Republican lawmakers today released details of their tax cut on Thursday.
President Trump was hoping for historic tax reform.
Instead of a roar Republicans offered a whimper.
After Republican lawmakers allowed Obama to raise US debt by nearly $1 trillion they suddenly were set on promoting a deficit neutral tax plan.
They just don’t get it.
The Dow dropped 80 points in early trading as the tax plan was released.
The Wall Street Journal published details of the plan.
Here’s a breakdown of how the tax bill handles some deductions and credits:
STANDARD DEDUCTION
Current law for 2017: $12,700 (married); $9,350 (head of household); $6,350 (single)
Proposed for 2018: $24,400 (married); $18,300 (head of household); $12,200 (single)PERSONAL EXEMPTION
Current law for 2017: $4,050
Proposed: Repealed
CHILD TAX CREDITCurrent law: $1,000
Proposed: $1,600 plus $300 each for the taxpayer, a spouse and any non-child dependentsSTATE AND LOCAL TAXES
Current law: Itemized deduction
Proposed: Deduction capped at $10,000 for property tax onlyCHARITABLE DONATIONS
Current law: Itemized deduction
Proposed: Unchanged
MORTGAGE INTEREST DEDUCTIONCurrent law: Itemized deduction on loans up to $1 million
Proposed: Itemized deduction for loans up to $500,000 on new home purchasesALTERNATIVE MINIMUM TAX
Current law: Parallel tax that disallows personal exemptions and state deductions
Proposed: Repealed
RETIREMENT ACCOUNTS
Current law: 401(k) plans allow pretax deferral of up to $18,000
Proposed: Minor changes
And the Wall Street Journal also released the Political Landmines from the plan.
It’s hard to understand why Republicans thought it was a good idea to cut deductions for medical expenses for the critically ill or tax credits for student-loan interest. They really must want to lose the next election. The GOP plan also repeals tax credits for adoption which seems illogical for the pro-Life party.
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