Discussion in 'Current Events' started by Lumpy 1, Sep 28, 2017.
As it should be...
According to GOP's plan there's no need for info about the kids. Personal exemptions go away. Thus taxes for a family of 4 making $40,000 would go from its current $300 to $1920.
Some sort of enhanced child credit will need to take care of this.
Trump Tax Plan Revealed: Three Big Changes To Look For
Beleive me, that lobby is practically nonexistent. The professional associations have some clout (AICPA, ABA Tax Section, NAEA, etc.), but simplicity is not an issue they see as either an opportunity or a threat. Each loophole (vitally necessary tax break for my Congressman's district) has its own constituency.
Do you have actual proof that his secretary pays more taxes than he does? ...
Option 3.... just another guy posting on the USMB
The post card in the OP includes child credit and the earned income credit. Both of these are functions of the children on the tax return. The "Trump" plan does away with exemptions for children, but it probably increases the child credits.
Anyway, the Republican soak-the-middle-class tax plan is stupid, and I hope it fails. And, I'm sure it will fail.
Over the past 38 or so years I have represented somewhere between 3500 and 4500 taxpayers in various proceedings before the IRS and in Tax Court. Of those, there may have been 300 or 400 that would not have arisen if the Trump plan had been in effect. The rest dealt with issues that are not eliminated by the administration plan. If you take the elimination of personal exemptions and the extra $1550 standard deduction for those over 65, the doubling of the standard deduction is almost totally offset. For people with more than two children, the revised child tax credit will make them net losers compared to current law. The middle class does not pay AMT or estate tax, so their elimination doesn't help taxpayers making less than six figure incomes.
There are a number of major issues that the plan so far punts on. Will there be any allowance for casualty losses? If the only itemized deductions allowed are mortgage interest and charitable contributions, I would assume not. How about employee business expenses? Same question.
The only modification of business accounting seems to be unlimited expensing, which only benefits busineses which invest over $200,000 in a given year over the present 179 deduction. And of course the much used domestic production deduction you all use which will be abolished.
My SWAG is that of those taxpayers who make less than $100,000 a year, 10% will be better off, 60% will be substantially unaffected give or take $250, and 30% will be substantially worse off.
Actually buried in the announcement is language that implies that the definition of a "child" and of a "dependent" will remain unchanged. In fact, a non-refundable credit of $500 is added for non-child dependents. The $1,000 per child cap on the refundable amount of the child tax credit will remain the same, as well as the special rules for those who have over two children and the requirement that the refundable portion not exceed 15% of earned income in excess of $3,000. Note that since there no longer is a personal exemption for each child as a dependent, the threshold at which a taxpayer will need to use the credit to offset income tax will be much lower.
My guy Ted Cruz. Flat Tax.
I'm thinkin Congress just may legislate the tax plan with zero positive input from the do nothing Dems, only the typical belly aching and divisive lies as usual. Yup, It's so much easier to criticize than actually contribute where the welfare of the American people are involved for Democrats, all negative embellishments with no positive results...
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