[s0rce]

Sadly, most of the deductions that disproportionately benefit wealthy people aren't going anywhere (mortgage interest, IRA/401k/tax-free savings, FSA/HSA, etc.) since they appear to benefit everyone and foster the american dream of home ownership.

[dragontamer]

* Mortgage Interest is dropping from 1-million to 500k.

* State / Local tax disproportionately benefits richer states (which tend to have higher income taxes). That's also going away.

The real issue IMO is that the standard deduction is going up, and the top tax rate is going down. The overall effect seems to be a tax-increase for me and a tax-decrease to those who are richer than me.

They probably should close the backdoor Roth loophole, and a few other corporate loopholes (Irish Double Sandwich or whatever its called).

https://en.wikipedia.org/wiki/Double_Irish_arrangement

[bkohlmann]

The top tax rate is NOT going down. It remains at 39% under the proposal released by the House today.

[Rebelgecko]

The top marginal rate is the same, but because they're moving the brackets you can make twice as much money before you pay 39%(for a married couple)

[dragontamer]

And because taxes are marginal, that effectively becomes straight CA$H MONEY to everyone in the 39% bracket.

[maxerickson]

Probably not the time yet to write about the proposal as if it is sure to happen/stay the same.

[dragontamer]

Fair point. These things change dramatically with debate.

[chc]

How does the standard deduction going up benefit the rich or harm the non-rich? Aren't lower- and middle-class people most likely to take the standard deduction, and thus be able to deduct more?

[dragontamer]

They're cutting a lot of deductions.

EDIT: Seems like my information is out of date. I'll just edit my misinformation out (ie: most of the previous post)

[Anon1096]

401k deductions and plans aren't being touched.

[dragontamer]

Yeah, my info was out of date. I edited my post to something way more conservative.