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35k is spitting in the eye of the middle class. Everything has been given to business and business owners.
and a few scraps thrown around. When the chairman's mark comes out i bet we see the state stuff improve.
I don't know how high or low you have to go to benefit from this "cut". I am between 100 and 200 and a recalc with new info that is coming out has my taxes going up by 30% (literally hundreds of dollars a month) over this year due to elimination of the exemptions and cutting back on allowable deductions for social security (20%), state income taxes (I live in a low tax state or it would be worse), college expenses, health insurance premiums, and more. The new standard deduction is half of what my itemized were last year and I loose another 12 grand in personal exemptions. I think I am a pretty typical upper middle income earner. There is going to be shock when people sit down and crunch their numbers.
I am trying to understand property tax deduction vs standard deduction. Are they pushing us towards standard deduction. Our property tax + mortgage interest is more than standard deduction. With this plan, it is going to be other way if they increase standard deduction. Isn't it going to affect home prices / demand.
You will still be able to itemize and deduct property taxes up to $10,000 per year. However, since the standard deduction for married couples filing jointly will rise to $24,000, you may be better off taking the standard deduction rather than itemizing.
And yes, it could affect housing prices and demand for housing in high-priced areas. In California, I think it's a good thing. We need to have some downward pressure on prices here.
which is exactly why moving the top bracket to 1 MILLION is a massive tax break of about 35k for someone earning over 1 million a year. and a quick in my head estimate of 11k reduction for someone earning 500k a year. and of course those are just the tax bracket reductions not any of the other stuff.
Don't you think it's about time others started paying their fair share and we stop overly penalizing the most productive? I sure as hell do.
I am trying to understand property tax deduction vs standard deduction. Are they pushing us towards standard deduction. Our property tax + mortgage interest is more than standard deduction. With this plan, it is going to be other way if they increase standard deduction. Isn't it going to affect home prices / demand.
They are doubling the standard deduction but are getting rid of personal exemptions that are at the top of the return. The net is that the standard deduction is really not much more than it was before, but you still have to come up with over 24K in deductions before it will benefit you to itemize. The change in brackets does not offset this much if it does at all. This will result for a very large tax increase for people who make over 100K or so. Should this go through, my taxes will jump by 30%. I am probably upper middle class with just the usual deductions.
You will still be able to itemize and deduct property taxes up to $10,000 per year.
That was my big concern with what I was hearing about this plan. The state I live in has no income tax and relies heavily on property taxes for local funding. I'm glad to hear that my own property tax deduction won't be effected.
For those saying this is NOT a massive give away to the wealthy..
From the Center on Budget and policy Priorities
Quote:
Hedge fund managers, lobbyists, lawyers, consultants, and investment managers, who are a significant share of pass-through business owners in the top tax bracket.
The 400 highest-income taxpayers in the country, who have average annual incomes exceeding $300 million each and receive about one-fifth of their income from pass-throughs, on average.
Business owners like President Trump, who owns about 500 pass-through businesses, according to his attorneys. “Trump loophole.” https://www.cbpp.org/research/federa...-tax-avoidance
I don't know how high or low you have to go to benefit from this "cut". I am between 100 and 200 and a recalc with new info that is coming out has my taxes going up by 30% (literally hundreds of dollars a month) over this year due to elimination of the exemptions and cutting back on allowable deductions for social security (20%), state income taxes (I live in a low tax state or it would be worse), college expenses, health insurance premiums, and more. The new standard deduction is half of what my itemized were last year and I loose another 12 grand in personal exemptions. I think I am a pretty typical upper middle income earner. There is going to be shock when people sit down and crunch their numbers.
My family is in the same boat.. It will be even scarier when we hit the 35% bracket. Middle class always seems to get screwed especially middle class living in high cost of living areas.
cool story bro, not sure what you are talking about but if it makes you feel like you made some point i am happy for you.
now can you focus on the topic at hand and not your ego.
More ad hominem fallacy.
You said Trillions for the Rich.
Yet entire tax revenue for the USA is just 3.2 Trillion
It's mathematically impossible. Didn't you claim to be a tax expert? Never seen a tax expert who can't correctly explain fiduciary responsibility nor do simple math.
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