Author Topic: SALT Deduction  (Read 4509 times)

0 Members and 1 Guest are viewing this topic.

Offline Irvinecommuter

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 580
  • -Received: 497
  • Posts: 5225
Re: SALT Deduction
« Reply #45 on: April 15, 2019, 10:46:18 AM »
#winning, even the New York Times has to admit the truth every once in a while.

Face It: You (Probably) Got a Tax Cut
Studies consistently find that the 2017 law cut taxes for most Americans. Most of them don’t buy it.

If you’re an American taxpayer, you probably got a tax cut last year. And there’s a good chance you don’t believe it.

Ever since President Trump signed the Republican-sponsored tax bill in December 2017, independent analyses have consistently found that a large majority of Americans would owe less because of the law. Preliminary data based on tax filings has shown the same.

Yet as the first tax filing season under the new law wraps up on Monday, taxpayers are skeptical. A survey conducted in early April for The New York Times by the online research platform SurveyMonkey found that just 40 percent of Americans believed they had received a tax cut under the law. Just 20 percent were certain they had done so. That’s consistent with previous polls finding that most Americans felt they hadn’t gotten a tax cut, and that a large minority thought their taxes had risen — though not even one in 10 households actually got a tax increase.

https://www.nytimes.com/2019/04/14/business/economy/income-tax-cut.html

I love that the fight is where "people actually got a tax break"...you understand that this is a political issue, which means people's perception is 90% of the battle.  If people don't feel like they are benefiting from the tax break...it's a lost cause.  The tax break was supposed to be the big thing that the GOP ran on for the midterm because they frontloaded the savings...that clearly didn't work.

Also..what was the effects of the tax breaks?  Despite all the rhetoric,  Trump still has not hit that magical 3% GDP annual growth mark and with the tax cut sugar high going away...it's not likely to do that in the foreseeable future.  Meanwhile, deficit way up and revenues way down...where is the beef?

Quote
The U.S. posted its biggest monthly budget deficit on record last month, amid a 20 percent drop in corporate tax revenue and a boost in spending so far this fiscal year.

The budget gap widened to $234 billion in February, compared with a fiscal gap of $215.2 billion a year earlier. That gap surpassed the previous monthly record of $231.7 billion set seven years ago, according to data compiled by Bloomberg.

https://www.bloomberg.com/news/articles/2019-03-22/u-s-posts-largest-monthly-budget-deficit-on-record-in-february

Offline Kings

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 222
  • -Received: 213
  • Posts: 1111
Re: SALT Deduction
« Reply #46 on: April 15, 2019, 10:59:10 AM »
we all paid less taxes last year thanks to trump!

you know it, i know it, we all know it.


Offline Irvinecommuter

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 580
  • -Received: 497
  • Posts: 5225
Re: SALT Deduction
« Reply #47 on: April 15, 2019, 11:03:02 AM »
I paid about the same but again what exactly is the big picture plan for the tax cut?  Where is the 4% growth for 10 years?

Offline morekaos

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 273
  • -Received: 301
  • Posts: 2933
Re: SALT Deduction
« Reply #48 on: April 15, 2019, 11:18:58 AM »
That is including the State and property tax reduction.  The whole ball of wax, and I got a bigger refund and my effective rate was lower. The numbers don't lie...TAX CUT!!

Maybe for you. But the middle class got screwed. They really did. It’s a shame. This is why the GOP is out of touch.

Reality is this did not happen...more fake news that was pounded into their heads non-stop just like "Russia, Russia, Russia" that turns out to be untrue.  Don't think the public does not notice this pattern. Reality eventually Trumps perception, this will be no different.

Offline irvinehomeowner

  • The Unicorn Hunter
  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 2076
  • -Received: 3523
  • Posts: 20100
  • 3CWG
Re: SALT Deduction
« Reply #49 on: April 15, 2019, 11:26:36 AM »
I'm confused.

I guess I should try to figure this out, we hit the SALT limit (as would about anyone who pays excess of 10k property tax in Irvine).

Our AGI is about 10% higher than 2017, but our taxable income is 33% higher than 2018 (no dependent exemptions and about 20% less itemized deductions).

But our taxes is only 10% higher (I guess the child credit and no AMT helped?).

So I guess it's a wash for us? Maybe I should start a new return in the 2017 software and see where that falls to get a better idea of the differences.
Once you go 3-car garage... your junk can never go back.
3CWG: 3-Car Wide Garage
FCB: Foreign Cash Buyer
I recommend:
www.irvinerealtorsite.com
member: Soylent Green Is People (loans/refis)

Offline woodburyowner

  • O.C. Resident
  • ***
  • Thanks
  • -Given: 57
  • -Received: 125
  • Posts: 837
Re: SALT Deduction
« Reply #50 on: April 15, 2019, 11:33:45 AM »
I'm confused.

I guess I should try to figure this out, we hit the SALT limit (as would about anyone who pays excess of 10k property tax in Irvine).

Our AGI is about 10% higher than 2017, but our taxable income is 33% higher than 2018 (no dependent exemptions and about 20% less itemized deductions).

But our taxes is only 10% higher (I guess the child credit and no AMT helped?).

So I guess it's a wash for us? Maybe I should start a new return in the 2017 software and see where that falls to get a better idea of the differences.

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. 

Offline irvinehomeowner

  • The Unicorn Hunter
  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 2076
  • -Received: 3523
  • Posts: 20100
  • 3CWG
Re: SALT Deduction
« Reply #51 on: April 15, 2019, 11:47:51 AM »
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. :)
Once you go 3-car garage... your junk can never go back.
3CWG: 3-Car Wide Garage
FCB: Foreign Cash Buyer
I recommend:
www.irvinerealtorsite.com
member: Soylent Green Is People (loans/refis)

Online eyephone

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 313
  • -Received: 573
  • Posts: 9760
Re: SALT Deduction
« Reply #52 on: April 15, 2019, 12:09:39 PM »
That is including the State and property tax reduction.  The whole ball of wax, and I got a bigger refund and my effective rate was lower. The numbers don't lie...TAX CUT!!

Maybe for you. But the middle class got screwed. They really did. It’s a shame. This is why the GOP is out of touch.

Reality is this did not happen...more fake news that was pounded into their heads non-stop just like "Russia, Russia, Russia" that turns out to be untrue.  Don't think the public does not notice this pattern. Reality eventually Trumps perception, this will be no different.


Vox article: Trump’s fake tax cuts are dead
The midterms are over, and so are Republicans’ phantom middle-class tax cuts.

Trump raised eyebrows in October when he suddenly began to talk about a 10 percent tax cut for the middle class that would be passed ahead of the midterms. He told reporters in Nevada that he was working on a “very major tax cut for middle-income people” and that the White House and congressional leaders were “studying very deeply, round the clock” on something to be announced very soon — certainly ahead of the elections.

No one seemed to have any idea what he was talking about: There was no discernible plan in the works, and his aides reportedly had no idea what was going on. Congress wasn’t even in session. (When a reporter pointed it out to Trump, he said the vote would be after the election, but the proposal would be released beforehand.)

https://www.vox.com/policy-and-politics/2018/11/15/18097418/trump-middle-class-tax-cuts-larry-kudlow

campaigning additional tax cuts, but the bill was not even brought up

Online eyephone

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 313
  • -Received: 573
  • Posts: 9760
Re: SALT Deduction
« Reply #53 on: April 15, 2019, 12:14:33 PM »
Let’s face it we were targeted when he limited the Salt deductions. Our hands were tied do to the GOP passing the tax bill. Then the midterms happened!

Throw in the tarriffs that effect American companies and consumers.

« Last Edit: April 15, 2019, 12:45:02 PM by eyephone »

Offline Kings

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 222
  • -Received: 213
  • Posts: 1111
Re: SALT Deduction
« Reply #54 on: April 15, 2019, 01:04:57 PM »
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  :)

Offline Irvinecommuter

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 580
  • -Received: 497
  • Posts: 5225
Re: SALT Deduction
« Reply #55 on: April 15, 2019, 01:19:13 PM »
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.

The following member(s) thanked this post:


Offline Irvinecommuter

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 580
  • -Received: 497
  • Posts: 5225
Re: SALT Deduction
« Reply #56 on: April 15, 2019, 01:39:34 PM »
BTW:  Political failure for Trump and GOP. 

Quote
Only 18 percent of respondents say they are paying less in federal taxes for 2018 compared to 2017 in the survey, which was taken ahead of the April 15 tax deadline.

A majority said their 2018 tax bill was about the same or higher compared to 2017. Thirty-two percent said their federal taxes were higher under the Trump tax law. A plurality of respondents, 36 percent, said they owed about the same in federal taxes compared to the previous year. Fourteen percent said they were not sure whether they paid more or less.

https://thehill.com/hilltv/what-americas-thinking/438956-only-18-percent-of-americans-say-theyre-paying-less-in-taxes

Offline Kings

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 222
  • -Received: 213
  • Posts: 1111
Re: SALT Deduction
« Reply #57 on: April 15, 2019, 01:39:38 PM »
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.

Online eyephone

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 313
  • -Received: 573
  • Posts: 9760
Re: SALT Deduction
« Reply #58 on: April 15, 2019, 01:58:40 PM »
Tax foundation article: Which States Rely the Most on Federal Aid?

The map below shows the extent to which federal aid comprised each state’s total general revenue in FY 2016 (the most recent year of data available). That year, the states where federal aid comprised the largest share of general revenue were Mississippi (43.4 percent), Louisiana (42.7 percent), New Mexico (41.2 percent), Arizona (41.2 percent), and Kentucky (40.9 percent). The states for which federal aid comprised the smallest share of state general revenue were Virginia (21.1 percent), Hawaii (22.7 percent), Kansas (23.0 percent), North Dakota (23.8 percent), and Utah (25.7 percent).

https://taxfoundation.org/federal-aid-reliance-rankings/

My comment: Note this is a 2019 article fr the tax foundation that analysis FY2016 data. Look at the states that rely on federal aid.

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!!!!!!

Offline Kings

  • Certified Irvine Addict
  • ****
  • Thanks
  • -Given: 222
  • -Received: 213
  • Posts: 1111
Re: SALT Deduction
« Reply #59 on: April 15, 2019, 02:06:33 PM »
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

 

Talk Irvine Links

[Recent Posts]
[FAQ / Rules]

Site Supporters


Related Links

Recent Posts

Re: New Development: PS-5 by lnc
[Today at 05:13:43 PM]


Re: Musick jail is finally poised to grow by Compressed-Village
[Today at 04:32:32 PM]


Re: Musick jail is finally poised to grow by aquabliss
[Today at 03:39:25 PM]


Re: New Development: PS-5 by USCTrojanCPA
[Today at 05:48:17 AM]


Re: New Development: PS-5 by Cares
[Yesterday at 10:49:24 PM]