Amazing! Screwed by the Democrats and about to be screwed by Republicans. Why bother?

[bodyforlife]

Yep, I already knew the implications of Obamacare. I was stupid enough to think the Republicans would take care of it after they were awarded the House, Senate, and Presidency, but nope, apparently they played me for a sucker. And now, it looks like any ability my family had to itemized taxes is going by the waist side with the inability to write off state, local, and possibly property taxes. Not to mention, forcing everyone into after tax 401k saving beyond $2400 so the ability to reduce taxable income is negated. Well, Happy Happy Joy Joy.

WTF?!!!

And here I was thinking the Obama Administration was a clusterfuck. Oh, I can't wait to see how much more we'll be paying in taxes in 2018. And please don't waste my time even commenting in this thread if you don't have a good knowledge of math or taxes (because you are going to be eaten alive with your Red team/Blue team bullshit). This is absolute bullshit!!!

 

[Willie99]

I doubt any tax bill passed by Trump will increase your taxes

As for healthcare, the swamp runs deep and it only takes three Republican Senators to derail attempts to repeal. Liberal Republican women Senators and the poster child for term limits John McCain are voting with the democrats. Rand Paul won't support Obamacare lite, he wants full repeal and essentially no replace

Trump is trying, the democrats remain in lockstop like thoughtless clones are prone to do

Career politicians from both sides have to go, AND Trump is NOT going to increase your taxes

 

[bodyforlife]

I doubt any tax bill passed by Trump will increase your taxes

As for healthcare, the swamp runs deep and it only takes three Republican Senators to derail attempts to repeal. Liberal Republican women Senators and the poster child for term limits John McCain are voting with the democrats. Rand Paul won't support Obamacare lite, he wants full repeal and essentially no replace

Trump is trying, the democrats remain in lockstop like thoughtless clones are prone to do

Career politicians from both sides have to go, AND Trump is NOT going to increase your taxes

Oh come on Willie! If he passes the tax bill with the things being proposed by Republicans, it will ABSOLUTELY increase my family's tax bill. You're the accountant. We live in a very high cost of living area just like you. I would be more than happy to run the numbers with you privately. This isn't even a debate. We're about to get the royal fuck job here. I simply cannot believe this. Damned if you do and damned if you don't.

 

[bodyforlife]

And unless you know of something I haven't read so far, your itemized deductions for a married couples are going to need to exceed $24k or you'll just be taking the standard deduction. And without state, local, and possibly property taxes, most Middle Class people are not going to be able to take the deductions they were taking. In addition, if you were able to sock away $20k+ into a 401k like we were, well now over $18k+ is going to taxable income. And yeah, I know you won't pay that when you retire. Big fucking deal. Your taxable income should be substantially less at that point any way. But by all means, I'm more than willing to hear your explanation on how this new tax plan is not going to increase taxes on families like mine.

 

[Dave007inVegas]

Yep, I already knew the implications of Obamacare. I was stupid enough to think the Republicans would take care of it after they were awarded the House, Senate, and Presidency, but nope, apparently they played me for a sucker. And now, it looks like any ability my family had to itemized taxes is going by the waist side with the inability to write off state, local, and possibly property taxes. Not to mention, forcing everyone into after tax 401k saving beyond $2400 so the ability to reduce taxable income is negated. Well, Happy Happy Joy Joy.

WTF?!!!

And here I was thinking the Obama Administration was a clusterfuck. Oh, I can't wait to see how much more we'll be paying in taxes in 2018. And please don't waste my time even commenting in this thread if you don't have a good knowledge of math or taxes (because you are going to be eaten alive with your Red team/Blue team bullshit). This is absolute bullshit!!!

Holy shit Tim, did you just have an epiphany? popcorn-eatinggif

 

[Willie99]

Can't give a detailed response now, but I will tonight. I can say two things. First, your 401-k deductions are not changing, that's fake news. Second, since the new and lowet tax brackets have not been released, you simply can't calculate where you're going to be.

Trump wants to cut taxes 1.5 trillion dollars, that's the framework, your taxes are not going up, I'll elaborate later

 

[bodyforlife]

Can't give a detailed response now, but I will tonight. I can say two things. First, your 401-k deductions are not changing, that's fake news. Second, since the new and lowet tax brackets have not been released, you simply can't calculate where you're going to be.

Trump wants to cut taxes 1.5 trillion dollars, that's the framework, your taxes are not going up, I'll elaborate later

Fair enough. I'll await your explanation.

 

[THawk+]

I'll believe that when I see it. Trump may want to "cut" taxes but the politicians will find a way to screw us

 

[rolltide]

I realize in the dumbed-down American vernacular that amazing doesn't really mean AMAZING anymore but should someone even slightly surprised that a tax cut won't reach their wallet?

 

[NFLTrends]

Should be written somewhere that a household must at least work 1000 hours a year before they can see any Earned Income Tax Credit for their children.

This would save BILLIONS every year... and 1000 hours a year isnt many at all

 

[Acebb]

Yep, I already knew the implications of Obamacare. I was stupid enough to think the Republicans would take care of it after they were awarded the House, Senate, and Presidency, but nope, apparently they played me for a sucker. And now, it looks like any ability my family had to itemized taxes is going by the waist side with the inability to write off state, local, and possibly property taxes. Not to mention, forcing everyone into after tax 401k saving beyond $2400 so the ability to reduce taxable income is negated. Well, Happy Happy Joy Joy.

The 401k issue is dead per the White House.

Your ability to deduct state, local, and property taxes would be adjusted by cuts in the income tax rates.

 

[bodyforlife]

Holy shit Tim, did you just have an epiphany? popcorn-eatinggif

Not exactly an Epiphany Dave, but was at least hoping to get a breakeven on this stuff. But I'll keep an open mind and listen to Willie's explanation.

 

[Willie99]

The House passed and Trump supported the framework of a bill to cut taxes by 1.5 trillion dollars. Small business owners and the middle class are intended to be the biggest beneficiaries. I'm not sure why some think they'll never benefit from a tax cut, because the last tax cut signed by Bush 43 absolutely gave significant tax relief to the middle class.

Changing the 401-K laws was mentioned by one or more people in the house but it was shot down by leadership. Trump also said the bill will NOT change 401-k's. To do so would be incredibly stupid, since nobody outside of government have pensions anymore, 401-k's are how many Americans save for retirement and changing them would be political suicide. Not happening

The guidelines propose doubling the standard deduction, eliminating some current deductions and lowering the tax rates. At the end of the day, your taxable income may be higher, but your tax burden still reduced because of lower tax rates. It's impossible for anyone to determine where they'll fall, and anybody who tries to tell you something is lying because the details have not been released yet. you can't solve this problem with unknown variables.

They do want to make tax preparation simpler, so that means fewer people will itemize but that doesn't mean their taxes increase. I also expect to see significant relief from the AMT, which really impacts upper middle class families. I also expect tax breaks for families with young children.

I also believe deductions and / or credits for home ownership will probably survive in some fashion. The bill is a work in progress, and there's a lot of opposition from powerful people to elimination those deductions, like everyone involved in real estate, from building to repairing to selling to owning. Such deductions help prop up real estate values, and nobody wants to see that market decline. I think they survive.

PS: I don't believe this will be tax simplification for most, maybe just the lower income individuals. I expect tax breaks for college tuition to remain or increase, I expect they'll be some sort of tax relief for medical insurance and expenses. It's just how Congress rolls, they try to fix modern day issues through the tax code and that's not a bad thing. i don't mind a complicated tax system , I'm just an advocate for lower taxes and fewer regulations and less spending.

Trump also believes, as I do, that tax cuts will spur economic growth, he's just not going to increase middle class taxes. There will be a significant tax cut for the middle class, but it's a work in progress and nobody knows the specifics yet.

As for the deficit, a growing economy cures those ills. We haven't had growth in a decade

 

[bodyforlife]

Although I'll agree on the Bush tax cuts, I was hoping you had more to say on this (can't say any of your post reassured me one bit). This thing will hinge on the tax brackets. And I can't say I want to see the plan passed so we can read it nonsense. I guess we'll see.

 

[Willie99]

well I can't give specifics until the specifics come out

truthfully, I don't usually pay much attention to all the banter until it gets finalized. There's always a ton of shit being thrown around, so I watch from a distance and don't pay much attention to the superficial give and take. It's all meaningless to me, it's political speak

I had to do a little research to respond to you. By that I mean 15 to 20 minutes of reading and seeing what was actually passed already (a generic non specific framework)

 

[Willie99]

When something of substance passes, I have data thrown at me from multiple sources, including my tax software provider who sends updates on a daily basis (including all 50 states)

 

[bodyforlife]

Willie,

On the proposed plan, is the $10k limitation on SALT deductions line items 5 through 9 on Schedule A?

 

[Seymour]

Willie, is anything gonna happen with long term capital gains? i got murdered under Barry going from 15% to 20% plus the 3.8% for Obamacare (did I mention Humana cancelled my plan and i have no insurance) - also, how about short term capital gains

 

[THawk+]

Willie, I read they are changing the brackets and making less of them. You could go up a bracket from where you were when they're were more
and end up in a higher one and lose any tax break benefits...

Any word on this?

 

[Willie99]

Willie,

On the proposed plan, is the $10k limitation on SALT deductions line items 5 through 9 on Schedule A?

the proposed plan limits that deduction to 10K, after initially proposing to eliminate such. I think they either restore the deduction or increase the threshold before the dust settles. As I stated yesterday, lawmakers will not eliminate popular widely used deductions.