RE: Trump Tax Plan Looks Like Pile Of Hot Garbage - Another Giveaway To The 1%
Nice catch regarding potentially removing state income tax deductions. The removal of the state income taxes deduction may kill the itemized deduction, once the standard deduction is tentatively raised to $12,000 (or $24,000) for a married family. I believe it is renters that will find the increase to the standard deduction beneficial (they typically won't itemize deductions as there is typically not mortgage interest or real estate tax). And homeowners will pay for it through the mutilated itemized deduction.
Without giving up the secret sauce to every point in my series, well here's another zinger - the personal exemption is consolidated with the standard deduction so it's definitely not as good as it sounds for the "middle class tax cuts."
On the other hand, more folks will be able to take child tax credits, and even there is a credit if you are for caring for a child who isn't your son/daughter.
Thanks for the deeper analysis.
"I believe it is renters that will find the increase to the standard deduction beneficial (they typically won't itemize deductions as there is typically not mortgage interest or real estate tax). And homeowners will pay for it through the mutilated itemized deduction."
I agree with your assessment. Apparently, someone has decided that home ownership rates are not trending down hard enough.
"so it's definitely not as good as it sounds for the "middle class tax cuts."
It never seems to be...the middle class, what's left of it, is pretty much a tax donkey at this point.
"and even there is a credit if you are for caring for a child who isn't your son/daughter."
I'm sure that won't be gamed at all...