What happens when Bernie Sanders is given credit for the new Tax Act

Ami Horowitz: Bernie Fans Love Republican Tax Plan

 

I love it when people are caught out in their bias -December 23, 2017:

 

 

PL 115-97 – HR 1 as entered into law: PDF 

 

Tax Cuts and Jobs Act

This bill amends the Internal Revenue Code to reduce tax rates and modify policies, credits, and deductions for individuals and businesses.

With respect to individuals, the bill:

– replaces the seven existing tax brackets (10%, 15%, 25%, 28%, 33%, 35%, and 39.6%) with four brackets (12%, 25%, 35%, and 39.6%),
– increases the standard deduction,
– repeals the deduction for personal exemptions,
– establishes a 25% maximum rate on the business income of individuals,
– increases the child tax credit and establishes a new family tax credit,
– repeals the overall limitation on certain itemized deductions,
– limits the mortgage interest deduction for debt incurred after November 2, 2017, to mortgages of up to $500,000 (currently $1 million),
– repeals the deduction for state and local income or sales taxes not paid or accrued in a trade or business,
– repeals the deduction for medical expenses,
– consolidates and repeals several education-related deductions and credits,
– repeals the alternative minimum tax, and
– repeals the estate and generation-skipping transfer taxes in six years.

For businesses, the bill:

– reduces the corporate tax rate from a maximum of 35% to a flat 20% rate (25% for personal services corporations),
– allows increased expensing of the costs of certain property,
– limits the deductibility of net interest expenses to 30% of the business’s adjusted taxable income,
– repeals the work opportunity tax credit,
– terminates the exclusion for interest on private activity bonds,
– modifies or repeals various energy-related deductions and credits,
– modifies the taxation of foreign income, and
– imposes an excise tax on certain payments from domestic corporations to related foreign corporations.

The bill also repeals or modifies several additional credits and deductions for individuals and businesses.

 

–Uriel–

About Uriel

Retired educator and constitutionalist
Bookmark the permalink.

5 Responses to What happens when Bernie Sanders is given credit for the new Tax Act

  1. SafeSpace says:

    The East Village Ultra-Hipster’s Motto: “Don’t bother me with facts, my mind is made up”.

  2. SafeSpace says:

    The new tax plan does little if anything to benefit truly small businesses — ones the size of mine, or Hardnox’s, or my friends the dentists. I will shortly post an article that goes into the details.

  3. I.R. Wayright says:

    I just want to be able to file a return on a post card sized form instead of paying a tax accountant to prepare three levels of fed, state, and local, paper work. And please end the quarterly payment reports for small businesses. What a PITA. I told my accountant that I wasn’t going to pay quarterly. She told me there would be a fine.
    Is it cheaper than paying you four times a year? Yes. Okay, I’ll Pay the fine then.
    Fortunately, all that is behind me as I retired two years ago.
    And, for God’s sake, please cut about 72,000 pages out of the US tax code.
    The current number is 72,608.

    • Uriel says:

      I’m with you IR. At one time while working in the 80’s for the tax manager of an oil & gas firm, I had to file tax updates. Back then there were 6 large binders of tiny print. I can’t begin to imagine what that Library and books would include now.