So looking at this bill, and being a resident of Colorado, I can see some issues for residents of my state in particular in the Front Range area. http://www.cnn.com/2017/11/02/politics/tax-reform-republican-plan/index.html This personally won't impact me as I don't currently deduct more than 10k in local and state property taxes. Yet. The problem in Colorado, and particularly the front range, is property values are rising. They are rising because we have a growing economy and people want to move here. As this happens, counties need to provide more services and infrastructure and property taxes, which haven't risen at all because of Colorado's taxpayer bill of rights amendment which would require a vote by the citizens to raise their own property taxes, have remained pretty flat. What has risen? The valuation of homes. That doesn't require a vote and is only subject to so much negotiation before many residents from Colorado Springs up to Longmont/Boulder could see their deduction get capped. Colorado has a flat 4.3% state income tax, so to hit the 10k with income alone requires an income of 232,558. This means that working professionals, doctors, lawyers, accountants, etc. with homes valued north of 300k (which probably cost them more to purchase if they bought post 2011 in the Front Range area) will see their taxes increase. That seems like a bad group to be raising taxes on, but it's not my party's bill. Especially in conjunction with the next part... So let's be honest, there is no jobs part to this act. Trump's rumored idea of the Cut Cut Cut act would have been more accurate. Except for two income professional families, that is. The corporate tax rate to me is a non-issue, our effective rate is 18.3% currently. That's in line with every other western nation. If we lower our rate to 20%, I would presume the effective rate would fall to less than 18.3%. When that happens, other nations will simply lower their rate and it will be a wash. At least, that's what I would do if I were them. Why leave their rates non-competitive and risk losing industry to the US? They won't. As for the home interest deduction, again, high real estate valued areas will see their tax rates go up. States people live in because they don't have a better choice, as reflected by home values (sorry but it's the best measure of where people actually like to live, Texas) and limited space, will see no additional tax burden. The only way to save this tax plan is this part which there were no details offered. Currently, I don't qualify for the tax credit despite spending 22k a year in child care. Apparently, I make too much money. So again, two income professional families won't benefit from that. Raising the standard deduction might help if it's raised higher than what I currently itemize. I have heard they are doubling it. Not sure if that's true, but if they do, that might help offset the stuff above. What about the rest of you? And answer this, how is this not a brazen political move to push the tax burden to so called "blue states," or rather, states with income taxes and high property values because people WANT to live there? Lastly, why are republicans interested in NOT cutting taxes for dual income working professionals, with or without kids? What makes that group a throw away as far as voters are concerned? They are economic benefits to this country, so why punish them?
I'm waiting for more specific details. Since there was no fiscal "savings" (the current buzzword by the GOP) from ACA "reform" there cannot be a tax cut under the budget reconciliation procedures. So this means tax reform is dead.
Yeah it will be interesting to see if this can actually pass. Right now, it's clear they are robbing most of us to pay back their donors. Which I get is politics, but it's pretty obvious to even republicans. And they don't seem to care even if they aren't rich republicans, which is odd because they are basically supporting a potentially massive transfer of wealth out of their own pockets (in the form of government budget cuts that will likely be needed to pay for the tax cuts as well) to further other's interests.
Well, a few more details. This effectively raises my taxes. I can no longer exempt my state income at all, just my property tax so that's less. I do get two child tax credits that I never got before, but I lose the person exemptions so that raises by taxable income. I paid roughly 28k in income taxes to the feds last year, this will up it to closer to 33k. Whose getting my extra 5k a year? I thought liberals raised my taxes, not conservatives... http://money.cnn.com/2017/11/02/news/economy/house-tax-reform-bill-individuals/index.html
