The 'doubled standard deduction' in the GOP tax plan is a lie

[n2doc]

by Josh Barro

In selling their soon-to-be-released tax plan, Republicans have been leaning hard on what they say is a provision to cut and simplify taxes for the middle class: Doubling the standard deduction that income tax payers may take.

"You have to look at the plan in its entirety. It doubles the standard deduction, so in the end, even the lowest rates get a tax cut," Rep. Jim Renacci, a Republican who sits on the tax-writing Ways and Means Committee, told Reuters.

But a document published by Jonathan Swan of Axios shows this is badly misleading. The plan would increase the standardized deductions available to taxpayers by 15% or less.

Meanwhile, taxpayers who still wouldn't take the standard deduction under the Republican plan — those who would instead deduct things like mortgage interest — would pay tax on more of their income than they do now.

more
http://www.businessinsider.com/trump-tax-plan-doubled-standard-deduction-2017-9?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+businessinsider%2Fpolitics+%28Business+Insider+-+Politix%29

[Eliot Rosewater]

1. We pay the taxes, and we will pay more, ALWAYS under GOP tax plan.

GOP seeks to eliminate taxes on the rich and corps and increase it on everyone else.

Always.

[CrispyQ]

2. Never trust a republican.

I'm amazed at how successful the GOP was in getting America to hate taxes & believe that tax cuts are always a solution. We have a contingent of citizens who are too damned stupid to vote and another contingent that thinks it doesn't matter.

[exboyfil]

3. The article states that the exemption

is rolled into the standard deduction. That is truly sneaky and I had not picked up on that before now.

The Republicans may find their folks won't be happy with losing the itemized deduction on items like state taxes. It will impact mortgage/home values and charitable giving because folks won't be given the other deductions to give them a push over the standard deduction.

[n2doc]

5. Not just state income taxes either. Property taxes as well

Here in Georgia, we would be really fucked by this plan, since we have high state income and property taxes. But you can guarantee our idiot Repuke CONgressmen and Senators will be in lockstep supporting this crap.

[exboyfil]

7. Do you get your exemptions back if you itemize

Reading it I don't get that impression. That means the bar for itemization will go from $8,100 to $24,000.

[n2doc]

10. No.

Under Trump's plan they are not deductible, no matter what.

[dembotoz]

4. very interesting gotta sing this from the roof tops

[HeartachesNhangovers]

6. What's actually happening is that the married/joint

standard deduction goes from $12,600 (in 2016) to $24,000, which is not quite doubled. Then, the personal exemptions ($8,100 for a couple) disappear - they are "incorporated" into the larger standard deduction.

So for me and my wife, instead of exemptions and standard deductions worth $20,700 ($12,600 + $8,100), we end up with a standard deduction of $24,000.

The difference is +$3,300, so the net effect is that our total deduction goes up by 15.9%, which is nowhere near double:

$3,300 / $20,700 = 0.159

Nonetheless, this would be better for us because we take the standard deduction (we have no mortgage interest, state income tax or other large itemized deductions). For people who itemize, the situation would likely be worse because most of the popular itemized deductions are being scrutinized for elimination or reduction. Of course, no actual proposed tax code has been released, and we don't even know how the tax brackets will end up, so basically we don't know anything.

[exboyfil]

9. As you said being better is dependent on where the income bracket lines are drawn

If everything else stays the same (the line for 12% is the same as for 10%) on the lowest bracket, then a couple making $29,975 will save $210 on this new plan ($928 vs. $717).

[n2doc]

11. The 10% bracket is eliminated. Supposed to start at 12% n/t

[eleny]

12. We're in the same boat as you except that we do pay state income tax

We're retired and the state income tax isn't a huge hit. But even with large medical bills for the year we still can't itemize and haven't for years.

So it seems like older people who rent or people like me & hubby who have paid off their mortgage won't get anything near a doubling of the standard deduction. On top of that it's the usual Republican smoke and mirrors insult. People who don't keep up with the nuances of Republic chicanery will hear the word "double" and may never learn the truth of the matter.

[ehrnst]

8. This is why you should look at independent analysis of a piece of any legislation

even if it's yours, because they will find what you missed.

[Johonny]

13. It's a brutal tax increase to the middle class

places like Orange county and upstate New York will hate it. It's going to be a hard sell to GOPers from that area.

It's a great tax plan for Democrats to run on in 2018. Republicans raised taxes!

[eleny]

14. Right! Upstate NY has extremely high property taxes

Hubby and I were born and raised in NYC but have lived in Colorado since the '70s. Every so often we consider moving back to NY State but maybe live upstate instead of back down in the city. The high property taxes nix that idea every time.

Not only are our Colorado property taxes lower but we get a reduction based on our age and the fact that we've lived on this property for a certain length of time. Colorado wants to keep its seniors from moving elsewhere.

[TexasBushwhacker]

15. Are they still eliminating "head of household"

That's a big kick in the teeth to single parents.