Current Events > The Tax Cuts and Jobs Act has been released

(+) Yeah! (+)

Corporate tax rate to 20% permanently.
No changes to 401(k) contributions, only minor changes to be made.
Top tax bracket maintained at 39.6%
Standard deduction increased to $12,200
Personal exemption removed
Child tax credit increases
$10K cap on property tax deductions with removal of SALT deduction
Mortgage interest capped at $500K loans for new homes
AMT repealed

The bill collapses the current seven individual tax brackets into four: 12%, 25%, 35% and 39.6%. For married couples, the 25% rate starts at $90,000, the 35% rate starts at $260,000 and the top rate starts at $1 million. For individuals, those break points are $45,000, $200,000 and $500,000.

The new bottom tax rate covers more income than the current 10% and 15% brackets do, meaning lower taxes for many middle-income households. But many upper-income households could face a higher marginal tax rate under the House bill, which pushes some from a 33% bracket into 35%. Whether they see actual tax increases would depends on particulars, and full estimates arent available yet.

Info from WSJ.
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Enjoy your debt, I guess.
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Hypothetical family scenario:

Under current law, in 2018, a married couple with two children making $60,000 would get a $13,000 standard deduction and four personal exemptions each worth $4,150. That means they would pay taxes on $30,400 of taxable income. Their base tax bill of $3,608 would be reduced by $2,000 in child tax credits for a total income tax of $1,608.

Under the House plan, the same married couple with two children would get $3,800 in tax credits, $3,200 for the two children and $600 for the two parents. The same family would get a $24,400 standard deduction but no exemptions, for $35,600 of taxable income. Their base tax bill of $4,272 would be reduced by the $3,800 in credits for a total income tax of $472.
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Hopefully they keep the Local/State and property tax deductions.

JoeyBowey posted...

Hopefully they keep the Local/State and property tax deductions.

SK8T3R215 posted...

$10K cap on property tax deductions with removal of SALT deduction

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Abysmal.

Lower taxes are confirmed bad for the economy.

SK8T3R215 posted...

JoeyBowey posted...

Hopefully they keep the Local/State and property tax deductions.

SK8T3R215 posted...

$10K cap on property tax deductions with removal of SALT deduction

I'm talking about the final bill.

They are still debating it per the NY times.

clearaflagrantj posted...

Abysmal.

Lower taxes are confirmed bad for the economy.

but small gubmint means more money in da pockets of working famlees!
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clearaflagrantj posted...

Abysmal.

Lower taxes are confirmed bad for the economy.

"confirmed"
LOL

what economic study can you cite to show this?

SK8T3R215 posted...

Personal exemption removed

lmao scumbags

SK8T3R215 posted...

Corporate tax rate to 20% permanently.

What does permanently even mean in this instance?
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JoeyBowey posted...

clearaflagrantj posted...

Abysmal.

Lower taxes are confirmed bad for the economy.

"confirmed"
LOL

what economic study can you cite to show this?

Well it's pretty much accepted by all economists that you're going to end several trillion in debt by the end of this presidency, but the economy will probably grow a little in the short term. It's ok though, Donnie won't be in charge by then, we can just blame it on the democrats.
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sure, let's just cut our revenue stream while we light the fuse for this American cannon of fuck

pinky0926 posted...

Well it's pretty much accepted by all economists

Source?

That is of course not true.

treewojima posted...

sure, let's just cut our revenue stream while we light the fuse for this American cannon of fuck

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Anteaterking posted...

SK8T3R215 posted...

Corporate tax rate to 20% permanently.

What does permanently even mean in this instance?

That it won't expire in X years and revert to the current rates unless it's extended.
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JoeyBowey posted...

pinky0926 posted...

Well it's pretty much accepted by all economists

Source?

That is of course not true.

Any macroeconomics text book. To be fair, the absolute isn't true, but it's a lot fucking closer to the truth that your skepticism.
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pinky0926 posted...

clearaflagrantj posted...

Abysmal.

Lower taxes are confirmed bad for the economy.

but small gubmint means more money in da pockets of working famlees!

lol you guys just love paying high taxes and getting nothing in return huh
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What spending are they going to cut to account for the fact that they'll have a ton less money?
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Kineth posted...

Any macroeconomics text book

Ok, provide one.

Show me where it says 100% of economists agree that...

Romulox28 posted...

pinky0926 posted...

clearaflagrantj posted...

Abysmal.

Lower taxes are confirmed bad for the economy.

but small gubmint means more money in da pockets of working famlees!

lol you guys just love paying high taxes and getting nothing in return huh

Yeah, man, better life expectancy sure is nothing.
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JoeyBowey posted...

pinky0926 posted...

Well it's pretty much accepted by all economists

Source?

That is of course not true.

https://www.bloomberg.com/news/articles/2017-09-28/most-economists-agree-trump-tax-plan-will-widen-budget-deficit
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Kineth posted...

Romulox28 posted...

pinky0926 posted...

clearaflagrantj posted...

Abysmal.

Lower taxes are confirmed bad for the economy.

but small gubmint means more money in da pockets of working famlees!

lol you guys just love paying high taxes and getting nothing in return huh

Yeah, man, better life expectancy sure is nothing.

higher income tax = longer life!!!
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JoeyBowey posted...

Kineth posted...

Any macroeconomics text book

Ok, provide one.

Show me where it says 100% of economists agree that...

So look at my post again, since I edited it. Choose another meaningless hill to die on.
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Romulox28 posted...

Kineth posted...

Romulox28 posted...

pinky0926 posted...

clearaflagrantj posted...

Abysmal.

Lower taxes are confirmed bad for the economy.

but small gubmint means more money in da pockets of working famlees!

lol you guys just love paying high taxes and getting nothing in return huh

Yeah, man, better life expectancy sure is nothing.

higher income tax = longer life!!!

Speaking of that, better educational systems too and a lack of student loan debt after college.
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Ex-Kefiroth posted...

Also, that AMT repeal is a huge handout to the rich.

It wasn't really affecting the rich like it was originally intended to. Mainly the upper middle class.

Also the proposed system is more like AMT anyway.
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Don't get me wrong, simplifying the tax code is necessary. But this doesn't look good.
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Any changes to deductions available for corporations? While the tax rate was 35%, not many paid close to that amount correct?
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pinky0926 posted...

JoeyBowey posted...

pinky0926 posted...

Well it's pretty much accepted by all economists

Source?

That is of course not true.

https://www.bloomberg.com/news/articles/2017-09-28/most-economists-agree-trump-tax-plan-will-widen-budget-deficit

That's specific to Trump's plan and about the deficit not the economy.

You made a claim that Lower taxes = bad economy

Why can't you back that up?

JOBS, JOBS, JOBs
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Romulox28 posted...

pinky0926 posted...

clearaflagrantj posted...

Abysmal.

Lower taxes are confirmed bad for the economy.

but small gubmint means more money in da pockets of working famlees!

lol you guys just love paying high taxes and getting nothing in return huh

I have exactly zero student debt, my dad's severe rheumatoid arthritis medication is completely covered without cost and if God forbid I ever have an accident I won't have to worry about taking out a loan just to pay for the ride to the hospital. It certainly is far from perfect but I really like these things.
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Anteaterking posted...

SK8T3R215 posted...

Corporate tax rate to 20% permanently.

What does permanently even mean in this instance?

Until another law changes it.
A "permanent" law only means it doesn't expire on its own.

Kineth posted...

So look at my post again, since I edited it. Choose another meaningless hill to die on.

Great thanks for agreeing the users claim was BS. Glad we share common ground here!

Kineth posted...

Romulox28 posted...

Kineth posted...

Romulox28 posted...

lol you guys just love paying high taxes and getting nothing in return huh

Yeah, man, better life expectancy sure is nothing.

higher income tax = longer life!!!

Speaking of that, better educational systems too and a lack of student loan debt after college.

Also not being in debt to other countries because your government can't even fund itself to analyze its inefficiency.
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pinky0926 posted...

I have exactly zero student debt, my dad's severe rheumatoid arthritis medication is completely covered without cost and if God forbid I ever have an accident I won't have to worry about taking out a loan just to pay for the ride to the hospital. It certainly is far from perfect but I really like these things.

what does any of that have to do with paying higher income tax

Kineth posted...

Speaking of that, better educational systems too and a lack of student loan debt after college.

education is fucking garbage in the US now and it's not because Americans dont pay enough taxes lol
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JoeyBowey

Rookie User
User Since: Oct 2017
Karma: 16
Active Posts: 232
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JoeyBowey posted...

Kineth posted...

So look at my post again, since I edited it. Choose another meaningless hill to die on.

Great thanks for agreeing the users claim was BS. Glad we share common ground here!

You're not fit to shine my shoes.
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JoeyBowey posted...

That's specific to Trump's plan and about the deficit not the economy.

You made a claim that Lower taxes = bad economy

Why can't you back that up?

It's almost as if the context of this conversation is about what's currently happening and is in fact not idle intellectual masturbation about keynesian economics.
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emblem boy posted...

Any changes to deductions available for corporations? While the tax rate was 35%, not meant paid close to that amount correct?

Here's some paragraphs:

Passive owners of pass-through businesses would get the 25% rate, but those actively involved in the business would have a different standard. The bill starts with the presumption that 70% of that pass-through income is attributable to labor and would be taxable at higher individual income-tax rates. For some that would create a blended top tax rate of about 35%, which those businesses and their influential trade groups may argue isnt low enough.

There are big changes in store for multinational companies. U.S. companies would, generally, no longer pay taxes on their active foreign income, a move corporations and Republicans say is important in a competitive international landscape. To prevent companies from shifting profits abroad, the bill creates a new 10% tax on U.S. companies high-profit foreign subsidiaries, calculated on a global basis.

The plan also imposes new restrictions on foreign companies operating in the U.S. They would face a tax of up to 20% on payments they make abroad from their U.S. operations. That is designed to prevent them from loading up their U.S. operations with deductions and pushing profits to low-tax jurisdictions. Companies could lower those taxes by agreeing to have more of their operations in the U.S. tax system.

Many companies would face a new limit on their interest deductions, which would be capped at 30% of earnings before interest, taxes, depreciation and amortization, which is a measure of cash flow. Real-estate firms and small businesses would be exempt from that limit.

Businesses would lose the ability to deduct certain executive compensation above $1 million, which they can now do for performance-based pay. Life insurers would lose some tax breaks. Banks with assets exceeding $50 billion would get no deduction for certain payments to the Federal Deposit Insurance Commission.

Tax-exempt bonds could no longer be used to build professional sports stadiums. Private universities with assets exceeding $100,000 a student would pay a new 1.4% excise tax on their net investment income. Businesses would no longer be able to deduct entertainment expenses, though todays rules for business meals would remain.
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pinky0926 posted...

JoeyBowey posted...

That's specific to Trump's plan and about the deficit not the economy.

You made a claim that Lower taxes = bad economy

Why can't you back that up?

It's almost as if the context of this conversation is about what's currently happening and is in fact not idle intellectual masturbation about keynesian economics.

No, it's almost as if you asserted a ridiculous claim to discredit the tax plan.

I myself have serious questions about the deficit regarding these cuts. But to say that it will cause the economy to tank, AND that 100% of economists hold that statement to be true is just downright dishonest.

Pro Tip: When asked to support your claim, try only providing support for that claim and not another.

Thanx

Kineth posted...

You're not fit to shine my shoes.

What's it matter, you can't even see your feet.

JoeyBowey posted...

pinky0926 posted...

JoeyBowey posted...

That's specific to Trump's plan and about the deficit not the economy.

You made a claim that Lower taxes = bad economy

Why can't you back that up?

It's almost as if the context of this conversation is about what's currently happening and is in fact not idle intellectual masturbation about keynesian economics.

No, it's almost as if you asserted a ridiculous claim to discredit the tax plan.

I myself have serious questions about the deficit regarding these cuts. But to say that it will cause the economy to tank, AND that 100% of economists hold that statement to be true is just downright dishonest.

Pro Tip: When asked to support your claim, try only providing support for that claim and not another.

Thanx

Because I never made the claim that an economy must downturn after a tax cut, you have me confused with clearnfragrant. I said the economy is almost certainly going to downturn after this tax cut and that is the opinion held by most economists (I said "pretty much all" which you should understand is hyperbole).
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JoeyBowey posted...

Kineth posted...

You're not fit to shine my shoes.

What's it matter, you can't even see your feet.

Yeah, I'm wearing socks and shoes cause I'm not an animal.
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what about an individual making 115k per year