The final GOP tax bill

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The final GOP tax bill

Post by T on Sun Dec 17, 2017 12:07 pm

Slashes corporate tax rate
The GOP bill cuts the corporate tax rate from 35% to 21%. The GOP bill will also repeal the AMT (alternative minimum tax) on corporations.
[Note: Trumpery will save millions of $$.]

Lowers taxes on pass-through businesses
The tax burden on owners, partners and shareholders of S-corporations, LLCs and partnerships -- who pay business' taxes through their individual tax returns -- will be lowered by a 20% deduction.
[Note: This will help Trumpery save millions of $$.  He owns (or partners with) over 500 companies taxed in this manner.]

Eliminates the mandate to buy health insurance
The GOP bill eliminates the requirement to buy health insurance.  
[Note: The risk pool will shrink, and health insurance premiums will go up. Brace yourself. We may well  return to the 20-30% annual increases we saw in the 80s and 90s. This will save the federal government money, but not you.]

The GOP tax bill calls for seven brackets
10% (up to $9,525 individuals; up to $19,050 married couples/jointly)
12% (over $9,525 to $38,700; over $19,050 to $77,400 for couples)
22% (over $38,700 to $82,500; over $77,400 to $165,000 for couples)
24% (over $82,500 to $157,500; over $165,000 to $315,000 for couples)
32% (over $157,500 to $200,000; over $315,000 to $400,000 for couples)
35% (over $200,000 to $500,000; over $400,000 to $600,000 for couples)
37% (over $500,000; over $600,000 for couples)

Eliminates personal exemptions
Currently you're allowed to claim a $4,050 exemption for yourself, spouse, and each dependent.
The GOP bill eliminates this exemption. Families with three or more children will most likely be hurt by this change even with other tax relief included in the bill.

The GOP bill almost double the standard deduction
Single filers - increases it to $12,000 (currently $6,350)
Married couples filing jointly to $24,000 (currently $12,700)

Lowers cap on mortgage interest deduction
New mortgage interest deduction on debt capped at $750,000 (down from $1 million). Homeowners who already have a mortgage will be grandfathered.
[Note: The GOP bill will no longer allow a deduction for the interest on home equity loans (currently up to $100,000).]

Caps state and local tax deduction
The GOP bill keeps the SALT (state and local tax) deduction.  The bill caps the amount that may be deducted at $10,000. Presently, the deduction is unlimited.
[Note: With the doubling of the standard deduction, most middle income Americans will not itemize. Keeping the SALT (capped at $10,000) is designed to help higher income people in high taxed states.]

Expands child tax credit
The GOP bill doubles the credit to $2,000 (children under 17).
[Note: This credit will be available to high earners as well. The bill would raises the income threshold to $200,000 (single, up from $75,000) and to $400,000 (married, up from $110,000).]

Establishes a temporary credit for non-child dependents
The GOP bill would allow parents to take a $500 credit for each non-child dependent whom they're supporting (e.g., a child 17 or older, an ailing elderly parent or an adult child with a disability). If you have an ailing, dependant parent you're supporting, this will help.

Keeps the AMT
The GOP bill keeps the AMT, but reduces the impact by raising the income exemption levels to $70,300 (singles), and to $109,400 (married).

Keeps some tax breaks
Medical expenses
Student loan interest
Classroom supplies (paid for with a teacher's own money-ridiculous they have to do this)
Tuition waivers for graduate students

Estate Tax
The GOP bill doubles the amount of money exempt from the estate tax, which basically eliminates it for most people.
[Note: It looks like the Trumpery estate will not escape. Good news.]

T

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