SALT Deduction

[irvinehomeowner]

Why not just look at your effective tax rate difference between 2017 and 2018?  For 2018, Line 15 divided by Line 7.  For 2017, Line 63 divided by Line 22. 

Thanks. I was more talking about the differences in the bracket, deductions, exemptions, credits, AMT etc.

Using tax divided by income, for 2017 I get 11.1% and for 2018 I get... 11.2%.

Man... Trump got me for .1% higher taxes.

0.1% increase when your agi increased 10%?  sounds like a win to me 

Why would that be a win..it's literally the same unless they went up a bracket

They didn't pay the same amount...they paid the same effective rate.

if my agi last year is $150k and my effective tax rate is 10%, and the next year i make $165k (10% more), and my effective tax rate is still 10%, then that's a win because without the trump tax plan your effective rate would increase because a larger percentage of your income is going to be taxed at the marginal rate from that bracket.

It depends on the bracket margins. Assume I stayed within the same bracket, it's a push right?

That's why I wanted to know the particulars.

 

[eyephone]

So I was right. The cards are stacked against us. We pay more and we don?t receive aid like other states! We were singled out to pay for other states benefits!!!!!!

welcome to being a conservative

California and New York is like funding the US. But we got deeply shafted with the SALT reduction.

 

[irvinehomeowner]

Isn't the dependents exemption removal worse than the SALT reduction if you have kids? The child credit doesn't even make up for that.

 

[Irvinecommuter]

So I was right. The cards are stacked against us. We pay more and we don?t receive aid like other states! We were singled out to pay for other states benefits!!!!!!

welcome to being a conservative

LOL...Conservatives are basically all the rich people and business leaders for the previous 50 years.  How do you think we go this level income disparity and automation? 

Love conservatives that tries to pretend that they are victims.

 

[Kings]

Why not just look at your effective tax rate difference between 2017 and 2018?  For 2018, Line 15 divided by Line 7.  For 2017, Line 63 divided by Line 22. 

Thanks. I was more talking about the differences in the bracket, deductions, exemptions, credits, AMT etc.

Using tax divided by income, for 2017 I get 11.1% and for 2018 I get... 11.2%.

Man... Trump got me for .1% higher taxes.

0.1% increase when your agi increased 10%?  sounds like a win to me 

Why would that be a win..it's literally the same unless they went up a bracket

They didn't pay the same amount...they paid the same effective rate.

if my agi last year is $150k and my effective tax rate is 10%, and the next year i make $165k (10% more), and my effective tax rate is still 10%, then that's a win because without the trump tax plan your effective rate would increase because a larger percentage of your income is going to be taxed at the marginal rate from that bracket.

It depends on the bracket margins. Assume I stayed within the same bracket, it's a push right?

That's why I wanted to know the particulars.

let's assume married, filing jointly with the same 2017 $150k -> 2018 $165k agi. 

before the trump tax plan, you're in the 25% bracket over $75,900 agi.  in 2018, you're paying 22% for over $77,400.  if your agi was $150k again this year you'd have a tax cut - easy math there.

but to explain my point - let's use your example with round numbers in terms of tax rates.  at $150k, 10% effective tax rate is $15k in taxes last year.  at $165k, 10% effective tax rate is $16.5k, which is a $1.5k difference.  except if you made $165k and the tax code didn't change with trump, you would have paid 25% on that extra $15k in agi, or $3,750.  that's oversimplifying it, but if your agi is increasing, all other things equal, your effective tax rate will be increasing due to the tax brackets increasing as well.  so paying the same effective tax rate with an increasing agi is a good thing.

 

[Kings]

So I was right. The cards are stacked against us. We pay more and we don?t receive aid like other states! We were singled out to pay for other states benefits!!!!!!

welcome to being a conservative

LOL...Conservatives are basically all the rich people and business leaders for the previous 50 years.  How do you think we go this level income disparity and automation? 

Love conservatives that tries to pretend that they are victims.

hey eyephone is not a victim, he's just pointing out how unfair it is for us rich californians to subsidize all those stupid flyover states that nobody cares about

 

[Irvinecommuter]

So I was right. The cards are stacked against us. We pay more and we don?t receive aid like other states! We were singled out to pay for other states benefits!!!!!!

welcome to being a conservative

LOL...Conservatives are basically all the rich people and business leaders for the previous 50 years.  How do you think we go this level income disparity and automation? 

Love conservatives that tries to pretend that they are victims.

hey eyephone is not a victim, he's just pointing out how unfair it is for us rich californians to subsidize all those stupid flyover states that nobody cares about

Except he is pointing out that California and NY are subsidizing the rest of the country and got shafted in the new tax deal...which are actual statements of fact.

Whereas conservatives claiming that they have been on the wrong end of the stick considering what has happened in the last 50-60 years is just hilarious.

 

[Kings]

So I was right. The cards are stacked against us. We pay more and we don?t receive aid like other states! We were singled out to pay for other states benefits!!!!!!

welcome to being a conservative

LOL...Conservatives are basically all the rich people and business leaders for the previous 50 years.  How do you think we go this level income disparity and automation? 

Love conservatives that tries to pretend that they are victims.

hey eyephone is not a victim, he's just pointing out how unfair it is for us rich californians to subsidize all those stupid flyover states that nobody cares about

Except he is pointing out that California and NY are subsidizing the rest of the country and got shafted in the new tax deal...which are actual statements of fact.

Whereas conservatives claiming that they have been on the wrong end of the stick considering what has happened in the last 50-60 years is just hilarious.

you yourself just said you paid the same amount of taxes and others on this board have said they got tax cuts....if that's being shafted, give me the whole 9 yards baby

 

[qwerty]

if I would have applied the 2017 effective federal tax rate to my 2018 income I would have paid 27k more than I did for 2018.

God bless Donald trump!! 

Don?t agree with everything he does or says but I?ll take the 27k in savings!

 

[Mety]

Man, seems like most people are benefiting from this new tax plan. I thought I was going to get hit, but surprisingly benefiting more also. Maybe I should have bought a bigger house.  ;D

 

[eyephone]

Man, seems like most people are benefiting from this new tax plan. I thought I was going to get hit, but surprisingly benefiting more also. Maybe I should have bought a bigger house.  ;D

There?s no tax incentive to buy a bigger house like before.

 

[fortune11]

As IC said , perception is KEY . This tax plans after the refunds etc have been posted , still doesn?t poll well.

By next year, it will be old news and won?t matter for 2020

Another prediction - people believe corporate tax cut is here to stay . They maybe in for a surprise depending on 2020 results

 

[Kings]

almost as if you're being brainwashed to believe the tax cuts really didn't help you...hmmmmm who could have a vested interest in that alternate reality?

 

[Kenkoko]

I've got to hand it to Trump. He has everyone so distracted arguing over the insignificant amount of tax cut (or non-tax cut for some) that nobody is noticing the sleight of hand magic our mega companies are pulling off.

Under Trump's tax cut, 60 Fortune 500 companies avoided paying all federal income tax in 2018 (with their total average effective tax rate being roughly -5%)

Overall, In 2018, corporations paid just 7% of their profits as federal taxes.

Keep arguing over the measly amount you saved or didn't save. It's really meaningless since we are all getting robbed.
https://finance.yahoo.com/news/companies-paying-zero-taxes-trump-law-155944124.html

 

[eyephone]

Man, seems like most people are benefiting from this new tax plan. I thought I was going to get hit, but surprisingly benefiting more also. Maybe I should have bought a bigger house.  ;D

There?s no tax incentive to buy a bigger house like before.

Mety buy a bigger house and then let us know if there is additional tax savings. Also, send your kids to online elementary school. Then let us know your feedback. (re: your comment replacing regular teachers with online teachers)
Jk

 

[Irvinecommuter]

almost as if you're being brainwashed to believe the tax cuts really didn't help you...hmmmmm who could have a vested interest in that alternate reality?

Tax cuts always benefits some over the mass.  The question both economically and political is what has the tax cut done for the US economy? 

Where is the projected 3 to 4% growth for the next ten years that was going to pay for the tax cut and spurn the US into the next level of growth?

This is why I despise GOP economical model...just say what it is, more money for rich people at the expense of the 90%.  Don't give me trickle-down economics or unrealistic growth model...just go with "HEY IT'S GOOD FOR ME"

 

[Kings]

almost as if you're being brainwashed to believe the tax cuts really didn't help you...hmmmmm who could have a vested interest in that alternate reality?

Tax cuts always benefits some over the mass.  The question both economically and political is what has the tax cut done for the US economy? 

Where is the projected 3 to 4% growth for the next ten years that was going to pay for the tax cut and spurn the US into the next level of growth?

This is why I despise GOP economical model...just say what it is, more money for rich people at the expense of the 90%.  Don't give me trickle-down economics or unrealistic growth model...just go with "HEY IT'S GOOD FOR ME"

keep trump in office for the next 10 years and you'll see sustained 3-4% growth 

and 50% of the country doesn't even pay federal taxes, so not sure how it could be at their expense

 

[Irvinecommuter]

almost as if you're being brainwashed to believe the tax cuts really didn't help you...hmmmmm who could have a vested interest in that alternate reality?

Tax cuts always benefits some over the mass.  The question both economically and political is what has the tax cut done for the US economy? 

Where is the projected 3 to 4% growth for the next ten years that was going to pay for the tax cut and spurn the US into the next level of growth?

This is why I despise GOP economical model...just say what it is, more money for rich people at the expense of the 90%.  Don't give me trickle-down economics or unrealistic growth model...just go with "HEY IT'S GOOD FOR ME"

keep trump in office for the next 10 years and you'll see sustained 3-4% growth 

and 50% of the country doesn't even pay federal taxes, so not sure how it could be at their expense

Really?  Cause the tax cut was to have maximum effect in year 1 and 2018 had 2.9%...projection is about 2% this year...1.5% next year. 

Seriously...just go with "HEY I GOT MORE MONEY" slogan.  It's at least honest.

 

[eyephone]

almost as if you're being brainwashed to believe the tax cuts really didn't help you...hmmmmm who could have a vested interest in that alternate reality?

Tax cuts always benefits some over the mass.  The question both economically and political is what has the tax cut done for the US economy? 

Where is the projected 3 to 4% growth for the next ten years that was going to pay for the tax cut and spurn the US into the next level of growth?

This is why I despise GOP economical model...just say what it is, more money for rich people at the expense of the 90%.  Don't give me trickle-down economics or unrealistic growth model...just go with "HEY IT'S GOOD FOR ME"

keep trump in office for the next 10 years and you'll see sustained 3-4% growth 

and 50% of the country doesn't even pay federal taxes, so not sure how it could be at their expense

Really?  Cause the tax cut was to have maximum effect in year 1 and 2018 had 2.9%...projection is about 2% this year...1.5% next year. 

Seriously...just go with "HEY I GOT MORE MONEY" slogan.  It's at least honest.

He?s like Morekas. Ignores the republicans in the Midwest and South. (the majority of the GOP base)

 

[morekaos]

almost as if you're being brainwashed to believe the tax cuts really didn't help you...hmmmmm who could have a vested interest in that alternate reality?

Tax cuts always benefits some over the mass.  The question both economically and political is what has the tax cut done for the US economy? 

Where is the projected 3 to 4% growth for the next ten years that was going to pay for the tax cut and spurn the US into the next level of growth?

This is why I despise GOP economical model...just say what it is, more money for rich people at the expense of the 90%.  Don't give me trickle-down economics or unrealistic growth model...just go with "HEY IT'S GOOD FOR ME"

Puleeeze!! The small guy and the guy in the middle benefited greatly...

More than 44% of Americans pay no federal income tax

Approximately 76.4 million or 44.4% of Americans won?t pay any federal income tax in 2018, up from 72.6 million people or 43.2% in 2016 before President Trump?s Tax Cuts and Jobs Act, according to estimates from the Tax Policy Center, a nonprofit joint venture by the Urban Institute and Brookings Institution, which are both Washington, D.C.-based think tanks. That?s below the 50% peak during the Great Recession. They still obviously pay sales tax, property taxes and other taxes.

?The large percentage of people who don?t owe federal income tax is a feature, not a bug, of the revenue code,? according to the Tax Policy Center. ?By design, the federal income tax always has excluded a significant fraction of households through a combination of personal exemptions, the standard deduction, zero bracket amounts, and more recently, tax credits.?

https://www.marketwatch.com/story/81-million-americans-wont-pay-any-federal-income-taxes-this-year-heres-why-2018-04-16

New Poll: Vast Majority of Accountants Say Tax Cuts Have Helped Small Businesses
Tax Day should call attention to the savings experienced by small businesses as a result of the Tax Cuts and Jobs Act

According to the national survey of 102 Certified Public Accountants?representing over 5,500 small business pass through clients across the U.S.?conducted by Research Strategy Group International, nearly 80 percent of respondents believe that the implementation of the tax cuts legislation has helped America?s small businesses. Moreover, almost as many also felt that the TCJA helped stimulate the economy (76%).

https://www.jobcreatorsnetwork.com/press_releases/new-poll-vast-majority-of-accountants-say-tax-cuts-have-helped-small-businesses/