How Many Got Screwed by the New Tax Laws?

[Christian]

In the refund camp.

Thinking of either a Sig 1911 or maybe some classes at the Academy.

 

[CrackPot]

lol. the poll closed this past thursday. I just did my taxes today (a whole day early). Then again, I could have correctly answered the poll a year ago... I always have a large amount due at year end unless I mess up.

I did benefit from the "tax cut"

I was hurt by the 10K limit on SALT
I benefited from elimination of AMT
I benefited from the pass through business deduction
I benefited from the new tax brackets
I benefited from the increased standard deduction (first time I have not itemized in 25 years)
I was not harmed by the loss of dependent deduction (first year both kids out of the house and not defendants)

This year I earned more and paid less total taxes. My effective tax rate in 2017 was 24.1% and in 2018 was 20.3%

I voted myself a 3.8% tax effective tax rate deduction

 

[headednorth]

(first year both kids out of the house and not defendants)

Turning their lives around?

Got back $20 from the feds and ~$250 from MA, lol. Its a case of ammo I guess...

 

[CrackPot]

(first year both kids out of the house and not defendants)

Interesting auto-correct/typo. I like it!

 

[FrugalFannie]

Well, no.

The big change that hit a lot of people - including my family - was the SALT deduction limitation.

waaaa
you can't deduct your huge property tax bill on that house you are able to own. why should people unable to afford a house supplement your home ownership by giving you a deduction? why should anyone with kids get a tax break? that's like a hidden welfare system. both help with "redistribution" of money.

 

[KBCraig]

https://lifehacker.com/you-probably-got-a-tax-cut-even-if-it-doesnt-feel-like-1834046892

This explains the tax situation

No it doesn't. It falls back on "did you owe" or "did you get a refund" nonsense.

I saw another article that explained that 82% of middle class Americans got a tax cut, but only 45% of them believe they did.

 

[KBCraig]

Our new plan is to be out of our NH house in 2.5 years max, sell our small home in Florida, and keep the big one in Florida.

You're going to un-Bernie?

Deciding which of three homes to keep must be such a burden.

 

[milktree]

waaaa
you can't deduct your huge property tax bill on that house you are able to own. why should people unable to afford a house supplement your home ownership by giving you a deduction? why should anyone with kids get a tax break? that's like a hidden welfare system. both help with "redistribution" of money.

1) double taxation is bad.
2) as a society we’re decided that children are good.

Now, if you’d said, “why should mortgage interest be deductible?” I’d agree completely. The mortgage interest deduction is incredibly regressive and only people with huge mortgages benefit.

 

[Mountain]

Final calculation- I paid 1.6% more in taxes this year than last. Due mostly to high medical costs for a couple family members, it would have been a little worse (maybe ~2%) if I had not surpassed the standard deduction. The SALT limit was one of the bigger reasons. Though our income was higher in 2018, we did not jump into the next bracket. I am in one of the higher brackets and when the Trump tax changes were announced I calculated that I would be somewhere between parity and +1.8% for total tax burden (actually paid). Looks like I'm close to my worst case.

This year, knock on wood, I'll have to up my withholding because it's unlikely I will surpass the standard deduction. If your combined income is pretty solid and you live in a high state tax and/or property tax state, you get poked by the Trump tax revisions. His tax reform definitely helps the middle-middle and lower. If you are in the upper-middle or higher and have decent holdings of property, you will likely get poked. I'm only a few years away from retirement and could use a break to continue building some buffer for that. Trump's taxes are more of the same sh!t where just when you think you might be getting closer to building some wealth, Uncle Sam digs deeper into your pockets.

Don't get me wrong- Trump was by far the better option. However, when it comes to my personal tax situation he's as big of a POS as anybody.

 

[Mountain]

waaaa
you can't deduct your huge property tax bill on that house you are able to own. why should people unable to afford a house supplement your home ownership by giving you a deduction? why should anyone with kids get a tax break? that's like a hidden welfare system. both help with "redistribution" of money.

I would counter by saying, 'Waaaa, you expect people who bought homes with money they already paid taxes on to supplement your tax burden because you rent?'

Even though I won't be giving my kid tax breaks back, LOL, I can't argue at all that it's fair that I get a break for the kids. It is a little bit like a hidden welfare system and not really a fair distribution of the tax burden. That said, anything but a flat income tax is unfair and being in a higher bracket is another unfair redistribution of money.

 

[FrugalFannie]

I would counter by saying, 'Waaaa, you expect people who bought homes with money they already paid taxes on to supplement your tax burden because you rent?'

Even though I won't be giving my kid tax breaks back, LOL, I can't argue at all that it's fair that I get a break for the kids. It is a little bit like a hidden welfare system and not really a fair distribution of the tax burden. That said, anything but a flat income tax is unfair and being in a higher bracket is another unfair redistribution of money.

I don't want anyone supplementing "my tax burden." I choose to rent. It's a wonderful thing for this point in our life actually. Without deductions for real estate taxes and mortgages, rents would conceivably increase. And the child tax credits (I'm not giving back the ones we took in the past either, or those mortgage deductions) are unfair as well. Also unfair, the share of taxes that go to public schools. We have 1 son who mostly was home schooled or went to private school. Why should I have paid taxes that went to public schools when he wasn't going or now that he is out of school?

The ENTIRE TAX SYSTEM is a REDISTRIBUTION of WEALTH system. I would be more in favor of a consumption tax with some things exempt, like uncooked food. You buy a house, maybe you pay a 1 time tax, but not annual property taxes. Buy a car, pay a tax. ONE TIME. But the bottom line is that those taxes should only go to essential services, like a military to DEFEND the US (not waging wars across the globe).

 

[Mountain]

I don't want anyone supplementing "my tax burden." I choose to rent. It's a wonderful thing for this point in our life actually. Without deductions for real estate taxes and mortgages, rents would conceivably increase. And the child tax credits (I'm not giving back the ones we took in the past either, or those mortgage deductions) are unfair as well. Also unfair, the share of taxes that go to public schools. We have 1 son who mostly was home schooled or went to private school. Why should I have paid taxes that went to public schools when he wasn't going or now that he is out of school?

The ENTIRE TAX SYSTEM is a REDISTRIBUTION of WEALTH system. I would be more in favor of a consumption tax with some things exempt, like uncooked food. You buy a house, maybe you pay a 1 time tax, but not annual property taxes. Buy a car, pay a tax. ONE TIME. But the bottom line is that those taxes should only go to essential services, like a military to DEFEND the US (not waging wars across the globe).