The tax increase California Republicans aren?t talking about

Kings said:
less taxes here.  20% deduction on LLC pass-through income, thank you president trump!

Yes our business tax will be less but my personal tax is going up  :(
Please vote Republican so the exorbitant CA state tax won't increase. Because we all know the solution to all of CAs problems seem to be raising taxes on hard working taxpayers.  ::)
 
my taxes are going up this year due to cap on SALT. My personal response to the tax increases is to work less. Part time now and so worth it.
 
All the small-medium business owners (who owe their wealth to no one else but their own hard work and supreme talent)  must know that taxes are on the bottom line right

what matters more is the top line .  Wouldn't you rather have the growth engine of California than  the drudgery and low growth rates of the "real America" you so much idolize (and please don't quote Texas here)  -- even it means holding your nose and living among diversity and progressive values :)
 
I'm skeptical, but the calc says we'll be paying about 8% less in fed tax, using last year's inputs.
 
Paris said:
Kings said:
less taxes here.  20% deduction on LLC pass-through income, thank you president trump!

Yes our business tax will be less but my personal tax is going up  :(
Please vote Republican so the exorbitant CA state tax won't increase.

Exactly! You said it not me. Tax plan is good for business and is not so good for the others such as middle class workers.
 
I'm not sure how accurate this calculator is.  I don't think it accounts for any AMT for those that are subject to it. I lose about $45k in SALT deductions due to the $10k cap, but somehow this shows my taxes as 10% lower if I compare it to line 63 on my prior year 1040 (which includes AMT tax).  Perhaps to keep it apples to apples we should be comparing the calculator to line 44 on form 1040 which is tax due pre-AMT?
 
ChiKid24 said:
I'm not sure how accurate this calculator is.  I don't think it accounts for any AMT for those that are subject to it. I lose about $45k in SALT deductions due to the $10k cap, but somehow this shows my taxes as 10% lower if I compare it to line 63 on my prior year 1040 (which includes AMT tax).  Perhaps to keep it apples to apples we should be comparing the calculator to line 44 on form 1040 which is tax due pre-AMT?

Under the new tax plan you may not owe AMT, and if you do, the amount you owe may be significantly less.
 
seeya

California lawmaker's ouster breeds more recall talk

Republican organizers who recalled a sitting California state senator were eyeing further recalls Wednesday while aiming to galvanize November voters over a state gas tax hike.

Democratic consultants and the ousted senator said Republicans could look to recalls as another way to eat into Democrats' overwhelming majority in the Legislature. But experts said recalls are politically and financially expensive and usually require unique circumstances like those that made Democratic state Sen. Josh Newman a particularly juicy target.

He narrowly won his traditionally Republican Orange County-based seat two years ago and voted for $5 billion a year in higher fuel and transportation taxes. Plus, removing him ends Senate Democrats' chances for a supermajority this year, and with it the two-thirds majority needed to pass tax and fee increases.

"This tax vote is going to cost several Sacramento politicians their seats," he said.
 
Kings said:
seeya

California lawmaker's ouster breeds more recall talk

Republican organizers who recalled a sitting California state senator were eyeing further recalls Wednesday while aiming to galvanize November voters over a state gas tax hike.

Democratic consultants and the ousted senator said Republicans could look to recalls as another way to eat into Democrats' overwhelming majority in the Legislature. But experts said recalls are politically and financially expensive and usually require unique circumstances like those that made Democratic state Sen. Josh Newman a particularly juicy target.

He narrowly won his traditionally Republican Orange County-based seat two years ago and voted for $5 billion a year in higher fuel and transportation taxes. Plus, removing him ends Senate Democrats' chances for a supermajority this year, and with it the two-thirds majority needed to pass tax and fee increases.

"This tax vote is going to cost several Sacramento politicians their seats," he said.

Don't mess with Californians when it comes to taxes on gas or registration....ask former ousted government Gray Davis about that.
 
?Article: Trump tax cap making it tough for wealthy homeowners to sell property

The Trump administration?s cap on state and local property tax deductions is doing a number on home sales in the leafy suburbs of New York City, according to a report.

Sellers in affluent sections of Westchester County, Connecticut and New Jersey are finding it hard to unload their upscale homes because the $10,000 cap on the deductions is complicating matters and would-be buyers are holding out for lower prices, Bloomberg reported.

But the situation is especially dire in Westchester County, which has the nation?s highest property taxes and where annual tax bills can hit $50,000 or more, the report said.

Purchases in the county plummeted 18 percent in the second quarter, and the median price of a home fell 5 percent in Scarsdale and 13 percent in Mamaroneck in the first half of the year.

Homes ranging from $1.5 million to $3 million are the most affected, the report said, citing real estate agents.

And they warn it will only get worse next year when homeowners file their 2018 taxes and feel the full impact of the $10,000 limit on state and local taxes, also known as SALT.

?We all think next year is going to be a tough year for real estate sales,? Matthew Roach, a property attorney in Yorktown Heights, told Bloomberg.

Some homeowners are rushing to get out from under the tax burden.

The inventory of homes on the market on June 30 increased almost 5 percent from a year earlier and the number of homes priced at $2 million to $2.49 million shot up 26 percent, the report said, according to Houlihan Lawrence, which handles luxury real estate sales.?
https://nypost.com/2018/08/07/trump-tax-cap-making-it-tough-for-wealthy-homeowners-to-sell-property/

My comment: I talked to many people that will have to pay more in taxes due to the salt cap.


 
It's pretty easy to blame the "Trump Tax" for slow sales. That's very low hanging fruit IMHO.

If this was really the case, shouldn't homes in Trenton, Albany, or anywhere on Long Island also be struggling? Aren't parts of Irvine, Cupertino, or Beverly Hills all high priced areas with over $10k in property tax expenses? Based on past and current experience people in the 2-3m price point levels aren't as focused on primary residential homes as a tax shelter.

I'm not disagreeing with the concept - the 2018 tax filings will have a bigly impact on how people view real estate as a tax benefitting asset. As for selling issues? The data isn't there to link the change in SALT as a cause of any pricing jam up anywhere.

My .02c
 
Soylent Green Is People said:
It's pretty easy to blame the "Trump Tax" for slow sales. That's very low hanging fruit IMHO.

If this was really the case, shouldn't homes in Trenton, Albany, or anywhere on Long Island also be struggling? Aren't parts of Irvine, Cupertino, or Beverly Hills all high priced areas with over $10k in property tax expenses? Based on past and current experience people in the 2-3m price point levels aren't as focused on primary residential homes as a tax shelter.

I'm not disagreeing with the concept - the 2018 tax filings will have a bigly impact on how people view real estate as a tax benefitting asset. As for selling issues? The data isn't there to link the change in SALT as a cause of any pricing jam up anywhere.

My .02c

Where have you been? Watch and see the effect.
 
Wouldn't it be a wise political move before the midterms, to propose a bill that would both raise the SALT deduction considerably ($50K? $100K?) and make all of the Individual income tax changes permanent (just like the Corp tax changes)? I know it blows an even bigger hole in the budget, but nobody in DC cares about that.

There would be extreme pressure on Dems in large cities to vote for this, no? The Reps could argue that these flaws were created by reconciliation constrictions, and that they never really wanted to punish big city folk who disproportionately vote Dem by double-taxing them and sun-setting their tax changes.
 
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