The House passes its tax reform bill

  Earlier today the House finally passed its tax reform bill by a vote of 227-205. Here are some of the details:

The House plan would permanently chop the corporate tax rate to 20 percent from 35 percent and make other tweaks aiming to make businesses more competitive. It would reduce individual tax brackets to four from seven and make changes to several tax breaks. Among them, the bill would limit state and local deductions and the mortgage interest deduction, eliminate the personal exemption and nearly double the standard deduction.

  I have to admit I am a little concerned because some Republicans have already admitted some people will see a tax increase and that is not the bill of goods we have been sold. I hate the idea of limiting the mortgage interest deduction and I would also lose my real estate tax deduction. Would this be offset by a doubling of the standard deduction? I guess that would depend on what tax bracket I end up falling into.

  Now it is up to the Senate to pass its version of the bill and then the bills would head into conference to come up with the final plan.  The prospects of the Senate bill passing look pretty bleak at this time and I am not sure that is a bad thing at this point.

  Personally I would prefer a flat tax but there is no chance of that happening so I guess we just have to wait and see at this point.

malo periculosam libertatem quam quietum servitium