Evans News Report: evansnewsreport.com

By: Brian Evans

During the overnight hours on Saturday the Senate voted 51-49 to pass sweeping tax legislation that overhauls our current tax system. The legislation puts President Trump one step closer to his first major legislative victory with Congress. Also, it puts American’s closer to a much needed tax cut. RINO Senator Bob Corker (R-TN) was the only Republican to join in with a once again solidified Democrat Party as part of the ‘Resistance’. Following the vote President Trump tweeted:

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Then, House Minority Leader Nancy Pelosi (CA-D) responded by calling the legislation a:

“betrayal of the American Middle Class.” “The GOP tax scam is a product of haste, carelessness and cruelty,” Pelosi wrote. “It was written on Republicans’ trickle-down delusions, not analysis or facts. It was written first and foremost for the wealthiest one percent, not middle class families trying to get ahead.”

The final bill has yet to be finalized, but the Senate’s passage means that the bill is one step closer to passage. Now, it will be negotiated between the House and Senate starting on Monday. They will have to agree on a piece of legislation that both houses can pass. Then, after both houses agree and vote for the final bill’s passage, it will be sent to President Trump’s desk for his final signature. Then, it will become law.

Many American’s are asking how this bill would affect their everyday lives. How it would affect their families. They are as follows:

  • Eliminates federal deductions for state and local income and sales tax

  • Allows deductions of up to $10,000 in local property taxes (added for RINO Susan Collins (ME-R)

  • Doubles the standard deduction level from $6,350 to $12,000 for individuals, and from $12,700 to $24,000 for couples.

  • Retains the current limit of $1 million on home mortgage interest deduction. The House bill reduced the limit to $500k for new home purchases and ends the moving expenses and tax preparation deductions. A detail that will have to be worked out between both houses.

  • Allows deducting medical expenses not covered by insurance. This is in response to their repealing the Obamacare mandate.

  • Both the House and Senate end the $4,050 personal tax exemption. This is more than made up for in the standard deduction.

  • Senate Bill keeps 7 tax brackets, but reduces them. Current brackets

    • Current brackets10, 15, 25, 28, 33, 35, and 39.6 percent.)
    • Senate Bill brackets:
      • – 10% (income up to $9,525 for individuals; up to $19,050 for married couples filing jointly)
      • 12% (over $9,525 to $38,700; over $19,050 to $77,400 for couples)
      • 22% (over $38,700 to $70,000; over $77,400 to $140,000 for couples)
      • 24% (over $70,000 to $160,000; over $140,000 to $320,000 for couples)
      • 32% (over $160,000 to $200,000; over $320,000 to $400,000 for couples)
      • 35% (over $200,000 to $500,000; over $400,000 to $1 million for couples
      • 38.5% (over $500,000; over $1 million for couples)
    • House Bill condenses seven brackets to four: 12, 25, 35 and 39.6 percent.
  • Senate Bill allows owners of “Pass-Through” businesses (businesses that are not incorporated) to deduct 23% of earnings, and then pay personal income tax rate on the remainder. (Added to bring Ron Johnnson (WI-R) and Steve Daines (MT-R) on board with the bill)

  • Both Houses cut the current 35% corporate tax rate to 20%, but the Senate put in a one year delay in dropping the rate. With lower corporate taxes, it means lower taxes for the consumer since corporate taxes are passed onto the consumer. Corporate executive personal income taxes are what increase taxes on the wealthiest American’s.

  • Expands the child tax credit from $1,000 to $2,000 in the Senate bill, and $1,600 in the House bill. It also returns the minor age from 17 to 18, until 2025 when it returns back to 17. The extra $1,000 would be available only to those families who actually paid into tax. It wouldn’t be available to those who did not pay in to taxes. It also raises the income ceiling on those who can claim the child tax credit from $110,000 to $500,000 for married filers. A huge help for families of small businesses in America. In addition, tax filers with dependents over 17 who don’t qualify may be able to claim a $500 nonrefundable credit per dependent in the Senate version, and $300 per person credit in the House version.

  • Preserves the Alternative Minimum Tax (AMT), but raises the amount of income exempt from it.

  • Preserves the estate tax in the Senate, but the House proposed eliminating it. The Senate doubled the estate tax exemption from its current levels at $5.49 million for individuals and 10.98 million for couples.

  • Increases teacher deduction in the Senate from $250 to $500, but the House eliminated this deduction.

  • Expands medical expense deduction for medical and dental expenses that exceed 10% of Adjusted Gross Income to expenses that exceed 7.5%. The House version also eliminated this deduction.

  • Make expensing rules more generous so businesses can fully expense new equiptment. It would go for five years, then phase out over the next five years. The House version limits it to five years total.

  • Strips Tax-Exempt status of NFL

  • Changes how U.S. multinationals are taxes to help American Companies who operate in the United States. Currently, companies are taxes on all profits, but they are allowed to defer paying United States taxes on profits earned in foreign countries until they bring the money home. It puts American companies at a huge disadvantage, and some say it incentivises businesses to move their operations overseas, where they can operate virtually tax free. The Senate bill would prevent corporations with foreign profits from manipulating the system, so they can prevent paying tax. Also, it would require companies to pay a one-time tax rate on overseas profits of 14.5% on cash assets and 7.5% on non-cash assets (e.g., equipment abroad in which profits were invested), slightly higher than the 14% and 7% rates in the House bill.

In the end, Congress and the Trump Administration have vowed to pass tax reform into law by the end of the year. Ultimately, it would take effect on January 1, 2018. Therefore, it would not have any affect on the current year’s taxes.

The final details will be hashed out in the House on Monday evening, and the Senate is expected to vote soon after. On December 15, 2017, Congress goes on Christmas break, but Speaker of the House Paul Ryan said he would keep the House in session late, to get the tax bill passed. Our country is in desperate need of this tax reform legislation, and although it is not as big of a tax cut as President Trump or American’s wanted, nor is it a major simplification of our current tax code, it is a vast improvement of our current Progressive tax code that is a huge redistribution of American’s income. Unfortunately, until Lobbyists and Special Interests, and Progressive Republicans and Democrats are removed from our legislative process, will will continue to have carve outs for those Special Interest groups, and a system that takes income from the working middle class and gives it to those who didn’t even pay into the system. It is a problem that our country will continue to battle with in the years to come. That is why it is so important to continue to battle against the Republican RINO’s and Progressive Democrats at the ballot box. Then, and only then, will our country begin to move towards the great country that our Founding Fathers once envisioned.

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