House GOP tax plan would now allow Americans to deduct property taxes

[BumRushDaShow]

Source: Washington Post

By Mike DeBonis and Damian Paletta October 30 at 4:50 PM

House Republican leaders are making last-minute changes to their tax bill in an attempt to win over skeptical members within their own party, crafting a provision that would allow Americans to deduct their local property taxes from their federal taxable income.

House Ways and Means Committee Chairman Kevin Brady (R-Tex.) had planned for months to prohibit people from deducting any state or local taxes from their federal taxable income as part of a sweeping overhaul of tax rules, but huge pushback from Republicans in states such as New York and New Jersey precipitated the change. Discussions are still ongoing and the precise details of the change couldn’t be learned.

Brady told reporters Monday that the ability to deduct property taxes from federal income would now be one of just three items that Americans could claim on a postcard-style filing system that the GOP is trying to market as a way to simplify the tax code. “Right now on the postcard will be the mortgage deduction, the charitable [giving deduction] and the property tax deduction,” Brady said.

He is working to put the finishing touches on his draft of the tax overhaul, which he’s slated to release Wednesday. Brady plans to begin holding votes in his committee on the bill beginning on Monday, and the White House is hopeful that the House of Representatives can pass a full version of the bill by Thanksgiving.


Read more: https://www.washingtonpost.com/news/business/wp/2017/10/30/house-gop-tax-plan-would-now-allow-americans-to-deduct-property-taxes/

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..."the ability to deduct property taxes from federal income would now be one of just three items that Americans could claim..."

Meanwhile I expect that planes and yachts used for (fictional) "business" will still be deductible.

[Eliot Rosewater]

1. I wish they would simply admit when they are done the rich will pay nothing and we will

pay it all and all of our services will be gone.

All of them.

[rurallib]

3. rich pay nothing? Hell, they'll be getting refunds

[FakeNoose]

14. The one-percenters already pay nothing!

Who do you think all the lawyers and accountants work for, just to make sure the tax bill is -Zero -.
Trump hasn't paid a personal income tax for at least 20 years.

That's what makes this "new" set of tax cuts so ridiculous!

[Eliot Rosewater]

15. Well they pay something but they pay FAR less than they should because of

those very lawyers you speak of.

In a progressive tax system someone like me if I pay 20% then a billionaire should be paying no less than 50% or more.

But as all their income is capital gains, they pay 15% if anything.

[FakeNoose]

16. We pay taxes for the one-percenters

They get almost a free ride as it is.

If they incorporate themselves (most of them do) they get all kinds of benefits that average citizens never get. That's what I mean by "free" taxes - they get tons of loopholes. Trump isn't fixing the system, he's making it more user friendly for the extremely wealthy.

[dhol82]

2. By the time they are finished we will be back to what we have now

Except, the rich will have a substantially smaller percentage to pay.

[JustABozoOnThisBus]

4. They'll get rid of the estate tax and the alternative minimum tax

One would help the wealthy, the other would appear to help those with high incomes.

These don't seem to get much press, they're just bonuses for the 1%.

[dhol82]

9. The estate tax is the big one

How many citizens have more than a $5 million estate? (Hell, you could up it to 10million)

The AMT should just be modified. When it was first started it was for high earners. Now, it’s upper middle class people - inflation, people! If they can just up the minimum to say a million, it would not be onerous to normal people and yet grab the filthy rich.

[The Mouth]

17. And index it to keep up with inflation.

It was a good idea that hasn't worked as well as it should have.

[dhol82]

18. Agreed!

[JustABozoOnThisBus]

20. If R's have to index it to inflation, ...

... they'll use the same inflation figures that cause Social Security "increases".

[BigmanPigman]

5. That will go over well with his middle class base.

[PSPS]

6. Misleading headline since it's already allowed. Should say "abandons idea of removing deduction..."

[BumRushDaShow]

7. I expect the headline is referencing the initial draft legislation content

vs the existing tax law.

[vkkv]

8. Huh? I'm pretty sure that I'm already deducting my prop taxes.. from both private home and from

my rentals.

My tax woman always lists them on my Fed return..

Weird.

[dhol82]

10. Wait for that deduction to be removed.

Doubt it will happen but, didn’t that give your tummy a turn?

[BumRushDaShow]

13. The draft tax bill being discussed in the OP was originally going to remove ALL deductions

to "simplify" the tax code.

It's the same idea of using a bullshit "post card" form that was proposed under Raygun in the mid-'80s (but with 3 effective tax rates vs a "flat tax" ) -

As in 1986, when the prospect of dramatically lower tax rates helped lawmakers face down special interests, supporters of the flat tax and sales tax think they can persuade voters to trade some of their most cherished deductions for a tax code so simple that (under the flat tax) they could file their returns on a postcard or (under the sales tax) they could do away with the income tax.

http://www.cnn.com/ALLPOLITICS/1998/01/26/cq/taylor.html

It's just over 30 years later and here we are again!

[JustABozoOnThisBus]

21. Even if property taxes can't be deducted, ...

... they'll still probably work for taxes on your rental properties. The new tax code is intended to be "business-friendly".

Will Trump Tower be able to deduct property taxes by calling them a business expense? You betcha.

[roamer65]

11. So the deduction for state and local income taxes is gone?

That will force a lot of people into the standard deduction if they are...

[BumRushDaShow]

12. Looks that way.

From the OP article -

“Right now on the postcard will be the mortgage deduction, the charitable [giving deduction] and the property tax deduction,” Brady said.

That'll cause some head explosions... The big home builders lobbied for that mortgage deduction and the high-property tax states like NJ lobbied for the property tax deductions. But all this does is leave out anyone who rents (i.e., they wouldn't have a mortgage or property taxes to be able to deduct)... And in many cases, that includes your poorest among the electorate who could still deduct for income and sales taxes but wouldn't be able to anymore.

[dhol82]

19. Thats what is now being discussed

Doubt those deductions will be removed.

[The Mouth]

23. A big part of doing that is to hurt blue states

If Californians and New Yorkers can't deduct state taxes than there will be VASTLY more pressure to reduce taxes (and services) in those states. If you live in CA, with very high state taxes, suddenly not being able to deduct several thousand dollars is going to make you WAY more hostile towards a lot of Sacramento's policies.

[Vinca]

22. They should be honest for once and just cut the taxes and run up the debt.

We know a Democrat is going to have to clean up the mess in the end. It always happens that way.

[Bayard]

24. Doesn't do anything

Those of us that file 1040-EZ don't get any breaks.