Tax Reform

[Winchester]

[Saz]

[Saz]

[Winchester]

[ToddStarnes]

[Saz]

[Winchester]

[Kane]

Corporate Tax Cut to Be Phased Out After a Decade
https://www.bloomberg.com/politics/arti ... r-a-decade

Lololololol

Tax reform for a decade

[Spider]

Just long enough to line pockets, not long enough to actually matter to everyone else.

[Winchester]

Hmmm.

https://www.washingtonpost.com/business ... a24e012f98

So it looks to me that they really do want to get rid of itemized deductions, which in theory I'm not opposed to. Keep property taxes, keep home mortgages up to $500k, kill medical, kill state income tax deduction, move the standard deduction to $24k up from $12,700... not quite double. Kill personal exemptions, give people with kids an extra $600 credit ($600/4050 = %15) so pretty much a wash. Kill 10% and 15% brackets and make it 12%, then go to 25% at roughly the same level 25% kicked in before.

I actually discounted the overall effect of the 12% rate and was only looking at the bottom end and not the offset of the 3% decrease... which in my case saves me $. I reran my 2016 numbers with the proposed tax brackets, standard deductions etc and I get a $2,219 tax cut. Keep in mind I'm an old and won't be impacted by the mortgage deduction and my SALT approximated the standard deduction anyway so minor, minor benefit from itemized deductions.

Now if they kill of the pension deduction, I currently put in $18K/year I'll lose $15,500 in deduction at 25% = $3,875 more tax, it's a bigger deal to me, combined with it really bothering me they are in effect taking revenues which would have been available in the future. So if this goes into effect a net tax increase in my situation of $1,656.

Now I'm not opposed to slightly higher or lower taxes it's the distribution of the overall tax cuts that bother me and that the impact will be bigger on younger people trying to buy a home etc.