They passed the bill? My God!

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.

3 Likes

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.

2 Likes

With current tax reform, none of those earning 52k or less is paying single dollar more tax than now, but they will get tax benefit, for sure.

Any one, who earns more than 125k, for sure, pay at least $1 more than what they pay now no matter whether AMT is there or removed.

Do you still feel that Tax reform is helping wealthy?

All Republicans need to extract money from the high earners to provide tax reduction to Corporate - a vision from Trump. They do not have any escape.

1 Like

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.

1 Like

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 house bill eliminated the 5k pre-tax FSAs that parents could use for child care.

1 Like

FSA can be used when money spent and this is tax deduction. Instead they uniformly hiked CTC.

This tax reform never HIT the low income earners at all, but help them save some money.

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.

4 Likes

A relevant analysis of how the plan may affect investors and flippers:

  1. Biggest Loser: Rental Income Subject to Self-Employment Tax
  2. Other Losers: Elimination Flipper Tax Credits
1 Like

Inflation is the biggest tax of all

1 Like

I really like the irony of Republicans voting to increase their own taxes and blow up the deficit they claim to worry about.

Me? I have my LLC. Like Trump I am one of the beneficiaries. Thanks comrades!

2 Likes

LOL…

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. :rofl::rofl::rofl::joy:

Oh…the fraud I will commit…so many, bigly…:sweat_smile::sweat_smile::sweat_smile: