Senate tax bill — the good, bad and ugly, but only for ordinary people (Bloomberg with Nov. 20 update).
Ordinary person tax cuts that sunset in less than 10 years; higher standard deduction; higher child tax credit; higher estate tax threshold (how many of us have $5million to pass on?).
Ordinary person benefits lost permanently: SALT (deducting state and local sales taxes and property taxes). In 10 years, all those ordinary person benefits mentioned above are gone too. Run the numbers. Where will you be with no deduction of state and local sales and property taxes, and the higher standard deduction, etc., all gone?
Taxes eliminated or cut permanently: alternative minimum tax, which may not be relevant for many ordinary people. And the Senate plan is generous compared to the House plan. We should feel grateful that Dan Newhouse, Paul Ryan and the Republicans left in some important benefits like medical deductions and some mortgage interest, because blue “maker” states with large impacts on House control demanded it. Washington state Republicans were not among them.
Negotiations just are starting. Fasten your seat belts. Its going to be a bumpy ride.
Kathryn Tominey, Benton City