CBO analysis of new tax bill, $100k+ earner gets big cuts, poorer earner will tax more after bill

[vi edit]

Find out what the current house/senate tax plans mean for you:
http://taxplancalculator.com/

According to that the standard deduction for Married Filing Jointly is going up to $24,000 and even with a household income approaching 200k I still get the full $4,000 for 2 kids. It says I'd save about $2600 a year. Not sure if it also takes into account exemptions. I'm still not convinced on some of the numbers sticking that way.

 

[fskimospy]

Lose $300 under the House plan and over $1500 under the Senate plan. 28 years old, middle class. Thanks Republicans!

Ooh, how fun! I lose about $1,100 under the House plan and about $1,750 under the Senate plan. This also does not account for what I imagine will be a significant decline in the value of my home. In addition I'm pretty sure this is only year 1, so by year 10 I imagine it is significantly worse. So basically the country is going $1.5 trillion dollars into debt so that I can pay more in taxes and the heirs of millionaires can save money.

Thanks, Republicans!

 

[brycejones]

Ooh, how fun! I lose about $1,100 under the House plan and about $1,750 under the Senate plan. This also does not account for what I imagine will be a significant decline in the value of my home. In addition I'm pretty sure this is only year 1, so by year 10 I imagine it is significantly worse. So basically the country is going $1.5 trillion dollars into debt so that I can pay more in taxes and the heirs of millionaires can save money.

Thanks, Republicans!

Are you tired of winning yet?

 

[vi edit]

Ooh, how fun! I lose about $1,100 under the House plan and about $1,750 under the Senate plan. This also does not account for what I imagine will be a significant decline in the value of my home. In addition I'm pretty sure this is only year 1, so by year 10 I imagine it is significantly worse. So basically the country is going $1.5 trillion dollars into debt so that I can pay more in taxes and the heirs of millionaires can save money.

Thanks, Republicans!

Yeah by 2027 this link says my $2600 be worth about $192 a year. Woo!

http://time.com/5030046/how-would-t...ect-you-find-out-with-this-simple-calculator/

 

[repoman0]

Ooh, how fun! I lose about $1,100 under the House plan and about $1,750 under the Senate plan. This also does not account for what I imagine will be a significant decline in the value of my home. In addition I'm pretty sure this is only year 1, so by year 10 I imagine it is significantly worse. So basically the country is going $1.5 trillion dollars into debt so that I can pay more in taxes and the heirs of millionaires can save money.

Thanks, Republicans!

I'm looking forward to that bit too. Just bought my first place a couple months ago in an already expensive market (Boston).

 

[fleshconsumed]

Find out what the current house/senate tax plans mean for you:
http://taxplancalculator.com/

Plugged in my numbers after subtracting my 401K/HSA contributions because calculator doesn't take those into account. Gain ~$346 under house, lose ~$1,104 under senate. Basically I'd either gain some pocket money under house plan, or lose 3 times as much under senate, and that's just the first year, it gets progressively bleaker after that. All to give richest of the rich tax breaks and blow up our deficit by $1.5T with a capital T.

Well, if this happens, I hope that at least the corporations do buybacks so that my 401K value goes up, and I hope I can time it well and pull out my money from equities into bonds/treasuries before it all comes crashing down.

 

[K1052]

Find out what the current house/senate tax plans mean for you:
http://taxplancalculator.com/

Says I'll save about 10K under the senate plan. Splendid lol.

Also holding out that the structure that eventually emerges will provide at least a window of extremely favorable tax treatment to move money out of our LLCs and into my pocket. We'll see.

 

[Puffnstuff]

Are you tired of winning yet?

I don't know about you but I'm completely exhausted.

 

[Engineer]

I know that many deductions go away but has anyone noticed whether capital loss (stock loss) and especially stock loss carry over has been scrapped? I doubt seriously if it has because I'm sure that's used by some very upper class to reduce taxes when available. That would seriously hurt my taxes also (have a bad loss from many years ago and still writing it off at $3,000 per year maximum allowed).

 

[IronWing]

Where they at with limiting traditional 401k and catch up contributions?

 

[Starbuck1975]

Ooh, how fun! I lose about $1,100 under the House plan and about $1,750 under the Senate plan. This also does not account for what I imagine will be a significant decline in the value of my home. In addition I'm pretty sure this is only year 1, so by year 10 I imagine it is significantly worse. So basically the country is going $1.5 trillion dollars into debt so that I can pay more in taxes and the heirs of millionaires can save money.

Thanks, Republicans!

Why should the federal government subsidize inflated housing prices and high tax bureaucracies in blue states?

Lower housing prices will make housing more accessible and may cause voters to engage and put more pressure on local governments to be more frugal. Why do you hate affordable housing and holding states accountable to the taxes they impose on their constituents?

For the record, I will end up paying more in taxes and I am ok with this.

 

[K1052]

Where they at with limiting traditional 401k and catch up contributions?

Senate bill does away with catch up contributions, AFAIK.

 

[fskimospy]

Why should the federal government subsidize inflated housing prices and high tax bureaucracies in blue states?

Lower housing prices will make housing more accessible and may cause voters to engage and put more pressure on local governments to be more frugal. Why do you hate affordable housing and holding states accountable to the taxes they impose on their constituents?

For the record, I will end up paying more in taxes and I am ok with this.

I don’t support the mortgage interest deduction and have said so many times. It is stupid policy. That being said, the means by which the Republicans are eliminating it is beyond dumb. Other countries that have eliminated it did so gradually over a number of years in order to prevent a sharp, immediate contraction in housing prices and a sudden and sharp increase in monthly housing costs that can lead to defaults on loans, undermine the value of securitized loans (like what caused the housing crisis!), etc.

As for state and local tax deductions I’m fine with eliminating them but in that case they need to be replaced by either significantly larger federal spending in those states or other deductions. The states that benefit from SALT are not being subsidized by you for their high taxes, they are in fact likely subsidizing your presumably low tax state. It is not a coincidence that these high tax, high service states are the most productive in the US and that every state or nearly every state significantly affected by this is a large net donor of federal revenues. Is there any good policy reason to make this disparity far more severe in order to cut taxes on the rich?

So out together you’re talking about tens or hundreds of billions of extra tax dollars being suddenly extracted from our most productive areas overnight. This is very bad economic policy.

Does that clear up why this is stupid?

 

[Starbuck1975]

I don’t support the mortgage interest deduction and have said so many times. It is stupid policy. That being said, the means by which the Republicans are eliminating it is beyond dumb. Other countries that have eliminated it did so gradually over a number of years in order to prevent a sharp, immediate contraction in housing prices and a sudden and sharp increase in monthly housing costs that can lead to defaults on loans, undermine the value of securitized loans (like what caused the housing crisis!), etc.

As for state and local tax deductions I’m fine with eliminating them but in that case they need to be replaced by either significantly larger federal spending in those states or other deductions. The states that benefit from SALT are not being subsidized by you for their high taxes, they are in fact likely subsidizing your presumably low tax state. It is not a coincidence that these high tax, high service states are the most productive in the US and that every state or nearly every state significantly affected by this is a large net donor of federal revenues. Is there any good policy reason to make this disparity far more severe in order to cut taxes on the rich?

So out together you’re talking about tens or hundreds of billions of extra tax dollars being suddenly extracted from our most productive areas overnight. This is very bad economic policy.

Does that clear up why this is stupid?

So we have common ground on eliminating those deductions.

Those deductions you oppose are also a 3rd rail in American politics, because they've artificially inflated cost of living and other factors that are having far more detrimental long term impacts the longer they remain in place.

I am ready to rip off the bandaid.

 

[fskimospy]

So we have common ground on eliminating those deductions.

Those deductions you oppose are also a 3rd rail in American politics, because they've artificially inflated cost of living and other factors that are having far more detrimental long term impacts the longer they remain in place.

I am ready to rip off the bandaid.

Ripping off the band aid is a very, very bad idea. For just how bad an idea it is all you need to do is look at the financial crisis to see what a sudden, sharp downturn in home values can do to financial markets and people’s well-being. Doesn’t it make sense to phase that in over time to make the adjustment gradual instead of sudden and potentially catastrophic?

You can say that the MID has artificially increased cost of living in some areas and I would agree. SALT? No. Do you agree that since this change primarily affects states that already greatly subsidize the rest of the country it would make sense to find ways to offset the damage of SALT removal to our most productive areas? Remember, money from these areas is what a good portion of the rest of the country depends on in part to maintain their low taxes.

 

[Jhhnn]

I'm looking forward to that bit too. Just bought my first place a couple months ago in an already expensive market (Boston).

Cornholio for you! Don't worry, though, because some billionaire can better use the money to upgrade the bath hardware on his Gulfstream...

 

[Starbuck1975]

Ripping off the band aid is a very, very bad idea. For just how bad an idea it is all you need to do is look at the financial crisis to see what a sudden, sharp downturn in home values can do to financial markets and people’s well-being. Doesn’t it make sense to phase that in over time to make the adjustment gradual instead of sudden and potentially catastrophic?

You can say that the MID has artificially increased cost of living in some areas and I would agree. SALT? No. Do you agree that since this change primarily affects states that already greatly subsidize the rest of the country it would make sense to find ways to offset the damage of SALT removal to our most productive areas? Remember, money from these areas is what a good portion of the rest of the country depends on in part to maintain their low taxes.

The architects of the housing crash faced zero repercussions for their actions, my biggest disappointment in the Obama Administration.

What I do know is that the Great Depression created a unifying experience that forged our greatest generation, fundamentally changed our society and led to the New Deal.

Maybe we are due for another jolt.

 

[Balt]

Looks like I'm going to save about $2400/year with either the House or Senate plan.

I'm now a huge fan of this big, beautiful tax legislation. When Trump says "people are saying it's the best tax plan they've ever seen", he's talking about me.

 

[Jhhnn]

The architects of the housing crash faced zero repercussions for their actions, my biggest disappointment in the Obama Administration.

What I do know is that the Great Depression created a unifying experience that forged our greatest generation, fundamentally changed our society and led to the New Deal.

Maybe we are due for another jolt.

Repubs will arrange it if they can. They can't help themselves. Their ideology demands it. Boom/bust is the inherent nature of Capitalism.

 

[Maxima1]

You can say that the MID has artificially increased cost of living in some areas and I would agree. SALT? No.

State taxes are more regressive than federal. The states spending the most screw over private sector workers to give overly generous contributions to the public sector.

 

[Jhhnn]

State taxes are more regressive than federal. The states spending the most screw over private sector workers to give overly generous contributions to the public sector.

That's a matter of jaundiced opinion rather than fact, isn't it?

 

[J.Wilkins]

State taxes are more regressive than federal. The states spending the most screw over private sector workers to give overly generous contributions to the public sector.

You know... you might just be retarded.

 

[Balt]

State taxes are more regressive than federal. The states spending the most screw over private sector workers to give overly generous contributions to the public sector.

err.. disagree. States spend money on public schools, public transportation, public health, and other public services like adult education classes. All of those are things that help lower income people.

Also, sales taxes are far more regressive.

 

[J.Wilkins]

err.. disagree. States spend money on public schools, public transportation, public health, and other public services like adult education classes. All of those are things that help lower income people.

Also, sales taxes are far more regressive.

He might just be... retarded... He is trying to have a discussion on a topic he clearly cannot grasp.

 

[Maxima1]

err.. disagree. States spend money on public schools, public transportation, public health, and other public services like adult education classes. All of those are things that help lower income people.

Also, sales taxes are far more regressive.

Cop median pay here is above 6 figures with a $3 mil pension. Median household income significantly lower There's a reason why tons of low income leave CA.

That's a matter of jaundiced opinion rather than fact, isn't it?

No. Public sector has a monopoly on certain services and is enabled by the pols to extract economic rents from others.