The bi-partisan tax plan Ballyhoo wails on, with self-proclaimed social media pundits choosing sides and using well thought phrases to poke at the opposition, such as nitwits, crybabies, storm troopers and fascist monkey overlords. I actually kinda like that last one.
Anyway, I decided the only way to get some real insight was to read the damn thing – a task I’m sure 99% of the people bitching about it – haven’t done. And with good reason. It’s 1,097 pages long – and has to be read with a copy of the current tax code available as a great deal of the new tax bill is just references to the existing tax code. Reading the bill alone is like trying to read a Thomas Pynchon novel without a massive dictionary nearby.
For those tuning up slings and arrows – here’s my agenda:
I am not a Trump Supporter.
I was not a Hillary supporter.
I was not a Bernie Supporter.
In fact my belief is that there is not a single member of the federal government, in all branches, that hasn’t been fucked, bought and paid for by the business powers that be.
As for the mass media – don’t make me laugh. It’s all pure horseshit – every network, every news show , every newspaper. Garbage.
So – here we go – I spent a few hours and am happy to say I made my way through about 5% of the text – just scratching the surface I know, but here’s what I read – so far – and the news is not all bad – I’m sure there are plot twists to come.
Tax brackets –
I ran an excel sheet comparing the current tax brackets to the proposed new plan for 2018.
For those married filing jointly, if your taxable income is under $500,000, the amount of taxes you owe will DECREASE 14-15%. Over $500K, the amount of taxes you owe will DECREASE 9-12%. These are pre-deduction, pre-tax credit numbers so the bottom line will change based on how you’ve got your finances set up.
From my reading I was able to glom the following – again, remember I’m on page 66 of 1097 pages – still a long way to go.
Basic standard deduction increased from $4,400 to 18,000.
Any other case deduction increased from $3,000 to $12,000.
Adjustments for inflation to standard deduction updated to use current calendar year data.
Child tax credit gets a boost raising the threshold amount from $110,000 to $400,000 for joint returns ($200,000 for 55-75,000 for other types of returns). The reduction rate is raised to $50 per $2,000 over the threshold instead of $1,000 over the threshold.
Cap imposed of $1,400 credit per child. Extensive cap formula in place today.
Charitable cash contribution base raised from 50% to 60% of adjusted gross income, with any excess eligible to be carried over to future years.
An increase in the ALBE account cash contribution amount – currently $10K, now $10K plus formula.
An amendment to treat, for tax purposes, the Sinai Peninsula of Egypt as a Hazardous Duty Area and therefore subject to Combat Zone tax laws.
Extension into 2018 of the medical 7.5 percent rule (as opposed to 10%) as the base for people 65 and over.
This is kind of a hoot –
Section 56(b)(1)(B) of the current tax code, in reference to computing an Alternative Minimum Tax, reads as follows: “In determining the amount allowable as a deduction under section 213, subsection (a) of section 213 shall be applied without regard to subsection (f) of such section.” Your tax dollars paid many people to write, approve and vote for this sentence. Anyway – whatever it means, it’s being amended to say it’s not applicable for the tax years 2016 through and including 2019.
to be continued….