the interest on Home Equity loans, and elimination of the deduction of state income tax, will mean those people will either not realize any tax cut, or will be paying more taxes, some significantly more.

If someone currently has 22,000 dollars in itemized deductions, under the Senate plan they will take the standard deduction of 24000, but because of the elimination of the personal exemption be taxed on income that is 6000 dollars higher than it would have been under the current tax plan.

Millions of middle class Americans are going to be hit with a higher tax burden, and much of that will be used to pay for the corporate tax rate being decreased from 35% to 20%. In addition, the elimination of the health insurance mandate will mean that those who must have health insurance will very likely be paying higher health insurance premiums than they do now, and the question of subsidies for those with less than certain incomes and those with pre-existing conditions is uncertain where the funding will come from.

As for the theory that the 15% decrease in corporate taxes will motivate corporations to hire more people, that is a fallacy. You don't hire people because of a tax break. People are hired based on the demand for a product they are selling. That is what was sold to people with Reaganomics, and the trickle down economy was a complete failure. Oklahoma and Kansas tried a similar scheme at the state level, and the only thing it accomplished was higher corporate bonuses,.

The republican tax plan also has negative implications for the real estate market and charitable contributions. since less people will be itemizing anymore.

I am calling my Sen and Rep tomorrow (Susan Collins and Bruce Poliquin) to freak out on them. We have two college age kids, Health care through the ACA, and a business that are all at risk because of this tax deform monstrosity!!

Changes to deductibility of unreimbursed employee business expenses don't affect businesses.

The money comes now or later.

In addition, the point at which time tax rate makes the loss of the personal exemption cost more than the gain from the child tax credit is around 300,000 in taxable income for a married couple.

Current law, taxable income = $39600, taxes = $5638.

House bill, taxable income = $37800, taxes = $4536

Senate bill, taxable income = $38000, taxes = $4369

So the new law tends to benefit the single, low income, renter. I'd think this would be a core Democratic constituency.


Tax rates taken from https://www.democraticunderground.com/10029916553