New tax plan.....

Why are all the LWNs suddenly concerned about deficits and debt?
They weren't even slightly concerned the last 8 years when the debt added more than all other administrations combined. They weren't even slightly concerned that Obamacare increased the debt by a huge (or uuuge) margin. No concern about the massive running deficits the last 8 years.
Interesting.

 

And our new "Republican" president is going to make the problem even worse but his supporters are okay with it 'cause he's their guy. Neither party is remotely fiscally reponsable and at some point that's going to bite the majority of us in the ass.

 

Sweet crystal ball you have there. I am sure it is as accurate as anything on MSNBC.
I agree, Trump is a "Republican", not a Conservative or a Republican. But tax cuts are always the right thing to do. Even the moronic drug addict and pure whore Jack Kennedy knew that.

 

So, Trump plan doesn't do dick for me. I had $11,603 in deductions itemized this past year. If they don't do anything to change how exemptions are calculated, I should come out pretty much the same until my income goes up.

However, if the standard deduction goes up and we're no longer able to get any use out of the mortgage deduction (or it goes away), then I take back everything I said in the investments thread - pay that f@#&er off as fast as you can, especially since home values will potentially drop.

 

It's not a crystal ball, it's math. Tax cuts are great when government is cut too, but that's not the case here. Look up what Gov Brownbacks cuts have done for Kansas, that state is screwed for years to come. Even the republican majorities in the state house and senate want to raise taxes because it's the fiscally responsible thing to do. Again, I'm all for tax cuts just cut government along with them.

 

Don't you badmouth Sam Brownback! He's doing the Lawd's work, and we all know He works in mysterious ways!

 

Surprise! Another tax plan that heavily benefits the wealthy, slightly benefits the poor, all paid for by the hard labor of the ever shrinking middle class.

 

upon further review, it would appear i'll still be in the 25% bracket, so nothing would really change for me. It may even be worse if they are going to do away with some of the deductions... or not allow you to deduct your state income tax, which is a bit crazy. the one tangible thing that could have benefited myself will most likely not based on the information that has been released so far.

it will most likely be an uphill battle getting it passed anyway.

 

That's one question I had - I didn't see anything about deducting property tax either. They specifically said mortgage interest, but nothing about real estate taxes (which I assume will go away because income tax sounds like its going away).

 

So have any numbers from the actual tax plan been released yet???

 

Removing both the state income tax and mortgage interest deductions is going to really hurt those living in the higher cost of living / high state tax areas like NY. I would think it would also promote renting over buying for housing, as the landlord should be able to write off the mortgage against his profit. Doesn't sound like a very good idea to me. It would be worse if it includes Property tax as well.

 

I mean, one can extrapolate a bit of significance from the numbers that have been released. We know 3 tax brackets, they want to eliminate most/all of the deductions. We know they want to raise the single standard deduction to 12K and the married deduction to 24K, which effectively negates mortgage interest on all but the most expensive houses at today's rates. Corporate rates to 15%, and a repeal of taxes on capital gains/dividends. One can take their current numbers and plug some stuff in to see where that leaves them in the ballpark. Unless you're on the edge of a tax bracket now, you know, within a reasonable amount, which tax bracket you're gonna fall into.

No, nothing is final and its all probably gonna change, but there's not much wrong with running the numbers to see whether it has the potential to benefit you or not.

 

I'm all about getting rid of capital gains taxes, the more I look into this investing stuff the more pissed I get about being taxed on money I've already been taxed on.

 

The deduction for state taxes actually penalizes those who live in frugal states. Because their state controls spending enough that they can do without state income tax, they get to pay more federal tax so those in the spendthrift states that don't control spending can pay less. The thrifty states get to subsidize spending in the states with an income tax.
Doesn't seem that fair.
Costs like mortgage or insurance are something everybody pays.

 

It isn't all about thrift. Some states with no or low income tax but make up for it in Property tax or are lucky enough to get taxes from gambling and hotels like Nevada. Some make up for it with higher sales taxes. Others have higher income taxes because they have no state sales tax.

Pretty much everyone pays insurance. Not everyone pays a mortgage. Homes are bought and sold with "cash".

 

First pass quick calculations say it will raise my federal tax bill by $3500-4000 annually.

As in any plan, It is designed to create winners and losers. Follow the money.

 

So we are going to have substantially less revenue while simultaneously entering into wars in multiple countries.

Meanwhile the rich get richer.

This feels familiar.

 

So corporations get their taxes dropped to 15%, the supreme court said in citizen's united that they're people, so why don't they have to pay the same tax rate as "people"?

 

A home is a terrible investment. It's only a good value when it's paid off.

Case in point...my parents bought their house in 1985 for $54,000. They were in the house for 18 years at a ball park figure of $200,000 in payments, maintenance, insurance, taxes, etc.

After 18 years, Mom sold the house for $79,000. Even savings bonds over 18 years would have yielded a better return.

At a payment of $600/month, they'd have been $70,000 ahead of they had rented.