New Tax Reform

[Singuy]

It's a wash for me:

NEW TAX LAW
2,018
Income 576,553
Std Ded (24,400)
Mortgage (14,000)
401k (24,000)
Taxable 514,153
Tax 91,479
35% over 400k 39,954
Medicare 2,639
EST NEW TAX 134,071
OLD TAX 134,327
256

Mortgage doesn't count if you take the std deduction. It's either or. Your mortgage interest and property tax doesn't hit the std limit so your std deduction will be higher.

Doing your taxes on turbo tax for 2018 ended up you paying $158,162 using a taxable income of 552,553(basically it just subtracted your 401k, all other deductions were taken care off by turbo tax).

Doing your taxes using the Trump calculator yields $136,473 using the same numbers. You should be saving about 22k it seems like.

https://www.marketwatch.com/story/the-new-trump-tax-calculator-what-do-you-owe-2017-10-26

[Singuy]

That's great for you, but it also illustrates the problem. It's a huge tax break for the rich despite the president insisting that it will help the middle class. It's actually going to devastate the middle class but I'm not the least bit surprised by that.

I haven't sat down and run the numbers to see how it could affect me. I won't do that until after something is actually passed and we know the final terms.

We have a small business. We have 2 contractors and 2 part time(soon to be 3) part time employees. We will hire exactly 0 additional employees even with a 20-30k tax cut. Why would I hire people when the demand is not met? Businesses are not charity, we don't hire people just because I have more money in my pockets.

Now if the tax cut stimulate more sales which causes more demand, then that's another thing. But I see my 30k worth of tax cut distributed to say 10 middle/low income people at 3k additional each and that may actually produce more sales for me. 30k worth of tax cut for my family will not produce more sales for me.....

I welcome tax cuts, but not for people like me. My family buys one set of things...which causes way less demand for businesses vs 10 families buying 10 set of things. I think job creation and economic growth serves better when the tax cut is for the middle to lower income families. Given that Americans spend every dime they have, that money will circulate right back to the businesses again. Give freebies to the poor, have them buy things so the rich makes more revenue and hire more people. I don't know why this concept is so freaken hard to understand but the lobbyist are just too powerful.

[corn18]

Mortgage doesn't count if you take the std deduction. It's either or. Your mortgage interest and property tax doesn't hit the std limit so your std deduction will be higher.

Doing your taxes on turbo tax for 2018 ended up you paying $158,162 using a taxable income of 552,553(basically it just subtracted your 401k, all other deductions were taken care off by turbo tax).

Doing your taxes using the Trump calculator yields $136,473 using the same numbers. You should be saving about 22k it seems like.

https://www.marketwatch.com/story/th...owe-2017-10-26

I just did my 2018 taxes using TurboTax for 2018 (2017 tax year), and they are $134,327. The Trump tax calculator says $155k House, $144k Senate. So I will be paying $10k more or $21k more. Ouch.

[Singuy]

I just did my 2018 taxes using TurboTax for 2018 (2017 tax year), and they are $134,327. The Trump tax calculator says $155k House, $144k Senate. So I will be paying $10k more or $21k more. Ouch.

Yeah I didn't take state tax into account because it's something we don't have here in FL.

I wonder if tax reforms like this would drive people away from states with high taxes into states with no taxes.

[corn18]

Yeah I didn't take state tax into account because it's something we don't have here in FL.

I wonder if tax reforms like this would drive people away from states with high taxes into states with no taxes.

That would save me $24k / year right now. Not as much once I retire.

[greenskeeper]

A great day for America

[Singuy]

A great day for America

Not sure if the 1 trillion additional dollars added to the deficit which sits at 678 billion already is worth the tax cut for the middle class (def worth it for the upper middle/upper class cause my savings of 30k is no joke). Obama (or US's biggest) deficit sat at 1.4 trillion during a recession and that sprung up the tea party, shut down the government, and wanted to default on U.S obligations which crashed the stock market even more.

We know 100% for sure that this tax cut will drop revenue by huge percentage points during the first year..a hope and a prayer that we will be fine for later generations to come.

I support massive deficit spending when our economy is in the ****ter because there's no other way out. I don't understand deficit spending when the economy is doing fine, just seems greedy to me.

[LivingAlmostLarge]

I won't run the numbers but Singuy the numbers I see I doubt that you are getting the child tax credit. I saw only $220k income not $500k. That seems too high for the credit.

Anyway it'll likely be a wash for us depending on the brackets i the big thing.

I think people will end up paying more because they lose the personal exemptions. But who knows? Until the final bill is passed too many things are variable.