House Passes Senate Tax Reform Budget Resolution and Creates 2018 Budget
Everyone is reporting a 2018 Budget has been passed. Tucked away inside the 2018 Budget is a Tax Reform Resolution which allows the House to write the bill.
The House has passed the Senate Tax Reform Budget Resolution creating a $1.5 trillion deficit with a 216-212 vote. What this means in the Senate is a majority vote is only necessary to pass the Tax Reform bill which Trump has been campaigning and tweeting silly comments. Unless the House and Senate can provide the necessary revenue generation in the Tax Reform bill at 10 years out, it will be subject to a sunset the same as the Bush’s 2001-2003 tax breaks were. The key to this budget is the resolution for tax reform which will be looking at state income and property tax deductions on federal income tax returns, 401k tax exemptions, capping 401k contributions, Medicare and Medicaid cuts, and the old standby cuts to the ACA.
Tax reductions for the 1% of tax paying households making >$500,000 annually as funded by everyone else.
I live in California. Last year my combined deductions from state, local, property taxes and mortgage interest was 40 grand. My income is about average for my area, it takes a family income of over 150k just to stay in place here. He is going to take my 40k deduction and replace it with increased standard deductions? I can only take two deductions meaning my personal deduction would have to reach 20 grand each for me to stay in place. My overall federal tax rate ended up being 11.65%. How will this new tax law affect me?
“Tax reductions for the 1% of tax paying households making >$500,000 annually as funded by everyone else.”
Or more accurately, paid for by borrowing a few trillion more dollars. As long as the U.S. continues to feel no real world effects of it’s insane levels of debt, not enough people are going to care to be able to stop this–just like the wars.
Actually, they plan to do both! Such is the desperate need to get more money to the very rich that Republicans plan to increase taxes on the middle-upper middle AND run enormous deficits. Of course they also plan to cut various government services to fund it.
All hands on deck for the great national emergency of the rich being not rich enough.
In other news the republicans are demanding $8 billion in cost cutting elsewhere to pay for extending CHIP.
Jeff:
Yes . . .