During the dot-com boom of the late 1990s, Henry was a top-ranked Wall Street internet analyst. He was later keelhauled by then-Attorney General Eliot Spitzer over conflicts of interest between the research and banking divisions of brokerage firms.
Hope Henry is accurate in his tax rate prediction, unlike his Amazon stock price prediction. Also hope there is no conflict of interest in his analysis today
Tax cuts are really disguised to be good for lower income.
You have not actually calculated final tax difference between now and after tax reform.
If someone is earning less than 100k, they get benefited by this tax reform. This can extend up to 125k when they have 401k traditional 18k.
Above 125k earners and double income earners above 125k are going to pay higher tax after reform.
Obama set 250k is higher income people, while this administration did not openly say, but axing everyone earning more than 125k.
My son is low income earner and he gets at least $4000 tax benefit while we (joint filer) needs to pay additional $11000 taxes IRS alone.
Provisions for the wealthy (get rid of AMT ) are permanent.
Here again, you have not done actual calculations.
AMT is result of high deduction claim by including property tax, mortgage interest tax deduction, state & local income tax.
They have removed state&local income tax from deduction and made a ceiling on property tax, mortgage interest tax deduction.
Even if they hold AMT, with the above ceiling/changes, no one will hit AMT as people can not claim high deduction.
How I know? Last few years, I am paying AMT. By removing AMT, I may need to gain at least $5000 gain in tax, but based on new tax calculator I am paying $11000 additional tax than current one.
With this tax changes, AMT becomes meaningless as no one will get hit by AMT going forward.
We have a difference in terminology here. When I say low income I am speaking of people who earn 40k or less a year. 250k a year is rich. You live in a area where people with a software background can earn very much money and you get used to that and think it is a normal income. Average income for the US is just below 52k.
Thank you for sharing the outcome of your computation. Too lazy to do any computation. Sound like the tax reform is a shrewd way to broaden the tax base. So more people are paying higher tax? Trump is a magician.
If they are married, the standard deduction will be $24K or almost half of the $52k income. Then there’s credits for kids. They are going to pay very little to zero federal income tax either way.
The one tax I believe they should reform is the one nobody is looking at, capital gains tax. If you already paid tax on it when you made it, why should they tax you again? If they have to tax you on it, they should let you deduct the cost of living allowance from it. This year it would not be much but in a high inflation year it would be a lot.
I am laughing at the mumble jumble of some people. This craps is not finalized.
But I don’t worry, I will be paying more taxes, but I have some victims I can commit fraud on.
Business is looking so good now. We have partnered with this tax firm, and clients are in the 2,000+, all wanting a conservative approach to retirement, not the crap of 401K.