McCain just said yes to the bill.
@Dave_N There will be no consequences because by the time folks figure out they were hoodwinked the midterms will be over. No one will see the fallout until 2019 when it’s time to file taxes.
According to https://fivethirtyeight.com/features/the-gop-tax-cuts-are-even-more-unpopular-than-past-tax-hikes/ , the current tax cut bills are less popular than the tax increases of 1990 and 1993.
How are they avoiding the Medicare cuts? It is a result of previous sequestration legislation, I thought.
Also… I wonder if all elements of this plan and the way they have executed this are legal. There may be court challenges if they’ve bent the rules too much.
If it passes, should people accelerate charitable deductions in 2017, especially if they itemize in 2017 but don’t expect to be able to itemize in 2018?
Has anybody seen the graduate tuition tax in the Senate bill? If not, there is still hope.
It’s also important to remember that a large portion of the population isn’t hearing the things we are about the bill. They are hearing it’s going to be the best Christmas ever. They have no clue what is actually in the bill or that they will be harmed by it. And honestly, I don’t think they will get it even after their taxes go up and they lose in other ways (student loans, medical deductions,for example.)
Wow @partyof5 . That link was a bit wonky on the loophole. This stuff is what scares the heck out of me. The bill could be full of these things and nobody is even cares to check or discuss it. It is just a ram job from the elite class to screw the little guy with smoke and mirrors.
Bill is great for business’s but horrible for workers.
It’s historically unpopular. Enough are hearing about it.
I’m going to ask a few really dumb questions so I apologize in advance:
- There is no way this could retroactively affect 2017 taxes, is there? As in, might I owe the student tax on waivers from this year if this passes?
- If this goes through, is it set in stone for taxes next year or is there a way for congress to fix it in case of backlash?
I would have said what my grandpa used to say about such folks, Emily, but it is not TOS. 
One thing for sure - my tax attorney buddies are not going to go hungry next year.
@partyof5 - how would the 17.4% deduction work? With or without the speculation in that article?
Just curious, but it won’t apply to me either.
I hate living in a Blue state like MA and seeing this package get passed by all the Red State representatives and Senators. There is nothing I can do. My people are already a no vote.
Elections have consequences. Too bad people do not vote for pocketbook items like taxes and the economy. They seem to care about other things.
@ClassicRockerDad, the waiver taxation doesn’t seem to be in the Senate bill right now. But amendments are being added today. The real danger is in reconciliation, since it is in the House bill.
They’re not. The GOP is lying about all facets of the bill.
Romani, nothing retroactive has been discussed. I think you are safe this year. And they do have the opportunity to fix or delay should they choose to in 2018, although I sure wouldn’t count on it.
Currently, both the house and senate versions take effect starting Jan 1, 2018.
Yes it could be changed or undone. I would expect a bill to tweak things would be almost certain.
If I understood @partyof5’s link, every employee has a business being an employee. So why can’t every employee file schedule C and take deductions? You cannot do this if you get W2 income, it is not clear to me how the tax bill will magically change your income to be self-employment income.
Thanks. I guess that is a tiny tinge of relief. At least I don’t have to magically find thousands to pay my taxes for this year.
Int, I’m not counting on it either but I have to cling to hope.
But in Romani’s scenario, the tax on tuition waivers would apply to the winter/spring semester coming up. So, it doesn’t go into effect this calendar year, but does go into effect this school year.
(IF that detail is in the final version).
Unfortunately, if the House version prevails, I don’t think the grad student issue would be fixed in a later bill. It’s clearly an attack on higher education, so why would they undo it?
Whether schools can adjust and re-characterize waivers as “scholarships” or do some other workaround also remains to be seen.