Page 117 - Deductions News Today

Senate plan eliminates the federal deductions for state and local taxes. the house only partially repeals them and still allowing $10,000 for property taxes. high tax states like new york and california have a lot at stake and the senate leaves it at 7 compared to the house which is four. both cut the corporate tax rate 35% to 20% but the senate the laser for one year taking effect in 2019 and doubling the exemption of the estate tax but the house entirely repeals it after six years while the se...

>> you got to remember by having state and local tax deductions a waitress in mississippi making $30,000 a year sending money to washington to subsidize the appetite of wall street bankers for big government in new york city. i dont know why the waitress should pay for bloated pensions, they have cheap subway fares in new york. why should that waitress pay for that? i dont think she should. that is good reform. rob: the other side, people that live in places like california and new york are not ...

>> you mentioned medical deductions as something popular and an outcry. blue states for people who make $400,000 a year. >> which plan seems to be better and in particular we cant make that aurkment because neither can pass the senate. that would have to be changed and what that change might be including maybe some settings would have a dramatic impact on the american people. >> assuming the house can get the votes, they will pass their version and senate will work on differences as you point ou...

What would allow you to support this piece of legislation? >> the only way to even be considered would be if the full property tax deduction was restored. and if the state income tax is restored. other than that, this is going to be a tax increase on my constituents. first of all, theyd be losing two major deductions that have been in the tax code for years. and new york is a donor state. we give more money to the federal government than we get back. so were subsidizing the rest of the country a...

Economists across the spectrum have agreed for a long time that one of the best ways to boost wages over time for middle-class families is to reduce the business rate. we are light years in this. our european allies figure this out a long time ago. we have a higher corporate tax rate than the entire developed world. i think its more important part of these proposals that what they are actually doing with the individual tax rates themselves. >> dana: those individual rates, i thought this was abo...

For catastrophic illnesses but tougher when it comes to state and local taxes, how you juggle the deductions and exemptions. the senate bill is tougher on small businesses than the house bill and both need to be improved. rob: lets check out the senate tax reform bill. we have a full-screen. corporate tax rate at 40%, nobody wants to give on that, they want to lower that, keep all 7 tax brackets for income, expand the child tax credit, no change to 401(k), repeal state and local tax deductions, ...

Primarily, the home mortgage interest deduction and the state and local tax deduction. now, the senate bill that tries to get rid of the state and local deductions altogether. the taxes that you pay at the state level on income tax, the property tax does that for income but keep some of the property tax that the options in place. and so the idea here is to get rid of these deductions, which are fairly unwise and are not all that helpful, and i think a lot of people agree with that. >> dana: from...

Their values. >> stunning how quickly the allegations blew up here on capitol hill. >> sandra: when lawmakers return next week the hot policy issue will be tax reform. whats the latest on that this morning? >> we had the senate roll out its plan yesterday afternoon. then a significant step in the house with the ways and means panel passing its proposal late yesterday afternoon. setting up a likely vote on the house floor next week. >> for too long our taxes have been so complex we had to have al...

People like that though, state and local income tax. this was the big kahuna of difference in my views. the senate says none of that is deductible. the house as you can only deduct up to $10,000 in property taxes. i was really wondering, how much money is that? how much money are the republicans taking back here? its a $1.25 trillion over ten years. this is how they are paying for their tax reform. >> shepard: the two bills are also split on deductions. >> medical expects deduction. they say the...

Need to deal with. so this isnt the magic elixir, but this is a really important step for a more -- we went where you put the chances of the bill passing? >> i think the chances are high. the biggest challenge, of course, if they can come to an agreement on this lower business tax rate, they have to figure out still have to pay for all of this. that is where which deductions to eliminate coming to play and what you do with the higher income earners in the tax rate that they have. they are treati...