Doubling of Standard Deduction is Fake News

[Sooner-Be-Dead]

Sweet. I get another few hundred bucks out of this deal and much higher deficits.


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Meanwhile, taxpayers who still wouldn't take the standard deduction under the Republican plan — those who would instead deduct things like mortgage interest — would pay tax on more of their income than they do now.

Here's the important fine print: "To simplify the tax rules, the additional standard deduction and the personal exemptions for taxpayer and spouse are consolidated into this larger standard deduction."

Here's how that math works. Let's say you are single with no dependents, and you have a moderate income. Currently, you get to take the standard deduction ($6,350) and one personal exemption ($4,050). If you are 65 or older, you also get to take an additional standard deduction ($1,250). That adds to $10,400, or $11,650 if you're a senior citizen.

The Republican plan would replace all these provisions with a single deduction of $12,000 ($24,000 for married couples.) That's a 15% increase — except for seniors, who get a 3% increase.

And then your first dollar of taxable income would be subjected to a 12% tax rate, instead of the current 10%. But don't worry, the framework says "additional tax relief," as yet unspecified, will emerge for you during the committee process.



http://www.businessinsider.com/trump-tax-plan-doubled-standard-deduction-2017-9

 

[BABiscuit]

Per article, personal exemptions for children are also going away with an unspecified increase to the child tax credit.

 

[MepoDawg#]

Per article, personal exemptions for children are also going away with an unspecified increase to the child tax credit.

So for some it's gone entirely if your child tax credit is phased out due to income.

 

[Sooner-Be-Dead]

The mortgage interest deduction will be eliminated, effectively, because itemizing won't make sense. Clever.

 

[Funky Bunch]

The mortgage interest deduction will be eliminated, effectively, because itemizing won't make sense. Clever.

Buy a bigger house

 

[BABiscuit]

So for some it's gone entirely if your child tax credit is phased out due to income.

Sounds like it, unless the change the phase out. Also, people that itemize no longer get the personal exemptions.

If this is the actual plan claiming they are doubling the standard deduction is incredibly dishonest.

 

[Funky Bunch]

So for some it's gone entirely if your child tax credit is phased out due to income.

Also Age. You lose the tax credit in the year they turn 17. They would have to quadruple the tax credit to make it a wash. This will come nowhere near replacing the dependent exemption.

 

[MepoDawg#]

Sounds like it, unless the change the phase out. Also, people that itemize no longer get the personal exemptions.

If this is the actual plan claiming they are doubling the standard deduction is incredibly dishonest.

If this makes the tax code simpler then fine, but not if it's raising taxes on the low and middle class.

 

[DanL53]

At this point does anyone not understand the whole point to the Republican Party? Totally bought by the wealthy.

You voters who picked the red side and rooted for it like it was a football team? You #$%$ed yourselves AND the rest of us.

Thanks.

 

[Sooner-Be-Dead]

Hell, I could live with this fake tax cut if it weren't being offered as a carrot to the middle class in return for obvious tax cuts for the 1%.

 

[BABiscuit]

Also Age. You lose the tax credit in the year they turn 17. They would have to quadruple the tax credit to make it a wash. This will come nowhere near replacing the dependent exemption.

Forgot about that. Those with kids in college are going to get dicked.

 

[MepoDawg#]

CNN article says they'd increase child tax credit income thresholds. Doesn't say to what nor does it say what the income ranges would be for the 3 tax brackets.

Won't know if it's good, bad, or indifferent until they put some numbers behind the changes.

 

[joelbc1]

I know those Republicans are looking out for me....of I just made more money, owned more property or was better and more comfortable about exploiting others. I sure hope they keep that " special tax rate" for those really wealthy MFers! Capital gains forever!

 

[Lone Clone]

Hell, I could live with this fake tax cut if it weren't being offered as a carrot to the middle class in return for obvious tax cuts for the 1%.

The bill includes a SURTAX for the topo 1%, not a cut.
Jeepers, guys and gals, most of this thing could have been written in the DNC wet dream spinworks.

 

[joelbc1]

The bill includes a SURTAX for the topo 1%, not a cut.
Jeepers, guys and gals, most of this thing could have been written in the DNC wet dream spinworks.

We shall see what emerges Lone, when and if such a time comes around. Pols lie...especially when it comes to taxes.

 

[dgordo]

Biggest handout is the elimination of the gift tax.

 

[Lone Clone]

We shall see what emerges Lone, when and if such a time comes around. Pols lie...especially when it comes to taxes.

Absolutely. The thing being released today almost certainly will be vastly different when -- if -- it actually comes to a vote. But everybody else was talking about the thing being released today, so I thought I'd point out some factors that hadn't been mentioned.

 

[Sooner-Be-Dead]

The bill includes a SURTAX for the topo 1%, not a cut.
Jeepers, guys and gals, most of this thing could have been written in the DNC wet dream spinworks.

Want to buy the Brooklyn Bridge?

 

[Lone Clone]

Want to buy the Brooklyn Bridge?

No, although it probably would be a good investment.

Speaking of which, anybody interested in history would do well to read David McCullough's book about the building of the bridge.

 

[Sooner-Be-Dead]

Want to buy the Brooklyn Bridge?

No, although it probably would be a good investment.

Speaking of which, anybody interested in history would do well to read David McCullough's book about the building of the bridge.

The bridge part was really good. Biography part was boring.

 

[your_master5]

The mortgage interest deduction will be eliminated, effectively, because itemizing won't make sense. Clever.

The biggest hit will be charitable contributions imo. If they effectively take away the itemized deduction, those folks who give $5,000 to $10,000 / year will no longer have a deduction to write it off. Will they continue to give?

 

[joelbc1]

The biggest hit will be charitable contributions imo. If they effectively take away the itemized deduction, those folks who give $5,000 to $10,000 / year will no longer have a deduction to write it off. Will they continue to give?

Oh you cynic! The richest of the rich share one common compassion...a desire to give money to the needy because their God says it is wise to do so.

 

[CarolinaHawkeye]

The biggest hit will be charitable contributions imo. If they effectively take away the itemized deduction, those folks who give $5,000 to $10,000 / year will no longer have a deduction to write it off. Will they continue to give?

They should have taken those away years ago. If you support something, it shouldn't be because of a tax deduction.

 

[theiacowtipper]

Read that the tax on pass through income was going down to 25%. Good news if you're a doctor or lawyer I guess.

 

[aflachawk]

Sweet. I get another few hundred bucks out of this deal and much higher deficits.


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Meanwhile, taxpayers who still wouldn't take the standard deduction under the Republican plan — those who would instead deduct things like mortgage interest — would pay tax on more of their income than they do now.

Here's the important fine print: "To simplify the tax rules, the additional standard deduction and the personal exemptions for taxpayer and spouse are consolidated into this larger standard deduction."

Here's how that math works. Let's say you are single with no dependents, and you have a moderate income. Currently, you get to take the standard deduction ($6,350) and one personal exemption ($4,050). If you are 65 or older, you also get to take an additional standard deduction ($1,250). That adds to $10,400, or $11,650 if you're a senior citizen.

The Republican plan would replace all these provisions with a single deduction of $12,000 ($24,000 for married couples.) That's a 15% increase — except for seniors, who get a 3% increase.

And then your first dollar of taxable income would be subjected to a 12% tax rate, instead of the current 10%. But don't worry, the framework says "additional tax relief," as yet unspecified, will emerge for you during the committee process.



http://www.businessinsider.com/trump-tax-plan-doubled-standard-deduction-2017-9

if we can get the deductibility of state taxes eliminated that would be nice. It would be a downer for blue states but that's good

 

[joelbc1]

if we can get the deductibility of state taxes eliminated that would be nice. It would be a downer for blue states but that's good

So again, now you are in favor of double taxation? How do you justify this position without a tea party?

 

[aflachawk]

if we can get the deductibility of state taxes eliminated that would be nice. It would be a downer for blue states but that's good

So again, now you are in favor of double taxation? How do you justify this position without a tea party?

no I am not in favor of that. It's two separate entities. How is that double taxation? Do you think SS taxes and income taxes are double taxation too? Getting rid of the state tax deduction would be a very progressive tax. I would think you would like that

 

[aflachawk]

if we can get the deductibility of state taxes eliminated that would be nice. It would be a downer for blue states but that's good

So again, now you are in favor of double taxation? How do you justify this position without a tea party?

so Again, it's not double taxation. One is by the individual states. One is by the federal government. Each entity i s onlky taxing once. There are examples of double taxation, this is not one.

 

[SL Hawk Fan]

Read that the tax on pass through income was going down to 25%. Good news if you're a doctor or lawyer I guess.

Most privately held businesses are "pass through entities" so this applies to virtually all business owners, not just doctors and lawyers.

 

[SL Hawk Fan]

so Again, it's not double taxation. One is by the individual states. One is by the federal government. Each entity i s onlky taxing once. There are examples of double taxation, this is not one.

In theory, you may be correct, aflac; but I tend to look at the deductibility of state taxes as keeping individuals (and their pass through entity businesses) on par with corporations.

Any C-Corp (all public companies and some privately held ones) deducts state level taxes in arriving at taxable income for federal tax purposes. Why should these entities get a deduction that isn't available to individuals and most privately held businesses that pass through their earnings to those individuals?

 

[Moral]

At this point does anyone not understand the whole point to the Republican Party? Totally bought by the wealthy.

You voters who picked the red side and rooted for it like it was a football team? You #$%$ed yourselves AND the rest of us.

Thanks.

It is baffling and sad that republican voters believe they the GOP is looking out for them. Hell, the GOP isn't even trying to hide it anymore, but so long as some people are kneeling than their hordes of idiot voters won't notice.

 

[CeMar_Clone]

Sweet. I get another few hundred bucks out of this deal and much higher deficits.


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Meanwhile, taxpayers who still wouldn't take the standard deduction under the Republican plan — those who would instead deduct things like mortgage interest — would pay tax on more of their income than they do now.

Here's the important fine print: "To simplify the tax rules, the additional standard deduction and the personal exemptions for taxpayer and spouse are consolidated into this larger standard deduction."

Here's how that math works. Let's say you are single with no dependents, and you have a moderate income. Currently, you get to take the standard deduction ($6,350) and one personal exemption ($4,050). If you are 65 or older, you also get to take an additional standard deduction ($1,250). That adds to $10,400, or $11,650 if you're a senior citizen.

The Republican plan would replace all these provisions with a single deduction of $12,000 ($24,000 for married couples.) That's a 15% increase — except for seniors, who get a 3% increase.

And then your first dollar of taxable income would be subjected to a 12% tax rate, instead of the current 10%. But don't worry, the framework says "additional tax relief," as yet unspecified, will emerge for you during the committee process.



http://www.businessinsider.com/trump-tax-plan-doubled-standard-deduction-2017-9

Middle class people are not in the 10% tax bracket, they are much higher. And people in the 10% tax bracket a few years back were in a 15% tax bracket, so even being in a 12% bracket is still lover than what it used to be.

 

[Funky Bunch]

Middle class people are not in the 10% tax bracket, they are much higher. And people in the 10% tax bracket a few years back were in a 15% tax bracket, so even being in a 12% bracket is still lover than what it used to be.

Everybody is in the 10% bracket