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New Tax & Spending Bill being considered - Barron's
The House Ways & Means Committee recently released a draft of the Trump Administration’s planed Tax Bill for the next fiscal year, and that bill could be voted on in the House of Representatives by next week. Of course, the bill is still subject to Committee revisions, as well as by other House congressional representatives, before it is finally voted on in the House. After the House of Representatives completes its work, the bill goes to the Senate, where it will likely undergo further changes. Nevertheless, its important to know that this legislation is intended to fulfill at least some (or most) of President Trump’s campaign promises, especially as relates to taxes.
Several key elements in the bill appear to enjoy bipartisan favor, including “no tax on tips” and overtime pay, and a special new element to relieve the burden of Social Security taxes is also included. The latter provision suggests a special tax break for senior citizens by adding an additional $4,000 to their Standard Deduction for IRS income tax purposes (with some exceptions for higher income couples or individuals). While this doesn’t fulfill the Presidents full goal of “no tax on Social Security,” it would, if passed, provide some seniors with tax relief. All of this is explained by Joe Light in this Barron’s article.