Official. Tax Cuts are a bust for Middle Income taxpayers


#1

We did our taxes, we lost $500 compared to last year.

My tax guy has a bunch of people doing their taxes until they don’t see any light on the horizon because they not only lost deductions but they have to pay back. They never did.


#2

Most of us are trying hard not to be middle class.

Get rich or die trying!


#3

So, you are billionaire?
Glad to know one. :laughing::laughing::laughing:

Because most of the guys on the list on the guy doing my taxes are rich people. Very rich!

Anyway, glad to know you like to pay more taxes than last year. :wink:


#4

No, I’m probably on the lower end of the income spectrum here. I have been unemployed since August so the total amount of taxes I will pay will go down. :smile:

Come on @buyinghouse, let’s get real. Does the $500 really do anything for you? Besides I thought you have many strategies to generate tax-free income. :wink: The total amount of taxes you pay shouldn’t be that big.

Is this another attack on the President for you? Okay, I’ll move on.


#5

Did you figure out why it’s $500 more than last year (assuming same income)?


#6

My theory is that for Bay Area homeowners, unless you had to pay AMT in past years, your overall taxes should increase this year. Let’s see if that plays out.

It will have implications for our housing market.


#7

Wow. I don’t want to die. I’d rather be mediocre and keep living… :tired_face:


#8

I think the best basis of comparison without disclosing income is to answer the following questions:

  1. How much tax did you pay as a percentage of AGI?
  2. Of the taxes that you paid, what percentage was AMT?

#9

Given that we have a housing affordability crisis in the SF Bay Area, which is one of the strongest job-creation engines in the entire country, I think the STATE really needs to be asking the FEDS:

“Why are you making housing LESS affordable for the next generation: millennials??”

This of course references the new federal caps on SLED / mortgage interest deductions.


#10

Why not ask some states why they need so much local tax revenue to fund the same services that other states fund for far less? WA has similar state income tax, and it has local adders too. I pay 0.75% more than SCC. I pay the same 1% of home value in property taxes, and home values are much lower. There’s no income tax. What more are you getting from the state for all that state income tax you pay every year?


#11

Why AGI but not the unadjusted gross? AGI already factors in the deduction you can make.


#12

OK. Taxes as a % of unadjusted gross is perhaps a better measure. I’m just comparing apples to apples YoY. I have AGI handy but need to calculate unadjusted gross. :wink: Let’s see who is willing to put their percentages up on this forum to cut through all the noise…


#13

I am going to apologize, but stop spinning. I don’t care what deductions, whatever you ask for. The fact remains, we in the middle class are screwed by this bunch of liars in the GOP.

The topic is about how Americans in general are finding out they got screwed. Big time. Those so called republicans, man! I laugh about them. They still support the party of lying. Tired yet?

So, stop deflecting, if you are going to argue anything, please, go paint a room if you are not talking about the lie "You will be able to buy a brand new car or remodeling your kitchen" BS!

“”""This was what happened to Jason Marques, a postal worker, pizza delivery driver and student in Massachusetts who said that, since his income didn’t change, he was expecting a similar refund to the roughly $6,000 he got last year — money he said would go towards his student loans or paying off credit card debt.

Marques said he was hurt by the cap on student loan interest deduction and the elimination of non-reimbursed business expenses, which he used to deduct the out-of-pocket costs he incurred as a delivery driver. “My jaw hit the floor,” he said, when he learned his 2018 refund would be under $500.""""

House Minority Leader Nancy Pelosi claimed that the Republican tax cut plan “raises taxes on [the] middle class,” while President Donald Trump claimed that “everybody’s gonna benefit” from a plan that “is for the middle class.”


#14

Unemployed or retired? I’ve been unemployed forced to early retired since coming to US.


#15

@realDonaldTrump just did my taxes and thanks for increasing mine!! No change in income and got back $400 less than last year. That campaign promise was one of the only two reasons I voted for you. Rethinking that decision now.

— Dee Nelson (@deeebeeezz) January 27, 2019

This is the ignorance of most people. They only compare their refund vs prior year not total taxes paid. With that kind of financial illiteracy, there will never be an intelligent national discussion. People will just memorize and repeat talking points that make them emotionally respond.

I paid quite a bit less as a percent of income, but buying a new primary home helped that. I’ll pay even less for this year with a full year of deductions.


#16

Didn’t I tell you the pro Trumpers are the worst? There are millions of people tasting the sour Kool Aid from the republicans. Economists said, do not trust the tax cuts, they are favorable 99% for the corporations and rich people. The CBO was against it, even billionaires said it, we don’t need them, but we’ll take them.

These “wallnuts” as they are called, are so dumb down to not read into the lying hurting even republicans, who by the way won’t be voting that way anymore.

The liar in the GOP told the American people that not only their tax returns would be the size of a postcard, but they would be able to buy a brand new car or remodel their kitchen. How stupid could you be to fall for such a giant lie, right? :laughing::laughing:

Meanwhile, they changed the tax code to eliminate the money you would get to buy that brand new car or pay for that wonderful kitchen remodel. 1099 people also lost some deductions.

This is the wealth distribution these commies from the GOP so much criticized.

They moved people’s money to pay for the richest people tax cuts while bankrupting the country with a deficit of $1T a year.

So much for conservativism, right? Spending money like drunken sailors with our taxpayer’s money.

“”""It’s February which means it’s officially everyone’s favorite time of year: tax season! And while most of us will be putting off tracking down our W-2’s until early April, some people have already managed to file their taxes. And among those early birds, many in the middle class have been shocked to find that instead of the nice little chunk of change they were expecting with their return, they actually owe money to Uncle Sam.

What’s the reason for this financial switcheroo? It stems from President Trump’s tax reform, which was passed in 2017 and was touted by Trump and the GOP as a win for the middle class. However, with the new tax system now in place, Americans are discovering that most of the tax relief from the bill is actually being experienced by corporations.

Meanwhile, many people are seeing an increase in taxes due to the bill eliminating many of the deductions that were used by middle-class families in order to lower the amount of taxes they were required to pay. Most notably, the tax reform placed a cap on deductions for taxes on both state and local levels.

Unsurprisingly, people have not been happy to discover that what they expected to be a decrease in taxes paid is actually an increase. Those who had been supporters of Trump are especially infuriated, as many were under the assumption that he would provide financial relief for middle-class families, something that he consistently promised during his Presidential campaign. Many have even taken their anger online, with #GOPTaxSCAMStories trending on Twitter as more and more members of the middle-class express their feelings of betrayal towards Trump and Republicans.


Ronna McDaniel :heavy_check_mark: @GOPChairwoman

· Feb 5, 2019

Stacey Abrams wants illegal immigrants to vote and the government to control your health care.

But Dems have moved so far left that she’s who they chose to give their #SOTU response.

Voters rejected her views before, and they’ll reject them again tonight. #SourGrapesStacey


Dennis Jordan@DennisMJordan

I am a Republican voter. I just did our taxes.

The @GOP tax bill cost my family THOUSANDS of dollars this year on our return due to changes, thereby hitting us with the LARGEST tax increase of our lives.

We are middle-class homeowners, and you raised our taxes.

Infuriating!

4,493

5:57 AM - Feb 5, 2019

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4,030 people are talking about this

Several users explained that they had voted for Trump and now were left wondering if they had made the wrong decision.


Matt Davis@MattDav72811123

@realDonaldTrump I trusted and voted for you, now, screwed by you. I fall JUST above a tax bracket, I don’t get the 5000 return I’ve gotten the last 3 years. Money my family depends on to start us over. I served my country honorably. I will not make the same mistake twice.

933

10:58 AM - Jan 30, 2019

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992 people are talking about this

Others presented just how much their taxes had shifted in just a year, highlighting how much of a shock the effect of this bill has been.


Michael K Richards@hesh

2017 taxes = $5,408 refund …

Unchanged salary, unchanged withholding

2018 taxes = $440 owed to the IRS.

I’m middle class, single with a $83,085 income.#GOPTaxSCAMStories


David Hoffman@atDavidHoffman
Last year I got a tax refund. This year, with unchanged salary, I owe $1300.
I’m middle class.
Yet the very wealthy got huge cuts. #ThanksRepublicans

300

4:53 AM - Feb 4, 2019

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265 people are talking about this

And many swore that they would no longer be supporting Trump, as they felt misled by the President.


Joel Serbin@JoelSerbin

@POTUS thank you for screwing the middle class with your tax reform. I have never in my life, I’m 49 years old, had to pay into the IRS until this year. We have a combined income of 150,000. The middle class voted for you. I will not make the same mistake twice.

522

9:15 PM - Feb 3, 2019

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While Democrats may have been tempted to mock Republicans for getting tricked by Trump, many instead said they deserved sympathy, since they had been victims of “statistical manipulation.”


Kurt Eichenwald :heavy_check_mark: @kurteichenwald

Folks need to stop making fun of the middle class republicans who are only now finding out en masse that their taxes are going up. It’s hard for people to discount bald-faced lies when they are based on statistical manipulation. We need to be angry alongside them. This was wrong.

16.6K

For these lackeys nothing wrong is done by this administration. That is simply a pathetic way to live defending what is obvious, even them were conned. No brains to justify a lie, plain and simple.
-:laughing::laughing::laughing:


#17

The U.S. Cut Taxes. Why Will Fewer Folks Get Refunds?

https://www.bloomberg.com/news/articles/2019-02-09/the-u-s-cut-taxes-why-will-fewer-folks-get-refunds-quicktake


#18

Nice summary. Don’t expect BH to understand or even read it though.


#19

Corporations got the big tax break. High tax state individual taxpayers got screwed…Corporations need to show through higher employment the benefits of a lower corporate tax or the Dems will gain power in 2020 and change the tax laws…


#20

High tax state individuals only got screwed if they were high income or high mortgage debt or both. Otherwise they made out better with a higher standard deduction. Dems talked forever about making the rich pay their fair share; Trump actually did it.
In any event, as the last election showed, there aren’t enough high tax states to carry the Dems. And even if the percentages of Rep/Dem voters shifts in those places it’s irrelevant. Electoral votes are awarded winner-take-all. California gives the Dem candidate 55 electoral votes whether 51% vote Dem or 100% vote Dem.