What's new
Fantasy Football - Footballguys Forums

Welcome to Our Forums. Once you've registered and logged in, you're primed to talk football, among other topics, with the sharpest and most experienced fantasy players on the internet.

Understanding what’s in the $1.2 trillion infrastructure bill (1 Viewer)

E

ekbeats

Footballguy
The other thread was about the politics of getting the Act passed.  This thread is to help everyone understand exactly what’s in it.  Things have changed so much over the last few days that it’s difficult to find any good articles that summarize what we actually ended up with.

For starters - what did we end up with for the SALT cap?  Seems like it will go up starting in 2021 which would be huge for us homeowners in the Northeast.

What happened to the plan to juice up IRS enforcement?

Lets keep politics out of this one and just post info that will help everyone understand it better. 

 
ekbeats said:
SALT Cap - Looks like it may have increased from $10,000 to $80,000.  Is that effective for the 2021 tax year?  
Click to expand...
Is this for the "build back better" bill?  Which is the separate bill that will be voted on later this month?

ekbeats said:
I believe the official legislation passed is H.R. 3684: Infrastructure Investment and Jobs Act.  The text of the Act (all 2,700 pages) is spelled out here - https://www.govtrack.us/congress/bills/117/hr3684/text/enr
Click to expand...


Thanks for this...there is definitely a lot to digest in this.  Im sure a ton of pork, but also a ton of things this country has desperately needed.

 
dkp993 said:
As someone who lives in Cali and got crushed by the SALT cap in the Trump plan I’m crossing my fingers.  By I guess I’m confused, as you point out in the OP, as I thought this was part of the reconciliation bill that hasn’t passed yet and not the infrastructure that did.  
Click to expand...
It’s all very confusing.  Even the Media is confused.  I have confidence that if anyone can make sense of this it is the people in this forum.

 
ekbeats said:
SALT Cap - Looks like it may have increased from $10,000 to $80,000.  Is that effective for the 2021 tax year?  
Click to expand...
$72,000

SALT

“This proposal would cost roughly $300 billion through 2025, with roughly $240 (80%) billion going to those making over $200,000 per year.”

“Analysis shows that only 2.5 percent of the benefit of this SALT cap increase would go to those making less than $100,000 pear year.”

ETA it’s also retroactive 😢

 
Last edited by a moderator:
ekbeats said:
It’s all very confusing.  Even the Media is confused.  I have confidence that if anyone can make sense of this it is the people in this forum.
Click to expand...
Thank you for starting this thread. Hopefully we can get some clarity on it.  

 
Rubiobot said:
What exactly is the SALT cap?
Click to expand...
State And Local Tax deductions.  
 

They were not capped prior to the Trump Tax cuts, they now are at 10k.  It part of how the Trump tax cuts pay for themselves. It largely effects area with high property taxes and or State taxes.  

 
Last edited by a moderator:
Rubiobot said:
What exactly is the SALT cap?
Click to expand...
It limits how much state and local taxes you can deduct on your federal return.  Raising the cap essentially raises the income threshold for those affected.  Obviously it affects taxpayers in higher state and local tax areas such as NY and CA.

 
Shula-holic said:
It limits how much state and local taxes you can deduct on your federal return.  Raising the cap essentially raises the income threshold for those affected.  Obviously it affects taxpayers in higher state and local tax areas such as NY and CA.
Click to expand...
I think it probably cost me an extra $2,000 a year in taxes (I live in CT).  Hopefully they increased the cap but I can't really tell.  It's all so damn confusing.  I don't think the Legislators even understand it all.

 
ekbeats said:
I think it probably cost me an extra $2,000 a year in taxes (I live in CT).  Hopefully they increased the cap but I can't really tell.  It's all so damn confusing.  I don't think the Legislators even understand it all.
Click to expand...
They don't, most are lawyers not accountants.  The lobbyists do though.   I think most legislators do understand it targeted the high tax states and I'm sure it was by no accident under the Trump tax plan.

 
OK so I think Sho was right that the SALT cap increase is NOT part of the Infrastructure Bill passed last night but is proposed under the Build Back Better Act that is still tbd under reconciliation.  The way I understand it is this:

  • The Progressives wanted both the Infrastructure Bill (HR 3684) and the Build Back Better bill (to be done through reconciliation) passed at the same time.  A deal was struck yesterday where Progressives were given assurance (in writing) that the BBB bill would pass in its current state as long as the Congressional Budget Office reviewed it in the next week and found that it wouldn't increase the federal deficit.
  • The SALT cap increase proposed under the latest BBB bill would increase the cap from $10,000 to $80,000 for the next 5 years, including tax year 2021.
  • Even if the BBB bill passes the House, Manchin and the Senate won't necessarily go with all the provisions, and I imagine increasing the SALT cap would be one of his sticking points.
  • All this being said - Go Progressives!!!
This article spells it out pretty well.  If I have misstated anything please feel free to correct me.

 
ekbeats said:
OK so I think Sho was right that the SALT cap increase is NOT part of the Infrastructure Bill passed last night but is proposed under the Build Back Better Act that is still tbd under reconciliation.  The way I understand it is this:

  • The Progressives wanted both the Infrastructure Bill (HR 3684) and the Build Back Better bill (to be done through reconciliation) passed at the same time.  A deal was struck yesterday where Progressives were given assurance (in writing) that the BBB bill would pass in its current state as long as the Congressional Budget Office reviewed it in the next week and found that it wouldn't increase the federal deficit.
  • The SALT cap increase proposed under the latest BBB bill would increase the cap from $10,000 to $80,000 for the next 5 years, including tax year 2021.
  • Even if the BBB bill passes the House, Manchin and the Senate won't necessarily go with all the provisions, and I imagine increasing the SALT cap would be one of his sticking points.
  • All this being said - Go Progressives!!!
This article spells it out pretty well.  If I have misstated anything please feel free to correct me.
Click to expand...
I don't know the specifics but I'm guessing WV state taxes are pretty low so Manchin wouldn't have any real reason to want to raise that cap if it comes down to that.

 
dkp993 said:
State And Local Tax deductions.  
 

They were not capped prior to the Trump Tax cuts, they now are at 10k.  It part of how the Trump tax cuts pay for themselves. It largely effects area with high property taxes and or State taxes.  
Click to expand...
The were capped at $10k in Trump's tax cut to help justify the higher standard deduction and lower tax rates. 

 
dkp993 said:
Yes, and help pay for the cut and punish blue states.  
Click to expand...
They probably should go back and rescore the Trump tax cut bill and include it the difference when they score the BBB bill.

 
Last edited by a moderator:
Phil Elliott said:
They probably should go back and rescore the Trump tax cut bill and include it the difference when they score the BBB bill.
Click to expand...
I tend to agree with this actually.  The cap was a drop in the bucket at the time.  Remember, we were relying on 3-4-5% GDP over many years to be one of the larger contributors for "paying for it" then.  It would be a good exercise to go back and look at this provision to see exactly how much it actually helped and compare it to how much it hurt individuals real time.  We need to do this with more bills honestly.  

 
dkp993 said:
Yes, and help pay for the cut and punish blue states.  
Click to expand...
I agree, but when we hear about loopholes, deductions are really what people mean.  Just like with the home mortgage interest deduction, people want the other guy's loopholes to go away so they can pay their fair share while saving their own "valid deductions".

 
Last edited by a moderator:
jamny said:
Thanks. Good article. :thumbup:  

Is there ever a way to track where this money goes as time goes on? There are a lot of necessary things in the bill and it would be nice to see that it goes to the places it was designed to go to.
Click to expand...


Most of it will go to rich folks such as the Republicans who voted to pass this. 

 
Snotbubbles said:
So blue states are ok with taxing everyone but themselves, when it comes to them, they want tax breaks.  
Click to expand...
Really now sure what or whom your referring too, as I’m not advocating for increased taxes on others, but as you know the blue states in question here also have the highest state taxes. So they are clearly OK with taxing themselves as this didn’t change when the SALT cap went into effect. 

Either way I don’t want to derail this thread with a tax debate. I was simply answering the question to the person who asked what SALT was and why it changed.  

 
Shula-holic said:
I agree, but when we hear about loopholes, deductions are really what people mean.  Just like with the home mortgage interest deduction, people want the other guy's loopholes to go away so they can pay their fair share while saving their own "valid deductions".
Click to expand...
Sure.  No one wants to have their taxes increased. It’s only OK when it’s happening to others.  

 
dkp993 said:
State And Local Tax deductions.  
 

They were not capped prior to the Trump Tax cuts, they now are at 10k.  It part of how the Trump tax cuts pay for themselves. It largely effects area with high property taxes and or State taxes.  
Click to expand...
Trump tax cuts in no way pay for themselves.

 
You must log in or register to reply here.

Similar threads

GordonGekko
The Atlantic: "Democrats Really Are That Dense About Climate Change" (6/23/22 01:00 PST)
Replies
47
Views
1K
Maggot Brain
Maggot Brain
GordonGekko
Do You Believe College Liberals Have Hijacked The Democratic Party? (5/19/22 7:43 PST)
2
Replies
77
Views
2K
BladeRunner
BladeRunner
GordonGekko
Jordan Peterson Explains Why (Radical) Leftists Don't Like Facts (5/23/22 14:24 PST)
2 3 4
Replies
187
Views
4K
Grace Under Pressure
Grace Under Pressure

Users who are viewing this thread

Total: 2 (members: 0, guests: 2)
Top