Its a four year kick of the can.
Do people worry about federal income tax yet willingly pay state taxes?
Parts of the bill, including the higher SALT cap, are temporary but the individual rates and standard deduction will be permanent (indexed for inflation). I don’t think most people have any idea how much more they would pay starting in 2026 if the bill fails pass.
Yes, many people actually do pay attention to their federal and state income taxes. Part of the reason tax deferred retirement accounts, ROTH IRAs, HSA’ and educational savings accounts are popular.
The version of the bill I read mentioned that individual rates expire in 2028. That apparently has changed. I was mistaken.
I'm honestly less worried about whether immigration policy is “enforceable” and more about how this $140 billion for ICE, Border Patrol, and the wall will ripple through the economy. It’s a huge expense for a solution that doesn’t address the core issue, and could seriously damage state economies.
Yeah, it’s been very fluid up till now. Here’s a link summarizing the Senate bill as of 6/18.
Or how many liberals are pretending to care as well.
You can look it up. The individual tax rates, standard deduction, and AMT thresholds snap back to pre-TCJA levels if the bill doesn’t pass. Glad you agree that spending “cuts” are not deep enough though.
Tax receipts have been remarkably consistent at around 17% of GDP for many decades. No reason to think that won’t continue keeping current individual tax rates in place. Sounds like you’re in the pro-tax hike camp.
Nope. I stated facts. Federal tax collections have averaged around 17% of GDP for decades. You support raising individual income taxes across the board.
The positive tax change # 1 is directly associated with negative tax change # 1. When will Republicans figure out that tax cuts lead to more national debt?Let's untangle this proposal and check the pros and cons. Below is an overview. I'd appreciate your help in other aspects. Thank you in advance.
Positive Tax Changes (Supporters' Perspective)
- Extension of 2017 Tax Cuts
The bill extends the provisions of the 2017 Tax Cuts and Jobs Act, which are set to expire at the end of 2025. This extension is intended to maintain lower tax rates for individuals and corporations.- Increased SALT Deduction Cap
The state and local tax (SALT) deduction cap is raised from $10,000 to $40,000, potentially benefiting taxpayers in high-tax states.- Defense Spending Boost
An additional $150 billion is allocated for defense spending, which supporters argue strengthens national security.
Negative Tax Changes (Critics' Perspective)
- Potential Increase in National Debt
The bill is estimated to add several trillion dollars to the national debt over the next decade, raising concerns about fiscal sustainability.- Reduction in Social Program Funding
Significant cuts are proposed for programs like Medicaid and the Supplemental Nutrition Assistance Program (SNAP), which could affect low-income individuals.- Scaling Back Clean Energy Incentives
The bill reduces many clean-energy tax credits established under the Inflation Reduction Act, potentially impacting renewable energy initiatives.- Loss of Health Insurance Coverage
It's projected that nearly 14 million Americans could lose health insurance coverage due to the proposed changes.
Nonsense. The CBO’s $3.3 trillion deficit increase over ten years assumes that Congress would allow a $4.5 trillion scheduled tax increase on 68% of taxpayers to go into effect. That’s pure fantasy. Neither party would allow that to happen. Even Biden’s plan would have kept all existing individual rates in place except for the top bracket which he wanted to raise from 37% to 39.6%.
