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One deduction on the chopping block is the deduction for state and local income tax.
"By 2027, about 30 percent of those earning between $50,000 and $150,000 and 60 percent of those taking home between $150,000 and $300,000, would pay more under the Republican plan."
I think that this may partly be a result of reducing the number of tax brackets, which could put some people in the bottom of a higher tax bracket than before, combined with loss of some deductions.
Of course, the highest bracket will see a dramatic cut. Attachment 190817
Taking a bit more 'off the top'.
There is a lot more information we have yet to see about the plans, little has been released and there has not been much time to study it, plus we might be treated to 'alternative' facts from the administration.
I read where the mostly blue states with high state and local taxes, will be affected by not being allowed to deduct their high state income taxes. Oh well.
The democrat line for any and all tax plans is "they benefit the rich." They don't even need to read a tax plan to make that assumption.
Of course if corporations get a tax break, you could make the argument that this benefits the rich, since no poor person owns a corporation.
However, us lower income folks who invest in these corporations might see our investments go up in our 401ks.
With this plan potentially doubling the standard deduction, this means even more people filing their taxes in the lower income brackets will be reaping a negative tax rate, where they get back more than they pay in. I know, I have been in that income bracket before.
YES -- the killer is the bottom 10% bracket is RAISED to 12% _and_ the 15% bracket is eliminated, so the next jump after 12% is all the way up to 25%.
Current system: $50k couple using std ded = 50 - 12 std - 8 personal = $30k taxable income. First $18k is taxed at 10%, the remaining $12k at 15%. Total tax is $3600.
Trump Plan: $50k couple using std ded = 50 - 24 = $26k taxable income. The first $18k is now taxed at 12% instead of 10%. The remaining $8k is now taxed at 25% instead of at 15%. Total tax is $4100.
Currently the Trump tax plan would cause a $500 tax increase for a $50k married couple with standard deductions.
$500 is nothing though. You'd think the sky is falling and families will be left homeless in the streets because this new tax plan proposal will take all their money.
You're really suggesting people work under the table to avoid paying taxes? That's the "relief" for middle class families paying more under this plan - fleece the gov't? Let me guess, you're cool with illegals too because that was THEIR way of "controlling their taxable income"?
Duh... People work to make money, they keep it under the table for a multitude of reasons, one being so they don't have to report it on their tax return and pay taxes on it. If you don't know this happens and understand that, then you're awful naive.
hmm, the rest of your post doesn't even rank as a good spin.
I know, I know, you are from NY and your getting fleeced by your local government so you think you should be able to short change federal government.
YES -- the killer is the bottom 10% bracket is RAISED to 12% _and_ the 15% bracket is eliminated, so the next jump after 12% is all the way up to 25%.
Current system: $50k couple using std ded = 50 - 12 std - 8 personal = $30k taxable income. First $18k is taxed at 10%, the remaining $12k at 15%. Total tax is $3600.
Trump Plan: $50k couple using std ded = 50 - 24 = $26k taxable income. The first $18k is now taxed at 12% instead of 10%. The remaining $8k is now taxed at 25% instead of at 15%. Total tax is $4100.
Currently the Trump tax plan would cause a $500 tax increase for a $50k married couple with standard deductions.
The bottom 30% or 40% still won't pay a dime in federal income taxes, much less the bottom 10%, so why even bring them up? Hell, they probably pay zero income taxes, and still get a "refund."
I suppose I should thank Trump voters, and those who vote Republican in general, for making this very liberal poster's unearned income taxable at a lower rate.
My advice: Stop being poor. Wage income is for losers. You want dividends and capital gains.
Don't ruin their fun... remember, they think this tax proposal will destroy all liberals' finances with laser precision (miraculously sparing themselves).
For how many years all we heard from Democrats that paying taxes was patriotic, some even saying they wouldn't mind paying a little more.. yea, unless you have to pay them right, then it's bad.
You're all acting like the regional party that we know you are. These states will have to stop supporting their leftist politicians that think they are piggy banks and that's! exactly what they don't want. It's your fault for allowing your local politicians to get out of control.
I read where the mostly blue states with high state and local taxes, will be affected by not being allowed to deduct their high state income taxes. Oh well.
That article was written to try to trick liberal haters into agreeing to the new tax plan.
In reality, it's not only state/local income tax deductions that go away. Local real estate taxes (taxes paid on your home) also go away. This means anyone in any state( red, purple or blue) cannot deduct their real estate taxes. Although the mortgage interest deduction stays, it likely won't be used any longer because with the real estate tax deduction being removed and with the local/state income tax deduction being removed, itemizing solely for mortage interest likely won't be feasible for most taxpayers. Instead, they would take the standard deduction.
But don't be fooled that this is only impacting people in blue states. There are people in Texas and Georgia and Florida and Tennessee and Montana and Arizona and Ohio and Oklahoma that will see their federal income taxes increased because they wont be able to deduct their real estate taxes any longer. Even people that live in states with NO state income taxes will be impacted if they own a home because they cannot deduct their real estate taxes any longer.
60 percent of those taking home between $150,000 and $300,000 will get a tax INCREASE
^^^^ Looks like many hard working people will be getting a tax INCREASE so that the billionaires with 7 expensive houses around the world and their own private jet can get massive tax cuts.
Maybe that is because many between 50000 and 300000 pay a small % of federal income tax now. I know I do.
Last edited by Eeyore1954; 10-02-2017 at 11:41 AM..
That article was written to try to trick liberal haters into agreeing to the new tax plan because they hate liberals so much in those blue states.
In reality, it's not only state tax deductions that go away. Local real estate taxes (paid on your home) also go away. This means anyone in any state( red, purple or blue) cannot deduct their real estate taxes. Although the mortgage interest deduction stays, it likely won't be used any longer because with the real estate tax deduction being removed and with the local/state income tax deduction being removed, itemizing solely for mortage interest likely won't be feasible for most taxpayers. Instead, they would take the standard deduction.
But don't be fooled that this is only impacting people in blue states. There are people in Texas and Georgia and Florida and Tennessee and Montana that will see their federal income taxes increased because they wont be able to deduct their real estate taxes any longer.
LOL, hate blue states? So emotional... No, it's understanding that your politicians see you as a piggy bank and you let them get away with it, the burden was eased because you were able to short change federal coffers.
YES -- the killer is the bottom 10% bracket is RAISED to 12% _and_ the 15% bracket is eliminated, so the next jump after 12% is all the way up to 25%.
Current system: $50k couple using std ded = 50 - 12 std - 8 personal = $30k taxable income. First $18k is taxed at 10%, the remaining $12k at 15%. Total tax is $3600.
Trump Plan: $50k couple using std ded = 50 - 24 = $26k taxable income. The first $18k is now taxed at 12% instead of 10%. The remaining $8k is now taxed at 25% instead of at 15%. Total tax is $4100.
Currently the Trump tax plan would cause a $500 tax increase for a $50k married couple with standard deductions.
based on this.
Current system: $50k couple using std ded = 50 - 12 std - 8 personal = $30k taxable income. fir $935 taxed at 10% remainder taxed at 15% =3101 total $4033
Proposed appears to be 50k - 24k leaves 26k taxed at at 12% rate which is $3120
what am I missing?
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