"Five dollars....Maybe I'll go to the movies.....by myself."
Posted on 12/04/2017 9:27:32 PM PST by Oshkalaboomboom
Whenever I'm asked if the Trump tax cut is for the rich, I say yes. It is a tax cut for the rich. It is a tax cut for the middle class. It is a tax cut for small businesses. It is a tax cut for the Fortune 100. If you pay federal income taxes, you will, in almost all cases, be getting more take-home pay come Jan. 1.
One of the ironies of the left's "these are tax cuts for the rich" mantra is that many upper-income people I know in states such as California, New Jersey, and New York complain to me they are getting a sizable tax increase. The lower income-tax rates don't compensate for the loss of the state and local tax deductions.
Well, yes, under the Trump tax plan we are no longer going to subsidize big government in blue states. Now those who choose to live in blue states are going to have to join with their neighbors, collect their pitchforks and demand tax and spending cuts from city hall and the state capital.
Here's some advice to blue state pols: Pare the hyper-extravagant pensions, and stop paying your government employees 30 percent more than comparable private-sector workers get.
Liberals from blue states argue that red states tend to get more money from the feds and pay less in taxes. But here again, blue state voters are the ones responsible for these inequities. Blue staters tend to send liberal politicians to office, who then vote for bigger federal spending -- even though a greater share of the money goes to the red states. Maybe somebody needs to write a book called: "What's the Matter With Massachusetts."
What is not true is that the rich get all the benefits of the tax cut and middle-income families pay more.
CATO scholar Chris Edwards recently put the lie to that claim. He examined the impact of the tax bill on the average tax filer in every income group with an income above $40,000. He didn't include people who make less than that because very few in that income range have any income tax liability -- and you can't cut taxes on people who don't pay taxes.
Edwards' remarkable analysis showed that as family income levels go up, the percentage reduction in tax burden goes down: Lower-middle-class people -- who make between $40,000 and $50,000 a year -- will see a 46 percent reduction in taxes paid; people who make more than $1 million will see roughly a seven percent reduction in taxes (again, the exact rate depends on what state they live in).
By the way, the left also leaves out another impact of the tax cut that helps the middle class: a higher stock market. Some 54 million Americans have 401(k) plans. At least another 40 million have IRAs or pension plans. Where do you think that money is invested? Americans should look at their 401(k) accounts right now. They are surging in value in anticipation of the tax cut.
This has contributed to a surge of economic optimism and Christmas shopping and spending. You want to kill the economy -- and Christmas? Follow Chuck Schumer and Nancy Pelosi's advice and kill the tax cut.
That's not likely to happen. There is a high likelihood this tax cut will be enacted before Christmas. My friend Arthur Laffer says that he hopes taxes go up for everyone next year -- because Americans are going to be making a lot more money as prosperity spreads to every state. Talk about a happy New Year.
Bump!
Hope this is for taxes from 2017.
Retroactive? I really doubt that. The Corporate tax cuts probably wont go into effect until 2019 if the senate has it’s way.
Not possible...IRS would have to delay filing/refunds until September!
>> So when do we start seeing cuts in Spending by our bloated government?
Yes, that would be the true tax cut instead of the red state welfare unfolding before us.
From what I have read, it starts in 2018. I can’t wait to lose $600-900 next year.
Not Me.
Then new definition of #metoo — the capital creation class who are well and truly screwed by the new tax laws.
I expected no less — but hoped for so much more.
Just saddle me up Congress! You will always have me and mine to feed your pork.
No it’s blue state welfare - red states subsidizing blue states because blue states are not paying their full amount of federal taxes because they were deducting their state taxes.
The two taxes are separate and should never have been mingled
“under the Trump tax plan we are no longer going to subsidize big government in blue states. ”
Lets not pretend it’s some historic tax cut. But it’s all the GOP will ever give us for another few decades.
We’re in California, but next year will be our first full year without earned wages (retirement started July 2017). As such, our state income tax bill in 2018 won’t be much because social security (for one of us) isn’t taxed in California, surprising as it is. Even still, I expected us to see a bit of a savings on the federal tax bill compared to the current tax system. Nope.
Just review the per capita revenue to the fed categorized by state. The data is readily available. Unless we’re on different currencies, blue states already contribute far more despite SALT.
My “red state welfare” remark is not meant to be taken seriously. But too many have no problem turning the tax screws on blue state conservatives.
I’ll pay more with the new tax plan on top of the ongoing ACA crap that’s crippling my family’s health needs.
>> because blue states are not paying their full amount of federal taxes because they were deducting their state taxes.
You’re wrong. Make an effort to get the facts.
I would not object to paying a few hundred dollars more in order to get a tax system that would produce 4% growth every year. Not one bit.
So any deduction that one person takes that another cannot take is a subsidy from the latter to the former?
We’re in California and both retired. Our income is treated almost like wages so our tax bill is already hefty. I send The feds a check every year besides what we already paid. According to the calculators that have been thrown about our tax bill just got heftier. They can all kiss my azz.
——We’re in California-——
Finally, at last...... you get to pay your fair share
I can read a tax form. That is exactly what has been happening.
Changing federal taxes based on state taxes has never made sense to me. The 2 are unrelated in where the money goes so mingling them had to be a Democrat idea in order to let the blue states raise taxes on their citizens.
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