My Federal Tax Cut for 2018

[mbacfp]

Originally Posted by Donald
Originally Posted by IndyFan
Those deductions for state taxes amounted to a form of subsidies for those states. It isn't fair and now those states' lawmakers are more accountable for their high taxes, as they should be. The playing field was made more level. If the lack of those deductions cause your taxes to be higher, blame them, not the new federal tax laws. The way to fix that is for them to make their taxes more in line with states with lower taxes.

Just my 2c.


My property tax in NY is around $16,000. In DE it's about $1000 for a house worth a little less but not night and day. So I cannot even deduct the full local property tax much less the NYS income tax my wife and I pay.

My real concern is that it's hard to absorb this change in 1 year. Phase it in or grandfather it in. Should I rush out and sell my house because I can no longer deduct all my SALT? In a few years I suspect this tax bill will be repealed or significantly changed.


I believe mine is $9,000 or so a year and California State Tax is $3,000 a year. Da#$n right will be painful to absorb. Saving grace for me is my Schedule C tax breaks and first year bonus depreciation on my new car I use for my Business. Tax Cuts are not nice to high property tax value States.

 

[spasm3]

Yes sell, and leave the high tax regime of NY, just don't move somewhere else and then turn and vote for the same policies.

 

[Brybo86]

Donald if you think Mr T raised your taxes you don't even want to know what AOC is going to do to you high earners....

 

[JustinH]

Wife and I made about 15% more than last year, and we will pay less tax than we did last year.

We usually play it close, last year we got a refund of $200.

This year I think we will owe $170.

Not bad, we had 3 w2's and 3 1099's.

I'll have to get the exact tax rate for both years when I complete the filing, but we did great.

2 Person household, no kids made about $140k last year.

No house, no deductions but student loans.

 

[Blaze]

Originally Posted by Ken42
Only made a couple grand in 2018
Retired with disability

We lost over a couple grand last yr...we farm but I'm sure we keep a few people employed at the seed and fertilizer store so it all evens out.

 

[WillsYoda]

Originally Posted by mbacfp
Originally Posted by Donald
Originally Posted by IndyFan
Those deductions for state taxes amounted to a form of subsidies for those states. It isn't fair and now those states' lawmakers are more accountable for their high taxes, as they should be. The playing field was made more level. If the lack of those deductions cause your taxes to be higher, blame them, not the new federal tax laws. The way to fix that is for them to make their taxes more in line with states with lower taxes.

Just my 2c.


My property tax in NY is around $16,000. In DE it's about $1000 for a house worth a little less but not night and day. So I cannot even deduct the full local property tax much less the NYS income tax my wife and I pay.

My real concern is that it's hard to absorb this change in 1 year. Phase it in or grandfather it in. Should I rush out and sell my house because I can no longer deduct all my SALT? In a few years I suspect this tax bill will be repealed or significantly changed.


Holy sH#$%T Donald...I believe mine is $9,000 or so a year and California State Tax is $3,000 a year. Da#$n right will be painful to absorb. Saving grace for me is my Schedule C tax breaks and first year bonus depreciation on my new car I use for my Business. Tax Cuts are not nice to high property tax value States.


That is not an accident. That is to punish the Blue staters and reward the Red staters. The tax bill is a tax increase for many, and was controversial for that reason.

 

[JeffKeryk]

Actually, the tax breaks are punishment for future generations. AKA deficit spending and $22T debt. And counting.

 

[PimTac]

Originally Posted by JeffKeryk
Actually, the tax breaks are punishment for future generations. AKA deficit spending and $22T debt. And counting.




The govt is actually bringing in more revenue than before. The problem is and has been spending.

If you are concerned you can offer to pay more.

 

[mbacfp]

Originally Posted by JeffKeryk
Actually, the tax breaks are punishment for future generations. AKA deficit spending and $22T debt. And counting.


Welfare state spending, crony Capitalism (Tesla, Solyndra, etc., etc.) Is the primary cause of the financial problems we are leaving for future generations...not tax cuts.

 

[WillsYoda]

Originally Posted by mbacfp
Originally Posted by JeffKeryk
Actually, the tax breaks are punishment for future generations. AKA deficit spending and $22T debt. And counting.


Welfare state spending, crony Capitalism (Tesla, Solyndra, etc., etc.) Is the primary cause of the financial problems we are leaving for future generations...not tax cuts.


Welfare accounts for less than 10% of the Federal Budget...

"About 9 percent of the federal budget in 2017, or $357 billion, supported programs that provide aid (other than health insurance or Social Security benefits) to individuals and families facing hardship. Spending on safety net programs decreased by $9 billion between 2016 and 2017 as the economy continued to improve. Safety net programs include: the refundable portions of the Earned Income Tax Credit and Child Tax Credit, which assist low- and moderate-income working families; programs that provide cash payments to eligible individuals or households, including Supplemental Security Income for the elderly or disabled poor and unemployment insurance; various forms of in-kind assistance for low-income people, including SNAP (food stamps), school meals, low-income housing assistance, child care assistance, and help meeting home energy bills; and various other programs such as those that aid abused and neglected children. Such programs keep millions of people out of poverty each year. A CBPP analysis using Census' Supplemental Poverty Measure shows that government safety net programs kept some 36 million people out of poverty in calendar year 2017. Without any government income assistance, either from safety net programs or other income supports like Social Security, the poverty rate would have been 25.0 percent in 2017, nearly double the actual 13.9 percent. And these programs reduced the depth of poverty for millions more, even when not bringing them above the poverty line."

https://www.cbpp.org/research/federal-budget/policy-basics-where-do-our-federal-tax-dollars-go

 

[mbacfp]

You are correct...but my definitions of Welfare State spending/obligations encompass a lot of those categories. Social Security wouldn't be as much of the budget had it been managed properly from the beginning (remember Al Gore's lock box for Social Security). Any way you slice it, we have a problem with spending and resource allocation which I mainly attribute to decades of poor financial management. I agree there are multiple problems and I was wrong in simply blaming those I listed.

 

[edhackett]

Originally Posted by JeffKeryk
Actually, the tax breaks are punishment for future generations. AKA deficit spending and $22T debt. And counting.

Says the guy who happily took a $7500 tax credit for his Tesla.

Ed

 

[JeffKeryk]

Originally Posted by edhackett
Originally Posted by JeffKeryk
Actually, the tax breaks are punishment for future generations. AKA deficit spending and $22T debt. And counting.

Says the guy who happily took a $7500 tax credit for his Tesla.

Ed

Friend, I did not write the tax laws. I am obeying them.
FYI, I am also getting a 30% tax credit on a solar install package that includes a new roof.
That benefit is almost double the electric car tax credit.

Personally, I believe paying taxes is my patriotic duty.
People who can afford to should be paying more. People like me.

And deficit spending in good economic times is ludicrous.
But that's just me.

If you wonder about these comments, all I can say is I am a fiscal conservative.
I put away the 1st 40% of my earnings.
This has gotten me to a point where I can do the things I want to do
Things like helping others not as fortunate as me. This makes me happy.

 

[hatt]

Originally Posted by edhackett
Originally Posted by JeffKeryk
Actually, the tax breaks are punishment for future generations. AKA deficit spending and $22T debt. And counting.

Says the guy who happily took a $7500 tax credit for his Tesla.

Ed

Yep. 100% of the people complaining about taxes being to low on everyone take every tax advantage they can. Warren Buffet says his taxes are too low yet he refused to pay what the IRS says he actually owes.

 

[JHZR2]

Lots of politics. Lock time.