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The Trump tax plan announced today would eliminate the estate tax that is a tax on estates worth over $5,400,000 being transferred to an heir. It would also illuminate the Alternative Minimum Tax that force the rich to pay at least some federal tax no matter if they use many deductions. Federal tax rates will also be cut.
To pay for all this Trump has proposed, among other things, an elimination of the federal tax deduction of State and Local taxes from the federal return. As NY and especially NYC have high local and state taxes, we will be picking up the bill, along with other states like California. This will increase federal taxes for all of us to pay for tax cuts for the wealthy and others.
About what I expected. The proposal is a typical Republican tax cut proposal but on steroids...very centered on big tax cuts for the rich and puts the big squeeze on the middle class to make up the difference. No tax at all though for people making under $24,000/yr. Guess we have to pay for that too.
It's the people making between 50,000 and 200,000 that will get the royal screw here. The bigger individual exemptions are not going to make up for the loss of deductions for most of us. Plus, a lot of us are going to get thrown into the 25% tax bracket.
I make under $100,000 and I'm pretty sure I'll be getting a big tax hike when the dust settles.
This plan could have a major negative impact on real estate values too which I guess will make some people happy. Not me since I already own.
This is the "winning" he promised ? I guess he was right, I am sick of winning already.
Only good thing I can say about Trump so far is that my brokerage account and retirement accounts have skyrocketed but I have a feeling it's all going to crash soon so not getting excited about it.
The Trump tax plan announced today would eliminate the estate tax that is a tax on estates worth over $5,400,000 being transferred to an heir. It would also illuminate the Alternative Minimum Tax that force the rich to pay at least some federal tax no matter if they use many deductions. Federal tax rates will also be cut.
To pay for all this Trump has proposed, among other things, an elimination of the federal tax deduction of State and Local taxes from the federal return. As NY and especially NYC have high local and state taxes, we will be picking up the bill, along with other states like California. This will increase federal taxes for all of us to pay for tax cuts for the wealthy and others.
About what I expected. The proposal is a typical Republican tax cut proposal but on steroids...very centered on big tax cuts for the rich and puts the big squeeze on the middle class to make up the difference. No tax at all though for people making under $24,000/yr. Guess we have to pay for that too.
It's the people making between 50,000 and 200,000 that will get the royal screw here. The bigger individual exemptions are not going to make up for the loss of deductions for most of us. Plus, a lot of us are going to get thrown into the 25% tax bracket.
I make under $100,000 and I'm pretty sure I'll be getting a big tax hike when the dust settles.
This plan could have a major negative impact on real estate values too which I guess will make some people happy. Not me since I already own.
This is the "winning" he promised ? I guess he was right, I am sick of winning already.
Only good thing I can say about Trump so far is that my brokerage account and retirement accounts have skyrocketed but I have a feeling it's all going to crash soon so not getting excited about it.
Some other deductions on the chopping block are 401k contributions and the student loan interest deduction. Both benefit the middle class. The rich don't have student loans and could care less about an $18,000 deduction for a maxed 401k. The poor do not have 401ks nor typically student loans.
Some other deductions on the chopping block are 401k contributions and the student loan interest deduction. Both benefit the middle and upper middle class. The rich don't have student loans and could care less about an $18,000 deduction for a maxed 401k. The poor do not have 401ks nor typically student loans.
Wow, will that include deductions for contributions to all types of IRA's ? And what about education savings accounts ? If so, it's even worse than I thought for a lot of people. Some people are going to get an extra $6400 personal exemption but have to give up 20,000 or 30,000 in deductions to get it. Doesn't sound like a good trade off at all.
Wow, will that include deductions for contributions to all types of IRA's ? And what about education savings accounts ? If so, it's even worse than I thought for a lot of people. Some people are going to get an extra $6400 personal exemption but have to give up 20,000 or 30,000 in deductions to get it.
According to Trump's single page tax proposal, to pay for the op tax cuts, all deductions except the mortgage interest deduction and charitable donations deduction, both of which benefit the wealthy the most, will be eliminated.
Wow, will that include deductions for contributions to all types of IRA's ? And what about education savings accounts ? If so, it's even worse than I thought for a lot of people. Some people are going to get an extra $6400 personal exemption but have to give up 20,000 or 30,000 in deductions to get it. Doesn't sound like a good trade off at all.
Yep this thing makes no sense for middle to upper middle class folks that don't have a large inheritance. I thought republicans want to give incentives for people to save so that they don't have to live off the gov't. There was also no mention of credits for the poor like the earned income tax credit so I assume this may be gone too. If that's the case then this tax plan only benefits the rich or the working poor living in low tax states which is his main support base. I doubt that this plan has any chance of passing as is.
Actually take that back, just saw this:
National Economic Council Director Gary Cohn told reporters that "homeownership, charitable giving and retirement savings will be protected, but other tax benefits will be eliminated."
This may be neutral for middle to upper middle class people in high tax states. Without having the details to do the calcs it's not possible to know. But the tax definitely benefits the rich and working poor in low tax states, since estate taxes are gone for the rich and the federal rate will become zero and state and local taxes become nondeductible.
Last edited by bumblebyz; 04-26-2017 at 06:20 PM..
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