The House is scheduled to vote on the federal tax reform package today, with a Senate vote expected either later today or tomorrow. The bill is expected to pass largely on party lines.
Following are some basic highlights from the bill:
- Reduces the corporate tax rate from 35 percent to 21 percent
- Lowers individual tax rates, while adjusting the tax brackets
- Doubles the standard deduction used by about two-thirds of U.S. households, to $24,000 for married couples
- The $1,000-per-child tax credit doubles to $2,000, with up to $1,400 available in IRS refunds for families who owe little or no taxes.
- Repeals the Obamacare mandate that everyone carry health insurance or face a penalty
- Retains the charitable contribution deduction, and limits the mortgage interest deduction to the first $750,000 in principal value. Limits the state and local tax deduction to a combined $10,000 for income, sales, and property taxes.
A more detail analysis of the bill’s details can be found at the Tax Foundation website.
One criticism of the tax bill is that the individual income tax rate cuts will expire after ten years. That provision is included, however, due to Senate rules stating that legislation can be passed with a simple majority only if it doesn’t drive up the deficit 10 years after passage. Republican leaders have declared that their desire is for the income tax cuts to be made permanent in the future.
Another downside is that the tax cuts are not accompanied at this time by any planned spending cuts – with estimates projecting an increase to the national debt of nearly $1.5 trillion over a decade. The negative consequences from failing to rein in spending will offset much of the benefit from the tax cuts.
This is worse legislation than the ACA was when it was rammed through along a sole partisan line. Like the ACA, it will be rolled back and done away with in a very short time.
I bet anything Scott said the same thing when Reagan cut taxes and we had years of job growth and the rising waters lifted all boats except the ones that do nothing and will never do anything but lay about and hold their hand out.
Donald Trump says the Economy is booming. Paul Ryan says it is ‘limping along.’ Two propagandists spewing lies.
Real economists know that DEMAND spurs growth. This is more trickle down voodoo and everyone knows it.
“Real economists know that DEMAND spurs growth.”
Thanks for the compliment!
George W.
“On the one hand, we’ve got to make sure that we bolster consumer demand by both accelerating the tax cuts that now exist, as well as providing rebates for nontaxpayers—but who filed…. Congress ought to act as quickly as possible to get that money into people’s hands as quickly as possible to bolster demand.”
http://www.presidency.ucsb.edu/ws/index.php?pid=63592
Middle income, married ( combined $75,000-$80,000 gross) 2 dependents over age of 17…. my taxes will go up. But unlike NCCivtas and their minions, I am aware, or at least honest (unlike Civitas), that taxes play an important role in making our country great.
The unemployment rate is the lowest in 17 years.The stock market has gone up 5000 points in a month,for the first time in history.The market has gone up over 5 trillion since Trump became President.Under Obama we lost over 300,000 good paying manufacturing jobs.He told us that those jobs were never coming back.Last month according to the Bureau of labor statistics,31,000 manufacturing jobs came back.Does this sound like an economy limping along.Some people’s ideology gets ahead of the facts.