation they have promoted this year. It's a tax increase on working families for the benefit of corporations and the super wealthy.
4
I am not surprised. Republicans have continued to lie about almost everything.
Republicans in congress give tax cuts to the rich - that is what they want to do always. And Republican voters go along with that although a majority of them will be suffering the consequences of higher taxes.
A significant section of the Republican party - whites without college degrees - vote for Donald Tump and the Republican party. These people are voting against their own interests - when will they figure this out??? Republican leaders are lying to these people yet they continue to believe the lies.
2
like everything else coming out of this administration and it's enablers, this is a gift to our wealthy overlords wrapped in enough ribbon and bows to fool the fools that believe in GOP fantasy math and trickle-on fairly tales. (that would be the fox news viewers). Trump wins big as does his family, friends and donors, the GOP claims a victory, and most if not all congress will see a windfall.
Meanwhile, any saving any middle class family sees will be quickly eradicated by the soaring cost of health care (for those that can still get it).
But the really good part for the GOP, is that once they lose the house and presidency, they get to blame the dems for the HUGE deficit they caused, the destroyed economy that will follow, and the "broken" government / failed safety net. And their faithful will, once again, buy it hook line and sinker.
It will cut taxes on average. One of the worse statistics available. Steve Mnuchin and Rodger Coehn walk into a bar and the bartender yells out "Congratulations everyone, We are now on average Multi-millionaires.
4
Where is the credible, verifiable data that this plan is going to materialize as job creation and wage growth?
By no means are the Democrats saints, but at least their policies are data-based.
So where is the evidence, Republicans? On what justifiable grounds are the rest of us just supposed to take your word for it?
And why is it that jobs were added every single month of Obama's tenure without taxes being raised? Why do we we need tax cuts when unemployment is so low?
And why do older people have to give up their medical deductions just so some billionaire can have more billions stored in some tax shelter in the Bahamas?
And why do you not care that your tax plan will explode the debt by a trillion and more? Why was that such a rallying cry of yours under Obama but not now?
You owe us middle-class and working poor taxpayers, i.e. the real makers of this country, WAY more information than what you're providing about why we must subsidize the parasitic whims of billionaire takers, but you refuse to share it.
Why is that?
6
well said
Just believe in the magic of dynamic scoring and future rosy projections that have no basis in prior tax cut performance history. If they don't pan out, then plan B will be to make cuts in social programs to attack the National Debt increase that will result from this tax plan (for the rich) given to us by the 'fiscally conservative' party.
Each time I think the Republicans can't get any more cruel to the poor and the middle class, this bill proves me wrong.
3
I believe that is Mr. Six on the left in the photo.
He looks like he is ready to break out some Vengaboys moves.
I have never met a middle class family that was able to claim the medical expense deduction. You can only claim this deduction if it is 7 percent of your income. You will need to rack up $7000 in medical expenses on a $1000,000 income to be eligible for this deduction. You'likely don't have insurance or not middle class if u are eligible.
The tax code is replete with these beauties that u think are available like College Expenses deductions capped at $4000 when the average college bill is $40000. The caps and income restriction make them useless unless u are a tax cheat.
2
Agreed. Few people do their own taxes, and they don't understand how deductions work. They invariably think they are getting various deductions, like medical expenses and employee expenses, that they are not really getting, due to thresholds and income restrictions.
2
Hitting this threshold is far easier than you think. Our family came very close to hitting that $7K mark with the uncomplicated birth of our first child. A complication, C-section, or infant who needs to be in intensive care would all push a family over that mark. So would ongoing cancer treatment, major surgery, and a host of other potential issues that people regularly face.
2
I'm self employed and make just above the limit for ACA subsidies, so I pay full price. The monthly insurance premium for my family of 4 is $2200 per month. It's a "Silver" plan. That's $26K before deductibles, co-pays, prescriptions, etc. Easy to get to $30K.
2
Should i be surprised that, for some people to pay less taxes, others must pay more?
4
Why keep dignifying this as a "Republican plan" or "reform"?
This is an utterly disingenuous hand-out to the richest of the rich, big corporations, and oligarchs. THAT'S the goal! And that has ALWAYS been the goal of Ryan and his gang.
Anything in there about the middle class or poor is either s ludicrous sop, meant to deceive, or a HUGE increase (loss of deductions for state taxes, mortgages, etc) that hits the working and middle classes HARD. We're the TARGET!
9
The Republicans are playing the long con here. Raise the debt and deficit to unmanageable levels, then sigh and say that, unfortunately, we must cut the biggest parts of the budget (except Defense): social security, medicare and madicade.
9
That was David Stickman's con. Fortunately it failed under Reagan.
1
Actually, I'd like to see the breakdown of rewards (or punishments) that the "Unborn" love or hate.
I understand from the article by Peters and Solomon (Nov. 4, 2017. "Tax Overhaul Bears Gifts for Conservatives, Including Rights for 'Unborn'".) that the Uns will be overjoyed that their education needs will be taken care of via the 529 Plans, that's always a good move, but given that that money now belongs to the Un, how is the provision made to designate an heir in case they never make it out of the womb? Did someone ask the little Un? Did it have a mouth to reply?
How was this transference of information made?
Throw this entire "tax cut" bill out.
It is set to wipe out the definition of what a citizen is (good luck finding THAT in the Constitution!), what a human being is, and all limits on religious organizations.
Somehow, all of that, just got slipped in there.... somehow...
This isn't just a trillion or so for the 1%ers.
This is the uber-right's "Holiday Wish-List" of everything they could never get passed before ("personhood" has consistently been voted down every time it has been on a ballot) and Republicans fear that they may never get the chance to put it all on the counter again, given that once the "Little People" realize that there is nothing in the bill for them that the "Little People" will never vote Republican again.
Take another look at this turkey, people.
This is the biggest scam ever.
Just ask the "Unborn".
4
The owner, not the beneficiary, determines the use of the 529 plan. Have you have ever used a 529 plan? Only if the beneficiary is an adult, usually getting postgraduate education, are both roles the same person.
It does seem an ingenious use of the reconciliation process. My guess is that is what really spins you up, not the governance of the 529 plan.
I would love to see my taxes cut, but how can that happen and we reduce our deficit and beef of the military and build the wall and....
4
This reminds me of Bush sending money back to the taxpayer because we had too much money in the government ( oh that we would have some of that now instead of increasing the deficit ). For me it was $600. Gee what a boost for the economy. Right into the savings it went, except for the amount that went back into taxes.
The Republicans kept trying to sell this to middle income families which ignores the huge gain the highest earners get. And I don’t even want to talk about the increase in the deficit. Fiscal conservatives my rear end.
When another natural disaster strikes, or we need more money to fund our interstate highways, bridges, education, health etc etc, I see the Republicans cutting necessary incomes from those who need it the most. Social Security and Medicare/Medicaid are not entitlements, they are necessities for a large part of the Population of our country.
5
This is the clearest evidence yet of the low regard the GOP has for middle class voters. The clown in chief famously boasted that he loves the poorly educated, and there's a reason for that. So much the easier to bamboozle them. This is both shocking and not surprising at the same time. The question is, will the American people allow the GOP to get away with this reverse Robin Hoodism -- again? At least with the Bush tax cuts, the GOP pretended that they were "returning" the surplus created by policies passed under the Clinton administration to taxpayers. (Reducing the debt was never considered by these so-called "deficit hawks", but that's another story for another day.) Having railed against the growing national debt during the Obama years -- fueled, of course, by GOP policies, tax cuts, wars, etc. charged to the national credit card -- the GOP brazenly proposes to increase the debt, even after factoring in growth and cuts to Medicare and Medicaid that aren't likely to materialize, by about 10%. Because the second part of the plan is to decimate Medicare, Medicaid and Social Security. As to Social Security, their goal is to avoid repaying the $2.7Trillion of working people's money that they raided to offset the costs of the Bush wars and Bush tax cuts and other Bush spending that benefited the rich. And then what's left for anyone but the uber wealthy? Is that the kind of society they wish to live in and leave to their children and grandchildren? What is their end game?
11
So my taxes went up under Obama because I was hit with the ACA surcharge, but I thought it worthwhile. It appears under this bill my taxes will go up again. Could the Repubs at least have the decency to pretend my tax dollars will go to something worthwhile rather than to fat-cat CEOs??
6
It is the height of insanity that a President who refuses to release his own income tax records be considered a valid advocate for such reform.
60
And nobody was surprised.
GOP can cut-up their postcards and give my family medical deductions back.
Many households that use medical deductions are single-parent divorced with a disabled child or over 65+ folks trying to keep a spouse out of nursing home.
Home modifications and modified vehicles cost a lot of money and are necessary to maintain disabled and elderly at home. These items are not usually reimbursed by insurances. Dumping med deductions will push families into having to institutionalize loved ones making it more likely that Medicaid will pick-up some of that bill.
Congress......Evil and Stupid.
3
Makes sense for the party of lies, corruption, and double-speak.
I thought every adult American KNEW that............raising taxes on the 99% is what Republicans DO!
1
Americans who use the Itemized Deductions provision to lower their taxes will get hit right between their eyes.
** The Medical Deduction: People who have a chronic illness, or have a sudden onset of a terrible illness or injury will be devastated by not having this Deduction.
** The Casualty and Theft Loss Deduction: What about all the people who have had their homes destroyed by fire, storm or flooding? This years events has destroyed the lives of millions of Americans.
** Miscellaneous and Job Related Expenses: The republicans don't even mention this; they just want it gone for good.
** The Home Mortgage Interest Deduction: The republicans are struggling over if and how much of the Real Estate Taxes they will allow. But what of the millions of Americans who own their home and pay a mortgage with Interest?
** Real Estate Taxes: The republicans are still torn over to allow or not allow and if allow, how much to allow of the Deduction for real estate taxes.
The bottom line is this "tax cut bill" will only benefit the rich; not the Average American.
4
Shame on the GOP for turning the tax code into partisan politics.
Shift higher taxes onto blue states to fund corporate largesse.
If you want to see who really benefits from this, take a look at the sections where exceptions are made specifically for the real estate industry. *cough Trump *cough * Kushner * cough*
The GOP is a vapid disgrace to our country. Our House Rep, Peter Roskam from IL-06, refuses to hold town halls while he secretly tries to pass this legislation that will harm his own constituents.
Congress works for US, and this process and bill is not in our best interest. Vote out all GOP. They are ineffective, corrupt, soulless, and a danger to our Republic.
GOP = poison.
6
The doubling of the deduction raises my taxes. I am a single filer, earning less than $75,000. The elimination of the personal exemption, the state and local tax deduction, college loan interest deduction and interest on a home equity loan I took out to fix major plumbing issues on my 75 year old house, would all be eliminated under the GOP plan. This is a sucker punch for all of us who did not vote for Trump.
2
but,but...you can put it on a postcard. Isn't that the important thing.
1
A YUGE step backwards to the days when your health could bankrupt you. Thanks Donnie, MIke, Mitch, & Paul.
I believe the article is in error in indicating that the self employed health insurance is gone. That is not my understanding from reading the bill.
It's disturbing that the tax plan further erodes the democracy by increasing tax burden on higher education while at the same time undermining the education dept & de-funding many govt agencies along with science & research, attacking the press & promoting voter suppression disguised as preventing non-existent voter fraud. If people don't get up off their butt to vote we'll have nothing left to save.
1
I wish the NYT would provide a clear definition of a "middle-class" family.
Why does the Times focus only on married people? Why are single people a low priority?
32
The Single childless renter, the tax payer without any tax breaks.. ever. Unless of course it was a $400 rebate every tax payer got. We are not a popular block of voters for tax plans.
1
First the GOP drives up ACA premiums with their high deductibles by creating uncertainty over Federal payments to the insurers. Then they want to eliminate the health care deduction for those high premiums and deductibles (above 10% of income). But they also want to get rid of the death (estate) tax. It seems to me that the GOP would prefer that we all died, sooner rather than later. So much for being the pro-Life party.
10
Our daughter has been in a residential mental health facility since early October, at a cost of $950 per day plus incidentals, totaling $31,000 for October. Our insurance company refuses to cover this cost, though our daughter has gone through all manner of mental health treatments for the last five years and may well kill herself if this program does not work. The "pre-bill" for November just came, starting at over $28,000.
The only saving grace of these costs is that--this year--they should total well over 10% of our incomes and the amount above that should be deductible as medical expenses. But we won't be able to do that in 2018 if Republicans have their way.
Our daughter's care is rapidly eating through all the gains we made from selling our house and moving to an apartment a few months ago, so we will soon have to start borrowing to cover the costs.
Are Republicans so desperate for campaign contributions from wealthy families and giant companies making record profits that they feel compelled to punish those struggling to cover the costs of medical care for their families, in order to counter balance some of the costs of tax cuts for those who don't need them?
To paraphrase Joseph Welch, "At long last, have Republicans left no sense of decency?"
41
"Republican Plan Would Raise Taxes on Millions"
Absolutely right. The middle class and working poor will be hammered by the republican non-tax cut bill for most Americans.
1) The working poor who file and pay Federal Taxes would see their tax Rate go up from 10% to 12%.
2) On our Federal Tax Form for 2016, which we filed this year, we were allowed a Personal Exemption of $4,050.00 for ourselves, our spouse, each child and any other persons we were entitled to claim such as an elderly relative we supported.
The House republicans want to do away with this Personal Exemption and replace it, along with Itemized Deductions, with what they call the new Standard Deduction, limited to $12,000 for a single person or $24, 000 for a married couple.
If we have 3 or more kids plus husband and wife and Itemized Deductions, we will pay a huge increase in our Federal taxes. 3 kids plus father and wife equal 5 Exemptions times $4050.00 for each person equals $20,250.00. So, if our Itemized Deductions are more than $ 3,750.00, for example, lets say we have $15,000.00 in Itemized Deductions, we will lose out on $11,250.00 of Deductions and will pay much more in federal income taxes on that now taxable $11,250.00. It's just simple math.
7
Of course middle and lower income families will suffer. Say goodbye to adoption, lifetime learning, and hope credits. Say goodbye to college interest loan, medical expenses, state & local tax deductions. Say goodbye to personal exemption credits for your children from 17 to 24 (if still in college) and for poor aged parents, aunts, uncles you may be taking care of in your home. Say hello to the only raised tax bracket (12% replaces 10%). The effect of increased standard deductions gets wiped out by those areas previously listed. The temporary $300 adult credit is timed to disappear in 5 years. I'm not aware of anything else that disappears in 5 years in the plan. The savings from these cuts will allow for the elimination of AMT, estate taxes, the lowering of corporate tax rates as well as lowering the upper income tax bracket rates. This anti-family tax bill will hurt middle and lower income people for sure. It is NOT a "middle class miracle".
16
Never in the history of tax reform has trickle down economics helped anyone but the rich. Tax reform and policies under Reagan helped shift wealth to the upper one percent and shifted many people from solidly middle class to working class and yet, people keep thinking giving more money to the wealthy will somehow make their lives better. Wealthy people just find ways to hide the money in tax havens. The best way to stimulate jobs is to give the money to the working class who would then spend the money in this country generating billions in sales taxes.
I say if you want to add to the deficit spend 1.5 trillion on infrastructure and create high speed electric trains to compete with all polluting airplanes.
18
With GDP growth at roughly three percent, unemployment at a twenty-year low, and national debt at an historic high point, it would be bad fiscal policy and potentially quite dangerous to increase tax revenue and add $1.5 trillion to the national debt. This is Economics 101! Why don't Republican conservatives care about the likely damage that the current proposed tax cut would have to the country?
19
Why is the GOP crafting a tax policy that would only truly help the wealthy and add $1.5 trillion to the national debt? Tax cuts for people who already are doing very well will not facilitate economic growth. The tax cuts for middle and working class people will be negligible. Millions of middle class people--including me-- will see their tax liability rise significantly. This policy solves nothing.
17
I've run a calculation of my taxes from this past year as a test of the Republican plan. With the shift in brackets, I would have paid just a bit more (ca. $100) under the proposed legislation. I wouldn't mind so much, if that small amount went to improve government services or help those less well off than I. But my increase won't go there. It will line the pockets of large corporations and the very wealthy. I mind that a great deal.
In addition, the deficit will increase, I will no longer be able to deduct extraordinary medical expenses when they come (which may be soon). And in conjunction with reductions to Medicare and Medicaid according to the cruel Republican budget, I have a very bleak medical future in store.
Republicans plan to treat most seniors very badly with their tax reform, and we need to alert our representatives to our displeasure. Senator Rubio has already received a note expressing my strong consternation.
35
My mother, at 95 is in a nursing home, paying more than $70,000 to be there. Fortunately, between Social Security, her pension, and the income on a small inheritance, she can live out her life in dignity. If she cannot deduct these expenses she will have to be moved to a different sort of place, a change which is devastating for people of this age.
I am 67. After all of this exposure to the elderly and to nursing homes I realize that I too will probably be in one within 20 years. My retirement will be upended if I cannot rely on being able to deduct those expenses on my taxes when the time comes.
Medical expenses have always been deductible, first over 7% of income, than over 10% of income so why change that now in order to push down corporate taxes. People don't realize it, but the time will come when their medical expenses will be far higher. This is not a middle class tax cut regardless of whether a family might haves some small immediate savings. Eventually, we will wind up paying for this huge wealth transfer to those who need it least.
53
The modern GOP is seeking to consolidate money, political power, and the right to decide social issues to a wealthy few. We’d better wake up.
If corporations want lower taxes, it should be contingent on raising salaries and investing in their companies, instead of giving them windfalls and vaguely hoping they’ll do right by anyone except themselves.
35
The big canard is that corporations will invest this windfall in jobs and production. They won’t and never have. It’s just a back door giveaway to CEOs and investors. Republicans are lying to your face about jobs and cutting your taxes while they are fleecing you.
3
What many of these articles do not address is the fact that the Republicans are attempting to equate a loss of personal exemptions (a $4,050/person deduction) with an increase in the child tax credit (proposal increases credit by $600). This is only true for those in the 15% bracket, but the real issue is that the child tax credit ends when a child reaches 17, but a personal exemption can last as long as you are supporting your child (think college years). So, the middle class loses the personal exemption deductions immediately, followed by losing the child tax credit as each child reaches age 17. Nothing like a huge tax increase the year before you send your child off to an over-priced college. Gotta love this baby-boomer generation! Leaving future generations worse off, the opposite of what their parents did.
39
Why in the world are we cutting taxes at a time when we have low unemployment and we desperately need revenue for infrastructure, investments in alternative energies, healthcare, education and much more? If we want more jobs, then giving companies the infrastructure they require plus removing companies' healthcare mandate by instituting Medicare for all will attract them here and give a boost to salaries.
Oh wait. Every Republican in Congress worships at the Ayn Rand altar, which provides them the greenbacks they use to get re-elected.
58
When will the middle class tax blood-letting cease...?
The Buffett’s, Gates’, Dolby’s and Hanauer’s of the Giving Pledge have it right: multi-generational wealth in excess isn’t productive for humans. Maybe some of America’s wealthy could step up and volunteer for a higher tax rate.
I am very fortunate relative to most Americans: with income between $300-400K annually, I would gladly pay a higher tax rate for functional healthcare, reduced educational costs, and certainty for seniors. The only thing I ask in return is a graduated scale (or mean’s test) and a mechanism to validate personal accountability.
40
There’s no reason for any tax cut in the current economic expansion. There is certainly no reason to pump 80% of $1.5T to the top 1%. Let’s spend that $1.2T on infrastructure and give the rest to the bottom 20% as a real tax cut, not this blatant money grab by the rich.
104
Well said, sir. Well said.
I think opponents of the tax bill are falling into a trap here. Democrats and many news articles focus on how some middle class people will see their taxes rise. That's problematic for three reasons. First, if you focus the argument on the dollar gain or loss to individuals, there will be even more people who'll see their taxes drop, even if only modestly. Second, this bill has diabolically targeted deductions and income---especially affecting blue high-tax, high-cost-of-living states (state/local tax, higher value mortgages) and liberal groups (grad students, elite college endowments)---that many Americans may see as belonging to a privileged liberal elite, middle class or not. I don't favor these GOP proposals at all, but focusing the attack on those puts Democrats in the position of appearing to defend perks. Third, we need to focus on the two most important and consequential flaws of the bill: the unjustifiable breaks for the wealthy (esp. estate tax and some business provisions) at a time of unprecedented wealth concentration and the consequences of the bill as a lever to win deep and devastating cuts in gov't programs, services and functions. I welcome all of the press coverage and exposure of the bill, but, for opponents, reducing this to how much each voter gains or loses is the wrong approach, and possibly a losing one.
24
Disheartening to know that people wish me ill because of where I happen to live.
As a one-person household with few deductions left, mortgage paid off, and a healthy income, my NYC and NYS taxes added together are about equal to my federal taxes, and without the deduction they would double my total tax bill.
However, I think the underlying problem --the real problem-- is that NY income taxes, city and state, are too high by far. If this new plan forces NYC and NYS to tighten budgets and stop throwing hundreds of millions at every problem at the drop of a hat, maybe that would be a good thing.
5
FROM A (GOP) Christmas Carol
"At this festive season of the year, Mr Scrooge, ... it is more than usually desirable that we should make some slight provision for the Poor and destitute, who suffer greatly at the present time. Many thousands are in want of common necessaries; hundreds of thousands are in want of common comforts, sir."
"Are there no prisons?"
"Plenty of prisons..."
"And the Union workhouses." demanded Scrooge. "Are they still in operation?"
"Both very busy, sir..."
"Those who are badly off must go there."
"Many can't go there; and many would rather die."
"If they would rather die," said Scrooge, "they had better do it, and decrease the surplus population."
------
"Drop dead, America !" - GOP 2017
63
Socrates- but Scrooge had an epiphany and changed his ways. The republicans are more like Potter from "It's A Wonderful Life". They will never have an epiphany and they will never change their ways.
1
"Of the roughly 6.5 million middle-class families whose taxes would rise in 2018 under the bill, about 800,000 took advantage of the medical expense provision, deducting more than $17,000 on average from their taxes."
Does this mean that they reduced the amount they owed in taxes by $17,000, or that they deducted $17,000 from their taxable income? The next sentence suggests the latter, but I believe a subject this complex calls for more precise writing.
9
The medical deduction is an itemized deduction from taxable income. It is not a tax credit.
1
Exactly. That's why a construction like "deducting $17,000 from their taxes" is sloppy and misleading.
1
Thank you for calling attention to the effect the proposed legislation would have on those of us with major unreimbursed medical expenses.
To use my own family's situation as an illustration, we're retired and living on Social Security and savings, my wife has Parkinson's disease, and we're spending 63% of our annual budget on health care expenses, mostly home health aides. If my wife were to have to go into a nursing home, we would be devastated financially.
The medical deduction is helping to keep the bailiff from our door.
77
Care of the sick and elderly is beggaring many American families. Most don't realize the costs. Those who have savings against illness and old age find that our for-profit medical care system has devised countless ways to bring in more money. Now the government is joining in the game. Sick.
4
One comment I heard when various interviewers were asking folks from places around the country how they felt about eliminating the deduction for state and local taxes was, "Why should someone from California get a bigger deduction than I?" (I believe the person was from Georgia, which does have an income tax) I can only say that, as a resident of PA, which has a very small in come tax (too small, if you ask me, considering the budget issues we are having...), I don't begrudge the high tax state residents their deductions since those state are also net donors to the federal budget, transferring significant amounts of money to the people in state where their (primarily republican) governments feel that they shouldn't do anything to 'coddle' their residents and rely on the federal government to provide safety nets.
55
Jenny, this is a very important point. According to a recent NYT article, New York pays $41 Billion more in taxes than we receive back from the federal government. This incredible hit to Blue States will likely make that number soar. When people from low income states say they don't want to subsidize us, they have it exactly wrong.
2
Please consider older people in your next article. The tax bill looks pretty bad for a lot of retirees. And we contribute to the economy, too - look at how much we spend on health costs! Not to mention replacing the household appliances that we bought so long ago that have exceeded their useful lives. And what we may spend on our children/grandchildren.
67
"Concerned" is absolutely right, we need these analyses of the proposed tax bill to look at the impact on older people and particularly single, older women.
8
Thank you, CLW. I'm a widow in my 80s.
We're a retired household, with an AGI/taxable income squarely in "the middle class." Out-of-pocket medical expenses regularly exceed 7.5% / 10% of AGI. I recalculated our 2016 return and our total tax savings under the new rules will be -- wait for it! -- $388. The good news is that, according to Administration officials, that's 1/3 the cost of a new car.
Of course, it's a little too early to tell what we will end up with, but what could be beneficial is to see a before and after situation under several scenarios of income and filing types for both 2018 and 2026 to see the big picture.
4
At least I voted for the Democrats today. I voted against the Russians. Or was that the Republicans? Always get those two R words confused these days. Can't imagine why. Voting is the one thing I can still do that gives me the comforting illusion of controlling my own destiny. These are truly dark times for the our country and for the world. Please join me in voting against the Rs today.
122
We’ll see tonight if the R’s have rigged them again.
1
This analysis is valuable, but it would be interesting to see some numbers for other categories of people, as well.
27
As a senior with huge medical expenses, I can already feel the pain
2