Published: Sun, December 17, 2017
Business | By Max Garcia

Trump touts GOP tax plan before departing for Camp David

Trump touts GOP tax plan before departing for Camp David

GOP leadership has just filed its final version of the reconciled tax reform bill.

President Donald Trump said Americans will see the benefits beginning in February as employers withhold less in income taxes to reflect the lower tax rates that are part of the legislation. "Tax reform under Republican control of Washington is happening".

The home mortgage interest deduction is kept for current mortgages and will also be available to new home buyers paying up to $500,000. House Republicans tried to eliminate the tax break.

Rubio, in response, declared his support for the bill Friday, and Lee's spokesman said that the senator would "hopefully" support the bill and was encouraged by the work done in the conference to beef up the child tax credit.

Here are some of the other tax provisions in the final bill. It retains a deduction for medical expenses and an exemption for graduate school tuition waivers.

" Teachers' ability to deduct $250 of classroom supplies they purchase with their own money remains unchanged".

To address those concerns, the new bill includes the original Senate bill's boost of the tax credit per child up to $2,000, but it makes $1,400 of that "refundable", meaning it gets paid to parents even if they have no income tax liability.

The House Ways and Means Committee and the Senate Finance Committee published the conference version of the bill, promising to "make the tax code simpler and fairer", on Friday afternoon. For 2018 and 2019, expenses exceeding 7.5% of income are deductible; that percentage increases to 10%, the current level, in 2020. Now, while he still does not think that this bill is ideal and he would have preferred to have reached a more bipartisan consensus on parts of the legislation, will vote for this "once-in-a-generation opportunity" to make businesses more competitive. The threshold rises to 10 percent beginning in 2020.

Personal exemptions, which in 2017 reduce taxable income by $4,050 each for taxpayers, spouses and dependent children. Now Republicans leaders are reported to have agreed to increase the refundable portion from $1,100 to $1,400.

Pressed as to why the individual tax cuts will be temporary rather than permanent (the tax cuts for corporations and other businesses are permanent), Mr. Trump said the hope is that whatever administration is in power when they expire in roughly a decade will extend them.

While claiming that their bill is created to help the middle class, Republicans curbed a tax break used primarily by middle-class taxpayers.

Local and state taxes will still be able to be written off, with a limit of $10,000. Only residents of New York, Connecticut and California deduct more from federal taxes than New Jerseyans, according the progressive Institute on Taxation and Economic Policy.

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