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Most don't pay $1,000 and $100,000.
And many folks are okay with funding healthcare but not okay with funding in excess and promoting a free loading society.
Ok, so they pay $900 and $90,000. You're splitting hairs. Either way, absurdly high healthcare and education costs are a de-facto tax.
Quote:
Originally Posted by eastcoastbias
Universal Healthcare can't gain ground in states like VT and CA. If it can't get it done in these places how do you expect it to get off the ground in others?
It hasn't gained ground because people would rather pay $1000/month to an insurance company than an extra $500 in taxes for universal healthcare. We are Americans, and we hate taxes even if it would mean saving money overall. We have the most expensive healthcare and education system in the world, but at least we're paying low taxes. Either way, "the man" gets his money.
It’s time for people in high tax states to start contributing fairly to the Federal government as people in other states have...
Actually it's time for those low-tax conservative states to stop sucking up all the federal money and getting subsidized by the wealthier, educated, and more productive high tax states.
A completely ignorant comment and reply to it. I'd suggest not making generic comments to people that you know nothing about financially. I may not be happy about the Republican proposal, but I certainly don't want to give them a windfall in taxes as your comment suggests.
No one will do the job in SF if you pay them Topeka wages. That's how the free market works.
Of course they won't. But people that don't live in high COL areas don't understand things like this or what it takes to live in them. And there are a myriad of reasons why people stay in high COL areas. I get bored of the financially inept people that can't understand things like this, or the insensitivity of others that don't understand people making their roots somewhere and having friends and families located near them. The fact of the matter is, people in these areas pay significantly more than people in lower COL areas. Enough with the "your subsidizing us" BS!
Why would you bother voting for either political party?
Yep, I already knew the implications of Obamacare and how it was going to screw over Middle Class families that weren't subsidized. I was stupid enough to think the Republicans would take care of it after they were awarded the House, Senate, and Presidency, but nope, apparently they played me for a sucker. And now, it looks like any ability my family had to itemized taxes is going by the waist side with the inability to write off state, local, and possibly property taxes. Not to mention, forcing everyone into after tax 401k savings beyond $2400 so the ability to reduce taxable income is negated. Well, Happy Happy Joy Joy.
WTF?!!!
And here I was thinking the Obama Administration was a clusterfk. Oh, I can't wait to see how much more we'll be paying in taxes in 2018. And please don't waste my time even commenting in this thread if you don't have a good knowledge of math or taxes (because you are going to be eaten alive with your Red team/Blue team BS). This is absolute BS!!!
And unless you know of something I haven't read so far, your itemized deductions for a married couples are going to need to exceed $24k or you'll just be taking the standard deduction. And without state, local, and possibly property taxes, most Middle Class people in High COL areas are not going to be able to take the deductions they were taking. In addition, if you were able to sock away $20k+ into a 401k like we were, well now over $18k+ is going to taxable income. And yeah, I know you won't pay that when you retire. BFD. Your taxable income should be substantially less at that point any way. But by all means, I'm more than willing to hear any explanations on how this new tax plan is not going to increase taxes on families like mine.
Aside from the trolls (that I won't be wasting my time on), for those that are in high COL areas, based on the proposal yesterday, it is time to grab the ankles because you're about to be screwed.
So from what I've read, the $10k limitation is simply on real estate taxes (line 6 of Schedule A). Line 5 is completely eliminated.
I also noticed that they eliminated the student loan interest deduction (line 33 of the 1040)
I have not seen anything on the $3000 limitation on capital losses (hopefully they are keeping that in place)
In addition, they are eliminating the personal exemption.
Realizing this is just a proposal and there can be changes, I just ran the numbers from last year's return and my family will indeed pay more (approximately $1200). Admittedly, we're getting off easy compared to many people that purchased their homes much later than us. The hit to them will be more substantial, as many of them do exceed the $10k limitation on property tax (their itemized deductions are much more than ours). For some, the $24k standard deduction for a married couple might sound great, but it's really more like $16k because you don't get the personal exemption.
I'll let the dust settle and hope this isn't the final version. But based on their proposal, I'll stand by my original post. The Middle Class in high COL areas are indeed going to be screwed by this plan (and unfortunately, most people don't realize what it takes to live in areas like these...only looking at things through the optics of their lower cost area). And an $80k family income ain't gonna do it.
If you're a Conservative in a high COL area, you've just taken it twice. Once with Obamacare and now your own party is screwing you more on tax reform.
Why would you bother voting for either political party?
Yep, I already knew the implications of Obamacare and how it was going to screw over Middle Class families that weren't subsidized. I was stupid enough to think the Republicans would take care of it after they were awarded the House, Senate, and Presidency, but nope, apparently they played me for a sucker. And now, it looks like any ability my family had to itemized taxes is going by the waist side with the inability to write off state, local, and possibly property taxes. Not to mention, forcing everyone into after tax 401k savings beyond $2400 so the ability to reduce taxable income is negated. Well, Happy Happy Joy Joy.
WTF?!!!
And here I was thinking the Obama Administration was a clusterfk. Oh, I can't wait to see how much more we'll be paying in taxes in 2018. And please don't waste my time even commenting in this thread if you don't have a good knowledge of math or taxes (because you are going to be eaten alive with your Red team/Blue team BS). This is absolute BS!!!
And unless you know of something I haven't read so far, your itemized deductions for a married couples are going to need to exceed $24k or you'll just be taking the standard deduction. And without state, local, and possibly property taxes, most Middle Class people in High COL areas are not going to be able to take the deductions they were taking. In addition, if you were able to sock away $20k+ into a 401k like we were, well now over $18k+ is going to taxable income. And yeah, I know you won't pay that when you retire. BFD. Your taxable income should be substantially less at that point any way. But by all means, I'm more than willing to hear any explanations on how this new tax plan is not going to increase taxes on families like mine.
We didn't make the decision to live in an asinine state like California who never met a new regulation or tax it didn't like and who gives away your tax money to illegals it throws the welcome mat out to and by the bushel load. The rest of the country shouldn't subsidize that tax hellhole and the NY tax hellhole (I know, I used to live there). Get out of there. See how the rest of the country lives. You'd make less money in my state, for example, but you would live better.
Aside from the trolls (that I won't be wasting my time on), for those that are in high COL areas, based on the proposal yesterday, it is time to grab the ankles because you're about to be screwed.
So from what I've read, the $10k limitation is simply on real estate taxes (line 6 of Schedule A). Line 5 is completely eliminated.
I also noticed that they eliminated the student loan interest deduction (line 33 of the 1040)
I have not seen anything on the $3000 limitation on capital losses (hopefully they are keeping that in place)
In addition, they are eliminating the personal exemption.
Realizing this is just a proposal and there can be changes, I just ran the numbers from last year's return and my family will indeed pay more (approximately $1200). Admittedly, we're getting off easy compared to many people that purchased their homes much later than us. The hit to them will be more substantial, as many of them do exceed the $10k limitation on property tax (their itemized deductions are much more than ours). For some, the $24k standard deduction for a married couple might sound great, but it's really more like $16k because you don't get the personal exemption.
I'll let the dust settle and hope this isn't the final version. But based on their proposal, I'll stand by my original post. The Middle Class in high COL areas are indeed going to be screwed by this plan (and unfortunately, most people don't realize what it takes to live in areas like these...only looking at things through the optics of their lower cost area). And an $80k family income ain't gonna do it.
If you're a Conservative in a high COL area, you've just taken it twice. Once with Obamacare and now your own party is screwing you more on tax reform.
It is not just high COL areas that are being hit. I live in what is considered a low cost area especially with respect to taxes and am looking at a couple thousand more in federal taxes should this bill become law as is. The mid to upper middle class is getting shafted with loss of exemptions and deductions not made up by marginal rate reductions regardless of where they live. All that changes is to what degree.
It is somewhat surprising that Republicans would choose to screw over their most reliable voting block, though. I guess the uber rich and the bankers and brokers have more pull on Capitol Hill.
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