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I haven't studied it, but my biggest complaints are:
1. It actually HURT the Federal deficit and debt.....that is, we aren't collecting anywhere near enough to balance the budget.....and, no, I don't want to hear talking points about cutting spending. It's fine to do so, but we KNOW what the current bills are.
2. It gave most of the debt/deficit money to big corporations...who honestly said they didn't need it. Ask Warren Buffet. Maybe the money should have gone to a Trump promise - better health care cheaper for ALL???
3. The bigger break(s) went to Trump types - Real Estate Investors. I don't see why they need to be singled out for the biggest breaks while everyone else gets zilch.
I'm all for the simplification. Why not add a VAT and balance the budget and be done with it? Increase the corporate rate back to where it was, do away with RE loopholes for Trump himself, give Medicare-for-all, and keep the basic forms simple.
The problem with a "partial good idea" is that it ends up doing bad things. We could redesign one wing of an airliner...and, guess what? It wouldn't fly right unless both wings (both sides of the equation) balanced.
NOT collecting enough Fed. Tax money is a stupid idea...only worthy of the King of Debt. To quote the right "hey, we all balance our home and business budgets"....so why is anyone happy about NOT doing so?
1. We should not continue to reward politicians with increased tax dollars when they are incapable of managing our money wisely. Spending needs to be reigned in, period. The Federal government in particular needs to realize it's Constitutional priorities.
2. Corporations don't pay taxes. Consumers pay taxes. Levy additional taxes on corporations and the consumer pays it. Now if you want to discuss the obscene executive salaries born from corporate abuse and political influence, let's go. We may find common ground.
The Federal government should not administer healthcare, however, addressing corporate abuses could play a significant role in reducing healthcare cost. The GOP at least took a baby step in regards to nonprofit healthcare executive pay abuses with this: https://www.healthleadersmedia.com/f...onprofit-execs
3. You will have to provide specifics. Most of the benefits I'm aware are for sole proprietors, LLCs and S-corporations with limitations kicking in around $150k for single filers, $300K for married. If you have more information, I'll be happy to read it.
But a Texas or Florida resident could potentially own a $400k home with double the AGI and still not exceed the cap because Texas and Florida does not have an income tax.
Even if they don't exceed the cap, they lose the $8100 personal exemption because it was eliminated. This $8100 used to be a deduction along with property taxes and mortgage interest for those that itemized. Now that couple can claim their mortgage interest and property taxes, but not the $8100 personal exemption. Ouch. In the end either their itemized deduction is much smaller or they choose the standard deduction and don't get any deduction for their mortgage interest or taxes. Wonder if this will cause more people to rent versus own.
Maybe open an IRA, and max out any 401k, or 403b, etc at work? Plus if you have a high deductible health plan, you can open an health savings plan pre-tax. That alone can bring down your taxable income a lot. Better it goes into a 401k, etc for your retirement use, than paying it out to the government now.
Indeed. For next year that will be the case. My dh and I will both max out the 401ks. I'm thinking of looking at other investment opportunities as well. I'll have to figure that out. I really have no idea (land, stock, etc?).
2018 is the issue. I need to lower it by 20kish, maybe more.
Quote:
Originally Posted by InformedConsent
Nope. Other taxpayers are paying for you when you take a much larger than normal SALT deduction. Pay for the high state and local taxes you voted for, yourself.
How is that, exactly? Who is paying what for me? My federal tax is close to the equivalent of the average gross salary in the US. We don't qualify for childcare expenses, student loan deductions, or any of that stuff. I don't mind paying my fair share, to be clear, but I don't see what this large SALT deduction is. Do you have a $$ figure in mind or a percentage? Because I know for sure that I'm paying way more money in taxes than the average blue collar and my tax rate is higher than the uber wealthy. That's the middle class.
Quote:
Originally Posted by craigiri
Oh, we (speaking for myself in MA) don't mind paying the state and local taxes...we get stuff for that (RomneyCare, snow plowing, decent schools, etc.)......
And most of us don't mind paying for the red states either - lord knows they need it. Only 13 states pay their way with the Federal Government:
"According to a report from the New York State Comptroller's Office, 13 states were net payers in fiscal 2016. New Jersey tops the list of net payers at a per capita deficit of $3,076, receiving just 76 cents for every dollar paid in federal taxes. The Garden State is followed in order of per capita deficit by North Dakota, Connecticut, New York, Wyoming, Massachusetts, Minnesota, Illinois, New Hampshire, Nebraska, South Dakota, California, and Texas."
Wouldn't high state and local property taxes mean that you live in a utopia with great public schools, fine roads and wonderful parks and other government services?
Now, I can already hear the squeeling starting, but imagine a state that increases state taxes and make college tuition free if in-state for at least 10 years and provides state healthcare with a small deductible.
Without a cap, the people getting the benefits from those states policies funded by higher taxes are making everyone else help pay for it to some extent.
That's not what is happening, tho, right? I'm not sure. With that said, it's not utopia, but I'm not complaining. It's not as if I would trade places with any of the red staters in this thread. If you're highly educated, have a great job, family, home, etc damn. What more can a person and family ask for? That's super blessings. For clarity, aren't schools, roads, services etc largely paid with state taxes? Without the hypothetical noted above, of course.
What I'm also thinking about is how much of the tax reform is really bullocks anyway as far as middle class earners go (note earning). Sure, I'm paying a few K more in taxes. I also got a few K more in my bonus this year. Even tho Trump talks his game on drug prices, all he's done as far as I understand it is boost pharma stocks. That may be trickling down. It seems to be from my perspective.
And still! it's a hard pill to swallow. Nobody wants to pay more in taxes. So, taxing the middle class will trickle down... to less spending. Housekeepers, nannies, landscapers, restaurants...service people. And we are a nation of services, right? Intuitively it doesn't seem healthy to our well being as a nation.
Most of the people getting screwed are in states that didn't vote for him. So if he loses NY by 20% more than he did, and loses the popular vote by 8 million instead of 3 million like he did..he can still win.
This was a calculated F-you to blue states, and tough luck to you if you live there and supported him.
excellent observation:
I am a retired conservative home owner living in New York.
I worked my fingers to the bone saving to buy and finally owning
my home outright the old fashioned way unlike these left wing flippers
relying on leverage to purchase and the equity of inflated prices
to dump and itemize for profit . Sorry........Game over.........................
New York Realty returning to those with invested and timely sweat equity.
The turtle always beats the rabbit..............
excellent observation:
I am a retired conservative home owner living in New York.
I worked my fingers to the bone saving to buy and finally owning
my home outright the old fashioned way unlike these left wing flippers
relying on leverage to purchase and the equity of inflated prices
to dump and itemize for profit . Sorry........Game over.........................
New York Realty returning to those with invested and timely sweat equity.
The turtle always beats the rabbit..............
Each person is different. But the government giving mixed messages over many decades is not the sign of decent planning.
I never "played the tax game" either - we own our houses, etc.
However, who can doubt that society in general, corporations, banks and the government enticed people to play games? That was the whole point of the run-up to the Great Recession.
You may or may not know...that many of the hardest hit areas were very far south of you...such as in Hilton Head area, Ft. Myers, FL (worst in the country, I think) and similar places.
When the government, banks, and "professionals" all collude to deceive the public....you may know better, I may know better, but Joe and Jane Average are watching "Flip this house" and talking to their neighbors who all brag about how much they made buying and selling Real Estate.
We are perhaps lucky we avoided it. My parents always taught me that my home is not an investment - but rather a place to live.
But your experience and mine does not reflect the fact that the majority of Americans largest asset is their home.
I think the new generation coming up now see the game and are not playing it. Many of them rent and others simply won't play the game of keeping up with the Jonese.
excellent observation:
I am a retired conservative home owner living in New York.
I worked my fingers to the bone saving to buy and finally owning
my home outright the old fashioned way unlike these left wing flippers
relying on leverage to purchase and the equity of inflated prices
to dump and itemize for profit . Sorry........Game over.........................
New York Realty returning to those with invested and timely sweat equity.
The turtle always beats the rabbit..............
Astute and ironic at the same time given who our president is right now.
but Joe and Jane Average are watching "Flip this house" and talking to their neighbors who all brag about how much they made buying and selling Real Estate.
This is where the problem lies.
The indoctrinated college leftist chose television over the wisdom of parents.
You are blessed you followed your parents advice...........
This is where the problem lies.
The indoctrinated college leftist chose television over the wisdom of parents.
You are blessed you followed your parents advice...........
Ha! I always used my parents as examples of what not to do. It's worked out well so far.
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