Saturday, October 28, 2017

GOP tax plan puts money in one pocket, takes some out of another

Roll out of the bill is now rescheduled until Nov. 2
Update: Nov. 28, update CBO Score: The new score includes the impact of removing the individual mandate from Obamacare. It verifies that premiums would rise so much, 4 million could not afford health insurance by 2019 and 13 million by end of bill. Also, the middle class cuts go away and hurts them.

https://secondnexus.com/news/report-new-cbo-score-senate-tax-reform-plan/

The CBO report, released Sunday, estimates that lower-income groups would foot a bigger bill from tax cuts than previously expected. In 2019, all income groups under $30,000 would have a bigger burden under the bill, the CBO projected.
In 2027, that would extend to all income groups under $75,000, as individual tax reductions expire.
The change largely stems from the bill effectively getting rid of the Obamacare provision requiring most Americans to have health insurance or p...
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Update: Nov. 15, Sabotage of Obamacare, elimination of individual mandate, attached to Senate bill
Nov.15, 2017 Repeal of individual mandate in Obamacare attached  is to tax reform bill in Senate. How did this end up as a tax issue? Calling the penalty on those who do not have health insurance a tax. A rose is a rose but this one stinks. The budget and deficit implications also fit into the tax reform bill because it would reduce government expenses by $338 billion. Leading advocate and voice  Sen. James
Lankford  (R-OK)on MSNBC today called this penalty  a tax on the poor who could not afford to pay the premiums.  Oklahoma already has one of the  worst uninsured rate in the US.second only to Texas. https://www.census.gov/content/dam/Census/library/visualizations/2017/comm/hi-uninsured-map-4.jpg
Oklahoma refused to expand Medicaid. If they had, 84,000 would would have access to health insurance. 
https://www.kff.org/uninsured/issue-brief/the-coverage-gap-uninsured-poor-adults-in-states-that-do-not-expand-medicaid/
https://www.healthreformvotes.org/congress/412464

CBO score on eliminating the individual mandate would leave 4 million uninsured by 2019, 13 million by 2027 nationwide. and increase individual market premiums by 10% in most every year for the next ten years.  https://www.cbo.gov/publication/53300

Re: GOP tax reform: Schumer's claim that the GOP is 'kicking 13 million people off health insurance' is a semantics problem. Per a fact checking source I respect, .It will cause non-subsidized Obamacare premiums to rise 10% for everyone.. It mostly benefits the rich and will cause a tax increase for the middle class because of the way the inflation rate is calculated and its temporary nature. The question is by removing the penalty/mandate for all in the tax bill, to require the young the healthy to have health insurance, will it kick 13 million off of Obamacare? No, it will just make it unaffordable for thirteen million who do not qualify for the subsidy and who voluntarily choose to go without insurance  https://www.washingtonpost.com/amphtml/news/fact-checker/wp/2017/11/16/schumers-claim-that-the-gop-is-kicking-13-million-people-off-of-health-insurance/

Update Nov. 13, 2017:Per the link to Pew Charitable Trust...http://www.pewtrusts.org/…/federal-tax-deductions-and-credi… About 32.6% of Colorado tax filers itemize deductions; about 29% claim real estate deductions...which the GOP Congressional tax plans are attempting to eliminate.

Republican plans to eliminate or modify federal tax deductions for state and local taxes have sparked criticism from lawmakers from states that would be largely affected. Who uses the deduction and how…
FACTCHECK.ORG

Also visit: https://finance.yahoo.com/news/everything-know-senate-gop-tax-200055321.html

A version of this was published in the Sky Hi News Nov. 1: http://www.skyhinews.com/news/muftic-gop-tax-plan-middle-class-draws-short-straw/
Gideon John Tucker in 1866, as Surrogate of New York, wrote in a decision : "No man's life, liberty or property are safe while the Legislature is in session."
Tax reform is currently being considered in Congress with the GOP leaders' goal of passing tax reform before Thanksgiving. The GOP proposed a plan that would likely put some money in  middle class pockets and but then they take some out of another pocket by closing  middle class tax loopholes, credits, and deductions. Recent legislative action set deficit and tax cut totals, but the operative details are what we get Nov. 1.  

These GOP bills containing specifics have been kept secret until now but will possibly be buried in the news of the more explosive coverage of Special Prosecutor Mueller's indictments regarding the Russian connection. Nonetheless, tax reform will affect your family's pocket book for years, so listen up to see which GOP proposals could or will be included. The Tax Policy Center estimates individual taxes would increase by $470 billion over the next decade and taxes on business will be reduced by $1.6 trillion and taxes on estate and gift taxes will be reduced by $200 billion.

True, individuals will get to claim double their current standard individual deductions , and get some relief for LLC pass through. However, be prepared to withhold more from your paychecks.   The GOP wants to tax employer provided  health insurance as personal income . Your ability to invest in your 401K and defer taxation until retirement would be reduced from $18000 per year to $2400. For those who have used itemized deductions to lower their tax bills, the GOP proposed to close popular loopholes, deductions and credits benefiting the middle class. If you do not file the standard deduction, but itemize, you would no longer be able to deduct state and local taxes  anymore, but compromise on this issue may happen. The poorer have benefited by earned income tax credits and others with child related tax credits, but those may left in the dust, too. Mercifully your mortgage and charity giving will not be affected.

A key word  search of corporate  business loopholes proposed to pay for tax cuts to the rich and reductions in corporate taxes, brought up little results yet they are getting the bulk of the tax cuts.  Would tax cuts to the wealthy and corporations organically trickle down to you in the form of more jobs and higher wages instead of going to shareholders? Nothing proposed by the GOP requires that to happen. Whether you believe it will is a matter of faith since it has rarely happened in the past and when it has, the circumstances are not the same as now. Thanks to loopholes, corporations do not pay full taxes now anyway, so that lowering their rate from 35% to 20% per the GOP proposes lowers it close to the effective rate they are paying now.The projected deficit allowed in the resolutions will be an additional $1.5 trillion to be covered by a projected growth rate stimulated by the tax cuts, but considered unrealistic by many.

Some of the financial harm to the middle class is outside of the tax bill or related to the recently passed resolution . For example, your health premiums will rise by 20%  due to Trump’s recent executive order on Obamacare that has affected the health insurance market this year and next . The CHIP children health care program serving 9 million low and middle income kids was not renewed. 32 states will run out of money within the next six months, including Colorado. The budget resolution recently passed by the House and Senate permits $1.5 trillion cuts in Medicaid and Medicare over the next ten years.

http://www.latimes.com/politics/la-na-pol-gop-budget-taxcuts-20171026-story.html

https://www.forbes.com/sites/janetnovack/2017/09/29/trump-plan-delivers-massive-tax-cuts-to-the-1-and-sharp-kick-to-upper-middle-class

https://www.youtube.com/watch?v=AfMkt7LqZKE       Joe Scarborough calls trickle down bullshit

https://www.nytimes.com/2017/10/28/business/401k-limit-tax-cuts.html?emc=edit_th_20171029&nl=todaysheadlines&nlid=33304952&_r=0

https://www.yahoo.com/finance/news/whats-middle-class-gop-dems-141515462.html

https://www.washingtonpost.com/graphics/2017/politics/tax-breaks/?tid=a_inl   chart per adjusted gross income

http://econofact.org/government-budget-deficits-and-economic-growth

https://www.vox.com/policy-and-politics/2017/10/2/16405112/voxcare-chip-funding-expired

https://www.fatherly.com/love-money/child-care-tax-credit-everyone-agreed-disappears-gop-proposal/


http://www.nytimes.com/2012/11/23/business/a-starting-point-for-tax-reform-what-reagan-did.html


http://thehill.com/opinion/finance/355147-middle-class-families-are-the-real-winners-in-the-gop-tax-plan

https://www.cbo.gov/system/files/115th-congress-2017-2018/reports/53009-costsharingreductions.pdf


http://theweek.com/speedreads/733158/cbo-estimates-bipartisan-alexandermurray-healthcare-bill-cut-deficit-by-38-billion

https://www.cbpp.org/research/state-budget-and-tax/eliminating-state-and-local-tax-deduction-to-pay-for-tax-cuts-for

reduce deductions for 401k from annual of 18K to 2,400K  any more than 2.400 taxed
https://www.google.com/search?source=hp&ei=_u_xWcnzNOmf0gKzqY_oDQ&q=401+k+tax+benefits&oq=401+K+tax&gs_l=psy-ab.1.0.0i20i263k1j0i20i263i264

http://money.cnn.com/2017/10/25/news/economy/401k-tax-break-changes/index.html
     tax in income health insurance


medicare/medicaid
   http://www.healthcarefinancenews.com/news/billions-proposed-budget-cuts-medicare-medicaid-threaten-provider-compensation

tax on health insurance as income from employers
http://www.newsweek.com/taxing-employer-funded-health-insurance-would-be-disaster-649830

http://money.cnn.com/2017/10/25/news/economy/401k-tax-break-changes/index.html
     tax in income health insurance

http://www.latimes.com/politics/la-na-pol-senate-budget-taxcuts-20171019-story.html

http://www.healthcarefinancenews.com/news/billions-proposed-budget-cuts-medicare-medicaid-threaten-provider-compensation

http://money.cnn.com/2017/10/25/news/economy/401k-tax-break-changes/index.html
     tax in income health insurance

https://www.brookings.edu/research/taking-stock-of-insurer-financial-performance-in-the-individual-health-insurance-market-through-2017/

Tucker quote from Wikipedia
   


 




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