4 ms·
Sadly, most of the deductions that disproportionately benefit wealthy people aren't going anywhere (mortgage interest, IRA/401k/tax-free savings, FSA/HSA, etc.)
by s0rce 9y ago
Sadly, most of the deductions that disproportionately benefit wealthy people aren't going anywhere (mortgage interest, IRA/401k/tax-free savings, FSA/HSA, etc.) since they appear to benefit everyone and foster the american dream of home ownership.
- dragontamer 9y ago* Mortgage Interest is dropping from 1-million to 500k. * State / Local tax disproportionately benefits richer states (which tend to have higher income taxes). That's also going away. The real issue IMO is that the standard deduction is going up, and the top tax rate is going down. The overall effect seems to be a tax-increase for me and a tax-decrease to those who are richer than me. They probably should close the backdoor Roth loophole, and a few other corporate loopholes (Irish Double Sandwich or whatever its called). https://en.wikipedia.org/wiki/Double_Irish_arrangement https://en.wikipedia.org/wiki/Double_Irish_arrangement
- bkohlmann 9y agoThe top tax rate is NOT going down. It remains at 39% under the proposal released by the House today.
- Rebelgecko 9y agoThe top marginal rate is the same, but because they're moving the brackets you can make twice as much money before you pay 39%(for a married couple)
- dragontamer 9y agoAnd because taxes are marginal, that effectively becomes straight CA$H MONEY to everyone in the 39% bracket.
- chc 9y agoHow does the standard deduction going up benefit the rich or harm the non-rich? Aren't lower- and middle-class people most likely to take the standard deduction, and thus be able to deduct more?
- dragontamer 9y agoThey're cutting a lot of deductions. EDIT: Seems like my information is out of date. I'll just edit my misinformation out (ie: most of the previous post)
- Anon1096 9y ago401k deductions and plans aren't being touched.
- dragontamer 9y agoYeah, my info was out of date. I edited my post to something way more conservative.
- maxerickson 9y agoProbably not the time yet to write about the proposal as if it is sure to happen/stay the same.
- dragontamer 9y agoFair point. These things change dramatically with debate.