mrken30

I have been trying to follow possible proposed tax changes, but it is easier to predict the weather. Questions I have

Will there be a 401k contribution limit?
Will I still be able to deduct state income tax?
At what income now is it worth doing itemized deductions?
What are the new tax brackets?
Is there a tax calculator for the new taxes?
When will these changes come into effect?
Is there a change on what I can and cannot deduct from my taxes?

Certain individuals who have only signature authority over foreign financial accounts now have until April 15, 2018 to file the Report of Foreign Bank and Financial Accounts. What if the accounts are in my name?

Pulaski

There isn't even a published bill yet!

The bill will differ from whatever law is subsequently passed. .... Or maybe tax reform will be like the Healthcare Reform bill, that didn't pass at all.

I have plenty on my plate to worry about without fretting over possible future changes to the tax code, but which may never come to pass. And that is entirely aside from the point that I have absolutely zero influence over what changes to the tax code may, or may not be passed.

Anian

Is this the same one from a few weeks ago where 80% of the cash is for those with 6+ figure incomes?

Pulaski

So the same people who pay 90% of the taxes then.

mrken30

True, but they have passed a framework.

Text of tax-reform framework from President Donald Trump and Republicans - MarketWatch

And you do have the right to complain to your Representative and Senator, so you do have a minuscule amount of influence.

Anian

It wouldn't be funny if it hadn't been promised as a tax cut for the middle class.

Pulaski

So people that earn more than $100,000 aren't middle class?

Just out of curiosity, where does middle class end (upper boundary)?

mrken30

I would say, probably 5 or 6 times the poverty level.

Anian

What I would call the middle class and what various politicians call middle class are a thousand different things. I'd say that over $150k is where you lose middle class as a family, although the great majority of middle class people are under $100k. I live in a fairly well-off area, so it could be much lower in other areas. Without the working class distinction that you get in the UK, the middle class seems to go almost as low as minimum wage.

It's okay if the tax break includes more than just the middle class, but it is dishonest to describe it for them when the greatest benefits are gained by those who aren't. I guess the whole "job creator" BS doesn't work any more.

mrken30

He is killing off healthcare jobs. One of the few sectors that does not outsource to India quite so much.

scrubbedexpat091

Apparently only around 20% of US households make over 100,000 so seems since 80% of households make under 100,000 that those making lower 6 figures are maybe part of the lower upper class?

Obviously location makes a difference, 100,000 in Los Angeles isn't the same as 100,000 in Omaha.

mrken30

I have always thought about how much does someone need to earn to be able to buy a small 3 bedroom house. Around here it's around $400k+ . I used to think a mortgage was 3x to 4x income, that may now not be true.

Pulaski

But people trade up after buying a starter home, or inherit money, or money is gifted by parents. There are a number of reasons why people can afford much more house than just three times their gross salary.

In the US the calculation is a lot more complex anyway - factoring in other debt, so if you don't have credit card balances, personal loans, and car loans the banks will lend some pretty crazy amounts to buy a home.

scrubbedexpat091

This is the lowest priced single family home listed currently in Vancouver, BC (price in local currency) unsure what income one would need to buy it, and it's a fixer upper or tear down.

https://www.realtor.ca/Residential/S...olumbia-V5R3Z9 $1,095,000

Condos are lower priced, but anything newer and decent will run 500,000+.


One change I would like the US to do is no longer require persons living outside of the US to file tax returns.

Pulaski

I know of one here in NC that sold last week for $12,000! Yes you read that right, there are no zeros missing.

It is a slightly smaller house, but on about three times the land area of that one in Vancouver. I hear it needs some TLC, but I believe it is quite habitable.