How the Rep. Tax Bill will affect Floridians-The Orlando Times
How the Republican Tax Bill will affect Floridians
BY DEVIN HEFLIN
After a four time failed Healthcare law replacement, repealed travel bans and a yet to be laid out foreign policy motive of this administration, GOP leaders are now ready to implement the new tax initiative.
“We have to do two things. We have to generate economic growth which generates revenue, while reducing spending. That will mean instituting structural changes to Social Security and Medicare for the future.” Florida Senator Marco Rubio said.
“We still have time to responsibly structure those programs,” he said of Social Security and Medicare, “in a way that doesn’t impact current retirees or people about to retire, but in a way that would probably impact it for me and people younger than me. This could be done “in ways you wouldn’t really notice and wouldn’t really object to.” Rubio said.
Senator Bill Nelson, longtime Democrat in the sunshine state, said, “the U.S. Senate is about to sock you in your wallet”.
“Where are the deficit hawks?” Nelson said.
Rubio voted yes on the Senate plan, while Nelson voted no. The only Republican that voted against the Republican based tax plan was Tennessee Senator Bob Corker.
How will this initiative affect Florida families and Floridians in the workforce?
Analysts are reporting that the current tax plan will affect Florida real estate, residents statewide will witness a rise in property taxes and those earning under $80,000 will pay at higher rate.
Democrats say President Trump's tax cuts are a massive giveaway to the rich, the most unequal overhaul of the U.S. tax system in modern history. Republicans argue they are a huge middle class tax cut — “a great, big, beautiful Christmas present” for the American people, according to Trump.
What’s in the Bill?
Plan will change individual income tax brackets: There are seven brackets in today's individual tax code: 10%, 15%, 25%, 28%, 33%, 35%, and 39.6%.
The Senate bill also creates seven brackets but changes the rates on taxable income to:
10% (income up to $9,525 for individuals; $19,050 for married couples filing jointly)
12% (over $9,525 to $38,700; over $19,050 to $77,400 for couples)
22% (over $38,700 to $70,000; over $77,400 to $140,000 for couples)
24% (over $70,000 to $160,000; over $140,000 to $320,000 for couples)
32% (over $160,000 to $200,000; over $320,000 to $400,000 for couples)
35% (over $200,000 to $500,000; over $400,000 to $1 million for couples)
38.5% (over $500,000; over $1 million for couples)
The House bill, by contrast, only calls for four brackets: 12%, 25%, 35% and 39.6%.
Akin to the House bill, Senate Republicans would raise today's standard deduction. In the Senate bill, the deduction for singles increases to $12,000 from $6,350 currently; and it raises increases for married couples filing jointly to $24,000 from $12,700.
For families with three or more kids, that could mute if not negate any tax relief they might enjoy as a result of other provisions in the bill.
Like the House bill, the Senate bill would cut the corporate tax rate to 20% from 35% today. But the 20% rate would not take effect until 2019 under the Senate proposal. The delay would reduce the cost of the measure in the first 10 years.
Comparison and Contrasts of the Bill between Political Houses
The Senate bill sunsets tax breaks for individuals in 2025, something it did to save money so the bill would meet reconciliation rules. The House bill makes its individual tax cuts permanent. The corporate rate, meanwhile, would be permanent in both bills.
Speaking of the corporate tax rate. The Senate bill enacts its twenty percent corporate rate in 2019. The House bill enacts its twenty percent corporate rate right away in 2018.
The Senate bill repeals the Affordable Care Act’s individual mandate. The House bill does not.
The Senate bill doubles the exemption on the estate tax so that you could pass down up to $11 million tax free, but the House bill entirely repeals the estate tax in 2024 so you could pass down any amount of money tax free.
The Senate bill maintains the current mortgage interest deduction of $1 million. The House bill cut it in half to $500,000
The House bill repealed the alternative minimum tax. The Senate bill maintained it.
The Senate bill has seven tax brackets and they lowered the top rate. The House has four and they maintained the top rate.
Both legislative bodies are still working to make the bills coalesce into law.
The GOP is hungry for a legislative accomplishment with control of Congress and the White House, especially before they face 2018 midterm voters and deep-pocketed donors, who have grown impatient with other stumbles, particularly on healthcare.