“Before anyone should get too excited about the proposed new GOP tax plan a careful review of the affect of the changes is critical in order to know whether it works for you.
The average taxpayer may find that the proposal works as a tax increase and not decrease. In high State and Local tax States such as New York, New Jersey and Connecticut, the Bill would totally eliminate the State and Local tax deduction. In areas within states with high property taxes there is a cap on the amount of real estate tax that may be deducted from income. The total deduction for real estate tax is proposed to be no more then $10,000.00.
Senior citizens may also not be happy with the impact on medical deductions. As the population ages the potential for higher medical bills is a reality. At present medical deductions can be taken to the extent they exceed 10% of the taxable income. The new proposal would eliminate this deduction. The argument is that only about 8 % of the population utilizes this deduction, but I am certain that if the statistics were narrowed to senior citizens the percentage of those who itemize would be much higher.
The Standard Deductions for individuals and married persons not itemizing their income would be doubled.
The Federal Estate tax would effectively be eliminated. The reality is however at the present Federal Estate Tax Exception of over 5 million dollars, most individuals would not pay any Federal Estate Tax in any event.
It is already apparent that the proposed tax Bill will not pass in its’ present form. However, to what extent the proposals will remain to some extent is not clear.”