Federal Income Tax Reform Proposal - Effect on Californians (cost, wealthiest)

[payutenyodagimas]

High taxes be damned, the rich keep moving to California

https://www.latimes.com/politics/la-...311-story.html

[CA4Now]

"The nonpartisan Congressional Research Service has just published a deep dive into the economic impact of the cuts in their first year. The CRS finds that the cuts have had virtually no effect on wages, haven’t contributed to a surge in investment, and haven’t come close to paying for themselves.

Nor have they delivered a cut to the average taxpayer."

A devastating analysis of the tax cut shows it’s done virtually no economic good:
https://www.latimes.com/business/hil...529-story.html

[CA4Now]

More delayed effects from that big tax break that we were all supposed to get.

Part of the intention behind the 2017 tax reform law was to encourage more companies that have money overseas to invest in the U.S. by lowering the amount of taxes they would have to pay to repatriate the funds. Backers said the new law would help simplify the complex tax code.

But critics said the law didn’t significantly help American workers and mostly benefited corporations and the wealthy.

It removed a provision in the code that for decades allowed actors and other workers to deduct work-related expenses that exceeded 2% of their adjusted gross income (the deduction is set to be restored in the 2026 tax year).

Eliminating miscellaneous itemized deductions has affected all kinds of employees who claim mileage, supplies and other work-related expenses.

https://www.latimes.com/entertainmen...ps-tax-reforms

[JJonesIII]

Hilarious the nonsensical propaganda people will believe when they are trying to steer a narrative. For those that run the numbers, the majority of people (over 90%) that are considered Middle Class in the country received a tax cut in 2018 and will this year also. That group includes to a large extent, those earning between $50k and $85k, and even those in the range above that to $150k. And yeah, if you were the Middle Class in a high COL areas like the metropolitan areas of CA (like myself), you probably didn't do well (No S Sherlock).

The Tax Policy Center center estimates 91 percent of those who earn between $50,000 and $85,000 would receive a tax cut averaging about $900 in 2018. Additionally, 93 percent of Americans who earn between $85,000 and $150,000 would experience a tax cut in 2018, an amount averaging $1,800.

Even the completely biased NY Times admitted it.

https://www.nytimes.com/2019/04/14/b...e-tax-cut.html


The Democrats have falsely been pointing to the expiration of the tax cut in 2025 to make their foolish claims (yep, you can't fix stupid).

"After the law went into effect, Democrats played down those estimates and instead highlighted projections that most Americans’ taxes are set to increase in 2026, after the individual tax cuts in the law are scheduled to expire."


In addition, source like WAPO and NPR tried to redirect the conversation to tax refunds which has nothing to do with tax cuts (anyone with half a brain understands that). The other part of the idiocy is trying to claim that only the rich benefit (which is just dumb). Equally as stupid is the claim that the rich benefited more. Well Duh If you pay the most taxes, obviously if there's a tax cut you will benefit the most (it's not rocket science).

Personally, I don't give a rat's azz about the politics of the matter. The fact of the matter is, with inflation relatively tame, most people in this country did indeed receive a benefit from this tax cut.

The other nice benefit was not having the estate tax reduced to $3.5 million as Clinton intended to do (instead it was increased). It may not relate to a lot of people, but many in those high COL areas very well may have been impacted by this (in all likelihood, this is going to save $275k in taxes for those in my family).

Unfortunately, the bias (mostly Democrats) involves many that simply don't understand the basic math of doing a tax refund (and it's a waste of time to explain it to them so I don't bother anymore). Clearly the more important question is, how much more money was put in your pocket when the Democrats were in charge?

[CA4Now]

Originally Posted by JJonesIII

Hilarious the nonsensical propaganda people will believe when they are trying to steer a narrative.

Yeah. Hilarious.

A Year After the Middle Class Tax Cut, the Rich Are Winning:
https://www.bloomberg.com/graphics/2...-consequences/

Californians benefit the least from Trump’s 2017 tax cuts, new report finds:
https://www.sacbee.com/news/politics...229585994.html

‘The federal government really jacked us’: How Trump’s tax cuts are working out for Californians:
https://www.desertsun.com/story/news...ia/3436865002/

President Trump's Tax Cuts Punish California Families:
https://www.feinstein.senate.gov/pub...9-C7537B54E33D

[JJonesIII]

Hilarious. The links actually confirm what I just said.

Like I said, no sense in wasting any time on it. High COL areas got screwed (Californians in the major metropolitan areas) and everyone else did just fine (which is over 90% of the Middle Class). Democrats love to play the shell game, constantly taking from the Middle Class to give to the poor. I hardly think the majority of the Middle Class is going to feel guilty being able to actually keep some of their money (what a novel concept). Not to mention being at full employment levels in most areas around the country.

Clearly the more important question is, how much more money was put in your pocket when the Democrats were in charge? This needs to be hung over their necks like an Albatross for the next year because the majority of the Middle Class are going to want to hear their answer to this. In the meantime, I seriously doubt CA is going to throw any votes in the direction of the opposition any time soon, so why the hell should they care what the Middle Class in CA thinks about it (those over the $150k range)? Yeah, they're going to show them and vote Democratic the next time around, LOL!

[ClydeAJones]

Originally Posted by JJonesIII

Hilarious. The links actually confirm what I just said.

I was thinking the same thing. So let's see, when you pay more, and we have a tax cut, you actually get more back?!

What an amazing concept

[2sleepy]

Originally Posted by JJonesIII

Hilarious. The links actually confirm what I just said.

Like I said, no sense in wasting any time on it. High COL areas got screwed (Californians in the major metropolitan areas) and everyone else did just fine (which is over 90% of the Middle Class). Democrats love to play the shell game, constantly taking from the Middle Class to give to the poor. I hardly think the majority of the Middle Class is going to feel guilty being able to actually keep some of their money (what a novel concept). Not to mention being at full employment levels in most areas around the country.

Clearly the more important question is, how much more money was put in your pocket when the Democrats were in charge? This needs to be hung over their necks like an Albatross for the next year because the majority of the Middle Class are going to want to hear their answer to this. In the meantime, I seriously doubt CA is going to throw any votes in the direction of the opposition any time soon, so why the hell should they care what the Middle Class in CA thinks about it (those over the $150k range)? Yeah, they're going to show them and vote Democratic the next time around, LOL!

You're wrong taxpayers "everywhere else" did not do just fine. I don't live in an expensive part of California but changes in the tax law forced us to use the standard deduction rather than itemize. The net cost to us was around $2500 and the same thing happened to a number of our friends. And it's laughable for you to tout the wonders of the tax plan by stating that middle income tax payers got $900 back given because we are now stuck with a huge deficit CBO projected that the tax cut will add $1.9 trillion to deficits over 10 years, even after accounting for any growth effects. ... The deficit grew 17 percent last year and is projected to grow another 15 percent this year even as the economy grew faster. Who do you think is going to pay for it? (hint: it won't be billionaires or wealthy corporations)

[RationalExpectations]

I'm permanently in the top marginal income tax bracket. My income taxes went up quite a bit. They are somewhat simpler.

[RationalExpectations]

Originally Posted by 2sleepy

... changes in the tax law forced us to use the standard deduction rather than itemize.

Soooo... you're complaining that (a) your tax preparation is simpler, and (b) loopholes you exploited were effectively closed for you?