Republicans agree to raise bottom tax rate, double standard deduction

[ABX]

Because of the doubling of the standard deduction, this would end up a net cut for most (I may be wrong). Doubling the standard deduction to 12 thousand when the bottom rate at 10% for married filing jointly goes to 18K, that would remove a lot more people from that tax bracket completely and reduce the overall taxable amount for those in that bracket by a considerable portion.

Top White House and GOP leaders have agreed to raise the lowest individual tax rate from 10 to 12 percent, paired with doubling the standard deduction, 5 senior Republicans tell us.

Why this matters: Trump intends to sell the proposal tomorrow as a populist "tax cut." But as recently as yesterday top Republicans on Capitol Hill were nervous as they got word that Trump wasn't entirely thrilled with the product that had been hashed out in immense secrecy for weeks (with two members of his administration, Gary Cohn and Steven Mnuchin, working with GOP leaders.).....

https://www.axios.com/republicans-agree-to-raise-bottom-tax-rate-double-standard-deduction-2489774626.html

[Hoodat]

The bottom tax rate is a negative percentage since it is possible to get a 'refund' without paying a dime in taxes.  I believe taxes for everyone should be raised (or lowered) to 19% while doing away with social security taxes.

[Mom MD]

The bottom tax rate is a negative percentage since it is possible to get a 'refund' without paying a dime in taxes.  I believe taxes for everyone should be raised (or lowered) to 19% while doing away with social security taxes.

I agree  there should be a standard flat tax rate for everyone with the first x dollars exempted for everyone.  Period.   I would even more in favor of a flat  atop all sales tax so saving would not be punished

[Bigun]

I agree  there should be a standard flat tax rate for everyone with the first x dollars exempted for everyone.  Period.   I would even more in favor of a flat  atop all sales tax so saving would not be punished

There is only one way to fix it permanently.   https://fairtax.org

[Chosen Daughter]

I don't know.  Reducing to three tax brackets.  Where will I fall and does it help or hurt me?

[RetBobbyMI]

I’d rather see the direct income tax by the feral govmint as instituted by the 16th Amendment be abolished in its entirety. Just go back to taxing the states based on proportional population. Just like the original constitution was written.

[Chosen Daughter]

I’d rather see the direct income tax by the feral govmint as instituted by the 16th Amendment be abolished in its entirety. Just go back to taxing the states based on proportional population. Just like the original constitution was written.

What would California do?

[KingsX]

For many people, doubling the basic standard deduction will NOT compensate
for eliminating personal exemptions and the extra senior standard deduction.

This would be a net loss for many.

The GOP needs to find a fix in their bag of tricks... or they are in trouble.

[Bigun]

For many people, doubling the basic standard deduction will NOT compensate
for eliminating personal exemptions and the extra senior standard deduction.

This would be a net loss for many.

The GOP needs to find a fix in their bag of tricks... or they are in trouble.

If they simply enacted HR25 (the fairtax) into law there would no longer be any need for exemptions at all for anyone! 

And BTW:  Trump's entire economic agenda would be accomplished with the passage of that single bill into law!

[catfish1957]

For many people, doubling the basic standard deduction will NOT compensate
for eliminating personal exemptions and the extra senior standard deduction.

This would be a net loss for many.

The GOP needs to find a fix in their bag of tricks... or they are in trouble.

Would be a plus for me, I don't itemize.  Biggest impact will be fewer itemizing too.  Which IMO would be good thing, for the sizable population that "games" that system.

[KingsX]

I was not referring to itemization verses taking the standard deduction.

I am referring to the lower middle class [especially single parents as well  as seniors] who already take the standard deduction.  Doubling the basic standard deduction does not compensate for the GOP eliminating personal exemptions and the extra senior standard deduction.

[Bigun]

I was not referring to itemization verses taking the standard deduction.

I am referring to the lower middle class [especially single parents as well  as seniors] who already take the standard deduction.  Doubling the basic standard deduction does not compensate for the GOP eliminating personal exemptions and the extra senior standard deduction.

Like I've said previously, this is just more Smoke and Mirrors from inside the beltway. No REAL reform involved!

[KingsX]

Like I've said previously, this is just more Smoke and Mirrors from inside the beltway. No REAL reform involved!

Under this proposed GOP plan [which is almost the same as their 2016 "Blueprint - A Better Way" tax plan] taxes will increase for many people who can least affort it,  lower middle class single parents and seniors, because of the elimination of personal exemptions and the elimination of the extra senior standard deduction.

Democrats have said all along that the GOP is only concerned about tax cuts for the rich and Republicans have made that a self-fulfilling prophecy.

[GtHawk]

What would California do?

I don't know, continue paying out more than it receives back? What I would really like to see is the end of the IRS giving out Tax ID numbers to illegals and put an end to the blatant tax fraud committed by them with the governments blessing.

[KingsX]

Any minute Trump will be speaking about the GOP tax cuts for the wealthy...
and of course the stock market is going up... they love it.

[Restored]

I agree  there should be a standard flat tax rate for everyone with the first x dollars exempted for everyone.

What's the point of the exemption?

[KingsX]

The DEVIL is in the details the GOP is not yet telling you... like the GOP plan to eliminate personal exemptions and the extra senior standard deduction.

Trump said the new GOP standard deduction will be  $12,000 single / $24,000 couple... that is NOT doubling the current 2017 standard deduction of $6350 single / $12,700 couple or the projected 2018 standard deduction which is $6500 single /  $ 13,000 couple

Trump did not say whether or not  this arbitrary $12000/$24,000 standard deduction will the adjusted annually for inflation. Maybe it will be like Reagan's 1983 "tax cut" that turned out to be a new tax on Social Security based on a $25,000 income that was NOT set up to be adjusted for inflation and is now a burden to all seniors.

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

[RetBobbyMI]

What would California do?

That’s their problem to figure out. If they want all those illegals, then they count towards the population and their portion of taxes levied against the state.

[Mom MD]

What's the point of the exemption?

I think it is reasonable to exempt enough income to supply the minimum needs of a family from taxation as long as everyone gets the exemption.  A similar rebate is in place with national sales tax plans

[SZonian]

And what are they going to do about the AMT (Alternative Minimum Tax)?
It's a well known fact that the USG doesn't "give" anything back without taking something else in return...

[CSM]

There is only one way to fix it permanently.   https://fairtax.org

I agree.  Anything less is simply "tinkering around the edges."

[Bigun]

I agree.  Anything less is simply "tinkering around the edges."

Damn right!   

[libertybele]

If they simply enacted HR25 (the fairtax) into law there would no longer be any need for exemptions at all for anyone! 

And BTW:  Trump's entire economic agenda would be accomplished with the passage of that single bill into law!

    

[Bigun]

   

 

[libertybele]

I don't know, continue paying out more than it receives back? What I would really like to see is the end of the IRS giving out Tax ID numbers to illegals and put an end to the blatant tax fraud committed by them with the governments blessing.

Bingo!!! You my friend, hit the nail on the head. Not only that, if illegal couldn't receive healthcare benefits, that would drive the cost of healthcare costs down significantly.

If we were to abolish the IRS and abolish benefits to illegals, I think we would see a tremendous positive economic impact on this country.