A closer look at the GOP Tax Plan the winners and losers
By: Susan Conte, Xiro Xone News February 16, 2018 Updated: 2:46 PM PT
Since passing of the tax overhaul by both chambers of Congress, it’s time to take a closer look of what the bill means for millions of Americans across the country.
1. Many workers will see a slight increase in their take home pay due to the new tax cut. Enjoy it while you can because the GOP Tax cuts are temporary. They only last until 2025 for individuals and families, but are permanent for companies and corporations. When they expire, people making $100,000 or less will pay more in taxes than they did before the tax cut.
2. The tax bill will add 1.46 trillion to the deficit over the next ten years, according to the joint committee on taxation (JCT).
3. The GOP tax cuts will not pay for itself, so republican Speaker of the House Paul Ryan, and Senator Marco Rubio (R-FL) will use the GOP tax cuts as an excuse to revamp what they call, “entitlements” Medicare, Medicaid, and Social Security.
4. State and local taxes such as property taxes, was an unlimited deduction before, the GOP tax cuts. The new GOP tax bill caps the deduction for state and local taxes (also known as SALT) at $10,000. No matter how much homeowners pay in property taxes, the deduction will be limited to, $10,000.
5. Certain bonds issued by cities to finance their projects will no longer be, tax exempt.
6. Economists predict interest rates will go up and property values will decline. Victims of earthquakes and wildfires will no longer be allowed to write the losses off, on their taxes.
7. Homebuyers will only be able to deduct mortgage interest on homes up to $750,000 even if you paid more. Current homeowners will not be affected but if they sell and purchase another home, the rule will kick in. The interest deduction on home equity loans will no longer be deductible.
8. The tax plan removes the Affordable Care Act individual mandate $90.00 tax penalty that makes the ACA work. This will cause healthcare insurance rates to increase and leave 13 million Americans uninsured.
9. The Tax Policy Center estimates 53% of individual taxpayers will pay more, when the tax cuts expire. When they expire, people making $100,000 or less will pay more in taxes than they did before the tax cut.
10. Some taxpayers believe they will receive a bigger paycheck, they will not.
Companies like Wal-Mart and AT&T claimed they gave their employees bonuses because of the corporate tax cuts, but a bonus is not higher wage that workers can depend on each pay period.
The same companies that paid a bonus, added to unemployment by cutting jobs.