Federal Income Tax Reform Proposal - Effect on Californians (live, vs)

[CaliRestoration]

Originally Posted by expatCA

Doesn't seem to be hurting the taxes collected at all. They are going up, so the Govt has more money.


https://www.reuters.com/article/us-u...-idUSKBN1JF2Y2


https://www.wsj.com/articles/tax-rev...her-1533941919


Looks like it is helping revenue not hurting it.

Tax revenue also went up after Reagan's tax reforms, Kennedy's reforms, and even Coolidge.

[Mike930]

I’ve always had a refund from federal until this year. My net pay increased to the point I changed my deductions so I wouldn’t have to pay. I still have to pay a small amount. Taking into consideration the increased take home pay, I had paid less taxes, but by a very small amount.

It certainly wasn’t an awesome tax break.

[18Montclair]

I never get a refund anyway. I just pay pay pay

[CA4Now]

Many of the 10.9 million filers who will be affected by the cap are in California, New York and other states that tend to vote Democratic. They have higher state income taxes, property values and real estate taxes, all of which fall under the SALT limit.

“This report confirms what many of us always knew to be true: The Republican tax law’s cap on the state and local tax deduction is rattling middle-class families,” said Rep. Judy Chu (D-Monterey Park), lead sponsor of legislation to remove the limit.

Many people in her San Gabriel Valley district are among the affected taxpayers, she said.

Limit on state and local tax deduction will hit 11 million taxpayers, Treasury finds:
https://www.latimes.com/business/la-...227-story.html

[JJonesIII]

First off, all you should be looking at is how much in taxes you paid (these comments about how much of a refund you get are irrelevant...that's more dependent on withholdings). Anyone living in a high COL area with a home will pretty much be screwed (and that was quite apparent when it was passed for anyone that did a rough draft of their taxes). Mine showed I would pay roughly $1200 more. However, most of the country does not have the type of incomes coming in like the Metropolitan areas of CA or NY. Many of those families earning in that $75k range and below will do better (basically considered Middle Class in other areas of the country). That was also quite apparent. We need to keep in mind that there are over 320 million people in this country. Unfortunately, the tax code does not take into account that a Middle Class family earning $150k in San Francisco is not rich and is really no better off than a Middle Class family earning half that in many areas of the country.

[expatCA]

Originally Posted by JJonesIII

First off, all you should be looking at is how much in taxes you paid (these comments about how much of a refund you get are irrelevant...that's more dependent on withholdings). Anyone living in a high COL area with a home will pretty much be screwed (and that was quite apparent when it was passed for anyone that did a rough draft of their taxes). Mine showed I would pay roughly $1200 more. However, most of the country does not have the type of incomes coming in like the Metropolitan areas of CA or NY. Many of those families earning in that $75k range and below will do better. That was also quite apparent. We need to keep in mind that there are over 320 million people in this country.

Strange that people do not mind paying more and more to live in an Expensive area like SoCal, the Bay area, etc, but they object to paying more because they live in an expensive area, when they can make it political.

[JJonesIII]

Originally Posted by expatCA

Strange that people do not mind paying more and more to live in an Expensive area like SoCal, the Bay area, etc, but they object to paying more because they live in an expensive area, when they can make it political.

True Dat

[marcopolo666]

Why, why, why does this topic keep getting 'poked' to the top, when it is (or should be) dead and buried by now, since it's a done deal?

Oh, yeah - people love hearing themselves talk when saying really nothing new!

(And yes, this comment is rather tongue in check - otherwise, it would be ironic!)

[CA4Now]

Originally Posted by expatCA

Strange that people do not mind paying more and more to live in an Expensive area like SoCal, the Bay area, etc, but they object to paying more because they live in an expensive area, when they can make it political.

Most people I know have lived in California for decades and don't consider the fact that they could live more inexpensively elsewhere; they haven't ever done it.

And I don't see anything political about examples like this, from the article: "Bill Forsythe, 57, a hospital radiology technologist in San Jose, said he and his wife were unable to deduct all the $14,000 in property taxes on their home and their state income taxes from their federal return this year. That helped lead to a $9,000 combined state and federal tax bill this year after they had received a $6,000 refund last year."

[JJonesIII]

Originally Posted by CA4Now

Most people I know have lived in California for decades and don't consider the fact that they could live more inexpensively elsewhere; they haven't ever done it.

And I don't see anything political about examples like this, from the article: "Bill Forsythe, 57, a hospital radiology technologist in San Jose, said he and his wife were unable to deduct all the $14,000 in property taxes on their home and their state income taxes from their federal return this year. That helped lead to a $9,000 combined state and federal tax bill this year after they had received a $6,000 refund last year."

Nothing wrong at all with that statement, as long as it's understood that the vast majority of the Middle Class across the nation will pay less in taxes. The article is also misleading by not explaining how much in taxes they paid vs how much of a refund they got the previous year (that's irrelevant without knowing the withholdings).

The tax law has never been fair to the Middle Class in high COL areas (stated previously) because there is no adjustment for that. That was more than apparent when the bill was passed limiting SALT and mortgage interest deductions. This shouldn't have been a surprise to Bill Forsythe. It certainly wasn't a surprise to me. I knew immediately what the impact would be when I saw what was on the table and that I was going to have to pay more. Am I happy about it? Of course not. It also shouldn't be a surprise that the rich benefit since they pay more to start. None of this stuff is rocket science. It's just simple math.

I think it's a fair comment by expat since you didn't hear the whining when it came to things like the current gas tax (quite the contrary).