Latest Fiscal Cliff Deal….

[an]

[quote=flu]Well, I’m sure if prices were adjusted 5%-10% in MM, we’d see a lot more inventory right now….And then people would get use to it, and then if rates dropped another 0.5%, you would have another buying frenzy… I predict that people are kinda still sticker shock with 1/1 going for $150, 2/2 going for $220, and some MM SFH that went for $350 going for $400. Rates fall again, people won’t care (again).[/quote]I’m not so sure. We’ll have to wait and see. The way I see MM, you either have people who bought in the 70s-90s who have no intention of selling or those who bought near peak who are under water and most likely already SS or foreclosed. So, I’m not sure if you see a lot more inventory if price goes up 5-10%. Price did go up around 13% in 2012 and inventory declined drastically. So, I don’t know if another 5-10% would change anything.

[flyer]

We had the news on in the den during most of “party time” tonight, and it seems things are looking better than expected–for now. Feel sorry for future generations, though.

Happy New Year!

[Coronita]

[quote=flyer]We had the news on in the den during most of “party time” tonight, and it seems things are looking better than expected–for now. Feel sorry for future generations, though.

Happy New Year![/quote]

Hell, I’m still working night before new year. Find me a millienial that is. Too darn bad…I tried to care, but I gave up…I’ll just take care of my own kid and be done with it. Everyone else’s kid is everyone else’s problem.

[Coronita]

Here’s the bill. In it’s glorious 144 pages….
http://i2.cdn.turner.com/cnn/2013/images/01/01/american.taxpayer.relief.act.pdf

Wonder how many house reps are gonna read it tonight/today 🙂

I’m gonna try while I’m waiting for folks overseas.

[flyer]

[quote=flu][quote=flyer]We had the news on in the den during most of “party time” tonight, and it seems things are looking better than expected–for now. Feel sorry for future generations, though.

Happy New Year![/quote]

Hell, I’m still working night before new year. Find me a millienial that is. Too darn bad…I tried to care, but I gave up…I’ll just take care of my own kid and be done with it. Everyone else’s kid is everyone else’s problem.[/quote]

Still up with a house full of guests, so thought I’d reply flu.

I agree that we all absolutely have to take care of our own, and, believe me, everyone in our family has done so to the greatest degree possible. We’ve all tried to create plans so that our kids will enjoy their lives as much as we have.

It’s still unfortunate to realize what those who may not have families who have planned well for them will be facing in the future with regard to jobs, housing, retirement and, and. . .

Only time will tell how all of this will play out.

[Coronita]

So… The fiscal cliff deal will cap itemized deductions. I believe the cap rule will be as follows.

If your AGI is

$250k for single filers
$300k for joint filers
$275k for head of houshold

your itemized deduction will be reduced by the lesser of either
a) 3% of the amount of you above your AGI
or
b) 80% of your itemized deduction amount

So using the governments new definition of “rich”

$400k AGI for single
$450k AGI for couples

* If single, their itemized deduction will be reduced by (400-250)k * 0.03 = $4500
* If couple, itemized deduction reduced by (450-300)k *0.03 = $4500
* If HofH, itemized deduction reduced by (400-275)k *0.03= $3750

Interesting to note though… if you live in CA, and have a huge property tax and state income sales tax, depending what has been revised by the AMT (which I’ll figure out), this might not matter to anyway, because at those income levels, changes are AMT is kicking in most likely before being hit with these itemized deduction caps…

So higher w-2 income earners are probably ok with this, up to the governments new definition of “rich” threshold

Sources:

Section 108 of:
http://www.gpo.gov/fdsys/pkg/PLAW-107publ16/html/PLAW-107publ16.htm

And

Section 68 of:

http://www.law.cornell.edu/uscode/text/26/68

Note to GOP House…Take the deal…

[CA renter]

[quote=SD Realtor]Funny because the so called fiscal cliff was in reality what really needed to be done. It cut spending (mostly in defense) and it raised taxes.

Also this mess was the result of yet another cave in on the debt limit. So we get another debt limit debate in another what, 6 weeks?

Hooray!!!

Keep spending baby!![/quote]

Could not agree more, SDR.

[Coronita]

…but they promised they wouldn’t raise taxes for anyone but the rich….Oh wait, payroll taxes are going back up…Uh oh…. Too damn bad….

Told ya…It wasn’t gonna be just the rich that are paying for this….Long term it’s coming out of the middle class…what’s left of it….

http://money.cnn.com/2013/01/02/smallbusiness/fiscal-cliff-payroll-taxes/index.html?hpt=hp_t1

But hey, it’s just like an extra 2% in payroll taxes for everyone. Not a big deal..I’m glad everyone has to pay for something to support this sort of government spending…

Everyone’s paycheck is about to take a hit, and it’s not the boss’ fault. But some business owners say it’s a tough talk to have.
The rate of workers’ payroll taxes, which fund Social Security, has been 4.2% for the past two years. As of Jan. 1, it’s back to 6.2%, on the first $113,700 in wages.

That forced Mike Brey, who owns four Hobby Works shops near Washington, D.C., to notify his store managers about the upcoming change during a conference call Monday. He called the experience uncomfortable. “These are the people who can least afford it,” Brey said.
Brey said he can’t raise compensation to ease the pain. Enduring the recession meant cutting his own salary, firing workers, taking on half a million dollars in debt and raiding his own 401(k).

http://finance.yahoo.com/news/despite-deal-taxes-rise-most-080642447.html

[livinincali]

[quote=flu]…but they promised they wouldn’t raise taxes for anyone but the rich….Oh wait, payroll taxes are going back up…Uh oh…. Too damn bad….

Told ya…It wasn’t gonna be just the rich that are paying for this….Long term it’s coming out of the middle class…what’s left of it….

http://money.cnn.com/2013/01/02/smallbusiness/fiscal-cliff-payroll-taxes/index.html?hpt=hp_t1

But hey, it’s just like an extra 2% in payroll taxes for everyone. Not a big deal..I’m glad everyone has to pay for something to support this sort of government spending…
[/quote]

The 2% increase is going to bring in far more money than the tax hikes on the rich. It’s about $120+ billion per year while the tax hikes on the rich are expected to bring in about $600 billion over 10 years. I wonder how long wall street stays in a jolly mood before it realizes how weak this can kick was.

[no_such_reality]

Wall Street will stay jolly. The Gub’ment again confirmed that they are delusional narcissists that are unwilling to have the confrontation with their debt junkie constituency.

I’m partly bouyed by a ad-hoc poll on the LA Times on the fiscal cliff deal article. It’s showing 90% saying spending is the problem. That’s on the typical uber left LA Times readers.

The fiscal cliff itself was a gimme. It was taxes and a minimal $110 billion spending cut. Barely 2 cents on the dollar in cuts.

We shouldn’t worry about the cliff, we should worry about the tsunami, which is the 10% annual increases we are seeing in Medicare and Social Security.

Now, how to convert my income streams to cash and barter?

[an]

[quote=flu]Hell, I’m still working night before new year. Find me a millienial that is. Too darn bad…I tried to care, but I gave up…I’ll just take care of my own kid and be done with it. Everyone else’s kid is everyone else’s problem.[/quote]Don’t worry too much about us Millennial. We’re no different than any other generation. After all, isn’t the boomer’s average retirement account is around $50k?

[Coronita]

[quote=AN][quote=flu]Hell, I’m still working night before new year. Find me a millienial that is. Too darn bad…I tried to care, but I gave up…I’ll just take care of my own kid and be done with it. Everyone else’s kid is everyone else’s problem.[/quote]Don’t worry too much about us Millennial. We’re no different than any other generation. After all, isn’t the boomer’s average retirement account is around $50k?[/quote]

AN, you’re really an exception…Millenials are slightly better than Generation X (not much, but slightly better….) Baby boomers by far are the worst when it comes to entitlements 🙂

[an]

[quote=flu]AN, you’re really an exception…Millenials are slightly better than Generation X (not much, but slightly better….) Baby boomers by far are the worst when it comes to entitlements :)[/quote]
I’m pretty a lot of us on here are exceptions to our respective generation.

[carlsbadworker]

[quote=no_such_reality]I’m partly bouyed by a ad-hoc poll on the LA Times on the fiscal cliff deal article. It’s showing 90% saying spending is the problem. That’s on the typical uber left LA Times readers.[/quote]

They favor cut spending but not any spending cut that will impact them. Just look at last year’s CA propositions for increasing taxes on education. Just like people say that revenue should be raised but it should not get raised from their taxes.

So as long as we tax somebody else and cut spending that impacts somebody else. As a nation, we will do just fine.

[flyer]

[quote=AN][quote=flu]AN, you’re really an exception…Millenials are slightly better than Generation X (not much, but slightly better….) Baby boomers by far are the worst when it comes to entitlements :)[/quote]
I’m pretty a lot of us on here are exceptions to our respective generation.[/quote]

I think you and probably many in your age group are an exception, AN, and will do very well, just like I, and most people I know are exceptions to the “Baby Boomer” generalizations.

Yet, when you look at the overall stats, in all age groups, (and I know I’ve said this before) only around 5% of the population have a net worth of over a million. In fact, I just read the median net worth of most Americans is around $57K, including primary residence–really??!!

http://money.cnn.com/2012/09/11/news/economy/wealth-net-worth/index.html

So, you have a very large percentage of the population who are too rich for assistance, yet too poor to sustain themselves long-term, (i.e. through retirement) and, IMHO that’s a real concern for our society as a whole.

I realize most of us here are in at least the top 10%, but this is a real eye-opener. Moral: As flu said–take care of your own!!

[Author]

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