City-Data Forum Effect of Trump Tax plan on Retirees. (coverage, payment, kids)
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09-30-2017, 10:00 AM
 210 posts, read 151,082 times Reputation: 628

Quote:
 Originally Posted by LookingatFL Hi AnnaLee2, In my calculation for the savings, I used the 12% bracket under President Trump's proposed plan rather than the 10% bracket under current tax law.

I used the top of the current 10% because the brackets are not set in the most recent proposal. I've seen people diss calculations made on the 2016 Trump proposal basis. If it weren't for the possible distraction caused by using the old Trump brackets, I might have used it. But my numbers have Trump's 1st bracket at \$75,000 in a bracket of \$75,300.
https://www.cnbc.com/2016/12/08/char...ffect-you.html

The top of this bracket this year is \$75,900. I don't know if you had more recent numbers but, ok, I'll take a data point at \$75,000 off this chart and use this year's brackets. The more money brought in from the 15% bracket the more the 12% helps. I didn't calculate the \$75,000 + \$23,300 income point but it should be a net positive since it is broader than the 10% bracket. I'll do it quickly right now. Beware quick errors.

Current 10% bracket= up to \$18,650
Current 15% bracket = \$18,650-\$75,900
The top of the proposed 12% would be \$75,000+\$23,300=\$98,300 income
Current Tax = .10 * \$18,650 + .15 * (\$75,000-18,650) = 10317.5
Current Net = \$98,300 - 10317.5 = \$87,982.5
Proposed Tax = .12 * (\$98,300 - \$24000) = \$8,916
Net = \$98,300 - \$8,916 = \$89,384
So if the lower two brackets were combined the top of the resulting bracket would gain:
\$89,384 - \$87,982.5 = \$1,400 gain under proposal

I don't know how many retirees have a \$98,300 income or more per year but, yes, it goes negative then, in current 15% territory it starts back positive again.

09-30-2017, 10:07 AM
 Location: Charleston, SC 1,362 posts, read 768,419 times Reputation: 2428
There was an early attempt at an online calculator, but in their haste....they got the Personal Exemption removal thing wrong. Could this interactive calculator be useful in any way --

https://www.money-zine.com/calculato...an-calculator/

How would one work around the obvious error ??
Is there another online calculator ??

09-30-2017, 10:12 AM
 210 posts, read 151,082 times Reputation: 628
Quote:
 Originally Posted by FiveLoaves Is there another online calculator ??

It could be that the details are too vague to entice many to create a calculator.

09-30-2017, 11:31 AM
 3,140 posts, read 1,729,240 times Reputation: 3517
Quote:
 Originally Posted by infocyde I like Trump, and I support Trump. But I have to say this. I was hoping for more. Much more. A year isn't out, so my hopes are not dashed, but this tax plan seems like it could be so much more. Maybe with the current political climate this is all that could be accomplished. Even with this patch there is a high probability the deep state will nerf it. A shame.
More what? More tax cuts for businesses and corporations matched by decrease in deductions and exemptions for the the not so rich and the poor?

As retirees our taxes will go up.

09-30-2017, 11:34 AM
 3,140 posts, read 1,729,240 times Reputation: 3517
Quote:
 Originally Posted by Tall Traveler Okay they're doubling the standard deduction which is good for us and lowering the rates are as well.
But they are also taking away deductions of state and property tax and personal exemptions. as retirees we will pay more taxes, not so great for us.

09-30-2017, 11:38 AM
 3,140 posts, read 1,729,240 times Reputation: 3517
Quote:
 Originally Posted by LookingatFL In this scenario President Trump's \$24,000 Standard Deduction is making \$3,350 more income taxable. Which means that in the 12% tax bracket they now must pay an additional \$402 and in the 25% tax bracket they are paying an additional \$838. In effect, by getting rid of the personal exemptions larger families will suffer tax consequences. I wonder if population control might be part of the thinking behind this.
Populations control for the poor and middle class. and they have to pay for their own birth control and abortions.

09-30-2017, 12:29 PM
 Location: Proxima Centauri 4,825 posts, read 1,991,670 times Reputation: 5269
Quote:
 Originally Posted by TuborgP Ummm welfare recipients or others on Medicaid or expanded Medicaid pay how much annually? Pay how much per doctors visit? Have how much of a deductible? Subsidized housing cost ( if you get in) suburban areas v normal cost etc?
In truth, what would you rather be? poor and completely dependent or sitting in a comfortable room responding to my posts?

09-30-2017, 12:46 PM
 6,412 posts, read 3,359,564 times Reputation: 6606
We will be hurt by not writing off state and property tax and also some deductions.
We are in a high tax bracket so will be penalized some, but will be very supportive of this
If it actually helps the middle class and working poor and creates more jobs with higher wages.

We will see....

09-30-2017, 01:52 PM
 Location: Washington State 18,564 posts, read 9,599,486 times Reputation: 15811
Quote:
 Originally Posted by cb2008 But they are also taking away deductions of state and property tax and personal exemptions. as retirees we will pay more taxes, not so great for us.
For those in states like NY, Conn, NJ, Illi that have high state income tax and property taxes, you will probably pay more but those of us in reasonably taxed states will pay less...which I think is fair because why should those in low tax states have to subsidize those in high tax states.

09-30-2017, 04:26 PM
 8,204 posts, read 11,921,160 times Reputation: 18019
Quote:
 Originally Posted by Tall Traveler For those in states like NY, Conn, NJ, Illi that have high state income tax and property taxes, you will probably pay more but those of us in reasonably taxed states will pay less...which I think is fair because why should those in low tax states have to subsidize those in high tax states.
Ironically, you actually have this completely backwards. Study after study has shown that people in high-tax states are subsidizing the people in low-tax states. It is the residents of low-tax states that receive a disproportionately larger share of federal benefits than their counterparts in high-tax states. For every dollar that residents in most low-tax states pay in federal income tax, the state receives in excess of one dollar in benefits. It is the opposite for residents of most high-tax states.
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