Republicans agree to raise bottom tax rate, double standard deduction

[Smokin Joe]

What would California do?

Stop counting illegals.

[DB]

It seems to me all this does it get more people off the tax rolls creating more voters who can vote for someone else to pay the bill. It makes the tax code even more progressive. Everyone that votes in federal elections should have to pay federal taxes. To have skin in the game when voting for people who offer them more free stuff.

[Chosen Daughter]

It seems to me all this does it get more people off the tax rolls creating more voters who can vote for someone else to pay the bill. It makes the tax code even more progressive. Everyone that votes in federal elections should have to pay federal taxes. To have skin in the game when voting for people who offer them more free stuff.

I feel that way about property tax too.  All the renters who don't pay property tax voting for more taxes.  Of course if they realized that the owners raise the rent when taxes go up they probably would not vote yes on all of those things.

[DB]

I feel that way about property tax too.  All the renters who don't pay property tax voting for more taxes.  Of course if they realized that the owners raise the rent when taxes go up they probably would not vote yes on all of those things.

Yes, renters pay property taxes they just don't seem to always realize it...

[DemolitionMan]

Stop counting illegals.

 

[DB]

Stop counting illegals.

Isn't that a doubled edge sword? The more people the more they would also get from the federal government.

[DemolitionMan]

Isn't that a doubled edge sword? The more people the more they would also get from the federal government.

Many do pay, but there are many who do not.Federal law generally prohibits illegal immigrants from earning income in the U.S., but many of them do so by working for cash and by fraudulently using Social Security numbers.This is because their tax returns are indistinguishable from U.S. citizens and foreigners who legally work in the United States.

[DB]

Many do pay, but there are many who do not.Federal law generally prohibits illegal immigrants from earning income in the U.S., but many of them do so by working for cash and by fraudulently using Social Security numbers.This is because their tax returns are indistinguishable from U.S. citizens and foreigners who legally work in the United States.

I wish that were true. Illegals these days are offered tax ID numbers so they can pay taxes and claim various benefits. You do not have to be legally here to get a federal tax ID number...

Look up ITIN...

[DemolitionMan]

I wish that were true. Illegals these days are offered tax ID numbers so they can pay taxes and claim various benefits. You do not have to be legally here to get a federal tax ID number...

Look up ITIN...

You are absolutely right.An ITIN does not:
    - Authorize work in the U.S.
    - Provide eligibility for Social Security benefits
    - Qualify a dependent for Earned Income Tax Credit Purposes

[DB]

You are absolutely right.An ITIN does not:
    - Authorize work in the U.S.
    - Provide eligibility for Social Security benefits
    - Qualify a dependent for Earned Income Tax Credit Purposes

Check this out:

http://www.foxnews.com/politics/2017/02/09/groups-want-trump-to-close-loophole-allowing-illegal-immigrants-to-abuse-tax-credits.html

[RetBobbyMI]

Stop counting illegals.

The only way to do that is disincentivize it by taxing states based on population instead of direct income taxes on individuals. It would also have ripple effects as states would be so inclined to safe harbor illegals.

[KingsX]

.

$12,000 is NOT "double" the current 2017
single standard deduction which is $6350.


The projected single standard deduction for 2018 is $6500 *... so double that would be $13,000.

Senior citizens would lose their over 65 extra standard deduction and personal exemptions under the GOP's proposed plan. Using PROJECTED figures now available for 2018 * that extra over 65 deduction plus the standard deduction plus one personal exemption would be $12,250.00 for a single senior. So the GOP's proposed $12, 000 tax exempt amount would be a LOSS for single seniors right out of the gate. Then the GOP proposed tax rate would increase from 10% to 12%.


* Forbes article - projected 2018 standard deduction, extra over 65 deduction, personal exemption

https://www.forbes.com/sites/kellyphillipserb/2017/09/14/projected-2018-tax-rates-brackets-standard-deduction-amounts-and-more/

[Suppressed]

Trump failed to mention the GOP plan to eliminate personal exemptions and extra senior deduction.

@KingsX
Please provide the source your for the GOP plan eliminating those.

[Suppressed]

All the renters who don't pay property tax voting for more taxes.

If you don't think renters pay property tax, then you don't understand economics.  Property tax is passed on by landowners to renters.

[Suppressed]

.

$12,000 is NOT "double" the current 2017
single standard deduction which is $6350.


The projected single standard deduction for 2018 is $6500 *... so double that would be $13,000.

Senior citizens would lose their over 65 extra standard deduction and personal exemptions under the GOP's proposed plan. Using PROJECTED figures now available for 2018 * that extra over 65 deduction plus the standard deduction plus one personal exemption would be $12,250.00 for a single senior. So the GOP's proposed $12, 000 tax exempt amount would be a LOSS for single seniors right out of the gate. Then the GOP proposed tax rate would increase from 10% to 12%.


* Forbes article - projected 2018 standard deduction, extra over 65 deduction, personal exemption

https://www.forbes.com/sites/kellyphillipserb/2017/09/14/projected-2018-tax-rates-brackets-standard-deduction-amounts-and-more/

That's a Forbes projection.  It also states: "The standard deduction and personal exemption amounts will also increase, offering tax relief to many taxpayers due to inflation."

[mystery-ak]

http://www.newsmax.com/Finance/StreetTalk/gop-state-tax-break/2017/10/03/id/817416/
GOP Leaders Consider Changing, Not Ending, State Tax Break

[KingsX]

That's a Forbes projection.  It also states: "The standard deduction and personal exemption amounts will also increase, offering tax relief to many taxpayers due to inflation."

That's what I posted.

Those are projected 2018 inflation increases for the standard deduction, over 65 extra standard deduction and personal exemption under current IRS law.  Sometime this month the IRS should be releasing the official amounts for 2018.

But all that goes out the window under the GOP tax reform which would replace all three of those with one $12,000 standard deduction for singles which would be LESS than the three projected amounts combined in 2018.  This year, 2017. the combination of all three for a single senior is $11.950.00.

.

[KingsX]

@KingsX


Please provide the source your for the GOP plan eliminating those.

What details are available for the GOP's proposed tax plan is almost exactly  what
the GOP previously proposed back in 2016 in the GOP "Blueprint - A Better Way"

http://webcache.googleusercontent.com/search?q=cache:3XBs6H0rpTgJ:https://abetterway.speaker.gov/_assets/pdf/ABetterWay-Tax-PolicyPaper.pdf%2Bbetter+way+blueprint&hl=en&gbv=1&ct=clnk

In their 2016 plan,  the GOP proposed both the extra deduction for over 65 and blind
and personal exemptions be eliminated and rolled into a $12,000 standard deduction for
singles [$24,000 for married.]   The GOP tax plan being tweaked today does the same.

The reason the GOP is so eager to eliminate personal exemptions which increase with inflation
and instead use special tax credits that help some people but do NOT increase with inflation...
is because it saves money to use towards reducing business and high income tax rates.
Personal exemptions phase out at higher incomes... so the money that's saved by eliminating
personal exemptions is on the backs of low and middle income Americans.

Do a week Google search using key words "personal exemption"... there are many news
articles about this same issue.