Page 126 - Deductions News Today

Stands now the gop plan eliminates deductions for state and local taxes meaning folks in high-tax states such as new york, new jersey, california amongst others would be paying more in taxes than they do right now. the gop plan also lowers the cap on the mortgage interest rate deduction from a million dollars to $500,000 which, going forward, would hit folks buying homes in this areas that are more expensive. because of those changes, five house republicans have come out against the bill and are...

Industry, but theres other stuff that people would spend money on if they werent encouraged by the tax code to put more money in a house than they normally would. for example, stocks, there are groups and industries that would benefit. david: jonas, a point much order, is this just new mortgages that were talking about? >> yeah, theyre not going to-- no one is going to take the guy who bought a $1 million house and say your mortgage, forget it, its a serious problem. its not enough that there wi...

On it. we may see some adjustments to deductions that are being either limited or eliminated all together in this bill. beyond that, this is really a phase where lobbying shaped legislation, there are winners and losers when it comes to the tax code. for special interest groups that find themselves in that losing column, theyre going to try to exert influence over law make e hers to lesson the blow on the industries. case in point, this bill will limit how many people can get a deduction for mor...

Fewer claim deductions and personalizes fewer deductions hurting people with three or more kids. goodsies for the middle class. the plan increased child tax credit to $1,600 and $300 tax credit for non-dependent children and who are the winners and losers? corporations are the big winners. the bill lowers the corporate tax rate all the way down to 20% from 35%. the ultra rich, big winners. this bill repeals the estate tax by 2024 and doubles the exemption before that. and repeals the amt, anothe...

Conclusion. i think we can just look at the previous administration that had eight years to fix the tax code and they failed to do it, so, you know, i think what we have seen out of the house bill is just a reflection of what the ways and means committee is going to produce, they are going to have mark-up. the senate will do their job and we will see what the end result will be. >> speaking of that, end result, what are the most likely changes, i know weve heard from many high-tax state republic...

Make it more fair is to lower the rates for everybody. its fair to lower the rates. not everybody takes advantage of the individual preferences, but everybody is affected by the raise. so i wish special interest groups would not come out so hard in opposition to this right away because its an open process. were going to go through a process in the house and then one in the senate. i think at the end of the day, what most people want to know is are the rates coming down, is it going to cost me le...

We take a look at the plan, kristine. >> this is a tax cut for the middle class. lets start there, what it means for average americans. it discusscuts the tax bracket to 4 here. individuals making up to 5,000 will pay a 12% tax rate and 25% and 35% as income rise. the bill also nearly doubles the standard deductions and $12,000 for single filers and $24,000 for couples. the idea, fewer people itemized and also eliminates personal exceptions. that could hurt families with three or four kids. asid...

That would be lost and offset with that. so theyre ironing out all the details. the senate is on board with this. theres a few little details they have with regard to the corporate tax cut. they want to reduce it to 22. the president and members in the house are firm on 20. i believe everyones going to work together and compromise and were going to get this done. >> theres a lot of sticking points including the cap on mortgage interest deductions. it caps the deductions at half of what it is rig...

The republican tax reform proposal, but some gop lawmakers are also on the fence with state and local deductions on the chopping block, so joining me now is pennsylvania republican congressman patrick meehan, also a member of the house ways and means committee. thank you very much for talking to us. >> great to be with you, jules. thanks for having me. julie: you know for many of them, the devil is in the details, literally. many are saying they need more details before assessing the plan. what ...

Congressman, thanks for coming on. >> good to be with you, tucker. thanks for having me. >> tucker: if the message of the last election was, the middle class feels neglected, and an awful lot of americans make less than their parents made, and if that is the core problem in american politics, and i think it probably is, how does this bill address that problem postmarked >> two things. one, as he mentioned in your intro, we let more middle income americans keep more of their income, which is a gr...