The tax bill appears poised to pass on Tuesday
December 15, 2017
With Marco Rubio and Bob Corker announcing their support for the compromise tax legislation it now appears as if the bill will pass and it is being reported that vote will come on Tuesday. To date we have not seen what is in the bill but the Republicans released a two page summary and here is what we know: (I apologize because the formatting gets a little screwed up on page two)
The Tax Cuts and Jobs Act (H.R. 1) overhauls America’s tax code to deliver historic tax relief for workers, families and job creators, and revitalize our nation’s economy. By lowering taxes across the board, eliminating costly special-interest tax breaks, and modernizing our international tax system, the Tax Cuts and Jobs Act will help create more jobs, increase paychecks, and make the tax code simpler and fairer for Americans of all walks of life.With this bill, the typical family of four earning the median family income of $73,000 will receive
a tax cut of $2,059
.
For individuals and families, the Tax Cuts and Jobs Act:
• Lowers individual taxes and sets the rates at 0%, 10%, 12%, 22%, 24%, 32%, 35%, and 37%
so people can keepmore of their hard-earned money.
•
Signicantly increases the standard deduction
to protect roughly double the amount of what you earn each yearfrom taxes – from $6,350 and $12,700 under current law to $12,000 and $24,000 for individuals and marriedcouples, respectively.
• Continues to allow people to write off the cost of state and local taxes
– just like current law – up to $10,000.
Gives individuals and families the ability to choose among sales, income and property taxes to best t their
unique circumstances.
• Takes action to support more American families
by:
• Expanding the Child Tax Credit from $1,000 to $2,000
for single lers and married couples to help parents
with the cost of raising children. The tax credit is fully refundable up to $1,400 and begins to phase-out for families making over $400,000. Parents must provide a child’s valid Social Security Number in order to receive this credit.
• Preserving the Child and Dependent Care Tax Credit
to help families care for their children and older dependents such as a disabled grandparent who may need additional support.
• Preserving the Adoption Tax Credit
so parents can continue to receive additional tax relief as they open their hearts and homes to an adopted child.
• Preserves the mortgage interest deduction
– providing tax relief to current and aspiring homeowners.• For all homeowners with existing mortgages that were taken out to buy a home, there will be no change to the current mortgage interest deduction.•
For homeowners with new mortgages on a rst or second home, the home mortgage interest deduction will
be available up to $750,000.
• Provides relief for Americans with expensive medical bills
by expanding the medical expense deduction for 2018 and 2019 for medical expenses exceeding 7.5 percent of adjusted gross income, and rising to 10 percent beginning in 2020.
• Continues and expands the deduction for charitable contributions
so people can continue to donate to their localchurch, charity, or community organization.
•
Eliminates Obamacare’s individual mandate penalty tax
– providing families with much-needed relief and
exibility to buy the health care that’s right for them if they choose.
• Maintains the Earned Income Tax Credit
to provide important tax relief for low-income Americans working tobuild better lives for themselves.
• Improves savings vehicles for education
by allowing families to use 529 accounts to save for elementary,secondary and higher education.
• Provides support for graduate students
by continuing to exempt the value of reduced tuition from taxes
• Retains popular retirement savings options
such as 401(k)s and Individual Retirement Accounts (IRAs) soAmericans can continue to save for their future.
• Increases the exemption amount from the Alternative Minimum Tax (AMT)
to reduce the complexity and taxburden for millions of Americans.
•
Provides immediate relief from the Death Tax by doubling the amount of the current exemption
to reduce uncertainty and costs for many family-owned farms and businesses when they pass down their life’s work to the next generation.
For job creators of all sizes, the Tax Cuts and Jobs Act:
• Lowers the corporate tax rate to 21% (beginning Jan. 1, 2018)
– down from 35%, which today is the highest in the industrialized world – the largest reduction in the U.S. corporate tax rate in our nation’s history.
•
Delivers signicant tax relief to Main Street job creators
by:
•
Offering a rst-ever 20% tax deduction that applies to the rst $315,000 of joint income
earned by all businesses organized as S corporations, partnerships, LLCs, and sole proprietorships. For Main Street job
creators with income above this level, the bill generally provides a deduction for up to 20% on business prots
– reducing their effective marginal tax rate to no more than 29.6%.
• Establishing strong safeguards
so that wage income does not receive the lower marginal effective tax rates on business income – helping to ensure that Main Street tax relief goes to the local job creators it was designed to help most.
•
Allows businesses to immediately write off the full cost of new equipment
to improve operations and enhance the skills of their workers – unleashing growth of jobs, productivity, and paychecks.
•
Protects the ability of small businesses to write off interest on loans
, helping these Main Street entrepreneurs start or expand a business, hire workers, and increase paychecks.
•
Preserves important elements of the existing business tax system
, including:
•
Retaining the low-income housing tax credit
that encourages businesses to invest in affordable housing so
families, individuals, and seniors can and a safe and comfortable place to call home.
• Preserving the Research & Development Tax Credit
that encourages our businesses and workers to develop cutting-edge “Made in America” products and services.
•
Retaining the tax-preferred status of private-activity bonds
that are used to finance valuable infrastructure
projects.
• Eliminates the Corporate Alternative Minimum Tax
, thereby lowering taxes and eliminating confusion and uncertainty so American job creators can focus on growing their business and hiring more workers, rather than on burdensome paperwork.
•
Modernizes our international tax system
so America’s global businesses will no longer be held back by an outdated “worldwide” tax system that results in double taxation for many of our nation’s job creators.
• Makes it easier for American businesses to bring home foreign earnings
to invest in growing jobs and paychecksin our local communities.
•
Prevents American jobs, headquarters, and research from moving overseas
by eliminating incentives that now
reward companies for shifting jobs, prots, and manufacturing plants abroad.
For greater American energy security and economic growth, the Tax Cuts and
Jobs Act:
•
Establishes an environmentally responsible oil and gas program in the non-wilderness 1002 Area of the Arctic
National Wildlife Refuge (ANWR)
. Congress specically set aside the 1.57-million acre 1002 Area for potential
future development. Two lease sales will be held over the next decade and surface development will be limited to2,000 federal acres – just one ten-thousandth of all of ANWR.
•
Significantly boosts American energy production.
Responsible development in the 1002 Area will raise tens of
billions of dollars for deficit reduction in the decades to come, while creating thousands of new jobs, reducing our
dependence on foreign oil, and helping to keep energy affordable for American families and businesses.
•
Provides a temporary increase in offshore revenue sharing
for the Gulf Coast in 2020 and 2021, allowing those states to invest in priorities such as coastal restoration and hurricane protection
A couple of things I notice: First, there are still going to be seven tax brackets but all of them are lower than the current rates. However it appears as if some people might be pushed into a higher tax bracket. And the second has to do with the mortgage interest deduction: There will be no changes to the deduction on mortgages already already on the books while the new mortgage interest deduction will be capped at $750,000. If you are planning on buying a house for less than $750,000 there will be no change. This is an improvement over the rumors the mortgage interest deduction was going to be eliminated.
It still looks like there could be a defector or two so it will be interesting to see this play out but it looks like Donald Trump is finally going to get a legislative win.
malo periculosam libertatem quam quietum servitium
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America's Watchtower 
Reblogged this on Brittius.
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Thank you.
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You’re welcome.
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Reblogged this on Deplorables Seeking Justice-DSJ.
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Thank you.
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Well that seems helpful. Not as dictatorial and enslaving.
Does this mean people aren’t forced to have health insurance: Eliminates Obamacare’s individual mandate penalty tax
May the greedy pay, in more ways than one.
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I believe it does, and I think the mandate has been eliminated as well.
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Meanwhile singles still get zip…..half of my paycheck the last years of working went to someone else…adding up all of the local taxes then add 7K for real estate taxes on a small 100k house….it wasn’t worth it in retrospect but I am late to catching on.
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I would have liked to have seen the tax code simplified but that did not happen.
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