Friday, November 24, 2017

The coming U.S. Tax overhaul

As details keep on emerging about the new U.S. tax overhaul, the more I am beginning to less like it and even hate it as the party of cutting taxes is going to increase it no matter how you see it, even if some people (read: Republicans) make it sound like it is a tax cut. Since it is not finalized yet, I would like to point out that I as a temporary worker (who wants to work full time) does not like the fact that state and local taxes and also mortgage interest deduction would be eliminated and instead of it, we will have the super luxury of having our standard deduction doubled to 24k (I don’t do standard deduction so that is why I am screwed in this sense). For the people living in high taxes states, this is going to raise taxes (even if tax rate go down a bit). The saving grace is the house version of the bill which includes the property tax deduction to 10k but since both the house and senate version have to be merged into one bill, it is premature to say how much the middle class will get screwed ultimately but yeah they will be screwed especially if the property tax is eliminated which means everybody who supposedly owns a house will have to pay tax on the property tax bill even if it is a 1k but they may have a saving grace if they include it as a standard deduction. Too many complications but let’s wait for the final version to see what is in store for the citizens.

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