Thank you Ms. Ollstein, for this helpful summary of the bill.
Bonus points to Ms,. Ollstein for asking Stan Collender about this stuff. Away back in the days of the Sequester his blog posts were more informative than anything else you could find in determining what was was actually going to happen. Since last I heard he was working for Forbes behind a hostile wingnut paywall, I’m pleased that he’s sharing his knowledge with the outside world.
He says that the high-tax-state GOPers are not going to be deceived about the toxic nature of the state tax grab, so that’s what’s happening. For a GOP congessman, survival outweighs everything*, including party loyalty.
*With the possible exception of direct personal Agnew-style bribery.
If these are really the 5 most controversial provision, this will sail through House and Senate.
First off, many churches, in support of both democrats and republicans, engage in endorsing candidates. Like the article stated the restriction is never enforced so might as well get rid of it. Second, the mortgage deduction elimination on a “non primary” residence makes sense. It is a provision generally that favors the wealthy who own multiple homes. Third, if your state taxes you too much, then take it with your state. Why should people in other states have to pay to underwrite your state’s high taxes? My State has no income tax and we do just fine.
I absolutely HATE tax reporting.
There must be some compromise between a narrative of hypothetical winners and losers, based on assumptions that match nobody, and reading the 400+ page bill myself.
Maybe I’m not Googling optimally, but in a dozen articles I still can’t find what are the new rates and at what income levels do they kick in? Doubling the standard deduction is going to be a far better deal than the itemized deductions being eliminated for most middle class people, but the devil is in the rates!
They kept mentioning business loopholes that allow a far lower tax rate then the maximum listed and how they need to get rid of those (or some of) loopholes. However it looks to me that the burden of decreased deductions and credits are only directed at the middle class/poor. They keep saying that giving money to businesses and the rich will supercharge the economy. The only empirical evidence shows exactly the opposite. It’s a total lie just as their frequent statement that the US is the highest taxed modern nation (totally false, we are at the bottom end). Tells you something that the only way they have to sale this to the people is by total lies. They even raise the bottom rate on the lowest earners! This is not a tax break for all but a gift to the rich on the backs of everyone else, typical Republican ideology. The removal of the “religious” exception is unethical in my opinion; it is “special” treatment by the government of religious activities. It falls in the area of Doctors, therapist, educators, etc. taking advantage of those who are under their influence and it is simply wrong. They should enforce the law, not pick and choose the ones they like. The IRS should be enforcing current law. There are other, better places for politics then one’s house of worship. If you disagree with your religious leaders that implies you are not just wrong but a “sinner” which is in no way appropriate. Sometimes that is even stated explicitly and not just implied. Patriarchy in action.
If these are the “most controversial” provisions then we are sunk. The “pass-through” giveaway needs to be front and center in this debate and it needs to become the most controversial item (perhaps after SALT). It is a horrific policy proposal that manages to keep the top rate theoretically the same (39.6%) but in reality, most rich people with accountants and lawyers will now be able to get their accountants and lawyers to recharacterize their income as pass-through business income and pay 25%. It’s both a completely unjust tax cut for huge real estate developers like the Trumps and the Kushners AND a full employment program for the tax-avoidance industry. Hopefully it’s at least in the top 10 most controversial provisions…
Your headline says 5 most controversial provisions of the house GOP Tax Bill. Your article focuses on 4. Might I suggest the fifth is retention of the carried interest deduction. Nothing else in the code comes close to the shear gall of the special tax treatment for the earned income of hedge fund managers…
There is this…
It started with the rethug win in 2010. Stupidity on full display…
Total BS. It’s been shown time and time again that residents of “high tax” states, which are overwhelmingly blue states with successful economies, pay INTO the federal budget while “no tax” states take money OUT OF the federal budget to subsidize state services. The state tax deduction is an attempt to level that imbalance.
The one thing I support in this disaster of a bill is eliminating the mortgage interest deduction. I benefit from it, but studies show that it has done nothing to improve home ownership rates among low-to-moderate income folks. Since that was the nominal reason the deduction was originally enacted, it is not doing the job. Currently, it is just another giveaway to rich property owners and an artificial booster of house prices.
The electric vehicle tax credit is also getting killed.
So what does that have to do with being a Blue State? If you think your state taxes are too high, then elected representatives to lower your state’s high income taxes. Don’t pass your bill onto people in states like mine, Washington, who have no state income tax.
Correct me if I’m wrong No Income Tax States but aren’t your State governments funded with higher property taxes?
Those property taxe deductions are about to be capped at 10k.
I would think that is a BIG problem for Texas and other Ref States with high property taxes.
A lot of those states just fund with money from the federal government and short their residents on basic services. Which is why you see school closings, roads being de-paved, clinics and DMV offices closed…
So what happens to the deductibility of insurance premiums for freelancers? The could be a big deal for the gig economy.
I do not see how including the Johnson Amendment thing makes this okay for budget reconciliation. Is it because it has an impact on taxes in an indirect sort of way?
It is good to see they punish colleges and college students to help the wealthy though. Good priorities…
If the goal is to Make America Great Again that goal mutually implies America is not great now but once was. The easiest way to return to past greatness would be to look at the blueprints America was using at that time. If it’s not great now it must have steered off course and all you have to do is set it make on the road to greatness. Nothing in the GOP list of tax improvements above was in the blueprints during our era of greatness. When we were great we had all those deductions. It was easier for kids to go collage and loans were government administered to cut out middlemen. Church and State barriers were as our Founders wanted them to be and the Federal Government didn’t punish state governments for using their “states rights”.
In the past GOP wet dreams haven’t panned out well as blueprints for policy. If this bill stays as it is it’s going nowhere.
I am all for eliminating tax exemptions for contributions to politicians and the Parties. I hardly think of them as charitable contributions as they mostly serve sell interest.
If they’re members of the “gig” economy they’re already fucked.