{"id":135259,"date":"2017-11-02T09:36:37","date_gmt":"2017-11-02T15:36:37","guid":{"rendered":"http:\/\/hill-kleerup.org\/blog\/?p=135259"},"modified":"2017-11-02T13:07:05","modified_gmt":"2017-11-02T19:07:05","slug":"gop-house-unveils-tax-cut-plan-will-cost-1-5-trillion-dollars","status":"publish","type":"post","link":"https:\/\/hill-kleerup.org\/blog\/2017\/11\/02\/gop-house-unveils-tax-cut-plan-will-cost-1-5-trillion-dollars.html","title":{"rendered":"GOP House unveils a tax cut plan that will cost $1.5 trillion dollars"},"content":{"rendered":"

While some of the scarier bits that had been floated as ideas have gone away, there, still plenty of goofiness in this plan, which largely benefits the most wealthy, because that’s what they paid for with the GOP.<\/p>\n

It’s worth noting that none of this is final — further GOP negotiations (on the Right, with business interests, etc.) will continue to evolve what’s in there — maybe getting rid of some bad stuff, maybe slipping some other bad stuff back in. But in summary, the GOP’s proposal include the following:<\/p>\n

1. The standard deduction and child tax credit have gone way up. This will make itemization of less interest to people, both simplifying their taxes and impacting (negatively) things like charitable institutions. Wealthier individuals will likely still itemize.<\/p>\n

2. No changes to 401(k) — which had been one of the less sane ideas suggested by some in Congress (but keep your eyes open for it to show up as a negotiating point).<\/p>\n

3. Fewer tax brackets. Interestingly, the top bracket of 39.6% is still in there. However, the dollar figures for when the brackets kick in are missing, which strikes me as an odd way to try and make it clear how much money will be brought in.<\/p>\n

4. Corporate taxes get cut from 35% (which nobody ever pays) to 20% (which savings will go to dividends, not new jobs and investment, based on all historic precedent).<\/p>\n

5. The Alternative Minimum Tax goes away, which means rich people are likely to pay even less in the way of taxes.<\/p>\n

6. Mortgage interest deductions will be capped at $500K (down from $1M), though existing homeowners will have theirs grandfathered in. Home building companies and real estate firms are already passing out the torches and pitchforks here.<\/p>\n

7. The medical expense deduction goes away. This most directly impacts people who have significant out-of-pocket expenses, at a time when the GOP is in parallel trying to kneecap federal assistance for health care costs and insurance.<\/p>\n

8. The estate tax largely goes away. The estate tax impacted a small number of very wealthy families, but those are the GOP’s bread and butter. Therefore, the exemption from the tax will go from $5.5 million to $11 million (i.e., you can make that much before any tax is levied on the remainder), and the tax as whole gets eliminated in six years. This will make many rich people very happy (including Donald Trump), which was the intent.<\/p>\n

9. State and local tax deductions are largely eliminated, which hits states which have an income tax or use property and state taxes to fund state services. The new bill only allows property taxes to be exempted, capped at $10K.<\/p>\n

The bill, as is, is expected to add $1.5 trillion to the federal debt … unless Newt Gingrich is right and all those tax savings will trickle down into spectacular new jobs and economic growth that causes tax revenues to skyrocket because everyone is making so much money,<\/i> in which case there will be no debt increases and everyone will get a pony (no they won’t, because that would be socialism, but no doubt everyone will be able to afford<\/i> a pony, just like all of Newt’s best friends).<\/p>\n

See also:
\n— https:\/\/www.washingtonpost.com\/business\/economy\/republican-tax-plan-to-lower-cap-on-mortgage-interest-deduction-to-500000-loans\/2017\/11\/02\/c0f594d6-bfd5-11e7-8444-a0d4f04b89eb_story.html<\/a>
\n— https:\/\/www.nytimes.com\/2017\/11\/02\/us\/politics\/tax-plan-republicans.html<\/a><\/p>\n


\n
\n<\/a>
\nRepublicans formally roll out tax plan — live updates – CBS News<\/a><\/span>
\nThe long-awaited plan to overhaul the nation’s tax code system is being unveiled by House Republicans Thursday<\/p><\/blockquote>\n

View on Google+<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

While some of the scarier bits that had been floated as ideas have gone away, there, still plenty of goofiness in this plan, which largely benefits the most wealthy, because that’s what they paid for with the GOP. It’s worth noting that none of this is final — further GOP negotiations (on the Right, with … Continue reading “GOP House unveils a tax cut plan that will cost $1.5 trillion dollars”<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":135263,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_seopress_robots_primary_cat":"","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[106,528,374,376],"tags":[1302],"class_list":["post-135259","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-plusposts","category-economic-justice","category-money-politics","category-taxing-spending","tag-cuibono"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/hill-kleerup.org\/blog\/wp\/wp-content\/uploads\/2017\/11\/paul-ryan.jpg","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":135056,"url":"https:\/\/hill-kleerup.org\/blog\/2017\/10\/11\/gop-federal-tax-plan-already-tried-kansas-failed.html","url_meta":{"origin":135259,"position":0},"title":"The GOP federal tax plan has already been tried. In Kansas. It failed.","author":"***Dave","date":"Wed 11-Oct-17 8:13am","format":false,"excerpt":"Kansas serves as a cautionary tale for the whole concept of \"if we cut taxes, the economy will thrive and we'll end up pulling in more tax revenue anyway\" that underlies Republican claims around their tax proposals. Making the rich richer, cutting taxes on businesses that already manage to exempt\u2026","rel":"","context":"In "~PlusPosts"","block_context":{"text":"~PlusPosts","link":"https:\/\/hill-kleerup.org\/blog\/category\/blogging\/plusposts"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/hill-kleerup.org\/blog\/wp\/wp-content\/uploads\/2017\/10\/unnamed-9.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":135488,"url":"https:\/\/hill-kleerup.org\/blog\/2017\/12\/03\/remarkable-list-economists-supported-gop-tax-bill.html","url_meta":{"origin":135259,"position":1},"title":"The remarkable list of “economists” who supported the GOP tax bill","author":"***Dave","date":"Sun 3-Dec-17 6:34pm","format":false,"excerpt":"The Senate GOP and President Trump touted loudly a list of 137 economists who supported the Senate tax bill as being a really, awfully, terribly keen idea. A closer look at those 137 show a few ... um ... issues. Non-economists. 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One can argue whether schools can or should use more of those endowments to pay for students to attend school, but nobody seems to have suggested --\u2026","rel":"","context":"In "~PlusPosts"","block_context":{"text":"~PlusPosts","link":"https:\/\/hill-kleerup.org\/blog\/category\/blogging\/plusposts"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/hill-kleerup.org\/blog\/wp\/wp-content\/uploads\/2017\/11\/unnamed-7.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":135516,"url":"https:\/\/hill-kleerup.org\/blog\/2017\/12\/04\/oops-gop-tax-bill-also-screwed-major-gop-supporters.html","url_meta":{"origin":135259,"position":3},"title":"Oops — the GOP tax bill also screwed over some major GOP supporters","author":"***Dave","date":"Mon 4-Dec-17 6:30pm","format":false,"excerpt":"In their unseemly rush to get the Senate Tax Bill passed -- rush so great that the final 400-odd page version was handed out to Senators only a few hours before the vote, including hand-written marginal notes as part of the law -- they managed to screw up their own\u2026","rel":"","context":"In "~PlusPosts"","block_context":{"text":"~PlusPosts","link":"https:\/\/hill-kleerup.org\/blog\/category\/blogging\/plusposts"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/hill-kleerup.org\/blog\/wp\/wp-content\/uploads\/2017\/12\/Mitch-McConnell.jpg?resize=350%2C200&ssl=1","width":350,"height":200},"classes":[]},{"id":26486,"url":"https:\/\/hill-kleerup.org\/blog\/2012\/02\/17\/the-gop-wants-everything-about-the-50s-except-progressive-tax-rates-and-union.html","url_meta":{"origin":135259,"position":4},"title":""The GOP wants everything about the 50s except progressive tax rates and union…","author":"***Dave","date":"Fri 17-Feb-12 7:53am","format":false,"excerpt":"\"The GOP wants everything about the 50s except progressive tax rates and union jobs\"(That quote, slightly paraphrased for length, is from the comments.)The time travel here was through three particular Republican kerfuffles yesterday that speak volumes about how the GOP's Right Wing thinks about women (and sex):- Rep. 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