SALT is deducted from taxable income, right?
So the effective tax increase because can’t claim SALT is SALT * federal income tax rate.
For Santa Clara would be $32,200 * 0.28 (reasonable?) = $9k.
For a household of $400k, the tax savings from the new tax reform is $20k.
Hence, the tax savings is reduced to $11k.
This is equivalent to a property tax of 11000/0.28 + 10k = $49k.
So, so long your property tax is less than $49k, you pay less tax under the tax reform.
We pay more taxes that most realize…Think about retailers…They make less profit than the state…they are happy
with 3% profit…The state gets up to 9.5% sales tax …Topline profits with no overhead…
In Tahoe the TOT tax on vacation homes is 14%…how many real estate investors get a 14% return?
Excise tax liquor taxes fees and a million other ways the state grabs it’s money…most of us pay at least 50% in taxes, to support bloated bureaucracy and public employee unions…
It’s when your income phases you out of deductions and credits. Say you were getting a $5000 deduction for tuition and were just below the income limit. Your income increases by $2k and now you’re above it. Your taxable income increases by $7K so your marginal rate on the extra $2k of income is over 100%. It happens all the time with all or nothing phase our levels for deductions and credits.
Thought market has already responded! Could be sell the tax reform. That is market may behave opposite to what the seekingalpha guy said. Is AAPL going to gain or lose from tax reform?
. Investors rotating out of FANGs to industrials, financials,
. AAPL would make big tax savings, higher dividends, one-term tax adjustment (apparently Apple did allocate 35% tax payable for overseas income that it targets to bring home. lower tax rate means extraordinary profit )
Watch the gerrymandering working full force from now on. The so loving the constitution republicans and their supporters, the new commies in my world, are going to make whatever to not sit the new senator.
The losers are certainly looking like what they were last November, we know the last elections were rigged. At least an idiot kept repeating what he knew would happen.
Yes but these guys are looking over there shoulder now…They are worried about elections in 2018…Trump should be worried the most .Dem win in 2019 means impeachment