Federal Tax Deductions For Local Taxes

[Bill from NYC]

There is now a proposal in motion to take away the federal tax deductions for state and local taxes, including property taxes. Included in the plan is the elimination of deductions for businesses silly enough to provide health insurance to their employees.

For good measure, a hike to the minimum wage (there hasn't been one since 1997) was also defeated. As I recall, it was proposed by dems. A Repub. version was also defeated. It included a provision for "flex time," which would have made it just fine and dandy for workers to work more than 40 hours in a week, and take time off in the following week instead of receiving overtime pay.

I am glad that I have SOOO many friends in Washington!

 

Once and for all, let me state that I agree with those of you who say that we need more than 2 parties. You guys are/were right. I am tired of getting screwed by people we elect to "help" us.

 

Thanks

[Alaska Darin]

Welcome to the party, pal.

 

The government will stop stealing/wasting your money when YOU start doing something about it.

[VABills]

I guess you missed the part that said rates would be dramatically reduced as well. The lower income familifies should like this as they would pay even less in taxes.

 

I don't like the ideas in the "plan" as presented but to say they are just eliminating deductions and omitting some of the other facts from the story is pretty amateur of you.

[Bill from NYC]

I guess you missed the part that said rates would be dramatically reduced as well.  The lower income familifies should like this as they would pay even less in taxes. 

 

I don't like the ideas in the "plan" as presented but to say they are just eliminating deductions and omitting some of the other facts from the story is pretty amateur of you.

481002[/snapback]

>>>>>Instead the administration plans to push major amendments that would shield interest, dividends and capitals gains from taxation, expand tax breaks for business investment and take other steps intended to simplify the system and encourage economic growth, according to several people who are advising the White House or are familiar with the deliberations.<<<<<

 

Yeah, there it is! I didn't realize how many tens of thousands of dollars I will save on the huge money that I make from interest, dividends and capitol gains.

Never mind....this is great for the average family.

[GG]

I guess you missed the part that said rates would be dramatically reduced as well.  The lower income familifies should like this as they would pay even less in taxes. 

 

I don't like the ideas in the "plan" as presented but to say they are just eliminating deductions and omitting some of the other facts from the story is pretty amateur of you.

481002[/snapback]

 

I read the news about a report from a bi-partisan panel that presented its recommendations to the administration, but haven't seen the actual recommendation. They are recommending reducing tax rates, but not dramatically. Basically, the way it's drawn up, residents in high state tax jurisdictions would be screwed big time.

 

I guess the concept of reducing spending is too complex.

[KRC]

I guess the concept of reducing spending is too complex.

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Bush should create a new agency to study this problem.

[Bill from NYC]

I read the news about a report from a bi-partisan panel that presented its recommendations to the administration, but haven't seen the actual recommendation.  They are recommending reducing tax rates, but not dramatically.  Basically, the way it's drawn up, residents in high state tax jurisdictions would be screwed big time.

 

I guess the concept of reducing spending is too complex.

481009[/snapback]

 

I heard on the news yesterday that working families that own homes and earn more than $140,000 would be the hardest hit, but I don't have a link.

[GG]

I heard on the news yesterday that working families that own homes and earn more than $140,000 would be the hardest hit, but I don't have a link.

481014[/snapback]

 

That would make sense, as the proposal would also limit the home mortgage interest deduction.

[Bill from NYC]

That would make sense, as the proposal would also limit the home mortgage interest deduction.

481016[/snapback]

 

Another great idea! They might as well toss my daughter out of college and throw us out on the street.

I hope that enough senators and congressmen have big mortgages so the proposal will be defeated.

[VABills]

>>>>>Instead the administration plans to push major amendments that would shield interest, dividends and capitals gains from taxation, expand tax breaks for business investment and take other steps intended to simplify the system and encourage economic growth, according to several people who are advising the White House or are familiar with the deliberations.<<<<<

 

Yeah, there it is! I didn't realize how many tens of thousands of dollars I will save on the huge money that I make from interest, dividends and capitol gains.

Never mind....this is great for the average family.

481008[/snapback]

See that little highlighted blue 2 on the bottom. That means there is a second page. On it the following is written:

 

"From my experience, I know that he believes strongly in broadening the [income tax] base, lowering the rates and taking the tax code out of business decisions. That's where he would start; those key fundamental philosophies will lead his decisions," said Mark Weinberger, a former assistant Treasury secretary for tax policy, now a vice chairman of Ernst & Young LLP.

[Bill from NYC]

See that little highlighted blue 2 on the bottom.  That means there is a second page.  On it the following is written:

 

"From my experience, I know that he believes strongly in broadening the [income tax] base, lowering the rates and taking the tax code out of business decisions. That's where he would start; those key fundamental philosophies will lead his decisions," said Mark Weinberger, a former assistant Treasury secretary for tax policy, now a vice chairman of Ernst & Young LLP.

481020[/snapback]

 

Sure but lowering the rates for who? You and me?

I don't owe a big enough mortgage for my interest to be capped, but my property taxes are insane, and I pay thousands in state income tax.

I suspect that this is a form of political payback for the states who voted against this administration. Do you think this is possible, or is this government panel trying to help make our lives better?

[VABills]

Sure but lowering the rates for who? You and me?

I don't owe a big enough mortgage for my interest to be capped, but my property taxes are insane, and I pay thousands in state income tax.

I suspect that this is a form of political payback for the states who voted against this administration. Do you think this is possible, or is this government panel trying to help make our lives better?

481030[/snapback]

I don't know. I don't like the idea of eliminating these deductions either. But I am willing to listen to any and all ideas and not just throw out half truths to garner people to my way of thinking.

[GG]

See that little highlighted blue 2 on the bottom.  That means there is a second page.  On it the following is written:

 

"From my experience, I know that he believes strongly in broadening the [income tax] base, lowering the rates and taking the tax code out of business decisions. That's where he would start; those key fundamental philosophies will lead his decisions," said Mark Weinberger, a former assistant Treasury secretary for tax policy, now a vice chairman of Ernst & Young LLP.

481020[/snapback]

 

In my book, changing marginal rates from 15%, 28% 31% and 35% to 15%, 25%, 30% and 33% does not qualify as lowering rates, when you are also getting rid of the home interest & state tax deductions. If you drop the marginal rate to 20% for everyone, and kill all deductions, then it's a plan.

[VABills]

In my book, changing marginal rates from 15%, 28% 31% and 35% to 15%, 25%, 30% and 33% does not qualify as lowering rates, when you are also getting rid of the home interest & state tax deductions.  If you drop the marginal rate to 20% for everyone, and kill all deductions, then it's a plan.

481044[/snapback]

Not sure where you got those numbers. My understanding is it will not be a flat tax for everyone, but will be more like 10%, 15%, 20%, 25%. In addition, there would be dedecutions for medical savings, further savings for retirement deductions, etc...

[GG]

Not sure where you got those numbers.  My understanding is it will not be a flat tax for everyone, but will be more like 10%, 15%, 20%, 25%.  In addition, there would be dedecutions for medical savings, further savings for retirement deductions, etc...

481049[/snapback]

 

For yesterday's WSJ

 

The panel was asked to offer alternatives that raise as much money in the next 10 years as the current tax system does.

 

The streamlined version of the income tax that the panel approved in principle yesterday includes:

 

• Creating four income-tax brackets of 15%, 25%, 30% and 33%, which is below the current top rate of 35%

 

• Replacing the mortgage-interest deduction with a tax credit equal to 15% of mortgage interest paid, but limited to interest on mortgages between $172,000 and $312,000, depending on the geographic region

 

• Replacing the earned-income tax credit with a work credit that can be calculated by the Internal Revenue Service

 

• Eliminating the "marriage penalty" by providing a family credit of about $1,650 for singles and $3,300 for couples

 

• Imposing a new limit on health insurance provided tax-free by employers of about $11,000 for families, $5,000 for individuals

 

• Reducing the tax on capital gains to 25% of the ordinary income-tax rate, or a top rate of 8.25%, down from today's 15%

 

• Eliminating the tax on dividends

 

• Simplifying tax breaks for savings

 

• Shrinking the Form 1040 tax return to 32 lines from 75

 

[VABills]

For yesterday's WSJ

481052[/snapback]

Okay, I had heard lower numbers bantered around. That sucks if only 2%.

 

And again, I reiterate I don't like it but will listen and then reject it.

[stuckincincy]

Here is how the game is played:

 

1. Congress proposes something like this tax stuff.

 

2. The States, Muncipalities, construction companies, other affected start to spend lobby money.

 

3. Congressmen meet with the affected parties at neutral sites like Hawaii or the Caymen Islands.

 

4. Congress sees the error of their ways.

 

5. For some unknown reason, Congressmen's re-election funds have a substantial uptick in contributions.

 

 

Polite society calls this the democratic process. Unpolite society calls it extortion.

[Bill from NYC]

Okay, I had heard lower numbers bantered around.  That sucks if only 2%. 

 

And again, I reiterate I don't like it but will listen and then reject it.

481053[/snapback]

 

Lower numbers? Next time, give us every single fact.

[Bill from NYC]

Here is how the game is played:

 

1. Congress proposes something like this tax stuff.

 

2. The States, Muncipalities, construction companies, other affected start to spend lobby money.

 

3. Congressmen meet with the affected parties at neutral sites like Hawaii or the Caymen Islands.

 

4. Congress sees the error of their ways.

 

5.  For some unknown reason, Congressmen's re-election funds have a substantial uptick in contributions.

 

 

Polite society calls this the democratic process. Unpolite society calls it extortion.

481057[/snapback]

 

Sad indeed.

[VABills]

Lower numbers? Next time, give us every single fact. 

481059[/snapback]

I did if you will have read the rest of my posts. But of course if it isn't in the first paragraph you don't read it.