"It's Done": Here Is What's In The Final GOP Tax Bill

Well - for now - that was an anti-climax...

  • *RUBIO IS SAID TO BACK TAX BILL AFTER CHILD CREDIT TWEAKS: CNBC
  • *BRADY SAYS HE HAS ALL SIGNATURES HE NEEDS, "IT'S DONE"

But the market seems unimpressed by the 'news'

 

And even "high tax" names are underperforming...

 

Here is Bloomberg's breakdown of what we know so far as the final Republican bill heads for votes in the House and Senate next week.

Corporate Tax Rate

Current law: 35 percent

Proposed: 21 percent, beginning in 2018.

Individual State and Local Tax Deductions

Current law: Individuals can deduct the state and local taxes they pay, but the value is subject to certain limits for high earners.

Proposed: Individuals can deduct no more than $10,000 worth of the deductions, which could include a combination of property taxes and either sales or income taxes.

Obamacare Individual Mandate

Current law: An individual who fails to buy health insurance must pay penalties of $695 (higher for families) or 2.5 percent of their household income -- whichever is higher, but capped at the national average cost of the most basic, low-premium, high-deductible plan.

Proposed: Repeal the penalties.

Mortgage Interest Deduction

Current law: Deductible mortgage interest is capped at loans of $1 million.

Proposed: Deductible mortgage interest for new purchases of homes would be capped at loans of $750,000.

Medical Expense Deduction

Current law: Qualified medical expenses that exceed 10 percent of the taxpayer’s adjusted gross income are deductible.

Proposed: Reduce the threshold to 7.5 percent of AGI for the tax years 2017 and 2018.

Child Tax Credit

Current law: A $1,000 credit for each child under 17. The credit begins phasing out for couples earning more than $110,000. The credit is at least partially refundable to qualified taxpayers who earned more than $3,000.

Proposed: Double the credit to $2,000 and provide it for each child under 18 through 2024. Raise the phase-out amount to $500,000, and cap the refundable portion at $1,400 in 2018.

Estate Tax

Current law: Applies a 40 percent levy on estates worth more than $5.49 million for individuals and $10.98 million for couples.

Proposed: Double the thresholds so the levy applies to fewer estates. The higher thresholds would sunset in 2026.

Comments

rccalhoun mc888 Fri, 12/15/2017 - 14:06 Permalink

Didn't Trump promise to simplify the tax code?  I see the tax code having 200 more pages.Eliminate all deductions and credits.  All income is ordinary income.  Apply a tax rate.   A 3 line tax return and one pagetax code.Of course I'd like no taxes.  But, since I have to pay.....make it simple.  Apply it to everyone equally (lol).  I'm dreaming out loud.

In reply to by mc888

Endgame Napoleon syzygysus Fri, 12/15/2017 - 13:59 Permalink

The expanded child-tax-credit welfare checks and a DACA amnesty is what Deplorables get for standing in long lines to vote for Trump, unless you count the $24 per paycheck tax break that will go to non-child-tax-credit-eligible employees.

http://www.zerohedge.com/news/2017-11-28/david-stockman-slams-gop-tax-b…

In the many Trumpian states, like Alabama with its $18,189 per capita income, those of us who must live on earned income ONLY are kicked hard in this tax cut.

But take heart: In addition to their subsidized rent and EBT food, immigrant parents get a lot more out of the tax cut, massively more, than most Deplorables, as the current (2018) max child-tax-credit check is already at $6,444, whereas that $24 per paycheck will not give Deplorables who live on earned-only income anything but a neglible boost in purchasing power.

[Individuals] in these states get no welfare and no $6,444 child tax credits. A $6,444 child tax credit constitutes one third of their yearly wages in full-time jobs in many, many cases. Rent absorbs more than half of their pay

https://www.irs.gov/credits-deductions/individuals/earned-income-tax-cr…

https://en.m.wikipedia.org/wiki/List_of_Alabama_locations_by_per_capita…

https://en.m.wikipedia.org/wiki/List_of_Tennessee_locations_by_per_capi…

https://en.m.wikipedia.org/wiki/List_of_Mississippi_locations_by_per_ca…

https://en.m.wikipedia.org/wiki/List_of_South_Carolina_locations_by_per…

It is just what I thought: the RepubliCON half of the Uniparty Swamp uses the child tax credit as a bartering chip to get tax cuts for their rich donors.

It is a win/win for rich people who often use 98% immigrant labor that does not need higher pay due to monthly welfare for US-born kids and child tax credits, just like those rich employers use 98% childbearing-age and frequently absentee female labor that does need higher wages for the same reason — welfare and child tax credits — or due to spousal income.

Most small businesses and 1099-gig contractors do not have high enough net income to benefit from the pass-through tax cut, but we do pay twice-as-high SS tax — 15.3% — while the moms and immigrants who get monthly welfare and child-tax-credit welfare for working part time to stay below the income limit for welfare pay only 7.65% in SS tax and zero income tax despite the deceptive name child “tax” credit.

All of us who have paid 15.3% SS tax in self employment will pay the price for this deficit-busting tax cut for the rich, which even extends to the salaried, non-job-creating rich whose marginal rate was cut. We will also pay for the expanded tax welfare for “low-income” parent employees in discriminatory mom-gang workplaces and discriminatory immigrant-dominated workplaces. That tax welfare is often spent on trips to the beach and tattoos, certainly in the case of the mom workers who brag openly about it at work.

When the deficit topples the economy, we will pay for it through cuts to the SS that took a sizable chunk of our paltry income, while moms and immigrants got free rent and food, in addition to $6,444 child tax credits for FREE.

If you are [not] one of the tax-favored, write in names in future elections. Beyond the third branch of government, it is the only recourse Deplorables have. CONgress is never going to represent Deplorables. You can stand in lines in every mid-term and general election, not intending to vote for more big tax-welfare checks to rig workplaces for immigrants and part-time-worker moms, but that is all you will get, along with tax cuts for their rich employers.

https://www.google.com/search?ei=lhk0WqeGEcT0mAHr7ZfQAw&sjs=3&q=breitba…

In reply to by syzygysus

John Law Lives Snaffew Fri, 12/15/2017 - 13:10 Permalink

The DJIA went into "rally mode" upon its intraday lows on February 11, 2016.  It did not begin the massive rally because of hopes for a Trump tax cut.  The reality is that Central Banks have created the current artificial environment leading to this stock price bubble, and YodaYeller doesn't want the finger pointed at her when the stock bubble bursts (which it certainly will).    YodaYeller_FUBAR

In reply to by Snaffew

Jim in MN John Law Lives Fri, 12/15/2017 - 13:12 Permalink

Also the advent of global peace, as the US Deep State has lost control of the levers of power (in part). Highest global growth in 8 years last quarter according to the World Bank.Hell, even Africa is at peace.  Latin America.  Entire continents, billions of people.Just don't expect to see it on the Schnewzzzzz.The only hot wars left on Earth are Afghanistan and Yemen.  Just let that sink in for a minute. 

In reply to by John Law Lives

Snaffew Fri, 12/15/2017 - 12:46 Permalink

when is the pet tax credit coming?  I'll buy a grasshopper farm and write off each one to get the $3k of income per unit, errr---pet.  It shouldn't put a dent in any of the debt.

HenryJ Fri, 12/15/2017 - 12:53 Permalink

Reality is the true enemy of progressives. The greatest indicator of a person’s financial success is whether they are dependent upon government to put food on the table or the free market. Government only makes politicians rich. If you destroy the incentives for ambition, you destroy ambition. People are not going to work harder, expand businesses, hire more people, etc. if the result is to give 90% of it to Bernie Sanders and his army of slackers. People getting to keep more of the money that rightfully belongs to them does not cause deficits. Spending more money that belongs to others than they are willing to part with causes deficits.  

TrainReck Fri, 12/15/2017 - 12:56 Permalink

Yeah the ES futures market shrugged off a 23 Handle upside explosion move today. Just like it shrugged off Trumps presidential win 2 years ago. It's Fat Bonus Time baby.

lester1 Fri, 12/15/2017 - 13:05 Permalink

It excellerates the bankruptcy of high tax blue states like California, New Jersey and Illinois. Florida and Texas will make out like bandits.