Will GOP Tax Plan Negatively Affect Our Social Security Benefits?

[NancyNGA]

There was some talk during negotiations of the bill, that lowering of corporate tax rates should come with some guarantees that at least a portion of the money saved by companies be reinvested in employees, job training, creating new jobs, etc. I wonder if anything like that is part of the Senate version of the bill?

I'm also afraid the projected increase in the deficit may rule out any more spending on an infrastructure package. That was something I was hoping would get accomplished.

 

[Don M.]

There was some talk during negotiations of the bill, that lowering of corporate tax rates should come with some guarantees that at least a portion of the money saved by companies be reinvested in employees, job training, creating new jobs, etc. I wonder if anything like that is part of the Senate version of the bill?

I'm also afraid the projected increase in the deficit may rule out any more spending on an infrastructure package. That was something I was hoping would get accomplished.

IMO, corporate taxes should be lowered ONLY for companies that bring jobs back to the U.S. If they want to continue offshoring to Mexico, etc., they should NOT be given any breaks.

Insofar as infrastructure is concerned, I see nothing major happening until/unless our roads and bridges really get in sorry shape. Infrastructure spending "hype" seems to be reserved for campaign rhetoric, and once the elections are over, it is shuffled back to the background. The Only real attempt to do something in that arena was Obama's "shovel ready jobs"...which turned out to be a total fiasco.

 

[OneEyedDiva]

One way the tax cuts will help social security is by putting more people to work. More jobs and higher wages will put more money in the system.

And there is always the likelihood of changes during the next 17 years as well as the next 74 years. For one thing Trump will no longer be president. Well , Donald Trump won't be president, maybe another Trump though.

I hope you are right rkunsaw!

 

[KingsX]

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I'm glad the final version of the tax bill maintains the over age 65 extra standard deduction.

Single senior = $12,000 standard deduction plus $1,600 extra over age 65 deduction = $13,600. tax exempt.

 

[mathjak107]

last i heard all exemptions were going . did they change that fact ? i have not seen anything yet to that effect .

deduction amount.
Eliminates personal exemptions: Today you're allowed to claim a $4,050 personal exemption for yourself, your spouse and each of your dependents. The House bill eliminates that option.
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.

 

[KingsX]

last i heard all exemptions were going . did they change that fact ? i have not seen anything yet to that effect .

deduction amount.
Eliminates personal exemptions: Today you're allowed to claim a $4,050 personal exemption for yourself, your spouse and each of your dependents. The House bill eliminates that option.
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.

Both the House and Senate versions as well as the final bill eliminates personal exemptions.

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[mathjak107]

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I'm glad the final version of the tax bill maintains the over age 65 extra standard deduction.

Single senior = $12,000 standard deduction plus $1,600 extra over age 65 deduction = $13,600. tax exempt.

but they are keeping the 1600 deduction for seniors ? origonally seniors got an extra exemption , then they changed it to a deduction but i didn't here it was staying .

 

[KingsX]

but they are keeping the 1600 deduction for seniors ? origonally seniors got an extra exemption , then they changed it to a deduction but i didn't here it was staying .

The bill eliminates the personal exemption but retains the extra over age 65 standard deduction.

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[OneEyedDiva]

The bill eliminates the personal exemption but retains the extra over age 65 standard deduction.

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Your source? I've read a few articles about the new tax law getting rid of personal exemptions but haven't seen anything about the deductions for over 65 you refer to.

 

[KingsX]

Your source? I've read a few articles about the new tax law getting rid of personal exemptions but haven't seen anything about the deductions for over 65 you refer to.

Only the original House bill eliminated the over age 65 and/or blind extra standard deduction. The Senate version of the bill did not.

The final bill which is now law followed the Senate version which did NOT change or eliminate the over age 65 and/or blind deduction, so it remains the same.


Here is a quote from a Wall Street Journal news article:


" What about the additional standard deductions for the elderly and blind?

The bill keeps them in place. For 2018, the additional standard deduction for people 65 and older is $1,300 for each partner of a married couple and $1,600 for a single person.

Thus, if each spouse is above 65, the additional standard deduction is $2,600 in 2018. If one spouse is 66 and the other is 60, the additional standard deduction is $1,300.

There’s also an additional standard deduction for taxpayers who are legally blind. For 2018, it is $1,600 for a single person and $1,300 for a married taxpayer. If both spouses are blind, the additional standard deduction would be $2,600.

Taxpayers who are elderly and blind can take both additional standard deductions. "

https://www.wsj.com/articles/what-gop-tax-plan-means-for-your-favorite-deductions-1513453149


Here is a quote from an AARP news article:

" Other tax brackets would change as well, and personal exemptions would be eliminated. But the legislation would nearly double standard deductions to $12,000 for individuals and $24,000 for married couples filing jointly.

The tax plan also maintains the extra standard deduction for those 65 and older, currently $1,250 for individuals, $1,550 for heads of households and $2,500 for couples who are both 65 and older. "

https://www.aarp.org/politics-society/advocacy/info-2017/update-tax-reform-fd.html


Here is a quote from a CNBC news article:

" The GOP tax overhaul kept this $1,300 tax break for seniors

* GOP bill doubles standard deduction to $12,000 for singles, $24,000 for married couples.
* Individuals over 65 or blind -- and married -- can claim at least $1,300 more in deductions.
* The break is $1,600 for singles. "

https://www.cnbc.com/2017/12/22/the-gop-tax-overhaul-kept-this-1300-tax-break-for-seniors.html

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