Tax reform: How would you fare?

this article contains an interesting chart of "winners" and "losers" under the proposal.

for the most part this looks like a REPUBLICAN TAX HIKE



http://money.cnn.com/2005/11/04/pf/taxes/taxreform_scenarios/index.htm

Tax publisher CCH crunches numbers to see how different taxpayers fare under one proposed plan.
November 4, 2005: 6:38 PM EST
By Jeanne Sahadi, CNN/Money senior staff writer

NEW YORK (CNN/Money) – Charged with proposing ways to make the federal tax code simpler, fairer and more growth-oriented, President Bush's bipartisan tax advisory panel put forth a Simplified Income Tax Plan with many changes that could alter individuals' tax bills.

...

But because of the proposed removal of deductions and some credits, the picture for individuals is more of a mixed bag. Notable recommendations include the elimination of the state and local tax deduction and the child-care credit, as well as the curbing of the mortgage-tax break.

...

.. I never fare well.

I'll never be rich or corporate.

pesimistic if you ask me, but then I don't know your situation that well.

but I can handle that. But it will piss me off to pay taxes on my property taxes!

so the effective cost to property owners will be much higher than just the tax bill.

on the flip side, high property tax municipalities will come under even greater pressure to reduce taxes and therefore, services as well. which means schools will suffer.

We wouldn't want to cut our beloved road lobby here in Wisconsin, now would we? They get more and more money every year and build roads to nowhere, repave roads that were JUST done in the last 5, and continually resurface roads that didn't need to be resurfaced. Just so they can spend their money and get more next year.

And our DLC governor will continue to do this while our property taxes in Madison remain some of the highest in the state.

So our schools will take yet another hit, we pay double taxation, and we all continue to get poorer while the economy "improves" for the rich.

That's just great.

if you live in a place where local and state taxes are especially high, you will be hit even harder

This story has been done by many in the financial world. This is the one done by the publishers of the CCH, used by lawyers and tax accountants.

The figures I saw suggested that overall it would help more members of the poor and middle class than it would hurt.

However, the *real* impact would be on states with high housing prices and states with high state and local taxes. Which is to say, New York and other blue states.

I don't care what forum something's in.

I never expected you to move it.

But since you have, I'll comment on the topic more substantively.

The CCH analysis is important and different from others because CCH is considered a more objective source than most.

1% and for the War on Iraq. Nice going, you idiot value voters! :grr: Removing tax deductions=tax increase. And isn't paying taxes on state and local taxes, double taxation? Tea party anyone?

---snip---

But those who see an increased tax bill could benefit in other ways. The panel's proposals are intended to provide greater simplicity, for example, and that could mean lower tax preparation costs. And if a tax reform plan is adopted that promotes greater economic growth, that has the potential to benefit all taxpayers.

---snip---

You've got to be kidding? Next year we will fall into the group who benefits from the Child-care tax credit AND the mortgage tax deduction. And they are trying to tell us that we shouldn't feel so badly about losing that, because we MIGHT save money on tax preparation? Give me a freakin' break!!!

Greater economic growth...so those who gain might spend more money and somehow make it a better economy (prices will go up along with our tax increase) so we can afford less.

I think this whole thing just sucks and the people who wrote this have not looked at how it will affect people in real life. They are writing about hopes, not realities.

has been estimated by realtors organizations to add
15% to the value of a home. I assume that is coupled with
the ability to also deduct real estate taxes. However,
reducing the value of a home and adding to its cost through
a consumption tax has tremendous unintended consequences.
It could also be just the final blow to the housing
industry and probably push it over the edge. Since it is
very near a serious adjustment now. There is a serious
need to change the atmosphere in Congress now and bring a
close to these incompetents now residing there. If the
complexion does not change in 2006 there is no end to the
damage this nation will suffer under their continued
tenure. Get busy folks and elect a new Congress or watch
this nation experience hardships unparalleled in our history.

is the child care expenses of $6000. Yeah, right! Try doubling that, if you "know" someone who watches children. If my wife and I were using one of the reputable(?) chain day care facilities, our expenses would be even higher. But, the best part of that example is we're capped at $2100± for the child care deduction. So it's not even realistic to begin with.

The whole income tax system should be shitcanned and started over, IMHO. I can't see anything wrong with a sales tax system, as long as it *replaces* - not augments - the income tax system. But, what do I know?