GOP House tax bill would deliver blow to California homeowners

[TomCADem]

Source: LA Times

House Republicans released a sweeping tax overhaul Thursday that would limit or end many of the most popular tools used to minimize how much Americans owe— particularly in high-cost areas like California -- including lowering the cap on mortgage interest deductions and eliminating write-offs of state income taxes.

The much-anticipated rollout launches a grueling legislative process that will test GOP unity in the coming weeks as the party struggles to deliver one of President’s Trump’s top priorities. The plan would immediately slash the corporate tax rate to 20% from 35% and streamline individual rates from seven brackets into four.

In addition to ending write-offs of state and local income taxes, mortgage interest deductions would be limited to new loans of no more than $500,000, down from the current $1 million. Deductions for second homes would no longer be allowed. Property tax deductions would be capped at $10,000.

Popular 401(k) retirement savings plans used by many Americans were untouched by the bill, despite some efforts to restrict those tax-deferred accounts in a effort to pay for cuts elsewhere.

Read more: http://www.latimes.com/politics/la-na-pol-gop-tax-cuts-20171102-htmlstory.html

[George II]

1. I can't see many Representatives or Senators voting for this outside of rural areas.

In Connecticut the mean home price is $310,000, meaning about 1/3 are above the $500,000 limit. Taxes on those homes are probably close to or above $10,000.

Then there's NY, CA, FL, IL, TX where homes and taxes are almost as high or more.

There are lots more deductions affected, too (medical expenses, insurance, etc). Hidden in the bill too is that even though the Standard Deduction will be doubled, the Personal Exemption will be eliminated. That wipes out about half of the increase of the Standard Deduction.

Then we have the "death tax". Currently the first $5.45M of an estate is exempt. How many middle class or lower class people have estates worth more than $5.45M? Obviously that's a huge benefit for the very rich.

[BigmanPigman]

2. His no deductions on state and city taxes from

blue states (which are very high) is also going to hit people hard. We knew this was coming...punish the blue states for defying his executive orders.

[Spiranthes]

3. A very real attack on Democratic led states and democracy

Thanks for posting.

[beachbum bob]

4. there are enough House seats held by conservatives in Blue states that if democrats take them

democrats control the House

[not fooled]

5. Drain resources from the blue states

and reduce them all to the level of Mississippi. That's what the pukes want--don't lift up the impoverished states, but wreck the successful states that currently have high taxes and good public services. Thom Hartmann has done some enlightening commentary on this topic and I think he's spot on. The GOPee tax scam shows it.

[aggiesal]

6. But, both parties are no different ...

Those that voted for the Greedy One Percent (GOP) will be just as affected.
A lot in these states will not be able to afford the house they currently
live in without these deductions.

IDIOTS!