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Old 11-01-2017, 09:02 AM
 
263 posts, read 273,834 times
Reputation: 285

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I moved 3 years ago. I love it here.

I hate taxes but our income allows us to pay for them. but even though we make more money that we've ever made, our lifestyle is squarely middle class. I don't have a lot of wiggle room to absorb two things:

- eliminating the deductibility of property taxes. I pay $35k per year in property taxes and it kills me.

- eliminating the deductibility of state income taxes. I pay also a very significant amount in state income taxes.

I estimate my tax bill would go up by $28k alone with Trumps plan. This will make Westchester unaffordable to me. Or I could "afford it" but eliminate saving for retirement.

How about others? Do you think this would force tax reform in Westchester? I've always thought our taxes are outrageous and we - collectively we in Westchester - rationalize the high taxes by thinking of good schools and services/amenities, but yikes!

Last edited by newnewyorkers; 11-01-2017 at 09:15 AM..
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Old 11-01-2017, 11:39 AM
 
33 posts, read 43,083 times
Reputation: 19
Quote:
Originally Posted by newnewyorkers View Post

I estimate my tax bill would go up by $28k alone with Trumps plan. This will make Westchester unaffordable to me. Or I could "afford it" but eliminate saving for retirement.
I read recently about discussions around reducing the cap on 401k contributions down from the current $18k/year which stymies the ability to save for retirement. Apparently, only the "rich" (and trust me, I am not rich) contribute the max to their 401k, so it only affects the wealthy [/sarcasm]...
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Old 11-01-2017, 11:48 AM
 
3,645 posts, read 1,532,534 times
Reputation: 1750
Quote:
Originally Posted by newnewyorkers View Post
I moved 3 years ago. I love it here.

I hate taxes but our income allows us to pay for them. but even though we make more money that we've ever made, our lifestyle is squarely middle class. I don't have a lot of wiggle room to absorb two things:

- eliminating the deductibility of property taxes. I pay $35k per year in property taxes and it kills me.

- eliminating the deductibility of state income taxes. I pay also a very significant amount in state income taxes.

I estimate my tax bill would go up by $28k alone with Trumps plan. This will make Westchester unaffordable to me. Or I could "afford it" but eliminate saving for retirement.

How about others? Do you think this would force tax reform in Westchester? I've always thought our taxes are outrageous and we - collectively we in Westchester - rationalize the high taxes by thinking of good schools and services/amenities, but yikes!
I cannot imagine anyone in Westchester will be happy if they remove either of these deductions. We are just hoping that the final tax plan does not include getting rid of these deductions completely. Maybe capping them at a reasonable amount?
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Old 11-01-2017, 11:54 AM
 
729 posts, read 604,589 times
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I am very much rooting for the SALT deduction to stay in place or at worst to be capped in some form. My only hope is that Republicans from blue/high tax states like NY, NJ and CA fight this off. If eliminated completely, this is a disaster for Westchester County taxpayers.
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Old 11-01-2017, 12:36 PM
 
221 posts, read 451,837 times
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The tax breaks they're proposing will in no way exceed the deductions the average Westchester country resident would lose.










The administration is trying to confuse the public by conflating Corporate tax rates (which are strikingly high and need reform) with the tax rates of pass through entities. Passthrough "s-corp" types vehicles are taxed at the individuals tax rate and Corporate "c-corps" taxes are taxed twice at the corporation level and investor level. There is no reason to cut the passthrough rate other then to reward a small portion or mostly wealthy taxpayers. High income earners over say 1 million per years are significantly more likely to receive their income through an ownership stake in a passthrough whether they're hedge funds, law firms, or a small business like a restaurants or gas stations.
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Old 11-01-2017, 07:02 PM
 
1,594 posts, read 2,978,211 times
Reputation: 1585
Quote:
Originally Posted by newnewyorkers View Post
I moved 3 years ago. I love it here.

I hate taxes but our income allows us to pay for them. but even though we make more money that we've ever made, our lifestyle is squarely middle class. I don't have a lot of wiggle room to absorb two things:

- eliminating the deductibility of property taxes. I pay $35k per year in property taxes and it kills me.

- eliminating the deductibility of state income taxes. I pay also a very significant amount in state income taxes.

I estimate my tax bill would go up by $28k alone with Trumps plan. This will make Westchester unaffordable to me. Or I could "afford it" but eliminate saving for retirement.

How about others? Do you think this would force tax reform in Westchester? I've always thought our taxes are outrageous and we - collectively we in Westchester - rationalize the high taxes by thinking of good schools and services/amenities, but yikes!
I think it would tank home prices in a big way.
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Old 11-01-2017, 07:03 PM
 
1,594 posts, read 2,978,211 times
Reputation: 1585
Quote:
Originally Posted by Westchesterwannabe View Post
The tax breaks they're proposing will in no way exceed the deductions the average Westchester country resident would lose.










The administration is trying to confuse the public by conflating Corporate tax rates (which are strikingly high and need reform) with the tax rates of pass through entities. Passthrough "s-corp" types vehicles are taxed at the individuals tax rate and Corporate "c-corps" taxes are taxed twice at the corporation level and investor level. There is no reason to cut the passthrough rate other then to reward a small portion or mostly wealthy taxpayers. High income earners over say 1 million per years are significantly more likely to receive their income through an ownership stake in a passthrough whether they're hedge funds, law firms, or a small business like a restaurants or gas stations.
Translation: they are further dismantling the middle class to give tax breaks to the uber rich.
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Old 11-02-2017, 08:30 AM
 
729 posts, read 604,589 times
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Quote:
Originally Posted by ponytrekker View Post
Translation: they are further dismantling the middle class to give tax breaks to the uber rich.
Yes 100 percent. In states like NY, NJ, CA, CT, etc., this tax reform is going to royally screw the middle and upper middle classes to the benefit of the super wealthy. Republicans in the House from such states simply cannot allow this to happen to their constituents.
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Old 11-02-2017, 09:56 AM
 
Location: Westchester County, NY
227 posts, read 244,433 times
Reputation: 219
Quote:
Originally Posted by BD1978 View Post
Yes 100 percent. In states like NY, NJ, CA, CT, etc., this tax reform is going to royally screw the middle and upper middle classes to the benefit of the super wealthy. Republicans in the House from such states simply cannot allow this to happen to their constituents.
I agree that there is a significant impact on the middle and upper middle classes (maybe even the lower upper class) in high tax states cited. I don't really think it's so much a break to the uber wealthy as it is an unwillingness to hit the uber wealthy with additional taxes. They could have done everything they did and also raised income taxes on income higher than $2 million if they wanted to, even as high as 50%. But they didn't, and that will result in a greater percentage of the burden falling on the groups cited. Disappointing, but not surprising, in that the non-high tax states - which also don't contribute the bulk of income taxes to begin with - are essentially getting to vote on shifting the burden of paying for the federal government to people who live in high tax states. This will play just fine with them, and the Republicans know it, so they seem to have lined up the right bases to potentially (finally) get something done, even if it makes no sense given their stated "principles."
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Old 11-02-2017, 12:49 PM
 
3,645 posts, read 1,532,534 times
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Yeah, it definitely looks like we are getting screwed. I guess all I can do is hope it does not pass. I never realized how many Americans depended on the standard deduction instead of itemizing.
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