DawgTalkers.net Forums DawgTalk Palus Politicus President Trumps and the GOP Tax Plan...

Hehehe

Tax plan from Trump, GOP may hit the states and counties that voted for Clinton hardest

A White House proposal to eliminate the tax deduction for state and local taxes would hit Democratic voters hardest, a CNBC analysis shows.

As congressional Republicans and the Trump administration put the finishing touches on their plan to overhaul the nation's tax code, much of the attention will be focused on changes that will eliminate popular tax breaks to help pay for the revenue lost from lowering tax rates.

And among those reportedly in the plan's crosshairs is a long-standing provision that lets you deduct from your reported income the money you pay in state and local taxes on income, real estate or sales of big-ticket items.

https://www.cnbc.com/2017/09/25/trump-re...on-hardest.html

From what I've read I like it so far. Do they have an actual document yet? I've just read articles. I don't pay state income tax (thanks Ohio! No state tax for small businesses), just moved to a township so no more local income tax. The percentages look good to me, I may throw a party if my business taxes go down to 15% as I've read that might be the new corporate tax rate.

When they say "real estate taxes" is that the same as property taxes? Would be a negative to not be able to deduct that, but with the other changes I should end up in the positive, especially if the 15% corporate tax goes into place.

At this point I really don't have any more info than you do.

Just imagine Cities like NY, LA, Chicago, and States like Maryland, Calif, NY with real high local and state taxes to pay for the Socialist Programs they love.

BAAM!

I am salivating for 15% also.

Let it happen soon!

Ok, ok, salivating! I hear ya! But try to keep in mind
this is the GOP and we tend to move a mite slow at times.

Yeah, like before April. I'd love to get a big fat refund check because I overpaid my estimates!

Get it passed or we're in trouble. Investors are banking on it. I fear a market crash.

Also, There is no capital gains tax on any house you sell under 250k. I wonder if this is going to be changed when real estate is mentioned.

I agree if they don't get this done it will crush the Stock Market. I have been lowering my exposure but not running away entirely. Prepare for both.

I'm hearing that there is no way the dems get onboard with the rumored plan. He needs 60 votes after the 30th.

Who knew tax reform could be so hard, who knew?

He could present a plan that cured cancer and the libs still wouldn't get on board. Don't matter - they need to find a way to get it done without them. They refuse to compromise - lead, follow, or get out the way. They cant lead, they wont follow, so its time to give them the boot and move on.

There is talk that he might endorse Bernie's healthcare bill to make a deal on tax reform.

Link? I highly doubt that. Have you seen how much that bill is going to cost? There is no way to pay for it. Its purely a show for their supporters to make them feel all warm and fuzzy inside. And even *IF* trump made a deal, that bill would still have to go through congress first, then the senate, and no R congressman would survive voting for that come 18.

Not to even mention to pass Bernies bill there would have to be MASSIVE and I mean MASSIVE TAX INCREASES for it. Just doesn't make sense and I think someone is playing with your ear.

No links, just speculative talk in liberal circles/forums. But they also said Trump was reaching across the aisle a week before the news broke, so I take it with a grain of salt and hope.

Trump is desperate for a big win. This will give him a popular healthcare plan with tons of backing and the tax reforms for business he wants. That's two huge wins for him.

Regardless of what you feel about the plan or the cuts, it just couldn't even fiscally happen. You can cut taxes with the reform bill, and then increase 100 fold with a new healthcare plan. A 40 trillion dollar increase in taxes to cover it. lol


Link

Seems there's always enough money when Conservatives are in the WH. Stop whining.

You know that's propaganda put out by insurance and big pharma, right? I see Canada is just broke as hell... wait, they have a strong economy? GMAB

I often wonder if mushrooms, being fed a steady diet of manure even know what they are consuming because they are kept in the dark?

the grown ups are talking, hush.

Im pretty sure Forbes magazine did their research. I find them to be spot on a lot of time, no matter which side of the aisle the article pertains too. And regardless of the actual numbers, or regardless if your for or against the Bernie bill doesn't matter with our discussion. It is physically impossible for that to happen (the supposed deal you are referring to). The Sanders bill increases taxes, BERNIE admits that. What number maybe in question, yes, but its still a fact it will increase taxes. The Tax Reform bill is to cut taxes. You cant do both. There is not a deal to be made on the two.

My analysis of this is bipartisan. On the flip side, if you are for the bill, you can have tax reform. If you are for tax reform, you cant have the Bernie bill.

President Trump will discuss the Tax Plan with Legislators today before tomorrows release.

Can't wait to see this thing!

Just saw this too! Meeting with top GOP 'and Dem' leaders including Sanders! lmao

No kidding? If your boys move any slower they'll be going bass ackwards.

Never mind they already are by the looks of all civil discourse from 65% of Americans who disagree with the GOP leadership and the GOP lead congress.

This is from the Washington Post. It is hard for Tax Policy Center and others to do a evaluation until they see the plan. Tax Policy Center was looking at Trumps Plan from about 18 months ago.
But there are some assumptions that it will be close to revenue neutral and here are some of the items from the post that may go bye-bye



The state and local tax deduction, or SALT, has long been a target for tax-policy wonks who see it as an unwise federal subsidy that is mainly claimed by the wealthy. But politics have always intervened: Thanks to the opposition of lawmakers in high-tax states, the deduction has survived every effort to clear out loopholes, including the last federal tax overhaul of similar ambition in 1986.

Now, Republican leaders have made clear the SALT deduction is on the table, and it has shaken up a number of blue-state GOP legislators who are warning that it could derail the ambitious tax plan Trump is now pushing.



“I intend to fight it with everything I know how,” said Rep. Tom MacArthur (R-N.J.), who represents a district where 43 percent of tax filers claim SALT deductions and signed a bipartisan letter to Treasury Secretary Steven Mnuchin urging him to preserve the break. “It’s a big deal for states like ours.”


The incentives to eliminate, or at least chip away, at the deduction could be impossible for congressional tax writers to ignore. Republicans are hoping to drive down both individual and corporate tax rates using special congressional procedures that will require their plan to not increase the deficit in the long term. Doing so means offsetting the costs of rate cuts by closing loopholes, and few of them yield more revenue than the SALT deduction.


Last year, the congressional Joint Committee on Taxation estimated the deduction’s cost to the Treasury at more than $368 billion through 2020, and the Congressional Budget Office reported that simply capping the deduction would cut deficits by $955 billion over a decade.

The other individual tax provisions whose elimination could generate close to that revenue are even more politically sacred — including the favored treatment for retirement savings, employer-paid health-care premiums, investment income and mortgage interest.

“It’s really hard to envision tax reform that’s worth writing home about, that’s done revenue-neutrally, without including this,” said Ryan Ellis, a conservative tax lobbyist. “It’s very, very difficult to envision how you would piece it together. We’ve taken so many hits on everything else.”

That is a reference to the demise of other potential “pay-fors” to offset the GOP’s rate cuts, including a “border adjustment” tax on corporate expenses. That proposal, favored by House Speaker Paul D. Ryan (R-Wis.), might have raised a trillion dollars over 10 years but generated fierce opposition from some businesses.

Excellent post.

So the plan is to lower business taxes by cutting deductions on regular tax paying people that work jobs? Am I reading this right or not? Seriously asking.

If this is the case, how is it good for the working man?

And talking and talking and talking. While nothing is getting done.

But Trump says........

OCD, my understanding is that either it is going to be revenue neutral and there will be offsets to the tax rate coming down or there is going to be VERY large deficits.

So we are taking from the poorest to give businesses tax cuts?

Since when do the poorest pay taxes?

The "working man's" tax rate will be reduced. That is how it will help him/her.

How about no more federal tax dollars to the Yales and Harvards of the world.

Not if deductions are eliminated. This is the plan, lower tax rates but eliminate deductions to be revenue neutral. Now we know the rich will get tax breaks because they already tried that with healthcare. And we know they want to lower tax rates for businesses. Who is left? Working people and the poor.

If this tax overhaul is going to be revenue neutral, then somebody has to pay for these tax cuts. Any other explanation is voodoo economics.

Ross is that you?

Probably not-tax rate reduced but you could lose salt deduction, home mortgage deduction, 401k. We should see today?

I'm going to be pretty surprised if they mess with the 401k deduction. So many people do not save enough for retirement and taking this away may contribute to less people saving.

As for "real estate" deductions, we don't know what that means yet. Mortgage interest deductions are a reason many people buy a house (though I don't agree that is a really good reason to do so, but it is pushed by real estate agents as a selling point) so that could really affect the housing market.

I think I'm OK with the SALT deductions going away.

It also mentioned in the article that standard deductions would double. That would help "the working man", but would it just be an offset of no more SALT deductions?

Will there be an elimination/adjustment for inflation for the Alternative Minimum Tax? That is something that really, really needs to be addressed IMO.

I'm very interested to read the actual proposal.

From my understanding, anyone making I think it was stated less than 25K a year, will not have to pay taxes at all. so deductions or no deductions, they are not paying anything.

They called me in to look over the draft and what I saw was Money for Nothing and Chicks for Free!

Duh... the middle class is the target. They'll be bending them over once again.

And the middle class will be picking up the tab. Enjoy.