ON AIR NOW

LISTEN NOW

Weather

clear-day
64°
Sunny
H 77° L 50°
  • clear-day
    64°
    Current Conditions
    Sunny. H 77° L 50°
  • clear-day
    72°
    Evening
    Sunny. H 77° L 50°
  • clear-night
    51°
    Morning
    Clear. H 79° L 56°
LISTEN
PAUSE
ERROR

The latest newscast

00:00 | 00:00

LISTEN
PAUSE
ERROR

The latest traffic report

00:00 | 00:00

LISTEN
PAUSE
ERROR

The latest forecast

00:00 | 00:00

National Govt & Politics
In the fine print - some nuggets from the GOP tax reform bill
Close

In the fine print - some nuggets from the GOP tax reform bill

In the fine print - some nuggets from the GOP tax reform bill
Photo Credit: Jamie Dupree

In the fine print - some nuggets from the GOP tax reform bill

The 429 page tax reform bill unveiled by House Republicans on Thursday would make a series major changes to the tax code, reducing the number of tax brackets from seven to four, eliminating and limiting a number of major deductions, and cutting the corporate tax rate from 35 to 20 percent. But past those headlines were a number of smaller provisions, which may be small in financial impact, but could still be felt by individuals around the nation.

Here's some of the more interesting items tucked away in the GOP tax reform bill:

1. Even some small tax deductions get knocked out. Most of the headlines are about limits on deductions for mortgage interest, property taxes, and ending the write off for state and local taxes. Those are big provisions, with a big impact. But other tax breaks are also getting tossed out by House Republicans, like a deduction for larger medical expenses, and unreimbursed business expenses. Teachers are a good example of taxpayers who might benefit from that business expenses deduction, but under this plan, that would go away. The argument is this - now that the overall standard deduction would be increased, then these deductions aren't needed, as the GOP tries to simplify the tax code, and make it possible to file your taxes on a postcard.

2. New rules on capital gains from a home sale. Under current law, you can make up to $250,000 tax free on the sale of a home ($500,000 for a married couple) if you have lived in the home for two of the last five years. This proposed tax change would keep those profit figures tax free, but the length of time that owners would have to live in the house would be expanded from two to five years (out of the previous eight years). One stated reason for the change is to tamp down on home sale speculation: "Meanwhile, speculators and so-called “flippers” in the housing market would not be rewarded for their activity with tax-exempt income," an explanation states. So, the tax break would remain the same value, but the time involved would change. One can imagine a provision like this might spur a rush to sell a house before the end of the year, especially if you haven't lived in it for five years yet.

3. Tax break related to college football/basketball tickets. One of the many rules in the current tax code allows people to deduct 80 percent of a charitable contribution to a college or university, when that contribution is used stake a claim for tickets at a college football or basketball game. How did this come about? Congress added the break in 1988 - two years after the last major tax reform law - as lawmakers have added in all sorts of write offs and breaks along the way, like this tax break related to a collegiate personal seat license. This change would be made along with a number of other reforms in the area of charitable contributions. The effort is not new; the Obama Administration made the same proposal, but it was never acted upon by Congress.

4. No tax breaks related to pro sports stadiums. Speaking of sports, the GOP tax plan would do away with one tax break that could benefit major sports leagues. In this case, state and local governments could no longer sell bonds to help finance construction of a stadium in which those bonds were allowed to provide investors with interest that was not taxable by Uncle Sam. It's not a huge provision in terms of money - it would save the feds an estimated $200 million over ten years.

5. Start saving for college before you kid is born. Yes, tucked into the bill is a provision that would allow parents to start a 529 college savings account even before your son or daughter has arrived. Just in case there was any issue about the intent of those who wrote this provision, it was spelled out in the committee explanation like this: "An unborn child means a child in utero. A child in utero means a member of the species homo sapiens, at any stage of development, who is carried in the womb."

6. Some handy facts and figures about the GOP tax reform bill. It's sort of hard to get your head around a big bill like this, so here are some bullet points about the financial figures:

+ Ending a series of personal deductions brings in the most money for Uncle Sam, just over $1.5 trillion over 10 years.

+ Going from seven to four tax brackets with different rates means almost $1.1 trillion less in revenue coming in to the feds.

+ Changing the standard deduction gives taxpayers $913 billion.

+ Repealing the Alternative Minimum tax for individuals saves taxpayers almost $700 billion over 10 years.

+ Overall, according to the Committee for a Responsible Federal Budget, the GOP tax plan costs $1.51 trillion over ten years. There are $5.7 trillion in tax cuts, and $4.2 trillion in tax increases, leaving a plan that would increase the deficit by $1.5 trillion.

You can find out more of the financial information about the GOP tax bill, with this background from the Joint Committee on Taxation.

 

Read More

The Latest Headlines You Need To Know

  • Singer R. Kelly appeared Friday morning in a Cook County courthouse as he faces accusations of sexual abuse. >> Read more trending newsA lawyer for Kelly, who was charged last month with 10 counts of aggravated criminal sexual abuse, has filed a motion requesting he be allowed to leave the U.S. for Dubai from April 17 to April 19, where he’s scheduled to perform several shows, WLS-TV reported. >> Who is R. Kelly? Things to know about singer charged with sex abuse Kelly’s attorney, Steven Greenberg, asked Friday for the motion to be decided later to give Kelly’s team time to gather more information to present to the court. Kelly is scheduled to appear in court again on May 7. Greenberg said in a court filing that Kelly has been unable to find work in the United States amid backlash for the allegations against him, according to the Chicago Tribune. Cook County State’s Attorney Kim Fox said last month that the charges against Kelly stem from incidents alleged to have occurred between 1998 and 2010 with four victims, three of which were under the age of 17. “The request is outrageous, and I would be shocked if it is granted,” Michael Avenatti, an attorney representing two of Kelly’s accusers, told WLS-TV. “Were he (to) be permitted to leave, he would never return, and justice would be denied.” >> R. Kelly released from jail after someone paid his child support payment Kelly, one of the top-selling recording artists of all time, has several times over the years been accused of sexual misconduct, allegations that he’s consistently denied. Jurors acquitted Kelly of child pornography charges at a 2008 trial. Those charges stemmed from a video prosecutors alleged showed of Kelly having sex with a girl as young as 13. The Associated Press contributed to this report.
  • Three suspects are under arrest, accused of pulling a gun a pizza delivery person, then robbing him and stealing his car.   It happened last night around 8:30 p.m. in the 7400 block of West Colonial Drive in Orlando.   The suspects then fled in the stolen car, but deputies caught up with them on the SR 429 and pursued them, given the violent nature of their crime.   Deputies ended up stopping the car on the highway in Winter Garden, near the Schofield Road exit.   All three suspects were taken into custody.   We are also learning the pizza delivery driver wasn't injured in the robbery.
  • Sometimes the internet tears people down, and sometimes it brings people together to commiserate. Currently Twitter users are sharing stories of their own disasters after Twitter user @BorboaGrant shared a video of a coworker spilling 22 quarts (that's 5.5 gallons!) of ranch dressing. People started responding with videos of their own spills, including one worker accidentally throwing a hot pizza at a customer. APP USERS CAN SEE VIDEO HERE.  TWEET TWEET TWEET TWEET
  • You’ve heard of all the times in which police have been called for varying otherwise-routine behaviors like ‘driving while black,’ and ‘grilling while black,’ now we can add ‘moving while black’ to the list.  A Kansas man was detained with guns drawn on him while he was moving into a home he just bought.  Karle Robinson, a 61-year-old Marine veteran, was held at gunpoint and handcuffed in August as he was carrying a television out of a rented moving van into the home he had bought a month earlier in Tonganoxie, about 30 miles west of Kansas City. “I’d like to see those cops and that chief lose their jobs because this was uncalled for — this is strictly racial profiling,” Robinson told The Associated Press in an interview Thursday. He added that if he were white “we wouldn’t even be having this conversation right now.”  APP USERS CAN SEE VIDEO HERE. 
  • Only on Orlando’s Morning News with Joe Kelley You don’t usually have to look too far to find fun things to do around Central Florida, and we’ve got you covered by selecting the best of the best each week. Estee talks through our top weekend picks early Friday morning on Orlando’s Morning News with Joe Kelley. icFlorida Fun 3: Country Thunder March 22-24, 2pm - 11pm Osceola Heritage Park Country Thunder is rolling into Kissimmee’s Osceola Heritage Park with a lineup which is set to include some of the biggest acts in country music from March 22-24, 2019. In addition to three days of the biggest and best acts that country music has to offer, the RAM National Circuit Finals Rodeo will also now be taking place during the festival. 11th Annual Lakeridge Wine and Seafood Festival  This signature event at Lakeridge Winery marks the beginning of springtime and the warmer weather brings people out to enjoy fabulous live outside music and entertainment throughout the entire weekend. Lakeridge wine, beer, soft drinks and a variety of tasty seafood specialties will be available for purchase, along with complimentary Winery tours and tasting.   8th Annual Pints n’ Paws Craft Beer Festival Hosted by the West End Trading Co in beautiful and historic Downtown Sanford, Pints N’ Paws raises money for our four legged friends with craft brews, contests, food trucks, and more.    3 More Fun Things: 26th Annual Battle at Narcoossee Mill 7th Annual Uptown Art Expo Epcot International Flower & Garden Festival Stay in the know about what fun things are happening throughout Central Florida at icFlorida.com. - http://www.icflorida.com/

Washington Insider

  • In an interview aired Friday morning by the Fox Business network, President Donald Trump again voiced his public displeasure about actions of the late Sen. John McCain (R-AZ), at one point admonishing TV host Maria Bartiromo for pressing him several times about why he was criticizing someone who is dead, suggesting that the subject wasn't supposed to be part of the exclusive White House interview. 'Now, I could say I have no comment, but that's not me,' the President told Bartiromo, who had just questioned how Mr. Trump could unite the country at the same time he was blasting a dead U.S. Senator. 'You shouldn't have brought it up,' the President told Bartiromo after she asked about McCain. 'Actually, I thought you weren't supposed to bring it up. But that's okay, fake news.' 'No, it's not fake news,' Bartiromo countered, as the President again criticized McCain for giving the Steele Dossier to the FBI some two months after the law enforcement agency had already received the materials alleging ties between Russia and officials tied to the Trump campaign. 'He handed something to the FBI on me - he knew it was a fake,' Mr. Trump said. “I’m not a fan,” the President said. Bartiromo later said there had been no conditions at all on the subject of Sen. McCain. “My thanks to President Trump for joining us and for the record, there were no conditions or stipulations agreed to ahead of that interview,” Bartiromo said on Friday. During the interview, Bartiromo questioned why the President would continue to tangle with McCain, saying, “Mr. President, he's dead. He can't punch back. I know you punch back, but he's dead.” 'It was a fraud,' Mr. Trump said of the Steele Dossier, as he said McCain had given the documents to 'the FBI for very evil purposes.' In Congress, most Republicans remained fairly silent about the President's public blasts at McCain, with a few lone voices urging him to move on to something else, like freshmen Rep. Dan Crenshaw (R-TX). In the Fox Business interview, President Trump again complained about the Mueller probe into possible ties between the Trump campaign and Russian interference in the 2016 elections. As the President left the White House on Friday morning for his Florida retreat, Mr. Trump said he knew nothing about the status of the Mueller investigation. “I have no idea about the Mueller report,” Mr. Trump said as he walked up to reporters gathered on the South Lawn on the White House. The President also criticized Democrats in Congress over their investigations into various White House and Trump Administration matters, saying it was just an extension of the Mueller probe. 'This is a continuation of the same witch hunt,' Mr. Trump said, in a familiar refrain.