The 2017/2018 Trump/GOP tax plan

[John_Mace]

@Bone

If that happens, to try to make it more readable I’ll copy into Word first, so I can get this:
At times, that doesn’t work either, so I’ll do some global search/replace to eliminate them. Here’s an example of how to do that. Worst is when the PDF is an image scan, then if I really want to quote from it I’ll have to retype it.

Is there any chance the compromise tax bill will fix that (emphasis added)?

[k9bfriender]

@Bone

If that happens, to try to make it more readable I’ll copy into Word first, so I can get this:
At times, that doesn’t work either, so I’ll do some global search/replace to eliminate them. Here’s an example of how to do that. Worst is when the PDF is an image scan, then if I really want to quote from it I’ll have to retype it.

Notepad strips all formatting. My go to for copying badly formatted texts.

ETA: Obviously not all that useful for non-OCR’d scans.

[Snowboarder_Bo]

[url=]Story here.

House and Senate GOP leaders have forged an agreement on a sweeping overhaul of the nation’s tax laws. That paves the way for final votes next week to slash taxes for businesses and give most people tax cuts starting next year.

Top GOP aides say the deal was reached on Wednesday.

Details still need to be drafted and assessed by congressional scorekeepers but the final House-Senate compromise is on track to be unveiled this week.

[D_Anconia]

@Snowboarder_Bo

[url=]Story here.

Link doesn’t work for me.

[HurricaneDitka]

Details of the compromise are out (charitably assuming this report is not wrong):

GOP leaders on Wednesday agreed on a final tax cut plan that would lower the corporate rate to 21% and drop the top individual rate to 37%, according to a Republican source briefed on the deal.

Earlier House and Senate versions of the measure would have lowered the corporate rate to 20%, but in reconciling the two plans, leaders needed to nudge up the corporate rate in order to pay for benefits elsewhere.

Among those benefits will be a drop in the rate paid by the richest Americans, a risky move since President Trump and GOP leaders have tried to portray their sweeping plan as aimed at the middle class.

The original House plan retained the current 39.6% top rate while the Senate version lowered it to 38.5%.

Among other compromises, the final bill will allow mortgage interest deductions on loans up to $750,000, and deductions for state and local income or property taxes up to $10,000. Both provisions would have a significant impact in high-tax states like California and along the East Coast.

It will also include the Senate provision that will repeal the Obamacare requirement that Americans buy health insurance.

Regarding so-called pass-through entities, which include small businesses, but also hedge funds and real estate ventures such as those held by Trump, negotiators agreed on a 20% rate.

[John_Mace]

The House bill had a top rate of 39.6% and the Senate had 38.5%, so they compromised and made it 37%?

That makes sense…

[Ruken]

Shhh…don’t think.

[John_Mace]

It will be interesting if the new bill fails to pass the Senate by one vote.

[ThisIsTheEnd]

@HurricaneDitka

Details of the compromise are out (charitably assuming this report is not wrong):

Bloomberg has a little more detail

The pass through rate now applies to trusts as well as individuals.

Modification to the SALT deduction - Both bills were originally same same - up to $10,000 in property Tax, nothing for state income tax. My understanding was that it was going to be changed to allow you to deduct one or the other (whichever was more) up to $10,000. But you couldn’t deduct both to get up to the $10,000 cap - you had to pick one or the other. Bloomberg is using the words “combined” and “and” - phrasing it as (bolding mine) “Joint Agreement: Limit combined deductions for state and local income taxes and property taxes to $10,000.”

Corporate AMT is repealed.

Obamacare mandate is repealed.

[HurricaneDitka]

@John_Mace

It will be interesting if the new bill fails to pass the Senate by one vote.

I’m a bit unclear on the steps involved with the Alabama Senate seat. Is Luther Strange out as of last night, or does he retain the seat until the election results are certified and Doug Jones is seated?

[John_Mace]

@HurricaneDitka

I’m a bit unclear on the steps involved with the Alabama Senate seat. Is Luther Strange out as of last night, or does he retain the seat until the election results are certified and Doug Jones is seated?

Yes, good point. Jones might not be seated until after the vote is taken. I’m not sure when he gets seated, but I doubt it’s today.

[Ruken]

I heard not until 2018, but I don’t have a good cite.

[HurricaneDitka]

@John_Mace

Yes, good point. Jones might not be seated until after the vote is taken. I’m not sure when he gets seated, but I doubt it’s today.

The tax bill vote is expected next week, and Democrats were pleading with McConnell to delay it until Jones is seated.

[ThisIsTheEnd]

They’re not waiting for Jones, they’ll stall his swearing in if they have to. Counties have until Dec 22 to file results. The state has to certify by Jan 3.

[wolfman]

In additional news I hear they are going to change postcards to officially be 4 feet by 8 feet.

[John_Mace]

@HurricaneDitka

The tax bill vote is expected next week, and Democrats were pleading with McConnell to delay it until Jones is seated.

“Doug Jones will be the duly elected senator from the state of Alabama,” Schumer said. “The governor didn’t appoint him. He won an election. It would be wrong for Republicans to jam through the tax bill without giving the newly elected senator from Alabama the opportunity to cast his vote.”

The GOP is unlikely to agree.

And I think we have the winner for “understatement of the year” award!

[Driver8]

@ThisIsTheEnd

Modification to the SALT deduction - Both bills were originally same same - up to $10,000 in property Tax, nothing for state income tax. My understanding was that it was going to be changed to allow you to deduct one or the other (whichever was more) up to $10,000. But you couldn’t deduct both to get up to the $10,000 cap - you had to pick one or the other. Bloomberg is using the words “combined” and “and” - phrasing it as (bolding mine) “Joint Agreement: Limit combined deductions for state and local income taxes and property taxes to $10,000.”

I never could quite figure it out in the Senate and House versions either, but how does this effect the sales tax deduction (typically only applicable to states like Washington with no income tax). This is something you can deduct as an alternative to the income tax deduction. I’m unclear if it’s going away or if it’s enough of a corner case to merely be lost in the reporting.

[John_Mace]

@Driver8

I never could quite figure it out in the Senate and House versions either, but how does this effect the sales tax deduction (typically only applicable to states like Washington with no income tax). This is something you can deduct as an alternative to the income tax deduction. I’m unclear if it’s going away or if it’s enough of a corner case to merely be lost in the reporting.

See this post from the other thread.

[Snowboarder_Bo]

@Snowboarder_Bo

[

@D_Anconia

Link doesn’t work for me.

Whoops; sorry about that!

https://apnews.com/128c148a2af64d20b53be5d3931d148c/GOP-says-it’s-got-a-deal-on-taxes;-cuts-coming-for-next-year](]Story here.[/url)

[ThisIsTheEnd]

Looks like the sales tax option was kept when they added state income taxes back in:

Republican Tax Bill in Final Sprint Across Finish Line (Published 2017)

“The bill also allows individuals to somewhat choose how to use their state and local tax deduction, giving them the ability to write off up to $10,000 in property taxes, income or sales taxes paid or a combination of property and sales or property and income taxes. That move is intended to alleviate the concerns of House Republicans, particularly those from California, over the bill’s treatment of the state and local tax deduction.”