Read it and Weep!

Discussion in 'Chat' started by W5HRO, Dec 20, 2017.

  1. W5HRO

    W5HRO Administrator

    Read it and weep California :lol: At least the Senate backed down and we still have the state and local deduction selection, just with reduced caps now. It aint going to affect me though :icon_thumbup:

    12/20/17

    Congress approves final tax reform bill, handing Trump year-end victory

    The House gave the final stamp of approval Wednesday to a sweeping tax reform package, handing President Trump his first major legislative victory and most Americans a tax cut starting next year.

    With a 224-201 House vote, Congress sent the $1.5 trillion package to Trump’s desk. The biggest rewrite of the federal tax code since the Reagan administration will usher in steep rate cuts for American companies, double the deduction millions of families claim on their annual returns and make a host of other changes taking effect in a matter of weeks.

    We are delivering HISTORIC TAX RELIEF for the American people!#TaxCutsandJobsAct pic.twitter.com/lLgATrCh5o

    — Donald J. Trump (@realDonaldTrump) December 20, 2017
    "This bill means more take-home pay. It will be an incredible Christmas gift for hard-working Americans," Trump said during a Cabinet meeting moments before the vote.

    While the bill already earned House approval earlier Tuesday, the Senate had to ship it back for a final vote after stripping out three provisions that violated chamber rules, in a last-minute glitch. Twelve Republicans once again defected Wednesday to vote with Democrats in opposition.

    Though Democrats uniformly opposed the package, the White House and GOP leaders were triumphant, vowing that the bill’s popularity would improve once taxpayers see the effect.

    WHAT THE TAX BILL MEANS FOR YOU

    “It’s going to give us better jobs, higher wages, bigger paychecks and a simplified system,” House Speaker Paul Ryan, R-Wis., said Wednesday on “Fox & Friends.”

    The Tax Policy Center estimates that 80 percent of taxpayers will see a tax cut next year.

    Democrats sustained their vocal opposition to the bill – they’ve dubbed it a “scam” benefiting the wealthy – into the final moments. Protesters interrupted votes in both chambers. During the Senate vote overnight, they chanted "kill the bill, don't kill us," as Vice President Pence repeatedly called for order.

    Pence did not have to serve as a tie-breaker, with the bill passing the Senate on a 51-48 vote; only Sen. John McCain, R-Ariz., who is recovering from brain cancer treatment, was not present for the vote.

    The passage of the bill, just before the end of the year and the looming congressional recess, gives Trump a long-sought Capitol Hill victory, after repeated attempts to overhaul ObamaCare failed in the face of internal Republican divisions and unified Democratic opposition. The tax bill does include one major rollback of the Affordable Care Act, repealing the individual mandate requiring Americans to buy health insurance.

    The changes to the tax system are more sweeping.

    The final bill – a combination of previously passed House and Senate legislation – would slash the corporate tax rate from 35 percent to 21 percent. It would double the standard deduction used by about two-thirds of U.S. households, to $24,000 for married couples. And the $1,000-per-child tax credit would double to $2,000, with up to $1,400 available in IRS refunds for families who owe little or no taxes.

    The corporate tax cut would be permanent, while the tax cuts for individuals would expire in 2026.

    The Trump administration presumes that doubling the standard deduction would lead to even more families claiming it.

    But those who itemize would lose some deductions.

    The bill would set a new $10,000 cap on the deduction that millions use in connection with state and local income, property and sales taxes. It also would limit the mortgage interest deduction to loans up to $750,000, down from $1 million.

    And it imposes a low one-time tax on companies' overseas earnings, nudging them to return money they've stashed abroad.

    At the same time, the bill would lower the top rate for individual and married filers from 39.6 percent to 37 percent. Further, it would set a deduction for “pass-through” business income at 20 percent. And it would curb the so-called estate tax.

    These provisions and others fueled Democratic complaints that the legislation was skewed to favor corporations and the wealthy – while expanding the deficit.

    On the House floor Tuesday, Rep. Terri Sewell, D-Ala., mocked Republicans who say passage of the bill would be a Christmas gift to the American people.

    “I have never seen such intellectual dishonesty,” Sewell said Tuesday afternoon. “It’s more like the Grinch that stole Christmas.”

    House Minority Leader Nancy Pelosi, D-Calif., spoke in front of a giant sign that read, “#GOPTAXSCAM.”

    The bill would bring average initial tax cuts for Americans across all income lines, but by 2027, it would boost average levies for everyone earning up to $75,000, which includes most taxpayers, Congress' nonpartisan tax analysts estimated Monday.

    A separate study by the Tax Policy Center, a private nonpartisan group, found that individual taxes would be reduced on average next year by $1,600. That ranged, on average, from $60 for people earning below $25,000 to $7,640 for those making above $149,000. Those in the top 1 percent, earning over $733,000, would see average tax cuts of $51,140.
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  2. W6MQI

    W6MQI Member

    Still need to look further into this I think from looking briefly at this tax bill I may not benefit from it at least not much anyway.
     
  3. W5HRO

    W5HRO Administrator

    We will all get a little bit. I still file single every year and I claim my property tax and mortgage interest. Ever since buying the house in 2008 I've been getting back 10K every year. Some years is been just under 10K and the past two years just over it, because I redid my mortgage the summer before last.

    As long as your property tax payments don’t exceed 10K per year and your mortgage doesn’t exceed 750K you should see an improvement, unless you itemize a lot of deductions due to your business. You will only be able to pick one now I think. Property tax or the other. If you still claim your kids though you will now get 2K back per kid instead of only 1K per kid.

    I already calculated mine and if it would take effect now I’d get back around 13K instead of only 10K. Unfortunately, that won’t happen until we file our taxes for the 2018 tax year. However, the FED will start taking less money out of or checks starting now on January first. That’s why most employers are totally freaking out because they are under the gun to figure it out and they don't have much time left to do it. That's providing Trump signs it before January 1st. There is speculation he might wait until after the 1st because it will trigger automatic cuts to Medicare and other programs and they would have to deal with that. It might be better to wait until after the 1st so it doesn't mess any of that up for 2017.

    Anyway, the people who will get screwed are the doctors, dentists and orthodontists in say like in Los Altos who buy those 3 to 4 million dollar homes. Heck, they don’t need the money anyway :lol: .
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  4. W5HRO

    W5HRO Administrator

    Oh, update as of today, 12/22/17

    Trump signs tax overhaul, budget bill before heading to Mar-a-Lago.

    Guess he said the heck with the cuts to those other programs.

    It's done and now in effect :icon_thumbup:
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  5. W5HRO

    W5HRO Administrator

    Here, hot off of the press today...

    1/11/2018

    The Internal Revenue Service (IRS) and U.S. Treasury Department released new withholding guidance on Thursday, indicating that employees should see the tax reform changes reflected in their paychecks by next month.

    “With this guidance, most American workers will begin to see bigger paychecks. We estimate that 90% of wage earners will experience an increase in their take home pay,” said U.S. Treasury Secretary Steven Mnuchin in a press release.

    New withholding tables needed to be issued in order to reflect the changes to tax rates, tax brackets, the elimination of personal exemptions and an increased standard deduction under the new law, passed by the GOP in December. Employers and payroll companies will now be required to process and implement those changes.

    Even though the new tables are out, the time it takes for employees to see the change reflected in their paychecks will vary. As previously reported by FOX Business, employers using a big payroll processing firm may have an easier time with the transition, while employees at small businesses or other companies may have to wait a bit longer for the changes to be fully implemented. How frequently employees are paid will also affect how quickly they see the benefits.

    According to the IRS, it generally takes companies about a month to integrate new withholding guidelines.
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  6. W5HRO

    W5HRO Administrator

    My paycheck is almost $100 more now:icon_thumbup:

    Did anyone see where California wants to start taking 50% of the big companies tax break money now like from Apple and Google? Lawmakers here are trying to find a way to keep screwing everyone. Morons.., they would rather keep forcing companies to move to other states than let them hire more people and expand their technologies here.

    Creating a separate state of New California keeps looking better and better.
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  7. W5HRO

    W5HRO Administrator

    Spoke with one of our tester service vendors yesterday at work and he said his last check was $300 more. I guess the less you make the more you will get until it gets down to a certain income level. I'm pretty much at the top end of the scale so my tax decrease isn’t that big. It will be about $2,400 less total for the year (26 bi-weekly paychecks).
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