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Biggest Reform EVER passed thread

Is there a non-talking points version of this?

Personally I like my information without all of the spin.

From my math, a married couple Homeowner with a $750,000 house who makes $150k/yr and no kids is worse off by about $2,500. Renters are better off by about $3,500. In the long term everyone may be better off as home prices might drop some, but those who own their own home currently may feel some pain both in a drop in home prices and the $2,500/yr more taxes they'll pay.

The corporate tax change will be a significant change, although its hard to say what it will do. People who own their own businesses will see a huge benefit. In theory wages should rise pretty significantly, but that will take some time, the business owner will profit the most in the short-term.

Estate tax repeal is stupid.

Having a kid got slightly more expensive, as raising the tax credit $600 doesn't offset losing the exemption of $4,100. It would be fairly breakeven if they raised it $1,000, which they may do.

Young renters should be significantly better off. (5-10% more income)
 
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is the $90K at 12% for married couples or single filers?

Married, so you'd assume 45k for single. So in simple terms, all single people save $1,500 for the first $45k of their income + another $400 for the slightly higher standard deduction, so $1,900 overall. Double that if married for about $3,800. You lose about $400 per kid, if you have children.
 
Also, looks like I'm wrong that having kids costs $400 more, as they added a $300 credit for parents. So if you have 1 kid you made $200. 2 kids you lose $200, and each additional kid costs you $400.
 
Hmmmm, also looks like it preserves the interest deduction for existing mortgages, but caps it on new ones.
 
Too early for a full analysis. Here's something a little more detailed. http://money.cnn.com/2017/11/02/news/economy/house-tax-reform-bill-individuals/index.html

in some ways this bill doesn't matter too much, the Senate will really decide how far tax reform goes.

Tax experts often note the AMT no longer meets its original purpose and further complicates an already complex tax code. But it's been kept on the books because it raises a lot of revenue. Repealing it would reduce revenue by $440 billion in the first decade, according to Tax Policy Center estimates.

That's another half trillion I hadn't thought of. Really looking forward to the CBO score on this guy.
 
 
Some things the left should like.

1. NOLs capped at 90% of taxable income.
2. Minimum tax of 10% on foreign operations
3. Broadening the base by restricting deductions of foreign companies with US operations.
 
Always things buried in these bills, like allowing churches to endorse political candidates
 
Seems like this will really hurt charitable contributions, since they're wiping out a large amount of itemizers.

May have to frontload a lot of donations this December, we'll see
 
Also, looks like I'm wrong that having kids costs $400 more, as they added a $300 credit for parents. So if you have 1 kid you made $200. 2 kids you lose $200, and each additional kid costs you $400.

It looks like the $300 credit is only for the next 5 years and then goes away to make the 10 year numbers look better.

Maybe not popular on the left, but I think the mortgage interest deduction changes are good. I don't know enough about the state and local tax changes to confidently comment, but those seem fine too. The estate tax thing is dumb as hell.
 
If they're capping mortgage interest, removing state and local tax deduction and raising standard deduction then who would even itemize anymore to be able to deduct mortgage interest? Seems like this proposal effectively wipes that out as well without coming out and saying it.
 
This makes sense, so there is no way it will survive:

 
This makes sense, so there is no way it will survive:


Can't imagine an "SEC tax" will be popular in the South.
 
If they're capping mortgage interest, removing state and local tax deduction and raising standard deduction then who would even itemize anymore to be able to deduct mortgage interest? Seems like this proposal effectively wipes that out as well without coming out and saying it.

Very few people. Hence the idea that you can do your taxes on a postcard.
 
Most folks can basically do that already with a 1040EZ. The dirty secret Big Tax Prep doesn't want you to know!
 
If they're capping mortgage interest, removing state and local tax deduction and raising standard deduction then who would even itemize anymore to be able to deduct mortgage interest? Seems like this proposal effectively wipes that out as well without coming out and saying it.

Yeah it seems by design to reduce the number of itemizers. You could still get there with property tax plus a lot of charitable contributions I guess.
 
Most folks can basically do that already with a 1040EZ. The dirty secret Big Tax Prep doesn't want you to know!

I find most people can't figure out how deductions and exemptions really work, as well as the multiple brackets. Sticking every married couple making less than 90k in one bucket does make things easier.
 
Next Up: Tax Reform

Will be interesting to see the effects on the real estate market. Hopefully prices go down.
 
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