Republican Budget Deal

[bridgetender]

I think this is correct, but those tax cuts expire this year, right? I don’t know if that includes the increased standard deduction or just the rates.

That seems to be the case. My first check in January was about $500 in extra taxes.

 

[UNCatTech]

Whole lot of middle class folks gonna not like that mortgage interest deduction getting removed.

The mortgage interest deduction and my wife staying home really helped my family when we first got started.

Now, with a 2.35% mortgage it makes no difference. But my daughter, who had a 4.5% rate, it helps.

 

[Calheel]

The mortgage interest deduction and my wife staying home really helped my family when we first got started.

Now, with a 2.35% mortgage it makes no difference. But my daughter, who had a 4.5% rate, it helps.

Hey. speak for yourself. Those California mortgages really add up, even at 2.35%.

 

[BubbaOtis]

For married filing joint taxpayers the standard deduction is $30k for 2025.
The 10k limit on SALT knocked more people out of itemizing deductions than the mortgage changes.

The mortgage deduction essentially says the bigger house you buy, the bigger tax break you get .... I can't believe all the lefty pinkos of the board would support such a thing.

 

[Calheel]

For married filing joint taxpayers the standard deduction is $30k for 2025.
The 10k limit on SALT knocked more people out of itemizing deductions than the mortgage changes.

The mortgage deduction essentially says the bigger house you buy, the bigger tax break you get .... I can't believe all the lefty pinkos of the board would support such a thing.

They capped it at $750k in the 2017 tax deal. Which is basically 60% of the median house price in Orange County, CA (and 50% in San Mateo). So you no longer get a bigger tax break with a bigger house.

 

[wmheel1287]

For married filing joint taxpayers the standard deduction is $30k for 2025.
The 10k limit on SALT knocked more people out of itemizing deductions than the mortgage changes.

The mortgage deduction essentially says the bigger house you buy, the bigger tax break you get .... I can't believe all the lefty pinkos of the board would support such a thing.

And what is that standard deduction for a single filer. And what is the median home price in Raleigh or Charlotte? And what are interest rates now?

You want to have a grown up discussion or not?

 

[ChileG]

To the poster who voted for Trump because his poorer friends were struggling with high prices…you owe those friends a round of apologies.

 

[CFordUNC]

For married filing joint taxpayers the standard deduction is $30k for 2025.
The 10k limit on SALT knocked more people out of itemizing deductions than the mortgage changes.

The mortgage deduction essentially says the bigger house you buy, the bigger tax break you get .... I can't believe all the lefty pinkos of the board would support such a thing.

Oh, shoot, silly me, I did not realize that lefty pinkos were somehow immune from wanting to keep more of their hard earned money instead of giving it to uncle Sam!

 

[BubbaOtis]

Oh, shoot, silly me, I did not realize that lefty pinkos were somehow immune from wanting to keep more of their hard earned money instead of giving it to uncle Sam!

The rule of thumb seems to be that if a tax provision helps me, it's solid policy. If it helps someone else it's a "loophole "

 

[UNCatTech]

The rule of thumb seems to be that if a tax provision helps me, it's solid policy. If it helps someone else it's a "loophole "

It's more about helping a majority of people who need it vs helping a fucking billionaire who is dead set on being the first person ever to be worth a trillion dollars.

And if 90%+ tax payers don't have the means to meet the qualifications for the tax break, it's a loophole, doesn't matter who it's helping.

 

[JCTarheel82]

https://www.rawstory.com/house-republicans-budget-bill/

The New York Times has written an outline of Republican plans for a major budget reconciliation package and it suggests seems to involve slashing money for programs that benefit low-income Americans to fund tax cuts for the wealthy and corporations.

Among other things, the Times reports that the GOP is eyeing work requirements to Medicaid that would cause an estimated 600,000 people to lose their health coverage; slashing the portion of Medicaid paid out by the federal government, thus putting an increased burden on states to fund the program; taxes on people whose offices offer free gyms; taxing all scholarship and fellowship income; ending the home mortgage tax deduction; and slapping a ten percent tariff on all imported goods, which would raise costs on consumers.

MOD EDIT TO ADD GIFT LINK TO NYT STORY —> What Republicans Could Cut to Pay for Trump’s Tax Cuts: Medicaid and More

Dear lord, this would be devastating financial FAFO for tens of millions of Americans. Leopards, faces, and all that.

And Pubs better keep their grimy little fingers off my mortgage interest deduction.

 

[aGDevil2k]

I don't think there's any doubt that Dems aren't getting through to rural poor (as they haven't for decades) but if you think there are people on Medicare or Medicaid who won't care about losing it and having to pay out of pocket for medical insurance or go without, I think you're quite mistaken. (Personally I'm sure the GOP is much more likely to cut from Medicaid than Medicare anyway.)

Which is curious because 60% of people in nursing homes are out of money and must have medicaid to pay for it.

That will be a fun battle to watch.

 

[TangledUpInBlue06]

And if 90%+ tax payers don't have the means to meet the qualifications for the tax break, it's a loophole, doesn't matter who it's helping.

Not trying to be pedantic or argumentative, but this is a pet peeve of mine. A loophole is an available benefit that Congress did not intend to be an available benefit. If Congress meant to do a thing, it's not a loophole, it's a policy choice.

 

[mpaer]

Which is curious because 60% of people in nursing homes are out of money and must have medicaid to pay for it.

That will be a fun battle to watch.

And correct me if I am wrong-but that nursing home number is growing a lot-boomers

 

[UNCatTech]

Not trying to be pedantic or argumentative, but this is a pet peeve of mine. A loophole is an available benefit that Congress did not intend to be an available benefit. If Congress meant to do a thing, it's not a loophole, it's a policy choice.

That's an interesting perspective.

Not sure this is the thread to discuss.

My understanding of loopholes is obviously somewhat different.