WHAT’S THE BUZZ, TELL ME WHAT’S A HAPPENNIN’?

BUZZ, BUZZ – the BUZZ is back!

* ACCOUNTING TODAY reports “House GOP unveils Tax Cut 2.0 bill” - 

“House Republican lawmakers introduced legislation Monday that would make the 2017 tax cuts for individuals permanent in a bid to highlight their signature economic policy achievement ahead of the November elections.”

The TAX FOUNDATION also discusses the GOP legislation in "Tax Reform 2.0 Takes Shape".

Actually, there are three (3) separate bills.  

“The Protecting Family and Small Business Tax Cuts Act of 2018” makes permanent the individual and business provisions of the GOP Tax Act that are currently set to expire in 2025.  House Speaker Ryan wants to hold a vote before the end of September.   The timing is clear.  The House wants the bill passed before the mid-term elections – to provide a partial victory to tout during the campaign, and to assure passage before the political mix of the House is changed by the election and, hopefully, the Democrats gain control.  This bill will not succeed in the Senate even now because 60 votes are needed for passage.

The original GOP Tax Act was written so quickly, without any review or discussion, or even actual serious thought.  Pushing through a bill to make it permanent again with minimal if any serious review and debate, even if only for a strictly political purpose, is unacceptable.  I don’t like temporary tax law.  But I also don’t like laws that are basically written and passed almost overnight, with Party leaders dictating their members’ votes without giving them time to actually read and digest what they are voting on and to allow for discussion and debate, as the original GOP Tax Act, and to be fair the ACA, was.  

“The American Innovation Act of 2018” concerns start-up costs and capital investment.

“The Family Savings Act of 2018” appears to have some good stuff when it comes to retirement and savings, including eliminating the age limit on IRA contributions and creating a USA Account.  Click here to see how I would structure a USA Account.

Introducing Tax Reform 2.0 in three separate pieces of legislation is actually smart and appropriate.  Who knew members of Congress could act intelligently once in a while?  Doing it this way provides some chance for the Family Savings bill to be passed in both the House and the Senate without being hampered by the main component of Tax Reform 2.0 - assuming Democrats actually read the bill and use independent thought instead of just “following orders” from the Party leadership.

* On September 1st I posted a new “issue” of THE LAKE REGION SOMETHING.  Check it out!  

* Kelly Phillips Erb, the FORBES.COM TaxGirl, reports “IRS Issues Guidance on New $500 Credit For Dependents And Head Of Household Status”.

Basically, the guidance verifies what we had expected – that, although there is no longer a personal exemption deduction, the $4,150 that would have been the personal exemption amount for 2018 is used for determining whether a person is a dependent or a taxpayer is Head of Household.

* Still confused about the new tax laws and how they affect your tax return?  Get some clarity and advice in my book “THE GOP TAX ACT AND THE NEW 1040” ADVICE AND INFORMATION FOR DEALING WITH THE NEW TAX LAWS”.

* Kay Bell suggests “Make paying for college a family affair, with contributions from parents, kids andUncle Sam” at DON’T MESS WITH TAXES.

* Let me educate you on how to be a successful year-round tax planner.  Join the National Tax Planning Network.

* For NJ homeowners – the NJ Division of Taxation has tweeted “Starting September 12, we will mail 2016 Homestead Benefit filing information over a three-week period”.

And the NJDOT website tells us – “If you received a benefit earlier this year, you will receive an additional credit or check on or about November 1, 2018, due to the State budget recently signed by Governor Phil Murphy.”

* The need to check your withholding is not limited to employees receiving a Form W-2.  CPA ADVISOR correctly advices “To Avoid April Tax Shock, Retirees Need to Check Withholding on Pensions, Annuities”.

THE LAST WORD

What is wrong with the Republican Party.  With truly minimal exceptions (one less with the passing of John McCain), Republicans continue to accept and support Donald T Rump, either vocally or by silence, when they should be denouncing, disavowing and disowning Trump.

The once “Grand Old Party” has become a “Gutless Old Party” and a “Gang of Pussys” (slang: a weak or cowardly man or boy: wimp, sissy) eager to be grabbed by Trump.

We have been wondering what potential blackmail information Putin has on Trump.  The real question is what potential blackmail information Trump has on McConnell, Ryan and other Republicans.

We must send a message to the Republican Party by voting against all Republican candidates for Congress in November!

TTFN