New tax plan

[uintafly]

http://money.cnn.com/2017/11/02/news/economy/house-tax-reform-bill-individuals/index.html

http://www.foxnews.com/politics/2017/11/02/tax-reform-bill-revealed-by-house-gop-heres-what-it-does.html


Here is CNN and Fox's summary of the plan. What do you all think? I'm trying to figure out the point of increasing the child tax credit while at the same time eliminating the $4,500 deduction. I wonder how that will affect all of the Utah size families. I also wouldn't be surprised to see the state income tax deduction come back. Probably a bargaining chip.

I think I am still going to be stuck in that shitty area of income too high to take advantage of a lot of the deductions, but since I am almost 100% W-2 income not taking advantage of the new business and pass-through income deductions. I'd love a lower tax bill but I bet I stay about the same. As of last Friday between my wife and I, we have paid almost $70,000 in federal taxes to help fund Trump's golf outings. Sure'd be nice if I could keep a little more of that.

[rockgremlin]

^^^ Start your own business. If you already own a business, start a satellite business. Deductions, deductions, deductions...

[Scott P]

The plan would eliminate medical expenses as a tax deduction. That would be a huge hit for us. This year we are over 50K in expenses. Luckily we can still claim it for 2017.

I hope they don't make changes to the 401K. It's not in the current GOP plan, but has been discussed just before it.

[devo_stevo]

Well, apparently Rush Limbaugh is really disappointed by this one. Interpret that as you wish.

I'm curious how the business tax breaks will work out for me. Otherwise, it's not much different for me, I don't think. I'm not sure it's enough of a cut to really make a difference. It's mostly just the republicans acting like they're doing something.

[Iceaxe]

I've been trying to see if the new GOP tax bill was good or bad for me... bottom line is it looks bad for small business. All three of my companies are S-Corps and this new tax bill appears to take away most my deductions and gives me little to nothing in return.

If you are a C-Corp (Wal-Mart, Amazon, ect) this tax bill is great. Mom and pop business get very little/nothing.

This video is the best summation of the new tax bill I've found so far.

https://m.facebook.com/story.php?story_fbid=10212947863404124&id=1617161204

[Scott P]

For middle class individuals it seems that overall it will be bad for most people who itemize and good for most people that don't.

The previous tax reform propsal of capping 401Ks at $2400 per year is very concerning to me, but isn't part of the current plan.

I don't get why the GOP would be in favor of this. :ne_nau:

[Iceaxe]

For middle class individuals it seems that overall it will be bad for most people who itemize and good for most people that don't.

The previous tax reform suggestion of capping 401Ks at $2400 per year is very concerning to me, but isn't part of the current plan.

I don't get why the GOP would be in favor of this. :ne_nau:
The idea for individuals is that the standard write off (which will double) makes it a better to just take the standard write off instead of itemize, which will greatly simplify most peoples individual tax returns. File your taxes on a post card (thinK 1040EZ).

The top 50 US companies (Wall Street) are currently holding $1.5 trillion dollars offshore to avoid bringing the money home and paying taxes on it. The best I can figure is this new tax plan is a way to bring that money home and have it invested back into the US.

The big problem is 50% of the people in this country are employed by small business (Main Street) and the new tax plan eliminates many of their write offs.

Or I could be wrong, as I'm still trying to understand it.

[Scott P]

By "this" I mean specifically the 401K $2400 annual cap proposal. I don't see why the GOP (or anyone else) would be in favor of this.