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I do not know what it is but reducing taxes is a plus. Especially corporations.
Then reduce expenses that do not result in positive results.
Support for the needy should not result in them having a higher standard of living than a tax payer earning the same amount of money and then having to pay taxes that go to the needy.
I was wondering if anyone saw any changes in the plan related to 401K conversions. With the lower tax rates, I could see some effort to curb them by instituting a flat tax rate for conversions or capping them somehow.
I was wondering if anyone saw any changes in the plan related to 401K conversions. With the lower tax rates, I could see some effort to curb them by instituting a flat tax rate for conversions or capping them somehow.
Why would/should they? Rates over a fifty-sixty year build up/spend down cycle are constantly changing.
Edit: there is another thread in Economics but I am hoping fro relevance fro retirees who have more than minimum income.
I don't think there is enough info to make a calculation for me. Seems with a higher (double) standard deduction my AGI (adjusted gross income will be lower) but what are the income break points for the new 12k and 25k brackets? My plan for 2 yrs from now when I retire was to keep my pension + IRA withdrawal as much under the 25k bracket as possible.
Whatever they do a simpler tax code will be welcome and hopefully "offsets" /spending cuts and a little effort to reduce the National Debt. I'm skeptical about that...
I don't think there is enough info to make a calculation for me. Seems with a higher (double) standard deduction my AGI (adjusted gross income will be lower) but what are the income break points for the new 12k and 25k brackets? My plan for 2 yrs from now when I retire was to keep my pension + IRA withdrawal as much under the 25k bracket as possible.
Whatever they do a simpler tax code will be welcome and hopefully "offsets" /spending cuts and a little effort to reduce the National Debt. I'm skeptical about that...
You may be confusing AGI with Taxable Income. AGI is the bottom of the first page of the Form 1040. The second page is where you deduct for the standard or itemized deductions and the personal exemption. Reducing AGI would be nice as it is the basis for ACA subsidies, when the higher Medicare Part B premiums kick in, etc. But the only way I can figure out to reduce AGI, without taxable investments and a Roth IRA for income, is to contribute to a Health Savings Account (HSA).
I may be paying $500-1000 more in taxes under the Trump Tax Plan. My current deductions for state tax and property tax and the personal exemption are a few thousand more than the new proposed standard deduction for single filers. But I don't know enough about the specifics of the plan to be sure. If the HSA contribution limit goes up, as was part of the initial plan, I could come out ahead but that contribution will end when I turn 65.
Removing the State Tax Deduction is OK with me. My State Tax Bill was so small.....it's a non-issue here.
I was hoping they would remove the Tax on Social Security altogether (Thanks Reagan). If the stated goal is to simplify the Tax Code, then get rid of that nonsensical 50% or 85% or whatever. I already paid Income Tax on those Earnings -- you're Taxing me again !!
Who is more likely to spend the extra money from a reduced Tax Bill ?? A Senior Citizen ? Or Joe Sixpack ?
Last edited by FiveLoaves; 09-28-2017 at 01:00 PM..
By many calculations the middle class will lose exemptions, itemize deductions, and the net effect is they will pay more in taxes and have less to spend. The corporation will be cash rich with lower taxes but what are they going to do with the loss sales, which is revenue?
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