Tax increase under new tax bill; check yours

[supton]

Deferred, deduction, same difference in my mind. Income that isn't taxed. Thank you.

Now I need to go re-learn AGI vs MAGI, then work in the medical expenses change. [I keep an Excel sheet for this, to predict for the year; but wife fills out taxes, so I'm never quite 100% in the know about these things.]

 

[Eosyn]

Originally Posted By: andrewg
Most Americans will get a decent tax cut and get to keep more of what they earned. Moderately higher income? No. High tax state? Not so much. But why anybody concerned about high taxes would live in a high tax state is beyond me.
No...it's not an ideal tax break for everybody, but it's better than we've had in a very long time. Corporations are already reinvesting, and that's a great thing.

All in all, I'll take it and smile. Things are improving all the time.

+1. But it does hurt eliminating the personal exemption.

 

[dishdude]

I'm losing on this one, they doubled the standard deduction but eliminated the personal exemption. I had deductions way over the old amount, plus could claim the personal exemption.

 

[pbm]

Originally Posted By: CT8
I am old enough to realize that with every tax cut my taxes have increased and with every tax increase they have increased. Maybe more people should be aware of the cost of the government they serve.


That is because politicians BUY votes with our tax dollars.
It's also a big reason why a non-politician WON last November.

 

[andrewg]

Originally Posted By: Eosyn
Originally Posted By: andrewg
Most Americans will get a decent tax cut and get to keep more of what they earned. Moderately higher income? No. High tax state? Not so much. But why anybody concerned about high taxes would live in a high tax state is beyond me.
No...it's not an ideal tax break for everybody, but it's better than we've had in a very long time. Corporations are already reinvesting, and that's a great thing.

All in all, I'll take it and smile. Things are improving all the time.

+1. But it does hurt eliminating the personal exemption.


True....but it's better than what the last eight previous years "allowed" us to keep. At least it's a step in the right direction AND corporations will be reinvesting which should keep the economy/hiring improving. Couple that with less regulations and constraints...and it's better than a poke in the eye for all of us.

 

[HangFire]

Yeah. BIG problems for families with 4 or more CHILDREN over AGE 17.

 

[javacontour]

Originally Posted By: goodtimes
After WWII and the USA and other counties won, people were thinking less of what's in it for me in my paycheck, but what we can do as a whole. That's why under Ike it was 91% for the top brackets and we invented and built most of what we enjoy today, including even freeways. "I like Ike" my grandmother used to say. They had a business and paid their taxes. The days of me are here.


People cite the 91% top marginal rate. However, they are not willing to do everything else that was also in place at the time.

Today we pay 7.65% in FICA taxes. Back then it was between 1 and 2 percent.

We didn't have Medicaid or any of the great society programs Johnson sought in the 1960s in his war on poverty.

We could deduct almost everything on your tax return. Paying credit card interest, deductible. Or at least interest on the furniture, the new TV and interest paid at every other shop that offered you E Z credit.

So few actually paid the 91% top marginal rate as they found deductions and other means to shield their money from the tax man.

BTW, I'm looking at at 2-3k cut in the taxes I pay under the plan. I can stash even more away in my 401(k) now as it's not going to Uncle Sam before I even see it.

 

[javacontour]

You can also add the 15% bracket falls to 12%, the 25% bracket falls to 22% and IIRC, the 28% bracket falls to 24%

For many, that more than makes up for the loss of the personal exemption.

Also, the child tax credit doubles from $1k to $2k (doesn't help me) and your child can be claimed an extra year.

Originally Posted By: dishdude
I'm losing on this one, they doubled the standard deduction but eliminated the personal exemption. I had deductions way over the old amount, plus could claim the personal exemption.

 

[windeye]

Originally Posted By: javacontour
......and your child can be claimed an extra year.


The final version of the bill sticks with "under age 17 at end of tax year". If they turn 17 in 2018, you can not claim child tax credit

 

[Bronco1]

Ours will go down for now. I say for now as individual changes will expire where as corporate cuts are permanent. I see where a lot of corps especially those with off shore ops, are engaging in or preparing to engage in stock buy backs. Dividend payments look to be on the upside, more so than reinvestment.

 

[Donald]

Regardless of whether your taxes go up or down, who wants to dump another $1.5 trillion onto the federal deficit that your kids will have to pay just to give corporations lower taxes. Corporations will buy back stock or increase dividends or sit on the money. Not give employees a raise.

 

[Mr Nice]

How many years will this tax reform last ?

 

[BrianF]

Come to Canada, where the PM runs his campaign on lowering taxes on the middle class but where the rubber meets the road you end up with a lot less in your pocket. Good luck my American friends!

 

[chrly919]

I think it lasts 10 years. Mine are going down, plus I work for one of those evil, greedy corporations that's giving their employees a $1000 bonus.

 

[4WD]

My evil greedy outfit just did a bonus as well … been a while too …
Hope this becomes real shovel ready … thinking they will get along better on infrastructure bills …

 

[Kruse]

Originally Posted By: Donald
Regardless of whether your taxes go up or down, who wants to dump another $1.5 trillion onto the federal deficit that your kids will have to pay just to give corporations lower taxes. Corporations will buy back stock or increase dividends or sit on the money. Not give employees a raise.


So were you crying about that from 2008 to 2016 when our national debt doubled? Patheticly predictable post from you, Donald.

 

[dishdude]

Originally Posted By: Kruse
Originally Posted By: Donald
Regardless of whether your taxes go up or down, who wants to dump another $1.5 trillion onto the federal deficit that your kids will have to pay just to give corporations lower taxes. Corporations will buy back stock or increase dividends or sit on the money. Not give employees a raise.


So were you crying about that from 2008 to 2016 when our national debt doubled? Patheticly predictable post from you, Donald.


Thank two wars and the previous tax cut that wasn't paid for.

 

[04SE]

Our federal tax bill is going down by roughly 1/3ish. The 20% deduction for pass-through income is huge for us. We will be adding the rest of our non LLC assets into the LLC. Not to mention we are getting $3K in credits, child tax and family credit.

I won't complain about a decrease in taxes but for someone in my financial position to get $3k in credits is just absurd.

 

[bdcardinal]

I am single and according to the calculators I will be getting to keep an additional $2,000 or so under the new plan so I can't complain at all.

 

[ZZman]

Crumbs for the masses. Bread for Corps and the wealthy.