^^beyond the lobbyists the Congresspersons themselves are wedded to all of that tax code complexity. Without it, they wouldn’t have much to do (says this cynic), and would lose all of their “power”. 
“This mess is so punitive to blue states.”
Because that is where all the wealth is, plus they didn’t need our Reps/Senators to pass the bill. But R’s who represent districts in blue states are going to get slaughtered in the midterms - so that’s one good thing to come out of it (even if they voted no - like the two districts Reps around me.)
With what I am aware of I am not in favor of this bill! Like all of us I am trying to determine what the changes will be to our specific circumstances. I do not understand the impact that the bill will have to those of us who own subchapter S corporations. The profit from subchapter S corporations passes through to the shareholders and taxes are paid on that profit based on the shareholders tax bracket. Is any one aware on what changes will occur with this? The summaries I have read do not seem to be clear on this.
This bill is such sad commentary on the greed and lack of consideration for so many Americans on the part of our elected officials!
The bill is confusing to the average person…and I think it is purposely so.
How about…list out the changes in plain simple English which everyone can understand.
Someone who had an interest in having the American people understand it would need a typed copy and enough time to do that. Not a hand scribbled, non searchable 479 page PDF provided a few hours before a middle of the night vote, and amendments that could only be obtained by many of the Senators from the lobbiests who write them – I wish I were kidding about that. Even I can script a campaign commercial on that, though. Especially once I had time to suss out what in the bill would hurt the voters in a given district the most.
@emilybee —Question on your comment above:
“Nope. Only property taxes you pay on your home and only up to $10k. State taxes and other local taxes (city and/or county - like those of us in NY pay are not deductible even if your prop taxes are less than $10k.) If you are in a state like CT. you will not be able to deduct your state income tax or your personal property tax - even if your property tax is less than $10k.”
When you say personal property tax, do you mean the taxes assessed on cars in CT? Am I correct in thinking (to the best of our scant understanding at this point), that the property taxes I pay on my home will be deductible, but capped at $10K? As in, if someone had property tax beneath the $10K threshold, he will not be able to deduct the personal property tax now? Is that correct? (Not sure why I am bothering to attempt to understand this since it may all change again.)
Yes, I mean the personal property tax you pay in CT on everything other than your home. If your property tax on your home is under $10k you will not be able to make up the difference with the personal property tax you pay to get to $10k.
IOW - you will no longer be able to deduct state income tax or personal property tax. Only the property tax you pay on your home up to the 10k Cap.
So - next steps - reconciliation of House and Senate versions - how long might that take? Do we think House will acquiesce and just go along with Senate version?
Once again—again, this has been pointed out before—that wouldn’t actually simplify anything, because you’d end up with insane complexity for what counts as taxable income.
I say Ryan will make some steps toward reconciliation, discover it’s impossible and ram the Senate version through the House.
That logic doesn’t make sense to me. Let’s say, for the sake of discussion, just eliminate all deductions as a simplicity measure. Yes, there will still be an army of accountants arguing over what is taxable income, but that is no different than today. However, they just won’t be arguing over both income and deductions. How can that not be simpler? (Note, I didn’t say ‘simple’.)
I bet that they like to get it done this week. With the special election in Alabama, they Reps can’t afford to risk losing one vote should Moore get defeated.
The problem, for those prattling about a simple tax system, is that the world is not simple. A flat tax system with no deductions, and twelve zillion laws and regulations about what counts as income, and thirteen zillion forms about what is and is not income, is not simpler than what we have now. It’s worse, because it’s not progressive, and it’s no simpler.
I m still not clear on how this proposed tax reform is simplifying anything. It’s making changes…but simplifying? Sorry, I don’t see it.
^That would be because it’s not tax reform. It’s a bill which cuts taxes on corporations and extremely wealthy people.
The only simplification I see is taking away some major tax breaks and raising the standard deduction so it’s not worthwhile to deduct things anymore. So here, if we take it away and you can’t deduct it, it makes your life more simple, right?
That’s because it’s like the Emperor’s new clothes, @thumper1: it’s not there. There is no reform; there is no simplification. It’s a giveaway to the rich (you think the Koch brothers aren’t salivating over this?) and arguably a political attack on states with high taxes – which, golly gee, tend to be blue.
Just checking for clarity.
My husband and I now each get a standard deduction of about $6000 AND a personal exemption of about $4000…
Under the new plan…we will get each…a $12,000 standard deduction…and no personal exemption…so really it’s a $2000 difference. Am I supposed to be thrilled with this??
Eliminating every deduction HAS to be simpler. How can making schedule A go away, for example not be “simpler”?
Now that may be considered by some to be “worse” bcos of the impact, but it is still simpler.
Schedule A is not the most complex schedule to fill out - even by hand. If your only source of income is W2, that’s simplification, I guess. But if you derive income from rentals, investments, self employment, partnerships, etc. - HA!
But they’re not eliminating every deduction, just some of the more popular ones that people take. And adding new ones to benefit specific interests.