Today's tax plan overhaul

Parent Cafe
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<p>Maybe…because neither party has embraced this…we can actually talk about this without politics…</p>

<p>It would be nice if we can. Most of us do care about taxes. If we can’t discuss without politics…vaporware.</p>

<p>I dont like the curtailing of the earned income tax credit. Rates are so low, I think we can tax capital the same as labor as far as the income tax goes. In fact I would tax capital and labor the same in the first two brackets and cut rates another percent or two.</p>

<p>I believe some of the tax credits are decreased or eliminated for students. I dont know what happens to the $500,000 capital gains exclusion when a couple sells their house.</p>

<p>The proposal is 979 pages. I skimmed it. I am not going to read it. :)</p>

<p>Muni bond interest for private activity becomes taxable. There are income limits before other muni interest is partially subject to taxation.</p>

<p>Property taxes are no longer deductible.
Mortgate interest on mortgages of $500,000 is deductible.</p>

<p>So…what do you think? Like? Dislike? What do you want tweaked?</p>

<p>This isn’t going to become law anytinpme soon.</p>

<p><a href=“http://www.nytimes.com/2014/02/27/us/politics/sweeping-tax-overhaul-plan-would-bring-big-changes.html”>http://www.nytimes.com/2014/02/27/us/politics/sweeping-tax-overhaul-plan-would-bring-big-changes.html&lt;/a&gt;&lt;/p&gt;

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<p>I like this part.</p>

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<p>I know… I would eat the fraud… Or find another way to give the poor the money…we can afford it. </p>

<p>Everything else is a go?</p>

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<p>I have not studied the plan in any detail yet but I would think dstark might like the part where the highest income taxpayers would lose the state and local income tax deduction, some of their mortgage interest and other deductions in exchange for lowering their rate from 39.6% to 35%. I would think we are talking a sizable tax increase for this group.</p>

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<p>I am not sure what I like. </p>

<p>Cap gains are around 10 percent of tax revenues that comes from the income tax and that tax is variable. So…taxing the cap gains the same as labor would reduce tax rates about 1 percent.</p>

<p>I percent would pay the 35 percent rate. </p>