What's your verdict on the new Repblican/Trump tax plan?

Feb 4, 19 5:43

Post #1 of 141 (3876 views)

Well, it's now time to add it up. We're now figuring our taxes for the first year of the new plan? You don't have to tell the numbers, I'm not telling you mine. My wife finished it yesterday and even though we live in NY and pay taxes on two houses, we're basically even. It's hard to say because we pre-paid the real estate taxes and got double deductions last year and this year we were capped at 10,000 dollars. So I'm comparing 2016,17 and 18

In 2016 with full real estate deduction we had an effective tax rate of 7.6%

In 2017 with double real estate deduction was 5.49%

In 2018 we had an effective tax rate of 6.85%

And our Total Tax for 2018 is just a little over $100 of what we paid in 2017

So, all in all, I'd say that the Republican/Trump tax increases on the middle class didn't really hurt me at all

---------------------------
''Sweeney - you can both crush your AG *and* cruise in dead last!! 😂 '' Murphy's Law

Re: What's your verdict on the new Repblican/Trump tax plan? [Sweeney] [ In reply to ]

Feb 4, 19 5:53

Post #2 of 141 (3854 views)

edit:

AGI down 2k this year
Taxable income up 8k
Tax down 200

Last edited by: jeffp: Feb 4, 19 6:53

Re: What's your verdict on the new Repblican/Trump tax plan? [Sweeney] [ In reply to ]

Feb 4, 19 6:06

Post #3 of 141 (3834 views)

Looks like just shy of $6,000 in savings under new plan.

Re: What's your verdict on the new Repblican/Trump tax plan? [Sweeney] [ In reply to ]

Feb 4, 19 6:21

Post #4 of 141 (3809 views)

i topped out in the 32% bracket this year (single filer). i made 30k more this year over last. My effective tax rate dropped 0.4%. I hit the SALT cap so I left some deductions on the table. once my ex gets remarried this year and I stop giving her money i'll probably be taking the standardized deduction for tax year 2020.

Re: What's your verdict on the new Repblican/Trump tax plan? [Sweeney] [ In reply to ]

Feb 4, 19 8:01

Post #5 of 141 (3690 views)

I helped 4 people with their returns plus mine.

All 5 had a drop in effective tax rate from 2017 and all incomes were very similar year over year.

Incomes were from below 50k to over 400k.

The highest income of the 5 was in a high SALT tax state and despite the big loss in deductions, the lower tax rate more than offset the loss.

Seems like the plan to reduce taxes on the middle class DID work.

Re: What's your verdict on the new Repblican/Trump tax plan? [B.McMaster] [ In reply to ]

Feb 4, 19 8:13

Post #6 of 141 (3667 views)

I dont think the arguments against the tax plan were that the middle class were not temporarily going to see a slight decrease in taxes. (I think some deductions are going to be phased out).

I think most people were arguing that the rich would see much more tax breaks, and that the tax breaks would further increase the deficit (which would later lead to the loss of services).

So most in the middle class should see a slight decrease in taxes temporarily, followed by loss in services to try balance the budget (while the rich maintain a large tax break).

Re: What's your verdict on the new Repblican/Trump tax plan? [patentattorney] [ In reply to ]

Feb 4, 19 8:42

Post #7 of 141 (3623 views)

I finished my taxes; it was an interesting year with a lot of changes this year for wife and i. For us we are getting a "big" refund (for us); 50% of it is federal, and 50% state due to moving from cali to tex in april, so not Trump related. The new standard deduction is huge for married filing jointly, so that is the main driver of our federal refund. Of course we are taking a chunk of that money and using it to fund an Italian cylcing trip, so outside of giving some to Delta Airlines, we are injecting it into a foreign economy.

Re: What's your verdict on the new Repblican/Trump tax plan? [Sweeney] [ In reply to ]

Feb 4, 19 16:15

Post #8 of 141 (3482 views)

Quote:

Well, it's now time to add it up.

Our effective federal tax rate was ~18% in 2017
It looks like our effective federal income tax rate will be ~19% in 2018.

Thanks, Trump

Of course, we declared more income in 2018 (and specifically shunted earnings to 2018 to take advantage of lower rates). I will try to see what it would be if we had similar earnings for those years.

Re: What's your verdict on the new Repblican/Trump tax plan? [patentattorney] [ In reply to ]

Feb 5, 19 8:29

Post #9 of 141 (3326 views)

Quote:

I think most people were arguing that the rich would see much more tax breaks

It seems odd to push for a tax system that taxes the rich at progressively higher rates as they make more money, but then -- once we have that system -- lament that tax breaks end up going mostly to the rich.

Re: What's your verdict on the new Repblican/Trump tax plan? [Sweeney] [ In reply to ]

Feb 5, 19 8:46

Post #10 of 141 (3308 views)

Paid about 800 less in fed taxes....heirs tax bill will go up because trump put on credit card during recovery.....smart not.

Re: What's your verdict on the new Repblican/Trump tax plan? [tyrod1] [ In reply to ]

Feb 5, 19 8:55

Post #11 of 141 (3293 views)

tyrod1 wrote:

Paid about 800 less in fed taxes....heirs tax bill will go up because trump put on credit card during recovery.....smart not.

Hmmm... I wonder what your heirs could use to make up for that $800 shortfall on your part?

Re: What's your verdict on the new Repblican/Trump tax plan? [SH] [ In reply to ]

Feb 5, 19 8:56

Post #12 of 141 (3290 views)

I mean you cut my sentence in half to remove the part that people actually argue. most do not care that the tax breaks are going to the rich. If the math worked out that the rich needed the tax breaks so the net loss was zero (which is what the GOP said, "the tax breaks would pay for themselves") far fewer people would care. But this of course is not what is happening. The deficit is further increasing, and we have a "spending problem"

Re: What's your verdict on the new Repblican/Trump tax plan? [SH] [ In reply to ]

Feb 5, 19 9:31

Post #13 of 141 (3255 views)

think shortfall per adult in usa is more than $800 for current 1 trillion projected deficit. you wanna take on debt too?

Re: What's your verdict on the new Repblican/Trump tax plan? [tyrod1] [ In reply to ]

Feb 5, 19 10:02

Post #14 of 141 (3238 views)

tyrod1 wrote:

Paid about 800 less in fed taxes....heirs tax bill will go up because trump put on credit card during recovery.....smart not.

''Trump put on credit card during recovery'' recovery from what? The economy started growing in 20010.

---------------------------
''Sweeney - you can both crush your AG *and* cruise in dead last!! 😂 '' Murphy's Law

Re: What's your verdict on the new Repblican/Trump tax plan? [tyrod1] [ In reply to ]

Feb 5, 19 11:18

Post #15 of 141 (3185 views)

tyrod1 wrote:

think shortfall per adult in usa is more than $800 for current 1 trillion projected deficit. you wanna take on debt too?

I'm just pointing out that the only way we "take on more debt" by a tax cut is that we each just keep the amount we otherwise would have payed. It's not like the money disappears. It goes into your pocket, and, possibly, on to your heirs.

Re: What's your verdict on the new Repblican/Trump tax plan? [patentattorney] [ In reply to ]

Feb 5, 19 11:21

Post #16 of 141 (3182 views)

Quote:

most do not care that the tax breaks are going to the rich.

Then why was it the first thing you brought up?

Re: What's your verdict on the new Repblican/Trump tax plan? [SH] [ In reply to ]

Feb 5, 19 11:30

Post #17 of 141 (3173 views)

sequence of events that happen. First rich get most of tax breaks, then deficit grows, then spending problem. The uber wealthy getting the tax breaks isnt the problem. Its the result of those breaks that is the problem.

Re: What's your verdict on the new Repblican/Trump tax plan? [patentattorney] [ In reply to ]

Feb 5, 19 11:44

Post #18 of 141 (3159 views)

patentattorney wrote:

sequence of events that happen. First rich get most of tax breaks, then deficit grows, then spending problem. The uber wealthy getting the tax breaks isnt the problem. Its the result of those breaks that is the problem.

What's your definition of a "spending problem" here?

Re: What's your verdict on the new Repblican/Trump tax plan? [SH] [ In reply to ]

Feb 5, 19 11:49

Post #19 of 141 (3149 views)

SH wrote:

tyrod1 wrote:

think shortfall per adult in usa is more than $800 for current 1 trillion projected deficit. you wanna take on debt too?

I'm just pointing out that the only way we "take on more debt" by a tax cut is that we each just keep the amount we otherwise would have payed. It's not like the money disappears. It goes into your pocket, and, possibly, on to your heirs.

No, the way we actually take on more debt (no scare quotes) by a tax cut is that it cuts revenue and we attempt to provide the same services that people expect.

----------------------------------
"Go yell at an M&M"

Re: What's your verdict on the new Repblican/Trump tax plan? [klehner] [ In reply to ]

Feb 5, 19 11:56

Post #20 of 141 (3135 views)

klehner wrote:

SH wrote:

tyrod1 wrote:

think shortfall per adult in usa is more than $800 for current 1 trillion projected deficit. you wanna take on debt too?

I'm just pointing out that the only way we "take on more debt" by a tax cut is that we each just keep the amount we otherwise would have payed. It's not like the money disappears. It goes into your pocket, and, possibly, on to your heirs.

No, the way we actually take on more debt (no scare quotes) by a tax cut is that it cuts revenue and we attempt to provide the same services that people expect.

I'm pointing out that every extra dollar in debt is a dollar an American kept in their pocket. My point is that your point (and other people's point) seems to leave that 1/2 of the equation completely out of it.

Re: What's your verdict on the new Repblican/Trump tax plan? [SH] [ In reply to ]

Feb 5, 19 13:48

Post #21 of 141 (3067 views)

I should add that I'm not in favor of Trump's plan to increase the deficit at this time*. And I don't think the cuts "pay for themselves" in the sense that they will increase revenue via growth more than they will drop revenue via rate cuts.

I'm just saying that we're using an analysis that's painting a much starker picture of what's going on than is really warranted.

* I do favor a number of other tax code changes in the Trump plan.

Re: What's your verdict on the new Repblican/Trump tax plan? [SH] [ In reply to ]

Feb 5, 19 14:42

Post #22 of 141 (3037 views)

not my definition, but the GOP has said that the budget isnt balanced because of a spending problem, not because of a revenue problem.

So the GOP's definition of the spending problem is services provided (medicare, health insurance, other entitlement programs). So to balance the budget because of the deficit created in part because of the tax plan (because the tax plan was not revenue neutral), spending needs to be reduced. So in the long term, entitlement programs will be cut because the tax plan is not revenue neutral.

Re: What's your verdict on the new Repblican/Trump tax plan? [Sweeney] [ In reply to ]

Feb 5, 19 19:46

Post #23 of 141 (2992 views)

Taxes up. Low 6 figure income, but 3 kids and thats the kicker. Already took standard deduction.

Just Triing
Triathlete since 9:56:39 AM EST Aug 20, 2006.
Be kind English is my 2nd language. My primary language is Dave it's a unique evolution of English.

Re: What's your verdict on the new Repblican/Trump tax plan? [SH] [ In reply to ]

Feb 5, 19 21:06

Post #24 of 141 (2966 views)

"I'm pointing out that every extra dollar in debt is a dollar an American kept in their pocket. My point is that your point (and other people's point) seems to leave that 1/2 of the equation completely out of it. "

To be more accurate, every extra dollar in debt is 10 cents in my pocket and $100 in the pocket of a billionaire.

-----------------------------Baron Von Speedypants
-----------------------------RunTraining articles here:
http://forum.slowtwitch.com/...runtraining;#1612485

Re: What's your verdict on the new Repblican/Trump tax plan? [BarryP] [ In reply to ]

Feb 6, 19 3:30

Post #25 of 141 (2919 views)

BarryP wrote:

"I'm pointing out that every extra dollar in debt is a dollar an American kept in their pocket. My point is that your point (and other people's point) seems to leave that 1/2 of the equation completely out of it. "

To be more accurate, every extra dollar in debt is 10 cents in my pocket and $100 in the pocket of a billionaire.

It's not more accurate for two reasons:

1.) It's a dollar for dollar trade. You can't go $1 debt for $100.10 in pocket money.
2.) Even putting down that 10 cents goes to you and 90 cents goes to a more wealthy person is not more accurate because it's implying that your share of the new debt burden for the $1 is equal to the more wealthy person's share. It's not.

Last edited by: SH: Feb 6, 19 4:09

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