New Tax Plan

[admin]

Getting rid of local and state tax deductions is definitely no bueno for California.

What do you like or don’t like?

[spdrun]

We’ll double(*) the standard deduction.

(*) – Restrictions apply, personal exemption going away. Double is redefined as 15% more.

Yeah, not good that people in states that already pay more to DC than they get back will pay EVEN more. Maybe corp and passthrough tax will offset that, maybe not.

I see a lot of “double” speak.

[Anonymous]

Three brackets instead of seven.

Because it is so hard to keep track of all those brackets!

[spdrun]

Yeah, the bracket thing is silly considering you mostly look up from a table or pick the top rate than add a %.

[Anonymous]

Or use a computer.

[all]

It will put tens of thousands of computers out of job.

[andymajumder]

Write & create pressure on Darrel Issa & Hunter to oppose the bill in its current form. This would result in tax increase for the coastal areas and transfer more wealth from blue states to red states. Issa barely managed to survive this time, if he supports something like this, that’s the end for him. They could cap itemized deduction to some number but removing state and local taxes from deductions completely would be really bad for states like CA, NY, NJ, MA, CT etc. BTW, 30% of US GDP contribution comes these 5 states alone.

[SK in CV]

Huge tax cuts for the very wealthy and the high income business owners. Almost nothing good for anyone else.

[SK in CV]

dup. weird.

[plm]

I actually don’t have a problem with the new tax plan. Seems to simplify things with most people now using the standard deduction if state and property taxes are no longer allowed. It’s not like you could write it all of anyhow if you are hit by AMT.

No AMT to calculate as well since that is removed.

I didn’t see any details on capital gains rate though.

I do think they should add back in the 39.6 tax bracket for the rich though. They probably have to in order to get the Democrats to support it.

I would guess that most high income folks here would pay less taxes with the new plan due to the 25 percent rate instead of 28 and 33.

[spdrun]

States like NY, NJ, and CA already pay more to DC than they get back in subsidies. What cutting deductions for state tax will do is hurt middle-class taxpayers in those states. They’d have to pay even more to DC while not benefiting from Federal spending in their states.

[Anonymous]

[quote=plm]I actually don’t have a problem with the new tax plan. Seems to simplify things with most people now using the standard deduction if state and property taxes are no longer allowed. It’s not like you could write it all of anyhow if you are hit by AMT.

No AMT to calculate as well since that is removed.

I didn’t see any details on capital gains rate though.

I do think they should add back in the 39.6 tax bracket for the rich though. They probably have to in order to get the Democrats to support it.

I would guess that most high income folks here would pay less taxes with the new plan due to the 25 percent rate instead of 28 and 33.[/quote]

It’s not neutral for upper-middle-class Californians.

It is specifically designed that way. It’s meant to be punishment and restitution.

The only goal of the Republican economic agenda is to buy votes with taxpayer money: Shift funding from urban blue areas that vote Democratic to rural red areas the vote Republican.

The latest attempt at health care legislation did exactly that, and the tax plan does the same.

His claim of “tax cuts for everybody” is as hollow as his claim as “health insurance for everybody.” The proposed legislation doesn’t even attempt to honor it.

[Anonymous]

Some specifics:

https://www.washingtonpost.com/news/wonk/wp/2017/09/29/gop-tax-plan-would-provide-major-gains-for-richest-1-percent-and-uneven-benefits-for-the-middle-class-report-says

Yes, the article is from the liberal media. I would post the Fox News article for balance but I can’t find it as their front page stories are about Trump blaming the mayor of Puerto Rico for the hurricane, why Hillary must go to jail, and how Ivanka was dissed by a librarian over Dr. Seuss books. No I’m not kidding. Not a single story about the tax plan.

For those that are looking at the chart and thinking they just got a 8+ percent tax cut because you make good money: I’ve got some bad news. The study defines the top 1% as income over $900K. And Californians will see far less benefit than Texans for reasons already explained.

So in unless you invested in Avatar and own several coastal properties, here’s how you are going to help make America Great Again:

Despite repeated promises from Republican lawmakers that the plan is designed to provide relief to the middle class, nearly 30 percent of taxpayers with incomes between $50,000 and $150,000 would see a tax increase, according to the study by the Urban-Brookings Tax Policy Center. The majority of households that made between $150,000 and $300,000 would see a tax increase.

[Coronita]

Meh. I said it before and I’ll say it again. It doesn’t matter who is in charge…..when they talk about tax law changes , w2 wage earners in the upper income always end up footing the bill the most.

Frankly, I don’t care because I am surprised most of you would be surprised that taxes wouldn’t be going up … I am pretty sure my taxes would have gone up under Hillary too.

That said, I am glad I am making a lot more this year than last year with my new job, and my investments have more or less been doing great. And it’s great living free and clear and only need to be saving/invest in for my kids college…assuming mine goes to college. Maybe after Trump, people don’t need to go to college. Kinda like America’s version of the cultural revolution. Lolol

Some my.my buddies just got their offers from Apple, Facebook, etc…ok, given they are probably above average performers. I was blown away by their comp packages….. Just senior level engineers, not management , around $300-$350k total. I’d say tech is still doing pretty well in CA

[bewildering]

[quote=harvey] The majority of households that made between $150,000 and $300,000 would see a tax increase.[/quote]

Yep. I do not see any way our household will benefit if property taxes and state taxes are removed as deductions. The 150,000 to 300,000 earners already pay more as a proportion of income than any other group. This plan will make it worse.

[Author]

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