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Local Financial Adviser Helps Explain Tax Bill

Now that the GOP tax bill is heading to President Trump's desk, Oregonians need to start getting ready for big changes.

Posted: Dec 20, 2017 6:39 PM
Updated: Dec 20, 2017 6:44 PM

MEDFORD, Ore. -- Now that the GOP tax bill is heading to President Trump's desk, Oregonians need to start getting ready for big changes. 

The final tax bill keeps the seven income tax brackets, but it lowers tax rates on all of them. Those rates will go back to their original numbers in 2026. 

Royal Standley, President and CEO of Oregon Pacific Financial Advisers, said the average, medium-income Oregon family will see tax reductions. 

"The big caveat here is all of the sunsets in 2025, so it's a question of how long will this last for," Standley said. 

Taxpayers used to be able to deduct state and local income tax if they itemized on their tax return. Now there's a cap at $10,000, which includes property taxes. 

Standley said now is the time for Oregonians to meet with a financial adviser to figure out exactly how the bill will affect them. 

"The tax bill that was passed is very complicated and touches a whole lot of planning decisions you've probably made in the past, and each person needs to really sit down with their advisers and set up a new plan," Standley said. 

Medford resident and retired teacher Fred Moore, said parts of the bill, like the 7.5 percent threshold for medical expenses, may be a positive thing, but he doesn't see them lasting forever. 

"That threshold is only lowered for two years, there's absolutely no promise that it's not going to go back up or be entirely eliminated," Moore said. 

The bill decreased the old threshold from 10 percent to 7.5 percent, which means people can deduct expenses that are 7.5 percent or more of their income. 

That is something Congressman Greg Walden said wasn't always going to be the case. 

"Medical exemptions, expenses were removed from the code and we actually came back and doubled down over the next two years and then back to about where it is now going forward," Walden said.

Oregon Coronavirus Cases

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Cases: 155787

Reported Deaths: 2212
CountyCasesDeaths
Multnomah31892529
Washington21265212
Marion18486285
Clackamas13399175
Lane10287127
Jackson8407112
Umatilla766082
Deschutes595659
Yamhill378364
Linn359156
Malheur335158
Polk306942
Klamath279155
Douglas248554
Benton234416
Josephine234452
Jefferson196028
Coos149719
Union128419
Columbia127021
Wasco122126
Lincoln113320
Hood River106929
Morrow104914
Clatsop7756
Crook77518
Baker6597
Curry4296
Tillamook4142
Lake3766
Harney2736
Grant2231
Wallowa1424
Gilliam531
Sherman530
Wheeler221
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Cases: 3573549

Reported Deaths: 52491
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Los Angeles119295421467
Riverside2897733792
San Bernardino2867552940
Orange2614083921
San Diego2606253303
Santa Clara1107551781
Kern103422877
Fresno955481443
Sacramento935281484
Alameda807771242
Ventura77749852
San Joaquin668291126
Contra Costa62720681
Stanislaus56235949
Tulare48013761
Monterey42261328
San Mateo39059515
San Francisco34291422
Santa Barbara32050413
Solano30115164
Merced29147401
Sonoma28193298
Imperial26909635
Kings22082220
Placer19861232
San Luis Obispo19696235
Madera15496214
Santa Cruz14671183
Marin13231197
Yolo12851185
Shasta11017174
Butte10970163
El Dorado9160100
Napa905369
Sutter888097
Yuba577337
San Benito577261
Lassen562419
Tehama508652
Nevada397274
Tuolumne396059
Mendocino381643
Amador346641
Humboldt321033
Lake316441
Glenn223023
Colusa213613
Calaveras191049
Siskiyou176014
Inyo131337
Mono12144
Del Norte10035
Plumas6536
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