Senate releases tax proposal

[turbinetree]

The Senate tax proposal is out, along with a Joint Committee on Taxation analysis estimating it will add $1.495 trillion to the deficit over the next decade.

What we're watching: Member reaction. The Senate can only afford to lose two GOP votes to pass the bill.

Notable provisions:

7 income tax brackets: 10, 12, 22.5, 25, 32.5, 35, and 38.5 percent
Repeal of personal exemption
$1,650 child tax credit
Repeal of deduction for state and local taxes
Pass throughs: An individual taxpayer can deduct 17.4 percent of domestic qualified business income from a partnership, S corporation or sole proprietorship. Most service businesses are excluded.
20 percent corporate rate beginning in 2019
Repatriation rates of 5 percent for illiquid assets, 10 percent for liquid

https://www.axios.com/senate-releases-tax-proposal-2508228834.html?utm_source=sidebar

Pay particular attention to page 7 Footnotes

https://www.finance.senate.gov/imo/media/doc/11.9.17%20JCT.pdf


[2] Estimate includes the following outlay effects: 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2018-22 2018-27
10%, 12%, 22.5%, 25%, 32.5, 35%, and 38.5% tax brackets................................... --- 1.0 1.1 1.2 1.2 1.2 1.2 1.2 1.3 1.3 4.4 10.6
Modify standard deduction........................................................................................ --- 9.4 9.7 10.2 10.4 10.5 10.6 10.7 10.9 11.1 39.7 93.6
Repeal personal exemptions..................................................................................... -10.8 -15.9 -16.4 -16.6 -16.9 -17.2 -17.4 -17.7 -17.9 -18.1 -76.6 -164.9
Alternative inflation methods.................................................................................... --- -0.3 -0.6 -1.3 -1.6 -2.1 -2.5 -3.1 -3.6 -4.0 -3.9 -19.2
Modification of child tax credit................................................................................. --- 14.1 14.3 14.2 14.2 15.7 15.7 15.6 15.6 16.9 56.7 136.2
Change in information reporting thresholds ............................................................. --- --- [22] [22] [22] [22] [22] [22] [22] [22] 0.1 0.2
Require valid Social Security number of each child to claim
refundable portion of child credit........................................................................... --- -2.9 -2.8 -2.7 -2.6 -2.7 -2.6 -2.5 -2.6 -2.7 -11.1 -24.1
Repeal of itemized deductions for taxes not paid or accrued in a trade or
business, interest on home equity debt, non-disaster casualty losses and
certain miscellaneous expenses.............................................................................. --- -0.4 -0.3 -0.4 -0.4 -0.4 -0.4 -0.4 -0.4 -0.5 -1.5 -3.7
Repeal of alternative minimum tax on corporations.................................................. 10.8 3.8 -0.4 -0.3 --- --- --- --- --- --- 13.9 13.9


Its shows how the middle class is going to get screwed

[wiggs]

1. this is the only post right now on the general discussion first page. I hope media can

refocus and warn the bottom 99% about what might happen wrt taxes and spending.

Not only does the middle class miss out on 80% of the tax cut, but cutting taxes WILL RESULT IN CUTS TO VITAL PROGRAMS AND SAFETY NETS. This is why the dems have already lost...all they are doing is arguing about who is going to get what tax cuts, which is important because it's another give away to the wealthy, but....we should FIRST be talking about what the cuts mean.

How many programs cut by how much? Why can't dems say that we FIRST have to decide how much we want to spend on vital programs THEN see if there's room for any tax cuts? Rather, the Rs have kept the discussion on the tax cut side, not the programs side. Failure of messaging on the dems part.

[turbinetree]

2. When I saw the black and white of this JCT what struck me was that

since I have medical and educational costs, they will be eliminated, to fund the give away, and the media is not saying one word.

All the public is getting is what you described in your response, WHAT IT MEANS

I just finished reading the college scam education in the newest edition of Rolling Stone by Matt Taibbi, and looks from the read that this this country is turning into a serfdom society, it is just amazing.