Is the Tax Reform really a good plan?

Not to be contrarian, but homes over $750K represent only about 5% of the home owners from what I've read and heard. Here in the Charlotte area, it's a miniscule amount of our total homeowners.  And while it's easy to say the middle class will be hurt, no one is mentioning the doubling of deductions and other things that will offset state deductions. As for corporate taxes, our nation has become less and less competitive. I've said for decades that our corporate tax rates need to be adjusted downward. It's a stretch to say that lower taxes will only go towards CEO compensation. Eliminating the penalty for not buying health insurance is also a good thing. Most people who paid the penalty did so because it was cheaper than buying insurance... how is that helping the middle class?

Hi Yolanda Cordova-Gilbert 

Appreciate you posting on a controversial issue.

Happy Selling!

Brad

Yolanda, we have sent a few Calls to Action for this tax reform bill, and thought NAR was in there for us, but it isn't working this year! 

I would have felt better had they tied a few conditions to those lower corporate rates.  For example, rather than lower rates, award tax credits for hiring those who have been sidelined because of handicap, or other circumstance, etc.  I worked 8 years at a software development company which because of tax breaks provided, hired folks during the Clinton administration, who had been sitting idle.  The way this current bill is written, there are no guarantees companies will hire in America.  They may simply expand overseas.  The problem we have is competing against workers in countries like China, India, etc., who will work for pennies on the dollar what we need to survive here.  I do not believe in trickle down economics.  It generally ends up being trickle OUT economics to other countries and economies.  Give the majority of breaks to those of lower economic status, and they will have power to purchase more, and boost our economy through consumerism, spurring more manufacturing and growth.

From what I have seen the increase of the standard deduction will be an enormous benefit to lower and middle incomes citizens and totally agree with Nina Hollander about the minscule number of homeowners affected by the $750K.

Until the bill is signed and into law we are just specualting.

No matter what there is no bill that is good for everyone.

In California, the number of homeowners impacted by the homeowner exemption limit of $750K is likely to be large.  Ditto for New York and New Jersey.

It could have been worse but the fact that the Senators to a great extent on the Republican side haven't even read the bill gives me the shakes.

Hi Yolanda... actually, my 5% came from NAR housing statistics report, which indicated that 2.2% of homes are valued at over $1million and if you add in homes valued over $500K, it's 4.6%. I didn't just pull that number out of the air. It's also worth pointing out that 44% of our households already pay no income tax to start with and with the tax changes, this number goes up to 47%. Frankly, I'm a bit gob-smacked by the fact that half of our households don't pay any taxes. Regardless, the bill will increase the number.

I have no idea what is even in it, but my guess would be that it is going to benefit rich people like Trump the most.

Appreciate your willingness to open a can of Tax Reform worms. At first glance, it doesn't look very equitable. It's said to see our country so split on so many issues of late. Enough said. D 

Brian England - I doubt many folks actually know what is in the bill.  It was put together behind closed doors, with speed seeming more important than content.  You aren't alone in not knowing!  

Thanks for sharing your thoughts. This is a hot topic for the Sunday programs.