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GOP tax plan musing...capping 401k contributions at $2400 year

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werepossum said:
That’s because we’re smarter than you. You are totally being played. After all the hysteria about Republicans trying to gut the middle class’s retirement savings, they will increase the limit, which is what they wanted all along.
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i think my taxes are gonna go up a lot. and its horrible.
 
werepossum said:
That’s because we’re smarter than you. You are totally being played. After all the hysteria about Republicans trying to gut the middle class’s retirement savings, they will increase the limit, which is what they wanted all along.
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My wife and I have put 30k/yr into 401k for years. Explain to me why we must detonate our responsible retirement plans by limiting that number to less than 5k/yr to give the ultra wealthy a sackful of cash. Removing the tax deduction is equivalent to limiting it. Removing it would result in a cost of 40k to make a 30k investment.

Do you get that this will drastically impact me negatively and many other working families like mine? I am being punished for attempting to do the responsible thing and provide some independence for myself in retirement. What in the fuck am I supposed to do now? Fuck the republicans. I wish there was a hell they could go to when they die. They are evil bastards who don't give a shit about the backbone of America---- the MIDDLE CLASS.
 
15k per person per year into a 401k isn’t hard for people with decent earnings. A lot of the people on this forum are in 6 figures because nerds. We are all gone get hammered by this.
 
JSt0rm said:
15k per person per year into a 401k isn’t hard for people with decent earnings. A lot of the people on this forum are in 6 figures because nerds. We are all gone get hammered by this.
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It's how Repubs address inequality. Make the upper middle class more like the lower middle class. So much winning!
 
JSt0rm said:
15k per person per year into a 401k isn’t hard for people with decent earnings. A lot of the people on this forum are in 6 figures because nerds. We are all gone get hammered by this.
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You lead a privileged life if you believe that. Median family income is what half the families earning less define as "decent income" & it's less than $60K/yr. Being in the top 25% is ~$75K/yr. Socking away $30K/ yr on that money means you live like a church mouse.
 
Since it looks like the pass through rate will be cut to something absurd I'll make out on this deal. Our household will be taking it in the nuts on the SALT deduction and a 401K cap I'm gonna wring all that (and lot more) from the pass through cut. Thanks middle class Trump voters!
 
Jhhnn said:
You lead a privileged life if you believe that. Median family income is what half the families earning less define as "decent income" & it's less than $60K/yr. Being in the top 25% is ~$75K/yr. Socking away $30K/ yr on that money means you live like a church mouse.
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and if someone chooses to live like that they will be punished.
 
If you want to vote against your own self interest to give tax cuts to the rich, that's cool, but keep the rest of us out of it.
 
People, people... the answer is simple. Just pass your income through an LLC you own and bing bang boom you are taxed at the criminal bankster 20% rate that Trump will pay.


This "tax cut" is a gift to anybody who owns a business or can afford incorporate and a huge fine to anybody who can't afford to.
 
I am going to hire an expert to tell me what to do. If its an llc then so be it. I have about 100k in 1099 income on top of my normal w2 at this point. Still going to get burned on the state sales tax deductions. Hard.
 
JSt0rm said:
I am going to hire an expert to tell me what to do. If its an llc then so be it. I have about 100k in 1099 income on top of my normal w2 at this point. Still going to get burned on the state sales tax deductions. Hard.
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Supposedly the mystery tax legislation will have a mechanism to stop higher income earners from using a pass through entity like that but I, nor anybody I've talked to, believes that will really be the case or that the mechanism used won't be able to be circumvented. My confidence is high that the lobbyists will get a loophole(s) left big enough to sail an aircraft carrier through.
 
JSt0rm said:
and if someone chooses to live like that they will be punished.
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True. OTOH, your position of privilege warps your perspective. Most Americans would give their left nut to earn as much from their regular job as you do from your side work. Don't expect a whole shitpile of sympathy. The MAGA faction will cheer when their sworn enemy, the so-called "Coastal Elite" takes the high hard one just like they have.
 
Would the LLC thing work for a regular employee of another company? Could I really pass my salary through an LLC? Would it require the cooperation of my employer?
 
So. Does anyone know if this rumored legislation to cap contributions also hits the federal government retirement system that civil servants and members of Congress are on.
 
Paratus said:
So. Does anyone know if this rumored legislation to cap contributions also hits the federal government retirement system that civil servants and members of Congress are on.
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Whatever happens you may rest assured that Congress will exempt themselves from any negative consequences.
 
K1052 said:
Whatever happens you may rest assured that Congress will exempt themselves from any negative consequences.
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I would benefit from that as well if the govt TSP is exempt.

One article I read made an interesting point. Changing the amount of contributions basically pulls tax revenues forward. If a budget bill affects projected tax revenue outside of its legislative window then reconciliation can’t be used and it requires 60 votes to pass the senate.
 
Paratus said:
I would benefit from that as well if the govt TSP is exempt.

One article I read made an interesting point. Changing the amount of contributions basically pulls tax revenues forward. If a budget bill affects projected tax revenue outside of its legislative window then reconciliation can’t be used and it requires 60 votes to pass the senate.
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Thats a significant "if" at this stage. Even the committees who will have to work on it haven't seen it.

I saw one reporter compare the forthcoming tax legislation to the Ark of the Covenant from Indiana Jones: Incredibly elusive and full of such a powerful majesty as to threaten destruction to the unworthy who may cast their gaze upon it.
 
K1052 said:
Thats a significant "if" at this stage. Even the committees who will have to work on it haven't seen it.

I saw one reporter compare the forthcoming tax legislation to the Ark of the Covenant from Indiana Jones: Incredibly elusive and full of such a powerful majesty as to threaten destruction to the unworthy who may cast their gaze upon it.
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You know that’s not a bad analogy. They desperately want those 0.01% tax cuts (The Ark), and when they finally do get it, it results in them losing the House, Senate, and Presidency due to the voter backlash (the wrath of god face melting stuff).
 
IronWing said:
Would the LLC thing work for a regular employee of another company? Could I really pass my salary through an LLC? Would it require the cooperation of my employer?
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None for you, you wage slave sucka! Now row! Row or you'll feel the lash!
 
Paratus said:
You know that’s not a bad analogy. They desperately want those 0.01% tax cuts (The Ark), and when they finally do get it, it results in them losing the House, Senate, and Presidency due to the voter backlash (the wrath of god face melting stuff).
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Damned if they do, damned if they don't. And I will never feel an ounce of sympathy for the living scum. I hope they lose everything.
 
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