July 18, 2024
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PERSONAL FINANCE TAX TIMES

Shocking Changes Ahead: GOP’s Bold Plan, Tax Law Extension, and Celtics Up for Sale – What You Need to Know!

Shocking Changes Ahead: GOP’s Bold Plan, Tax Law Extension, and Celtics Up for Sale – What You Need to Know!

In the complex world of taxes, discussions swirl around the implications of extending the Tax Cuts and Jobs Act (TCJA). Recent analysis from the Tax Policy Center (TPC) sheds light on who stands to benefit the most from these potential extensions. Here’s a breakdown of the key points:

  • Nearly half of the benefits from extending the TCJA would go to individuals making $450,000 or more.
  • Households in the $450,000 income bracket in 2027 would receive over 45 percent of the benefits if the individual and estate tax provisions of the TCJA are extended.
  • Making these provisions permanent would result in a tax cut of 3.2 percent for those making $1 million or more, which equates to an average savings of about $70,000 in 2027.
  • Individuals earning $5 million or more would see an average tax cut of almost $280,000, accounting for 3 percent of their after-tax income.
  • On the other hand, middle-income households can anticipate a tax decrease of approximately $1,000, equivalent to 1.3 percent of their after-tax incomes.

Amid these tax debates, Republicans have unveiled their 2024 platform, emphasizing key principles ahead of their national convention. The platform committee has outlined 20 principles, including proposals for significant tax cuts for workers, a pledge to avoid taxing tips, and the implementation of tariffs to combat unfair trading practices.

Shifting focus to Capitol Hill, the Senate Finance Committee is set to hold a hearing addressing the crucial issue of childcare and how federal policies can better support families, bridge existing gaps, and bolster economic growth.

Meanwhile, in Denver, city lawmakers are considering a sales tax increase to bolster affordable housing initiatives. Democratic Mayor Mike Johnston and members of the city council are mulling over a proposal to introduce a 0.5 percent sales tax hike to fund additional affordable housing projects. If approved, the increase would generate an estimated $100 million in annual revenue, supplementing the current sales tax rate of 8.81 percent.

In a separate tax-related development, speculation swirls around the potential sale of the NBA’s Boston Celtics, with some attributing the decision to Massachusetts’s recent adoption of a 4 percent surtax on individuals earning over $1 million. However, experts suggest that there may be other factors at play, indicating that the team owners could be capitalizing on high market values to secure a substantial profit.

Stay updated on the latest tax news by subscribing to the Tax Policy Center’s Daily Deduction. Receive timely updates directly to your inbox on weekdays at 8:00 am, with exceptions on Mondays when Congress is in recess. For news tips or new research, reach out to Renu Zaretsky via email.

As discussions surrounding taxes continue to evolve, it’s vital to stay informed and engaged to navigate the complexities of the ever-changing tax landscape.

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