Thread: GOP unveils final $1.5T tax plan
12-15-2017, 05:22 PM
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#1
GOP unveils final $1.5T tax plan
http://www.foxnews.com/politics/2017...in-making.html
Congressional Republicans unveiled the most sweeping overhaul of the nation’s tax code in three decades Friday evening with an eye toward final passage next week after two key GOP senators endorsed the legislation.
The final version of the so-called Tax Cuts and Jobs Act keeps seven tax brackets, but reduces rates for five of them. The new rates start at 10 percent and rise to 12, 22, 24, 32, 35 and 37 percent. The corporate tax rate is reduced from 35 percent to 21 percent and the bill provides sweeping tax deductions to other businesses, lowering their top effective tax rate to about 30 percent instead of 39.6 percent.
The standard deduction -- used by around two-thirds of households -- would be nearly doubled to $12,000 for individuals and $24,000 for married couples. But deductions for state and local taxes are scaled back, allowing families to deduct only up to a total of $10,000 in property and income taxes. The deduction is especially important to residents of high-tax states such as New York, New Jersey and California.
The final package would also double the basic per-child tax credit for families making up to $400,000 a year from $1,000 to $2,000. Sen. Marco Rubio, R-Fla., was expected to vote for the bill after winning a late concession that would make up to $1,400 of the credit available as a tax refund to lower- and middle-income families with relatively small tax bills.
Another GOP holdout, Bob Corker of Tennessee, said Friday that he would endorse the bill, describing it as an opportunity "to make U.S. businesses domestically more productive and internationally more competitive [and] one we should not miss."
"I realize this is a bet on our country's enterprising spirit,” Corker added, "and that is a bet I am willing to make."
Senate Republicans passed their original tax bill by a vote of 51-49 — with Rubio's support. Corker was the only Republican to vote against the original bill out of concerns about its effect on the federal deficit.
Republicans, who hold a 52-48 majority in the Senate, can only afford to lose two votes before the bill is defeated. Vice President Mike Pence would have to break a tie if required.
Both House and Senate lawmakers are working to make a deal on tax reform. Here is a look at the key issues, from health care to child credit tax relief, that could derail its passage.
The House is expected to vote on the final bill Tuesday, with a Senate vote to follow later in the week.
Republicans have promised the bill would provide needed tax relief to Americans at all income levels.
"Americans deserve a new tax code for a new era of American prosperity," House Ways and Means Committee Chairman Rep. Kevin Brady, R-Texas, said Friday. "I'm very excited about this moment. It has been 31 years in the making ... Everyone's life will be better off under tax reform."
Democrats disagree, arguing that the legislation would help wealthy Americans and big business at the expense of the poor and middle class.
"Under this bill the working class, middle class and upper middle class get skewered while the rich and wealthy corporations make out like bandits," Senate Minority Leader Chuck Schumer, D-N.Y., said in a statement. "It is just the opposite of what America needs, and Republicans will rue the day they pass this."
Business owners who report business income on their personal tax returns would be able to deduct 20 percent of that income.
The agreement also calls for repealing ObamaCare's individual mandate, a major step toward the ultimate GOP goal of unraveling the law. It retains a deduction for medical expenses and an exemption for graduate school tuition waivers.
The business tax cuts would be permanent, but reductions for individuals would expire in 2026 — saving money to comply with Senate budget rules. In all, the bill would cut taxes by about $1.5 trillion over the next 10 years, adding billions to the nation's mounting debt.
The legislation also contains a provision that would open Alaska's Arctic National Wildlife Refuge to oil and gas drilling, a longtime Republican priority that is fiercely opposed by Democrats and environmental groups.
Sen. Lisa Murkowski, R-Ak., and other Republicans say drilling in the 19.6-million-acre refuge can be done safely with new technology, while ensuring a steady energy supply for West Coast refineries.
The final version of the so-called Tax Cuts and Jobs Act keeps seven tax brackets, but reduces rates for five of them. The new rates start at 10 percent and rise to 12, 22, 24, 32, 35 and 37 percent. The corporate tax rate is reduced from 35 percent to 21 percent and the bill provides sweeping tax deductions to other businesses, lowering their top effective tax rate to about 30 percent instead of 39.6 percent.
The standard deduction -- used by around two-thirds of households -- would be nearly doubled to $12,000 for individuals and $24,000 for married couples. But deductions for state and local taxes are scaled back, allowing families to deduct only up to a total of $10,000 in property and income taxes. The deduction is especially important to residents of high-tax states such as New York, New Jersey and California.
The final package would also double the basic per-child tax credit for families making up to $400,000 a year from $1,000 to $2,000. Sen. Marco Rubio, R-Fla., was expected to vote for the bill after winning a late concession that would make up to $1,400 of the credit available as a tax refund to lower- and middle-income families with relatively small tax bills.
Another GOP holdout, Bob Corker of Tennessee, said Friday that he would endorse the bill, describing it as an opportunity "to make U.S. businesses domestically more productive and internationally more competitive [and] one we should not miss."
"I realize this is a bet on our country's enterprising spirit,” Corker added, "and that is a bet I am willing to make."
Senate Republicans passed their original tax bill by a vote of 51-49 — with Rubio's support. Corker was the only Republican to vote against the original bill out of concerns about its effect on the federal deficit.
Republicans, who hold a 52-48 majority in the Senate, can only afford to lose two votes before the bill is defeated. Vice President Mike Pence would have to break a tie if required.
Both House and Senate lawmakers are working to make a deal on tax reform. Here is a look at the key issues, from health care to child credit tax relief, that could derail its passage.
The House is expected to vote on the final bill Tuesday, with a Senate vote to follow later in the week.
Republicans have promised the bill would provide needed tax relief to Americans at all income levels.
"Americans deserve a new tax code for a new era of American prosperity," House Ways and Means Committee Chairman Rep. Kevin Brady, R-Texas, said Friday. "I'm very excited about this moment. It has been 31 years in the making ... Everyone's life will be better off under tax reform."
Democrats disagree, arguing that the legislation would help wealthy Americans and big business at the expense of the poor and middle class.
"Under this bill the working class, middle class and upper middle class get skewered while the rich and wealthy corporations make out like bandits," Senate Minority Leader Chuck Schumer, D-N.Y., said in a statement. "It is just the opposite of what America needs, and Republicans will rue the day they pass this."
Business owners who report business income on their personal tax returns would be able to deduct 20 percent of that income.
The agreement also calls for repealing ObamaCare's individual mandate, a major step toward the ultimate GOP goal of unraveling the law. It retains a deduction for medical expenses and an exemption for graduate school tuition waivers.
The business tax cuts would be permanent, but reductions for individuals would expire in 2026 — saving money to comply with Senate budget rules. In all, the bill would cut taxes by about $1.5 trillion over the next 10 years, adding billions to the nation's mounting debt.
The legislation also contains a provision that would open Alaska's Arctic National Wildlife Refuge to oil and gas drilling, a longtime Republican priority that is fiercely opposed by Democrats and environmental groups.
Sen. Lisa Murkowski, R-Ak., and other Republicans say drilling in the 19.6-million-acre refuge can be done safely with new technology, while ensuring a steady energy supply for West Coast refineries.
99 fishing crew, harpooning whales on the daily crew
12-15-2017, 05:24 PM
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#2
- QuitYourCrying
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- QuitYourCrying
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All of the bad stuff that people went crazy over was removed (deductions for grad students, adoptions, etc.)
Looks pretty OK.
Looks pretty OK.
12-15-2017, 05:27 PM
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#3
12-15-2017, 05:29 PM
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#4
- sepulvd
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- sepulvd
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Originally Posted By QuitYourCrying⏩
everything is ok except that after 2026 reductions get remove for individuals but not sure whats going to happen. so we get to save a little bit of money for 8 years and do we get ****ed or do the brackets go back to what they are now. am paying 25% with my income so its either going to be 24 or 22 depending what the cutoff is for married couples not sure how much savings that is. and the drilling in the arctic is retardard.All of the bad stuff that people went crazy over was removed (deductions for grad students, adoptions, etc.)
Looks pretty OK.
Looks pretty OK.
12-15-2017, 05:29 PM
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#5
Spend all day bragging about how the economy is booming and its all because of you... then turn around a pass a massive bill that will completely change the booming economy.
Then get back to work on healthcare to reshape 1/5th of that booming economy
republican logic.
Then get back to work on healthcare to reshape 1/5th of that booming economy
republican logic.
12-15-2017, 05:47 PM
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#6
12-15-2017, 05:48 PM
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#7
- dhawkeye1980
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- dhawkeye1980
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Originally Posted By moksha16⏩
Gonna make it boom even moreSpend all day bragging about how the economy is booming and its all because of you... then turn around a pass a massive bill that will completely change the booming economy.
Then get back to work on healthcare to reshape 1/5th of that booming economy
republican logic.
Then get back to work on healthcare to reshape 1/5th of that booming economy
republican logic.
What a time to be alive
12-15-2017, 05:49 PM
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#8
- cheerupemokid
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- cheerupemokid
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Originally Posted By moksha16⏩
Apparently, there is no correlation between the booming economy and the expectation that tax cuts that have been talked about for over a year would come to fruition utilizing liberal “logic.”Spend all day bragging about how the economy is booming and its all because of you... then turn around a pass a massive bill that will completely change the booming economy.
Then get back to work on healthcare to reshape 1/5th of that booming economy
republican logic.
Then get back to work on healthcare to reshape 1/5th of that booming economy
republican logic.
Thus, a good man, though a slave, is free; but a wicked man, though a king, is a slave. For he serves, not one man alone, but what is worse, as many masters as he has vices. - Saint Augustine
12-15-2017, 05:52 PM
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#9
Originally Posted By moksha16⏩
How would tax cuts negatively change economic growth? Logic not even once.Spend all day bragging about how the economy is booming and its all because of you... then turn around a pass a massive bill that will completely change the booming economy.
Then get back to work on healthcare to reshape 1/5th of that booming economy
republican logic.
Then get back to work on healthcare to reshape 1/5th of that booming economy
republican logic.
99 fishing crew, harpooning whales on the daily crew
12-15-2017, 06:04 PM
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#10
- dhawkeye1980
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- dhawkeye1980
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Originally Posted By Herblore⏩
He doesnt understand that people/companies with more money buy more thinks, travel more, eat out more etc which means companies need to produce more which means more jobs and less people on welfare.How would tax cuts negatively change economic growth? Logic not even once.
He thinks the only way govt makes money is to increase taxes
12-15-2017, 06:06 PM
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#11
- NurseLife2018
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- NurseLife2018
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Lets get this baby passed and make it a MERRY CHRISTMAS!!
12-15-2017, 06:07 PM
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#12
- NitrogenWidget
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Originally Posted By tng83⏩
I live in a chitty city 25 miles from Buffalo.Schumer needs to STFU
My home is assessed at 89k.
would be lucky to find some sucker to give me 70k in this neighborhood.
My property taxes were almost 4k last yr.
even with income tax added in i'm still a a little bit away from hitting the 10k limit.
going by what i earn, if I hit a point where i earn enough to go past the 10k limit I don't think i'd mind all that much if i'm still in my same house because i'll be making what would be considered a good living in my area.
I see why schumer is against this, all his rich friends with multiple properties can't claim as much on taxes.
However, people with family cottages on lakes and such are going to get raped since our property tax is just out of control.
12-15-2017, 06:10 PM
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#13
- dhawkeye1980
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Originally Posted By NitrogenWidget⏩
We paid 16k in prop taxes but im not even mad we needed this bill to pass. I have a pretty bomb tax guy so im sure we will be fineI live in a chitty city 25 miles from Buffalo.
My home is assessed at 89k.
would be lucky to find some sucker to give me 70k in this neighborhood.
My property taxes were almost 4k last yr.
even with income tax added in i'm still a a little bit away from hitting the 10k limit.
going by what i earn, if I hit a point where i earn enough to go past the 10k limit I don't think i'd mind all that much if i'm still in my same house because i'll be making what would be considered a good living in my area.
I see why schumer is against this, all his rich friends with multiple properties can't claim as much on taxes.
However, people with family cottages on lakes and such are going to get raped since our property tax is just out of control.
My home is assessed at 89k.
would be lucky to find some sucker to give me 70k in this neighborhood.
My property taxes were almost 4k last yr.
even with income tax added in i'm still a a little bit away from hitting the 10k limit.
going by what i earn, if I hit a point where i earn enough to go past the 10k limit I don't think i'd mind all that much if i'm still in my same house because i'll be making what would be considered a good living in my area.
I see why schumer is against this, all his rich friends with multiple properties can't claim as much on taxes.
However, people with family cottages on lakes and such are going to get raped since our property tax is just out of control.
12-15-2017, 06:12 PM
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#14
- gachase21
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12-15-2017, 06:19 PM
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#15
- wesleysh21
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- wesleysh21
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Originally Posted By sepulvd⏩
If you can’t tell me what is going to happen 8 years from now I do not want a single tax break now...damnit! Feel free to give whatever tax saving you receive over the next 8 years to gubmint. Clearly you don’t want it or need it. Just turn it over, because gubmint is clearly better at using your money than you are.everything is ok except that after 2026 reductions get remove for individuals but not sure whats going to happen. so we get to save a little bit of money for 8 years and do we get ****ed or do the brackets go back to what they are now. am paying 25% with my income so its either going to be 24 or 22 depending what the cutoff is for married couples not sure how much savings that is. and the drilling in the arctic is retardard.
Originally Posted By QuitYourCrying⏩
I don’t think it was ever real. That’s why I kept saying “show me in the final bill.” I don’t think it ever really existed, much less made the final version of the legislation.All of the bad stuff that people went crazy over was removed (deductions for grad students, adoptions, etc.)
Looks pretty OK.
Looks pretty OK.
ALL I ASK IS ALL YOU GOT FOR AS LONG AS IT TAKES
12-15-2017, 06:26 PM
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#16
12-15-2017, 06:29 PM
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#17
12-15-2017, 06:51 PM
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#18
Originally Posted By Herblore⏩
You should ask the economists that all say its horrible for the economy...How would tax cuts negatively change economic growth? Logic not even once.
brb.. adding thousands to the public debt of every american while giving rich people even more money to keep in offshore accounts...brilliant!!.
12-15-2017, 07:25 PM
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#19
- tng83
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- tng83
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Originally Posted By dhawkeye1980⏩
Makes no sense to me why youd live somewhere with those property taxes. I pay like 1000 dollars a year.We paid 16k in prop taxes but im not even mad we needed this bill to pass. I have a pretty bomb tax guy so im sure we will be fine
12-15-2017, 07:26 PM
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#20
- tng83
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Originally Posted By moksha16⏩
It's cute how libs pretend to give a **** about deficits all of a sudden.You should ask the economists that all say its horrible for the economy...
brb.. adding thousands to the public debt of every american while giving rich people even more money to keep in offshore accounts...brilliant!!.
brb.. adding thousands to the public debt of every american while giving rich people even more money to keep in offshore accounts...brilliant!!.
12-15-2017, 07:30 PM
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#21
- Stizzel
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- Stizzel
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Originally Posted By moksha16⏩
Doing what you promised to do is change according to libtard logicSpend all day bragging about how the economy is booming and its all because of you... then turn around a pass a massive bill that will completely change the booming economy.
Then get back to work on healthcare to reshape 1/5th of that booming economy
republican logic.
Then get back to work on healthcare to reshape 1/5th of that booming economy
republican logic.
“It’s the bill of rights, not the bill of requests. Rights are not up for negotiations.” Thomas Massie, MAGA enemy #1
12-15-2017, 07:43 PM
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#22
- SillieBazzillie
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- SillieBazzillie
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Other than adding to the deficit, which libs really have no right to cry about, what is left in this bill that's bad? That the individual stuff expires in 8 years? That's an eternity in DC and can be easily changed.
I guess the repeal of the mandate will signal the death of Obamacare but it needs to be massively changed anyway.
Put me down as a yes vote for this tax reform.
I guess the repeal of the mandate will signal the death of Obamacare but it needs to be massively changed anyway.
Put me down as a yes vote for this tax reform.
Early AM workout crew.
Holy crap dude, Satan's huge crew.
12-15-2017, 07:48 PM
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#23
Originally Posted By SillieBazzillie⏩
They are now crying they cant get a tax deduction on their ridiculous state property taxes they are paying on their multi million dollar homes or income taxes in high tax states. The same people that cry that the rich need to be taxed more are now crying that they will be affected.Other than adding to the deficit, which libs really have no right to cry about, what is left in this bill that's bad? That the individual stuff expires in 8 years? That's an eternity in DC and can be easily changed.
12-15-2017, 07:52 PM
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#24
- SillieBazzillie
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Originally Posted By Lendogg⏩
That's still deductible up to $10k. And the reason state and local taxes are typically high is because those areas have greater services or better schools or people just want to live there because good jobs are there. Disparaging areas of the country with high taxes and saying they are stupid for living in a high tax area really isn't a winning argument.They are now crying they cant get a tax deduction on their ridiculous state property taxes they are paying on their multi million dollar homes or income taxes in high tax states. The same people that cry that the rich need to be taxed more are now crying that they will be affected.
Early AM workout crew.
Holy crap dude, Satan's huge crew.
12-15-2017, 08:10 PM
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#25
12-15-2017, 08:28 PM
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#26
12-15-2017, 08:32 PM
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#27
- Ephedra
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- Ephedra
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Originally Posted By moksha16⏩
-Tax cuts for businesses allowing higher production of goods and/or servicesYou should ask the economists that all say its horrible for the economy...
brb.. adding thousands to the public debt of every american while giving rich people even more money to keep in offshore accounts...brilliant!!.
brb.. adding thousands to the public debt of every american while giving rich people even more money to keep in offshore accounts...brilliant!!.
-Tax cuts for consumers allowing more expendable money to buy from said businesses
moksha: BAD FOR THE ECONOMY!
Hot damn brah, econ 101 not even once.
12-15-2017, 08:50 PM
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#28
- tyqb4
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- tyqb4
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Originally Posted By SillieBazzillie⏩
The problem is it sells itself as a job creating and economic growth creating tax plan. The corporate tax cut is good and needed to happen but for economic projections it's generally assumed that 80% of the burden of corporate taxes falls on to the owners/share holders of the company and 20% is on the workers. So while it's still good, that alone isn't going to create jobs in a significant way because companies in general wont expand to meet needs that don't exist. If you combine it with income tax cuts to increase consumption to fuel hiring/expansion then the two things working together can be great. The problem is 50% of the money saved on taxes will be saved by the top 1% and 30% will go to the top .01%. Tax cuts themselves don't create growth out of thin air. It's the increase in consumption created by increased disposable income over a large portion of the population that creates the growth. The distribution of tax savings is not growth oriented. If it was you'd see a mid-high 20s corporate tax and much more focus on the middle class tax brackets. The only way to salvage the distribution problem is through reduced health insurance costs (my parents for example paid close to 20k between the two of them last year and roughly 100k total since 2012) but it seems pretty unlikely that anything good is going to happen on that front.Other than adding to the deficit, which libs really have no right to cry about, what is left in this bill that's bad?
As far as the deficit is concerned Trump doesn't get to play by the same fun rules as Obama. The interest payments wont only be scaling with the debt, they will also scale with interest rates. The percentage of our budget that goes towards the interest on the debt is going to grow. Some of it is inevitable because of interest rate hikes but it's straight up retarded to just ignore it. We need to be doing everything possible to stop adding to the debt so that as our economy grows the debt becomes relatively smaller and the percentage of our budget that gets spent on the interest decreases.
tldr tax plan is alright but with such a small margin for error (created by Obama and friends) it needs to be better.
12-15-2017, 08:50 PM
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#29
- ceizer1985
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What's Misc cheering / complaining about? Most of you *******s are going to continue to pay 10% tax rate.
12-15-2017, 08:52 PM
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#30
- ceizer1985
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- ceizer1985
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Originally Posted By Steve707⏩
woah woah woah....slow down champ. Our military is crumbling and needs more billions. We also need to deliver some freedom to Iran and NK soon.Great, now if they could cut spending...
Let's screw with social security and healthcare though because that's not important.
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