What House tax plan could mean for Texas taxpayers
Of the proposals included in the bill, two might stand out for
The bill, unveiled by House Republican leadership Thursday, almost certainly will change.
"I'm still wrapping my head around most of it myself," said
The bill reflects the
"We have a very strong corporate culture, so to lower the corporate income tax rates significantly could be a huge boon to business in
For individual taxpayers, the bill's provision to reduce and ultimately eliminate the estate tax might also play well in the state, he said, noting that
But it also includes a variety of trade-offs. Provisions that might cost Texans more on the federal returns might be offset by other factors, including the bill's proposal to double the standard deduction to
"It could be that most Texans wouldn't be itemizing at all," Katzen said, so they wouldn't be worried about changes to the mortgage interest deduction or the lower limit on the property taxes one could deduct.
Still, if those proposals remain, many Texans could take a hit or enjoy a gain. For example, the state's reliance on property taxes could cost wealthier homeowners more on their federal returns. The bill would cap property tax deductions at
Locally, about 45,000 properties with homestead exemptions -- or 21 percent of about 214,000 properties with homestead exemptions -- have tax bills above
Meanwhile, the elimination of the federal deduction for state income taxes could benefit states like
"We love to brag about the fact that we don't have an income tax, so it's great PR for the state," Weinstein said.
But if the proposal to eliminate the deduction were to be enacted, he said, it likely would rein in rate increases by the states that do level income taxes.
Proponents of increasing state income taxes routinely "argue that the feds are going to pay part of it" through the deduction, Weinstein said. So "this will have a restraining effect on high-income states that tax income. It will cause them to think twice about hiking taxes."
Other provisions include a proposal that would make mandatory a tax on corporate profits that multinational companies hold overseas. The bill proposes a 12 percent tax on earnings held in cash and a 5 percent levy on profits reinvested in other, more permanent assets, such as buildings and equipment.
A spokesman for
___
(c)2017 Austin American-Statesman, Texas
Visit Austin American-Statesman, Texas at www.statesman.com
Distributed by Tribune Content Agency, LLC.
Separate Acct No 49 of Axa Equitable Life Insurance Co Files SEC Form 485BXT, New Effective Date For Post-effective Amendment [Rule 485(B)(1)(III)]:…
Findings from Florida State University Update Knowledge of Medicaid (Medicaid waivers and negotiated federalism in the US: is there relevance to…
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News