Republicans are out with their much-anticipated tax plan. The GOP proposal is the biggest overhaul of the tax system in a generation. While the plan maintains some popular provisions, it changes several others.
Under the new Republican plan, the standard deduction is almost doubled to nearly $12,000 for an individual and $24,000 for families. The child tax credit is also getting a boost. It would go from $1,000 to $1,600.
One part of the new proposal cuts the deduction for state income taxes and limits the deductibility of local property taxes to $10,000.
Boise State accountancy professor Janet Mosebach says many in Idaho won’t be impacted by this.
“You know, even in Southeast Boise where some of the home prices tend to be a little bit higher – I think the average homeowner isn’t going to be impacted by this limitation of the property taxes to $10,000,” she says.
However, she says that’s not the end of the story: “In Idaho, I can see that the combination no state and local income taxes and the property tax deduction being limited could impact some high income individuals.”
The new tax plan was rolled out a day late after lawmakers got additional feedback from the House Ways and Means Committee. The GOP has said it would like to pass a tax plan before Thanksgiving. Mosebach describes that as "quite ambitious."
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