Income Tax Rate Income Levels for Those Filing As: Current Tax Act Single Married-Joint 10 - 15% 12% $0-$44,999 $0 - $89,999 25 - 28% 25% $45,000 - $199,999 $90,000 - $259,999 28 - 39.6% 35% $200,000 - $499,999 $260,000 - $999,999 39.6% 39.6% $500,000+ $1M+
The tax plan eliminates itemized deductions except for those on charitable contributions, mortgage interest, property taxes, and retirement savings. But it only allows the mortgage deduction for new mortgages of $500,000 or less.
Hopefully that works out about the same for us, but a significant change in deductions could really screw us.
I just read something where a "Pass Through", like an S Corp, will be paying 25%. I'm an S Corp and was hoping on that 20% tax rate. At this point, I'll take what I can get. I'll get my accountant's opinion once they get it sorted out.
Corporations never really pay taxes. They hide the cost of taxes in the prices they charge. If your country's corporate taxes are higher than others, then your products and services are not competitive in the world market. Watch for a major influx of jobs when the rate drops from 35% to 20%. That may be the most helpful part of the reform.
Repatriate earnings, or pay 12%.... also excellent.
Bumping up the individual deduction greatly simplifies things.
Something will. If the Repubs don't get tax reform passed, they will be dead meat in the 2018 elections. Self preservation requires that they pass something, and what we're seeing may be pretty close to what we get.
The House Republican tax bill would eliminate the ability for individuals to deduct qualified medical expenses, a provision that could have major implications for households with extremely high health-care costs.
Under current law, the IRS allows individuals to deduct qualified medical expenses that exceed 10 percent of a person’s adjusted gross income for the year. The bill would repeal that itemized deduction, effective in 2018.
The cost to repeal the medical expense deduction is about $10 billion per year.
The IRS currently allows individuals to deduct preventative care, treatment, surgeries and dental and vision care as qualifying medical expenses.
The medical expense deduction can also be used for long-term care expenses for chronically ill patients.
The provision could be a flashpoint for Republicans, as the repeal could hit both patients themselves and their families, who sometimes help pay for care.
It caps mortgage interest and property tax deduction, but raises the standard deduction. My GUESS is more of middle America will not itemize, so taxes/forms become easier and shorter. Win win.
An indignant young thing on MSNBC was interviewing a congressman about eliminating the deduction for state/local taxes who said to the effect that states with low taxes were effectively subsidizing states with high taxes.She demanded proof of that. He replied it was Economics 101. She never did get it. Amazing!
You couldn't make this stuff up. MSNBC is certainly entertaining.
Personal exemptions are eliminated. The standard deduction goes up but not enough to offset losing 3 personal exemptions for a married couple or losing two personal exemptions for a single person.
The House Republican tax bill would eliminate the ability for individuals to deduct qualified medical expenses, a provision that could have major implications for households with extremely high health-care costs.
Under current law, the IRS allows individuals to deduct qualified medical expenses that exceed 10 percent of a person’s adjusted gross income for the year. The bill would repeal that itemized deduction, effective in 2018.
The cost to repeal the medical expense deduction is about $10 billion per year.
The IRS currently allows individuals to deduct preventative care, treatment, surgeries and dental and vision care as qualifying medical expenses.
The medical expense deduction can also be used for long-term care expenses for chronically ill patients.
The provision could be a flashpoint for Republicans, as the repeal could hit both patients themselves and their families, who sometimes help pay for care.
I wonder how this will effect a Health Savings Account (HSA) type of health insurance. The money I put into the HSA every year is tax deductible now.
I've read that over 40% of Americans don't pay any fed income tax. I wonder how that will wash out with this. It's all a combination of standard deductions & personal exemptions.
If you'd figure out how much we actually pay in taxes on both the federal, state, and local level, both in income, sales, and property taxes, not to mention fees paid to the .gov for various things, you'd be amazed and depressed at the same time.
That medical deduction the way they have you figure it is nothing but a cheat. Anyone who has enough medical costs to exceed the disallowed amount is already is deep ****.
I am sure any time any politician is doing me a favor I better grease up.
Eliminates the EITC too I think. No more refunds for folks that didn't pay any. IIRC
Best news I've heard in a long, long time! It's one thing to not earn enough money to pay income tax, but to get a "refund" when you didn't pay in the first place? What a scam.
That EITC has always been a bizarre and really unfair process. I know two people personally that get this and each one has 8 kids with low income.
I'm sorry they have such an expensive life with 8 kids each, poor education, low paying jobs, and generally miserable existance. However that was their choice to have this huge family. The rest of America should not be burdened with the decisons by others like this. I told them both what I thought of this face to face. One of them agreed with me that the concept of him getting a refund of plus or minus 6000 bucks every april was insane when he paid nothing all year into it!
Of course he never turned it away, he needs that money to function! Now his wife will have to work to close the gap. This is Still not Americas responsibility to sort this for them. It's their role to sort it out.
I'd venture to say I pay my share, as well as a portion of others. I've never once complained about paying taxes, I figure I can gauge my success and on how much I pay in taxes. This year with both my wife and I working full time looks like we'll be paying a chunk.
Everyone should have skin in the game, whether you're making minimum wage or in the 1%. Seems like even after deductions a minimum of 5% of gross isn't too much to ask. It also seems that whether one puts in additional years to gain an advanced degree, or puts in extra hours working to build a business or overtime to help your employer that asking more than 20% of gross is unreasonable.
I don't believe running up the deficit is good for the country in the long term. The argument tax cuts are needed to boost the economy when the stock market is at an all time high and unemployment is less than 5% seems very disingenuous. Flame suit on.
Any changes for long term capital gains. Retired folks have been taking a beating with the low interest rates. We can't service $20T in debt, so interest rates must be kept low. Retired folks who saved a few buck are paying for this.
In addition, lower long term capital gains tax rates attract investment that in turn helps us dig out way out.
As I understand it, the exemption for each person would be doubled ... to around $11,000,000.00. Not sure what happens to "portability," ... in other words if some part of the $11,000,000.00 isn't used by a spouse, does the unused portion of the $11,000,000.00 get added to the surviving spouse's $11,000,000.00? Supposedly, all estate taxes are ended in 2024.
As I understand it, the exemption for each person would be doubled ... to around $11,000,000.00. Not sure what happens to "portability," ... in other words if some part of the $11,000,000.00 isn't used by a spouse, does the unused portion of the $11,000,000.00 get added to the surviving spouse's $11,000,000.00? Supposedly, all estate taxes are ended in 2024.
Thanks for the info. (gotta ad that at those figures I will be AOK. LOL)
I don't believe running up the deficit is good for the country in the long term. The argument tax cuts are needed to boost the economy when the stock market is at an all time high and unemployment is less than 5% seems very disingenuous. Flame suit on.
Tax cuts don't run up the deficit, spending runs up the deficit. You can tax everyone at 100% and the country will still be broke if they spend more than they take in. Ask anyone with an ex-wife that couldn't control her credit card spending how easy it is to spend more than you make.
Federal tax revenues took a hit after the collapse of 2008 but after that set a new record take every year. At the same time time the national debt doubled under Obama, from 2009-2016. Clearly it wasn't a revenue problem because the intake increased every year. Clearly it was a spending problem.
I'm hearing the S corp passthrough provision is not going to include professional services companies. As a part owner of an engineering company that is a S corporation, that sucks.....
I'm hearing the S corp passthrough provision is not going to include professional services companies. As a part owner of an engineering company that is a S corporation, that sucks.....
Funny everyone analyzing how it affects them personally to determine whether or not it's a good plan. How about this-
What's best overall for the country? What gets freeloaders off welfare? What plan has each paying their share?
All you guys are no different than the left or anyone else, what's in it for me.
Flame suit on.
You know what? GFY! Jesus proposed a fair tax. Ten percent. No deductions; no exclusions. You don't work, you don't eat. It would never pass. Would you go for that?
I'm hearing the S corp passthrough provision is not going to include professional services companies. As a part owner of an engineering company that is a S corporation, that sucks.....
So the rate would be higher than it is currently?
Nope it would stay the same. Treated as personal income subject to higher tax brackets.
its stupid that in the age we live in, I still have to type in what I paid in property taxes, mortgage interest, etc., (or write it down on a form) ' all of that should be automated so at the end of the year all you have to do is review it against your own documentation. And each quarter you could get a tax status saying whether you were on a path to owing money or paying more than you need to
all of this information is readily available digitally , its already out there in the world so its not a question of security or access.
I'm hearing the S corp passthrough provision is not going to include professional services companies. As a part owner of an engineering company that is a S corporation, that sucks.....
So the rate would be higher than it is currently?
Nope it would stay the same. Treated as personal income subject to higher tax brackets.
It's very confusing. I was reading up on it, and I think you are correct. I don't think my S Corp falls in that category and I'll be in the 25% bracket. However, a lot of my customers are landscapers and stone masons that are small and I think they may fall into your category which would be bad for me. In addition to that, the 25% rate isn't really much less than we're at right now I think. Not sure how it's going to help my company. We might end up changing to a C Corp.
Last night on the way home, I was listening to Hannity on the radio. He had on some congressman on and was talking about the plan as a whole. He did mention that they have some work to do when it comes to S Corps. Hopefully they will fix this.
This is from Bloomberg, so take it for a grain of salt, but it explains why they did it this way.
Funny everyone analyzing how it affects them personally to determine whether or not it's a good plan. How about this-
What's best overall for the country? What gets freeloaders off welfare? What plan has each paying their share?
All you guys are no different than the left or anyone else, what's in it for me.
Flame suit on.
You know what? GFY! Jesus proposed a fair tax. Ten percent. No deductions; no exclusions. You don't work, you don't eat. It would never pass. Would you go for that?
It's not in my job description to rewrite the tax code. I just find it sad that the filter everyone runs a tax code change thru is, "What's in it for me?".
JFK said, "Ask not what your country can do for you, but what you can do for your country". Not too many people use that as their primary criteria for making decisions anymore. It's all me me me mine mine mine gimme gimme gimme.
You guys are right about the Alternative Minimum Tax is pure evil. My wife and I file jointly and it has killed us the last two years. We are in a bracket that has been eliminated so we got bumped up into a higher bracket so the new tax brackets actually hurt us. I'm not complaining it the AMT gets dropped. It will help us a lot, in spite of the higher rate we will be paying.
Really? Go back and read the replies for yourself. Don't blame me I didn't say it.
No. You said it. Just because folks look at their personal positions, nobody came out and said it fuggs us all but it's good for me. Besides maybe the debt comments. It's good for me and seems great for US is what I see in the comments.
Really? Go back and read the replies for yourself. Don't blame me I didn't say it.
No. You said it. Just because folks look at their personal positions, nobody came out and said it fuggs us all but it's good for me. Besides maybe the debt comments. It's good for me and seems great for US is what I see in the comments.
I meant I didn't say all the comments about how it's either good or bad for me therefore.... I just pointed out that's the filter most people seem to run things thru nowadays.
I don't believe running up the deficit is good for the country in the long term. The argument tax cuts are needed to boost the economy when the stock market is at an all time high and unemployment is less than 5% seems very disingenuous. Flame suit on.
Tax cuts don't run up the deficit, spending runs up the deficit. You can tax everyone at 100% and the country will still be broke if they spend more than they take in. Ask anyone with an ex-wife that couldn't control her credit card spending how easy it is to spend more than you make.
Federal tax revenues took a hit after the collapse of 2008 but after that set a new record take every year. At the same time time the national debt doubled under Obama, from 2009-2016. Clearly it wasn't a revenue problem because the intake increased every year. Clearly it was a spending problem.
It's not in my job description to rewrite the tax code. I just find it sad that the filter everyone runs a tax code change thru is, "What's in it for me?".
JFK said, "Ask not what your country can do for you, but what you can do for your country". Not too many people use that as their primary criteria for making decisions anymore. It's all me me me mine mine mine gimme gimme gimme.
Don't bump your head when you fall off that high & mighty throne you sit upon, your narcissistic demeanor and judgemental attitude will be your downfall someday.
We've been hearing it for months now, BIG tax break for everyone...it's going to be GREAT !!! When you see how many commercial accounts that have been using your landscaping business, no longer call for your services because of changes...don't come here and whine. Major changes have been made in medical deductions, for those with severe heath issues at home that's a kick in the teeth. Add that to the changes taking place in medical coverage costs across the nation, many people are going to have far less than before. Local and state tax along with mortgage changes, will effect a lot of members...many that are retired and can't alter their earnings other than more withdrawals...and pay more in taxes.
I know you enjoy playing the heel, get attention at home where it counts.
It's not in my job description to rewrite the tax code. I just find it sad that the filter everyone runs a tax code change thru is, "What's in it for me?".
JFK said, "Ask not what your country can do for you, but what you can do for your country". Not too many people use that as their primary criteria for making decisions anymore. It's all me me me mine mine mine gimme gimme gimme.
Don't bump your head when you fall off that high & mighty throne you sit upon, your narcissistic demeanor and judgemental attitude will be your downfall someday.
We've been hearing it for months now, BIG tax break for everyone...it's going to be GREAT !!! When you see how many commercial accounts that have been using your landscaping business, no longer call for your services because of changes...don't come here and whine. Major changes have been made in medical deductions, for those with severe heath issues at home that's a kick in the teeth. Add that to the changes taking place in medical coverage costs across the nation, many people are going to have far less than before. Local and state tax along with mortgage changes, will effect a lot of members...many that are retired and can't alter their earnings other than more withdrawals...and pay more in taxes.
I know you enjoy playing the heel, get attention at home where it counts.
Coming from you, that is a zero on my GAS Scale. I'm not going to spin my wheels fighting trolls.
My point is there was a time in America when "What's in it for me" wasn't the first thing out of everyone's mouth. Sorry you find that offensive but that's the way it is.
I've read that over 40% of Americans don't pay any fed income tax. I wonder how that will wash out with this. It's all a combination of standard deductions & personal exemptions.
And, presently, most of those get large refunds.
Democrats will scream like Hell, but we definitely need to return to the rule of "You can not get back more than you paid in."
I have no problem with indigent older folks, or even struggling young families paying $0 to the IRS. I do have a problem with kids paying in $1000 bucks of with holding and getting a $10,000 refund.
The IRS is not SUPPOSED to be a federal welfare system!
It's not in my job description to rewrite the tax code. I just find it sad that the filter everyone runs a tax code change thru is, "What's in it for me?".
JFK said, "Ask not what your country can do for you, but what you can do for your country". Not too many people use that as their primary criteria for making decisions anymore. It's all me me me mine mine mine gimme gimme gimme.
Don't bump your head when you fall off that high & mighty throne you sit upon, your narcissistic demeanor and judgemental attitude will be your downfall someday.
We've been hearing it for months now, BIG tax break for everyone...it's going to be GREAT !!! When you see how many commercial accounts that have been using your landscaping business, no longer call for your services because of changes...don't come here and whine. Major changes have been made in medical deductions, for those with severe heath issues at home that's a kick in the teeth. Add that to the changes taking place in medical coverage costs across the nation, many people are going to have far less than before. Local and state tax along with mortgage changes, will effect a lot of members...many that are retired and can't alter their earnings other than more withdrawals...and pay more in taxes.
I know you enjoy playing the heel, get attention at home where it counts.
Coming from you, that is a zero on my GAS Scale. I'm not going to spin my wheels fighting trolls.
My point is there was a time in America when "What's in it for me" wasn't the first thing out of everyone's mouth. Sorry you find that offensive but that's the way it is.
There was a time when "whats in it for me" was not the order of the day? When was this exactly?
You know this because a president, who's family made its fortune off of illegal booze, said it was time for the peasants to suck it up?
Perhaps you are thinking back to Great old George Washington? No mention of the Whiskey Rebellion?
You are romanticizing a period in time that did not exist.
I'm not talking about power hungry greed mongers, when did they ever do what's right? I'm talking about rank and file Americans like the one's posting here.
I never said pay more, just throw money at it. I believe if taxes were equitably distributed and costs scrupulously controlled we could all get a tax break. Do I think that will happen? No.
Jim, don't forget the free no deductible health insurance.... I like that cheese too.
Back to the tax stuff. Last year I tried my dangdest to fill them out correctly. Moved. Changed employers. Had Student loan payments. HSA cash out. 401k bullchit... Both the feds and the good State of Montana said I screwed it up and sent me two grand back. Rather had just kept it in the first place and not dealt with the bs. Funny they both sent letters indicating what I should do if I disagreed with them. Lol like I have any clue, or would send it back!
I think the simplification will good for all, comrads.
It's not in my job description to rewrite the tax code. I just find it sad that the filter everyone runs a tax code change thru is, "What's in it for me?".
JFK said, "Ask not what your country can do for you, but what you can do for your country". Not too many people use that as their primary criteria for making decisions anymore. It's all me me me mine mine mine gimme gimme gimme.
Don't bump your head when you fall off that high & mighty throne you sit upon, your narcissistic demeanor and judgemental attitude will be your downfall someday.
We've been hearing it for months now, BIG tax break for everyone...it's going to be GREAT !!! When you see how many commercial accounts that have been using your landscaping business, no longer call for your services because of changes...don't come here and whine. Major changes have been made in medical deductions, for those with severe heath issues at home that's a kick in the teeth. Add that to the changes taking place in medical coverage costs across the nation, many people are going to have far less than before. Local and state tax along with mortgage changes, will effect a lot of members...many that are retired and can't alter their earnings other than more withdrawals...and pay more in taxes.
I know you enjoy playing the heel, get attention at home where it counts.
Coming from you, that is a zero on my GAS Scale. I'm not going to spin my wheels fighting trolls.
My point is there was a time in America when "What's in it for me" wasn't the first thing out of everyone's mouth. Sorry you find that offensive but that's the way it is.
It's a shame you can't read and comprehend what my detailed points were that effect people, but instead make it about YOU and YOUR feelings...but we ALL certainly appreciate financial advice from Fireballz
It's not in my job description to rewrite the tax code. I just find it sad that the filter everyone runs a tax code change thru is, "What's in it for me?".
JFK said, "Ask not what your country can do for you, but what you can do for your country". Not too many people use that as their primary criteria for making decisions anymore. It's all me me me mine mine mine gimme gimme gimme.
Don't bump your head when you fall off that high & mighty throne you sit upon, your narcissistic demeanor and judgemental attitude will be your downfall someday.
We've been hearing it for months now, BIG tax break for everyone...it's going to be GREAT !!! When you see how many commercial accounts that have been using your landscaping business, no longer call for your services because of changes...don't come here and whine. Major changes have been made in medical deductions, for those with severe heath issues at home that's a kick in the teeth. Add that to the changes taking place in medical coverage costs across the nation, many people are going to have far less than before. Local and state tax along with mortgage changes, will effect a lot of members...many that are retired and can't alter their earnings other than more withdrawals...and pay more in taxes.
I know you enjoy playing the heel, get attention at home where it counts.
Coming from you, that is a zero on my GAS Scale. I'm not going to spin my wheels fighting trolls.
My point is there was a time in America when "What's in it for me" wasn't the first thing out of everyone's mouth. Sorry you find that offensive but that's the way it is.
The bottom line is that a tax cut, most any tax cut is good for our country. Other than being an ass, I don't see the reason for your attacks on fellow posters for discussing a tax cut.
I don't believe running up the deficit is good for the country in the long term. The argument tax cuts are needed to boost the economy when the stock market is at an all time high and unemployment is less than 5% seems very disingenuous. Flame suit on.
Tax cuts don't run up the deficit, spending runs up the deficit. You can tax everyone at 100% and the country will still be broke if they spend more than they take in. Ask anyone with an ex-wife that couldn't control her credit card spending how easy it is to spend more than you make.
Federal tax revenues took a hit after the collapse of 2008 but after that set a new record take every year. At the same time time the national debt doubled under Obama, from 2009-2016. Clearly it wasn't a revenue problem because the intake increased every year. Clearly it was a spending problem.
THIS IN SPADES!
Yep... If gov't would stop spending so damned much maybe we actually COULD save a few sheckles...
