the new tax plan - explain something to me (student loan, income)

[jdacunha]

Standard deduction doubles and tax brackets are changed. This is a big win for the middle class. Isn't that what the democratic party fights for? Too much double speak coming from them.

You notice how the liberal news didn't really attack this last night? They went back to Russia Russia Russia.

[Metsfan53]

Originally Posted by jdacunha

Standard deduction doubles and tax brackets are changed. This is a big win for the middle class. Isn't that what the democratic party fights for? Too much double speak coming from them.

You notice how the liberal news didn't really attack this last night? They went back to Russia Russia Russia.

except you lost SALT, personal exemptions, education/tuition credit, employee paid expenses, medical expenses, property tax cap at 10K.


And again - it's not double of standard deduction when you lose the personal exemption.

[AnesthesiaMD]

Originally Posted by Crashj007

Did you get straightened out on that? The max mortgage principal is $500,000. They don't limit the interest you pay. Existing mortgages are grandfathered in. High end houses may take a hit as the effective date approaches.

I think he understood it just fine. He was making a sarcastic response to another poster who was confused.

[jdacunha]

Originally Posted by Metsfan53

except you lost SALT, personal exemptions, education/tuition credit, employee paid expenses, medical expenses, property tax cap at 10K.


And again - it's not double of standard deduction when you lose the personal exemption.

How many people really deduct medical expenses? Doesn't it have to exceed 10% of AGI?

Why should the federal government give you a deduction because you chose to buy a house with $20k in taxes? So the state gets to make the $$$ while the IRS doesn't? Is that fair for middle America? No

[Metsfan53]

Originally Posted by jdacunha

How many people really deduct medical expenses? Doesn't it have to exceed 10% of AGI?

Why should the federal government give you a deduction because you chose to buy a house with $20k in taxes? So the state gets to make the $$$ while the IRS doesn't? Is that fair for middle America? No

double taxation maybe? States with low taxes feed at the federal government trough. NJ gets back less then it contributes to the fed gov. while stats like MS, LA, KY fund their states through these extra tax dollars. Perhaps when they even that out we can have a discussion on property taxes. Besides, isn't paying the state for services provided better- don't states do it better? And I'm sure you're all for keeping estate tax right since you have no issue with double taxation too?

[vfrex]

Originally Posted by jdacunha

How many people really deduct medical expenses? Doesn't it have to exceed 10% of AGI?

Why should the federal government give you a deduction because you chose to buy a house with $20k in taxes? So the state gets to make the $$$ while the IRS doesn't? Is that fair for middle America? No

I can't tell if you're serious, but the balance of payments is so negatively skewed, NJ residents will pay $1 trillion more to the federal government over my life than we get back in services. Take away SALT and that will probably be $1.5 - $2 trillion.

Even ignoring balance of payments, if you look at what drives cost of living in NJ the most, it is home values and rent. That logically stems from being the most dense state in the country. If you adjust NJ's median income for the higher cost of living, NJ is only slightly higher income than the country as a whole. NJ pays 50% more in federal taxes per person than the country as a whole.

The federal tax burden already falls disproportionately on high cost of living areas, and eliminating SALT will exacerbate that imbalance.

[jaymoney]

Originally Posted by Metsfan53

can't believe we actually agree on a political/economic issue here. Gives me hope that this is dead in the water....

Or it's a sign of end times...

[Crashj007]

Originally Posted by Metsfan53

except you lost SALT, personal exemptions, education/tuition credit, employee paid expenses, medical expenses, property tax cap at 10K.
And again - it's not double of standard deduction when you lose the personal exemption.

To my way of thinking we do not lose these deductions, we just don't have to figure them out. They are incorporated in the new standard along with the personal.
The question is are the new standards high enough for most of us to come out the same or better? We think the very rich and corporations make out.
I'll wait for the CBO report.

[Crashj007]

Originally Posted by AnesthesiaMD

I think he understood it just fine. He was making a sarcastic response to another poster who was confused.

Sometimes I need emoticons myself.

[AnesthesiaMD]

Originally Posted by Crashj007

Sometimes I need emoticons myself.

Haha. Or sometimes you just need to know the style of the person posting.