Posted on 10/17/2017 10:40:51 AM PDT by TBP
I’ve run our Fed and State (CA) taxes using the proposed new standard deduction and loss of State and Local tax deductibility. It is pretty clear our bracket won’t change. After netting the three changes (standard exemption + state tax deductibility + property tax deductibility) we are hosed. We haven’t triggered AMT before, so we’ve continued full deductibility of those taxes.
Yes, our only hope is that the final law is different from what is being bandied about. We’ll see how much political power the big, liberal, high-tax states have in this tax reform. The changes seem designed to screw them which, unfortunately, screws the conservatives still left in those states.
I’d love to see simplified taxes — but maybe after I’m gone! Call me selfish, but I didn’t budget another $4,000 to $5,000 per year in retirement for this.
They are on crack if they think local and state governments will lower taxes (property and otherwise) because the Federal deductions are eliminated. They will just watch as families get screwed. You know it, and I know it.
Agreed. This is a terrible plan. Anyone saying otherwise is either making excuses because they or their business will personally benefit, or they don’t understand (or care) that it screws millions of other Americans.
Exactly. I live in a high tax state. My county is very conservative, and we have a Republican Congressman. Our state votes Democrat in the electoral college, but by a relatively small margin. Eliminate the Urban Vote Fraud Machine, and we are a GOP State. Yet, the proposal is to screw us over wildly? I am a solid Republican voter and contributor. I am a military veteran. My kids vote Republican here and are trying to start their lives. Yet, this plan wants to cream us? So that the corporate rate can be slashed? No thanks.
does your tax rate change?
Some other considerations about the tax proposal that goes to economics. If the corporate tax rates decrease the extra money has to go somewhere. Either customers will get lower prices, employees may get paid more, or stockholders will get dividends or capital gains.
So, for those of us how may have an overall tax increase, we may be paying less for some of the goods we purchase or the value of our investments (which some have already increased by the proposals) increase.
The analysis of whether your are better off cannot be limited to just your tax return.
No, the bracket above me gets merged into mine. So no change in the marginal rate.
I noticed that too when it first came out. What is the political gain for adding more takers to the rolls, and cutting taxes by 4% for the rich?
It’s a wrong-headed approach to cutting Corporate taxes.
There are ignorant hard-asses in the GOP caucus that believe any changes to the tax system must be “revenue neutral” without make any growth assumptions.
And Democrats will hold the GOP to existing “revenue neutral” pledges and rules and statute.
It’s all a symptom of the GOP being cowardly and unable to make the case for growth. Since they can’t make that case in advance, we’ll never see it.
Tell you what. How about the Federal government simply does not raise my taxes (by eliminating my state and local tax deductions), and I'll take my chances. Paying thousands more per year, but hoping that my widget from Corporation XYX will be a few pennies cheaper (if they so chose to be so generous to me) is not a gamble I want to make. In fact, no sane individual would do so.
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