General US Tax Bill

Discussion in 'The Off-topic Lounge' started by mysticmac, Nov 2, 2017.

  1. mysticmac

    mysticmac First 1025

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    The actual bill can be found here:

    https://waysandmeansforms.house.gov/uploadedfiles/bill_text.pdf

    Here are the "highlights":
    BUSINESS

    • Chops the corporate tax rate from 35% to 20% permanently, not temporarily as was earlier considered.
    • Businesses would lose the ability to deduct certain executive compensation above $1 million, which they can now do for performance-based pay.
    • Tax-exempt bonds could no longer be used to build professional sports stadiums.
    • Sets a top 25% rate for pass-through businesses such as S corporations and partnerships. The plan includes complicated guardrails that limit people from turning what would otherwise be wage income taxed at up to 39.6% into business income taxed at a lower rate.
    • New limits on corporate interest deductions, which would be capped at 30% of earnings before interest, taxes, depreciation and amortization, which is a measure of cash flow. Real-estate firms and small businesses would be exempt from that limit.
    • Creates a new one-time tax on overseas profits set at 12% for cash holdings and 5% for illiquid holdings, a provision meant to force companies to repatriate overseas profits. Creates a new 10% tax on U.S. companies’ high-profit foreign subsidiaries, calculated on a global basis, but active overseas profits wouldn’t otherwise be taxed.

    INDIVIDUALS

    • Reduces seven individual income tax brackets to four at 12%, 25%, 35% and 39.6%.
    • Top tax bracket set for married couples earning $1,000,000 per year and individuals earning %$500,000. Bottom tax bracket extends up to $90,000 for couples and $45,000 for individuals.
    • The bill would preserve head-of-household filing status, often used by single parents. The standard deduction for that group is midway between individuals and married couples.
    • Nearly doubles individual standard deduction to $24,400 for married couples and $12,200 for singles in 2018.
    • Increases child tax credit from $1,000 in 2017 to $1,600 plus $300 for each taxpayer, spouse and non-child dependents. Places new limit on home mortgage-interest deduction at loans up to $500,000, down from $1,000,000, but existing loans would be grandfathered.
    • The estate-tax exemption, set for $5.6 million per person and $11.2 million per married couple, would double immediately. The tax would be repealed starting in 2024.
    • Keeps 401(k) existing plan rules largely intact.
    • Repeals the alternative minimum tax.
    • Repeals an itemized deduction for medical expenses.
    • Repeals the tax credit for adoption.
    • Repeals the deduction for student-loan interest.

    Source: A Quick Look at Key Provisions
     
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  2. Shang TsOng2

    Shang TsOng2 The real Slim Shady Song
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  3. Robbie Hart

    Robbie Hart I apparently look like a Jewish accountant

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    Yeah, lol, favourite fucking subject
     
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  4. Hauler

    Hauler Unknown Member

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    Read through it real fast.

    What should I be pissed about?
     
  5. HEATH VON DOOM

    HEATH VON DOOM Remember the 5th of November

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    Just watch CNN
     
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  6. Hauler

    Hauler Unknown Member

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    I already kill enough brain cells with alcohol and contact sports.
     
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  7. Belobog

    Belobog First 100
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    The House tax bill preserves the carried interest tax break, used by private-equity managers, venture capitalists, hedge fund managers and certain real estate investors, despite Trump's promise to do away with this loophole. Trump highlighted the carried-interest tax break during his populist presidential campaign, labeling some hedge fund managers as “paper pushers” who are “getting away with murder.”

    Carried interest is the portion of a fund’s profit, usually a 20 percent share, that’s paid to investment managers. Currently, tax authorities treat that income as capital gains, making it eligible for a rate as low as 23.8 percent. The top tax rate for ordinary income is currently 39.6 percent.
     
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  8. mysticmac

    mysticmac First 1025

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    The House just passed the tax bill by two votes.

    Edit: Oh, I guess they are still counting despite time running out. It was close though.
     
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  9. KWingJitsu

    KWingJitsu Valhar Morghulis

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    Do a comparison.... before & after who gets taxed more, who gets taxed less...
     
  10. mysticmac

    mysticmac First 1025

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    When I ran some rough numbers on my taxable income, I'd be getting taxed less. Not by much and I'm not saying it'd be worth it, but it is less.
     
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  11. RaginCajun

    RaginCajun Captain Vague

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    Tax rates

    Current rates

    • 10 percent - first $9,325 of taxable income for singles ($18,650 for married filing jointly).
    • 15 percent - $9,235 to $37,950 ($18,650 to $75,900).
    • 25 percent - $$37,950 to $91,900 ($75,900 to $153,100).
    • 28 percent - $91,900 to $191,650 ($153,100 to $233,350).
    • 33 percent - $191,650 to $416,700 ($233,350 to $416,700).
    • 35 percent - $416,700 to $418,400 ($416,700 to $470,700).
    • 39.6 percent - Over $418,400 ($470,700).
    House proposal

    • 12 percent - first $45,000 ($90,000 for married filing jointly).
    • 25 percent - $45,000 to $200,000 ($90,000 to $260,000).
    • 35 percent - $200,000 to $500,000 ($260,000 to $1 million).
    • 39.6 percent - Over $500,000 ($1 million).
    New Senate proposal

    • 10 percent - first $9,525 of taxable income for singles ($19,050 for married filing jointly).
    • 12 percent - $9,525 to $38,700 ($19,050 to $77,400).
    • 22 percent - $38,700 to $70,000 ($77,400 to $140,100).
    • 24 percent - $70,000 to $160,000 ($140,000 to $320,000).
    • 32 percent - $160,000 to $200,000 ($320,000 to $400,000).
    • 35 percent - $200,000 to $500,000 ($400,000 to $1,000,000).
    • 38.5 percent - Over $500,000 ($1 million).
    Personal exemptions

    Under current law, individuals reduce their income by $4,050 - or $16,200 for a family of four - under what are known as personal exemptions.

    • The personal exemptions would be eliminated under both the House and Senate plans, a portion of which would be offset at least temporarily by new or expanded credits.
    Child and family credits

    Under current law, a tax credit of $1,000 (this is dollars, not a deduction from income) is provided for each child under age 17. This begins to phase out for joint returns with an adjusted gross income of above $110,000.

    • Under the House proposal, this amount would increase to $1,600, plus there would be a new credit of $300 for most others who used to be claimed as personal exemptions (including the taxpayer). The phase out for joint returns would be at $230,000.
    • Under the Senate proposal, the child credit would be $2,000 per qualifying child under the age of 18. The phase out would begin for couples at $500,000 of adjusted gross income.
    Standard deduction

    This is the amount taken off income for people who do not itemize their deductions.

    • Current law: $6,350 for individuals; $12,700 for married couples filing jointly.
    • House proposal: $12,200 for individuals; $24,400 for married couples filing jointly.
    • Senate proposal: $12,000 for individuals; $24,000 for married couples filing jointly.
     
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  12. mysticmac

    mysticmac First 1025

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    I like the Senate's proposal better because it is cheaper for me.
     
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  13. Hauler

    Hauler Unknown Member

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    House saves me 3%
    Senate saves me 4%

    I'm in.
     
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  14. Kneeblock

    Kneeblock Jumbo shrimp

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    College tuition now set to be taxable income, bumping grad students in particular into a weird imaginary tax bracket. Also repeals student loan interest deduction.

    All while reducing capital gains rates.

    So it'll be harder to afford mobility, but easier to keep wealth if you get there.
     
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  15. ConorMcGregorsBeard

    ConorMcGregorsBeard The Face That Runs the Place

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    Can you elaborate?
     
  16. Kneeblock

    Kneeblock Jumbo shrimp

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    Pretty self explanatory. Increased tax liabilities on schooling coupled with increasing cost of education means that it's harder to afford the acquisition of the necessary specialized skills and training required for economic mobility. Add to this GOP plans to reduce student aid (in Pell grants and lending) and the primary driver of mobility (education) becomes harder to access.
     
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  17. Yossarian

    Yossarian Posting Machine

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    This is very worrisome. People used to go to college paying with their summer jobs, etc. Now you are buying a house made out of air.
     
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  18. ConorMcGregorsBeard

    ConorMcGregorsBeard The Face That Runs the Place

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    A big part of the infinitely rising school costs stemmed from the governments involvement in loans. There was a time before that where people could work their way through school. It was government loans that allowed schools to raise their rates. It's entirely possible that if admission numbers go down so will tuition costs. It's also a fallacy that education is the only path to a better life. The unemployment rates of university graduates in their respective fields demonstrates this.
     
  19. Splinty

    Splinty Shake 'em off
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    I like most of this.


    Is good depending on the price points of those brackets.


    Mixed opinion.
    Money was already taxed...but we are taking again.
    On the other hand, inordinate wealth is isolated via capital gains in these estates at a tax rate those of us that work (yes even me and my yacht) don't get to primarily access. Im still taxed at 39.6% for working. Rich are taxed at 15% for holding money in accounts.

    Ok


    HSAs are just a backdoor retirement account for people like me


    Seems strange. Why?

    Bad.
     
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  20. Ted Williams' head

    Ted Williams' head It's freezing in here!

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  21. Splinty

    Splinty Shake 'em off
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    This combined with...

    Is fine in my opinion.

    I will see a slight increase in my taxes salary side and my business will get a slight tax break.

    I am being incentivized to limit my property homestead investing and instead focus on retirement to take advantage of capital gains.

    One reason I don't like this is that in Texas, my homestead is exempt from malpractice suits and I would like to protect my assets inside of that. But the mortgage interest decrease will have me do some math.

    On the other hand, a great majority of people don't ever get close to those numbers and it will primarily only hit the wealthy that can afford the properties anyways. It might decrease some speculators and real estate investors too.
     
  22. Splinty

    Splinty Shake 'em off
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    Government should subsidize the schools (supply) and not the students (demand).

    Students joined a bubble of chasing nicer dorms and nicer gyms with "future money".

    Some skin in the game at the beginning, instead of zero now...whether tuition is 5k or 15k...would have helped align spending to education instead of pseudo resorts of fancy dining and living.
     
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  23. Splinty

    Splinty Shake 'em off
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    You mean college tuition loans are going to be looked as taxable benefit?

    That makes no sense if so.

    I can't think of a loan situation where I'm taxed on the benefit of getting the funding but can't deduct the loss during payback.
     
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  24. Willthiswork

    Willthiswork I'd rather have 4 quarters than 100 pennies.

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    Yeah I'm with you there.

    Are the loans now income or are grants and scholarships income as in a sense they actually are income?
     
  25. Splinty

    Splinty Shake 'em off
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    That wouldn't be too crazy actually. I'm not sure if that's the current process?

    12,000 of it is tax free per the tax plans.

    I paid college out of my work wage. It was taxed then I paid with post tax dollars.

    If my college is free via scholarship or grant, should it be taxed too? I'm getting a financial benefit.

    I'd say yes in the current system.

    But greater, I'd let all college tuition (not the stupid loan interest) be tax deductible. Though, the GOP plan seems to be focused on getting some buyers' skin in the game for immediate costs of college education. I'm not sure it'll work without an associated subsidizing of campuses directly, which isn't on the table to my knowledge.
     
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