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Aside from the trolls (that I won't be wasting my time on), for those that are in high COL areas, based on the proposal yesterday, it is time to grab the ankles because you're about to be screwed.
So from what I've read, the $10k limitation is simply on real estate taxes (line 6 of Schedule A). Line 5 is completely eliminated.
I also noticed that they eliminated the student loan interest deduction (line 33 of the 1040)
I have not seen anything on the $3000 limitation on capital losses (hopefully they are keeping that in place)
In addition, they are eliminating the personal exemption.
Realizing this is just a proposal and there can be changes, I just ran the numbers from last year's return and my family will indeed pay more (approximately $1200). Admittedly, we're getting off easy compared to many people that purchased their homes much later than us. The hit to them will be more substantial, as many of them do exceed the $10k limitation on property tax (their itemized deductions are much more than ours). For some, the $24k standard deduction for a married couple might sound great, but it's really more like $16k because you don't get the personal exemption.
I'll let the dust settle and hope this isn't the final version. But based on their proposal, I'll stand by my original post. The Middle Class in high COL areas are indeed going to be screwed by this plan (and unfortunately, most people don't realize what it takes to live in areas like these...only looking at things through the optics of their lower cost area). And an $80k family income ain't gonna do it.
If you're a Conservative in a high COL area, you've just taken it twice. Once with Obamacare and now your own party is screwing you more on tax reform.
There is one flaw in your post and that is this just affects folks in high COL areas. If you file married joint and you make upwards of 150k, with two or more kids you are screwed. Cause they've eliminated SALT and personal exemptions. I live in the Midwest and I'm getting hosed too.
There is one flaw in your post and that is this just affects folks in high COL areas. If you file married joint and you make upwards of 150k, with two or more kids you are screwed. Cause they've eliminated SALT and personal exemptions. I live in the Midwest and I'm getting hosed too.
It doesn't even need to be that high. We were at $120k last year.
Why would you bother voting for either political party?
Yep, I already knew the implications of Obamacare and how it was going to screw over Middle Class families that weren't subsidized. 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 savings 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 clusterfk. 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 BS). This is absolute BS!!!
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 in High COL areas 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. BFD. Your taxable income should be substantially less at that point any way. But by all means, I'm more than willing to hear any explanations on how this new tax plan is not going to increase taxes on families like mine.
Just because your state chooses to put a boot on your throat, that doesn't mean you get a break from the boot that is placed on all the states equally, by the feds.
If those states get a break, so should the states that do not tax their people.
Just because your state chooses to put a boot on your throat, that doesn't mean you get a break from the boot that is placed on all the states equally, by the feds.
If those states get a break, so should the states that do not tax their people.
Precisely.
Californians better be ringing their tax collectors offices and demanding an audit as to why they're taxed so high.
Maybe they'll see the light. Doubtful. In the mean time. Blast Trump and condemn him and his tax plan. But don't you dare blast the state for taxing as it does...
Aside from the trolls (that I won't be wasting my time on), for those that are in high COL areas, based on the proposal yesterday, it is time to grab the ankles because you're about to be screwed.
So from what I've read, the $10k limitation is simply on real estate taxes (line 6 of Schedule A). Line 5 is completely eliminated.
I also noticed that they eliminated the student loan interest deduction (line 33 of the 1040)
I have not seen anything on the $3000 limitation on capital losses (hopefully they are keeping that in place)
In addition, they are eliminating the personal exemption.
Realizing this is just a proposal and there can be changes, I just ran the numbers from last year's return and my family will indeed pay more (approximately $1200). Admittedly, we're getting off easy compared to many people that purchased their homes much later than us. The hit to them will be more substantial, as many of them do exceed the $10k limitation on property tax (their itemized deductions are much more than ours). For some, the $24k standard deduction for a married couple might sound great, but it's really more like $16k because you don't get the personal exemption.
I'll let the dust settle and hope this isn't the final version. But based on their proposal, I'll stand by my original post. The Middle Class in high COL areas are indeed going to be screwed by this plan (and unfortunately, most people don't realize what it takes to live in areas like these...only looking at things through the optics of their lower cost area). And an $80k family income ain't gonna do it.
If you're a Conservative in a high COL area, you've just taken it twice. Once with Obamacare and now your own party is screwing you more on tax reform.
Didn't you just tell someone off for assuming you are a Republican?
Anyway, it's not just people in high COL areas who are getting screwed with this proposal. It pretty much reeks for anyone who is not a member of the donor class. About all you can do now is let your Representative and Senators know that if they vote for this mess, you will not support them for re-election.
As for all of the "trolls" here who are making you so angry,, this is a political forum. If you want tax advice, please check Economics, sub-forum, Personal Finance.
Didn't you just tell someone off for assuming you are a Republican?
Anyway, it's not just people in high COL areas who are getting screwed with this proposal. It pretty much reeks for anyone who is not a member of the donor class. About all you can do now is let your Representative and Senators know that if they vote for this mess, you will not support them for re-election.
As for all of the "trolls" here who are making you so angry,, this is a political forum. If you want tax advice, please check Economics, sub-forum, Personal Finance.
Uh, yeah. He made an ignorant assumption. Do you have a problem with that. I asked him to prove his assumption.
Ignorance doesn't anger me. I just call them like I see them and then ignore them. If they had anything of value to add to this conversation, they would refute anything I said with numbers and not their Ad Hominem. I never thought much of people who criticize working families just by the fact that they were brought up somewhere and choose to stay in their community. That $100k-$150k family is no different than the $50k-$75k family in many other areas of the country, and yet some here think they should be ridiculed. Priceless!
Uh, yeah. He made an ignorant assumption. Do you have a problem with that. I asked him to prove his assumption.
Ignorance doesn't anger me. I just call them like I see them and then ignore them. If they had anything of value to add to this conversation, they would refute anything I said with numbers and not their Ad Hominem. I never thought much of people who criticize working families just by the fact that they were brought up somewhere and choose to stay in their community. That $100k-$150k family is no different than the $50k-$75k family in many other areas of the country, and yet some here think they should be ridiculed. Priceless!
I agree with you 100% about portion in bold. I have moved many times, but I absolutely understand those who do not wish to, or, due to family ties or other obligations, cannot. It's easy to say, "well, just move," but there are lots of reasons why that may not be an option. It's a particularly harsh thing to say to someone who is stuck in a locale with few or no good job opportunities, and no resources to make such a move. I doubt that is the case for you, but it is for many.
In any case, this tax "reform" package stinks. I am not convinced it will get passed, though, as it seems to have something for everyone, it terms of what to hate. That liberals will not like it is a given. There's not much there to please deficit hawks, either, although some of them may fold. They key group here seems to be Republicans from high COL cities and states, whose constituents will be very angry if they lose the SALT deduction. The deduction for medical expenses is on the table, too, and that's not going to go over well with older voters.
People who don't like this proposed tax package need to speak up, loudly. Those who live in Republican districts need to speak up most loudly of all. This really is your baby, folks.
We didn't make the decision to live in an asinine state like California who never met a new regulation or tax it didn't like and who gives away your tax money to illegals it throws the welcome mat out to and by the bushel load. The rest of the country shouldn't subsidize that tax hellhole and the NY tax hellhole (I know, I used to live there). Get out of there. See how the rest of the country lives. You'd make less money in my state, for example, but you would live better.
Actually its states like yours that are getting subsidized by wealthier, higher tax states. You guys need to get off the federal teet and pay your own way and stop getting subsidized by wealthier states.
TN has the 3rd highest % of people on SNAP and is one of the more subsidized states.
It’s so funny people in these more conservative, low tax states try and act like they are subsidizing higher tax states when in fact it’s the exact OPPOSITE. If they want to get rid of the SALT deduction then start making poor, subsidized hellhole states like TN pay their fair share or reduce federal funding for them.
Ok, so they pay $900 and $90,000. You're splitting hairs. Either way, absurdly high healthcare and education costs are a de-facto tax.
It hasn't gained ground because people would rather pay $1000/month to an insurance company than an extra $500 in taxes for universal healthcare. We are Americans, and we hate taxes even if it would mean saving money overall. We have the most expensive healthcare and education system in the world, but at least we're paying low taxes. Either way, "the man" gets his money.
Its not splitting hairs...plenty of folks don't pay either of those amounts.
Where are you getting these Universal Healthcare numbers?
For instance the study done in VT, where it failed miserably.
From the Boston Globe a few years ago.....
"the state would need to impose new personal income taxes of up to 9.5 percent, on top of current rates that range from 3.55 to 8.95 percent. Businesses would be hit with an 11.5 percent payroll tax, on top of 7.65 percent payroll taxes employer pay for Social Security and Medicare."
How would these folks save money????
They sure as you know what not save time waiting in healthcare lines to get treated- ask a Canadian.
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