House Budget Committee just revealed 45 potential tax law changes

[nenu_meeku_telusa]

Republicans on the House Budget Committee just revealed 45 potential tax law changes. I reviewed them all so that you don't have to. Here's everything you need to know:

1. State and Local Tax Deduction The plan is considering 3 scenarios: - Repeal SALT deduction ($1T in savings) - Make $10k SALT cap permanent, but double to $20k for married ($100-200b cost) - $15k single/$30k married cap ($500b cost)

2. Home Mortgage Interest Deduction The plan is considering two options: > Eliminate the home mortgage interest deduction on primary residences ($1T in savings) > Lower the deductible home mortgage interest limit from $750,000 to $500,000 ($50B in savings)

3. Eliminate Tax on Tips Tips received by employees are subject to income and payroll taxes. This option would consider eliminating the income tax on tips ($106B cost)

4. Eliminate Tax on Overtime This exemption would prevent overtime earnings from being taxed. The estimated cost is $750 billion in 10 years.

5. Auto Loan Interest Deduction Currently, the auto interest is not deductible. This would allow Americans to deduct their auto loan interest payments from their taxes. The specifics are unclear at the moment ($61B in cost)

6. Corporate Rate Changes 2 options are being considered: - Lower the corporate rate to 15% ($522B in cost) - Lower the corporate rate to 20% ($73B in cost)

7. Eliminate Estate Tax Estates exceeding a certain value ($13.9M per person) are subject to the federal estate tax (up to the maximum 40% tax rate). This option would eliminate the estate tax ($370B in cost).

8. Replace HSA This option would replace Health Savings Accounts (HSA) with a Roth-style, $9,100 Universal Savings Account indexed to inflation. This is estimated to raise revenue by $110 billion during the budget window.

9. Eliminate Deduction of Interest on Student Loans Taxpayers can deduct up to $2,500 of interest paid on student loans from their taxable income. This option would eliminate the deduction for student loan interest ($30B in savings)

10. Eliminate Credit for Child and Dependent Care Taxpayers can claim a credit for a portion of their child and dependent care expenses (up to $2,100). This option would remove the child and dependent care credit, yielding $55B in savings over 10 years.

11. Repeal Green Energy tax credits. This option would repeal credits created and expensed under the Inflation Reduction Act. These credits are related to clean vehicles, clean energy, efficient buildings, home energy and more. ($800 billion in savings)

12. Eliminate exclusion of interest on state and local bonds Interest earned on municipal bonds is currently excluded from taxable income. This option would end the exclusion, making income from municipal bonds taxable ($250b in savings)

13. Eliminate HoH Filing Status The Head of Household filing status provides a larger standard deduction for unmarried individuals who have children. The plan would eliminate the Head of Household filing status ($192B in savings)

14. Eliminate AOTC and LLC The American opportunity tax credit (AOTC) is a credit for qualified education (max $2,500) and Lifetime Learning Credit (LLC) is a 20% credit of qualified tuition. This option would eliminate both ($85b in savings)

Overall, there will be major changes coming to the tax code.

[bayareaking]

@Konebhar6 @csrcsr, 2 lines lo explain cheyyandi

[nenu_meeku_telusa]

17 minutes ago, bayareaking said:

@Konebhar6 @csrcsr, 2 lines lo explain cheyyandi

The House Budget Committee's proposed tax changes include potential alterations to deductions like SALT, home mortgage interest, and student loans, alongside proposals to eliminate taxes on tips and overtime, and adjust corporate and estate taxes. Key considerations also involve removing various tax credits and changing the treatment of certain interest exclusions, aiming for significant fiscal adjustments.

Source : Grok

[karna11]

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