mrken30

They just announced today the increase of the 401k to $18,500.

mrken30

Looks like there is a real possibility of the 401k limit going down to $2400 a year. Will stocks drop a bit if 401k funds have less money to invest?

mrken30

The more I hear about the GOP wants, the more I feel I am going to get screwed on taxes over the next few years.

dc koop

Overall it's just crap. If they think that an extra 1200 dollars a year (assuming that will really happen) will be a significant tax break for the middle class they must be joking.

It works out to about 25 dollars more a week

It's just tired old trickle down deja vu

mrken30

Here is an online calculator that helps to estimate how much tax you will pay under Trump. It looks like my tax bill will remain much the same

https://www.calcxml.com/calculators/...orm-calculator

or

https://www.marketwatch.com/graphics...ax-calculator/

md95065

Nobody knows.

There is no universally accepted definition of what "middle class" means in the US although pretty much everyone seems to agree that it is defined by income, nobody can agree what income range it is.

As far as I am concerned, "middle class" is a meaningless term which, when used by politicians making speeches, is equivalent to saying "the people that I want to vote for me who aren't rich enough to have already given me a large campaign contribution" ...

mrken30

Looks like Devos did not get her tax changes through.

https://www.theguardian.com/us-news/...to-betsy-devos

Some of the amendments are quite difficult to read

https://www.axios.com/democrats-on-l...514208578.html

Anian

Most hypocritical bill in recent times.
Adds trillions to the deficit.
Hundreds of pages long.
Full of pork and special interests.
Rammed through without proper review.

I've not even heard much more of a whimper from Republicans about how good it is meant to be.

Steerpike

I'm hearing that the mortgage interest deduction could be limited to $500k on future loans, and $10k of property taxes. That may have an interesting impact on the real estate market, especially in places like CA where those amounts are not exactly unusual.

Republican Tax Reform: How the Mortgage Interest Deduction Will Change | Fortune

Interestingly, this will negatively impact Blue States more than Red States (the liberal coasts rather than the conservative inlands). https://www.washingtonpost.com/news/...=.ac277fdde4cd

Since I'm in the market to buy a home, I guess I will look on the bright side and hope prices go down.

mrken30

Looks like the tax changes could send US jobs overseas. So much for American jobs for American workers.

https://www.theatlantic.com/business...m-jobs/544487/

mrken30

This article seems to imply that the property tax changes would not affect current home owners.

Steve_

Mortgage interest deduction is the same for current users of it but the property tax deduction will be capped at $10,000 and that includes any State income taxes.

Comes into force basically on enactment, and as soon as the IRS can issue regulations, and they reckon February.

The only good thing about it I can see is that the Koch bros. were unsuccessful in getting the estate tax and the individual AMT scrapped, even the Republicans wouldn't go that far.

So El Trumpo will have to start to transfer his assets to his kids and he'll have to do it pdq otherwise he'll get hammered with a massive amount of capital gains tax. Although I seem to remember there is some new limited exemption for transfers of real estate. I'm sure Trump had nothing to do with that.

The other thing I noticed in the final bill is that the reductions for lower-income tax payers (aka everyone other than the super rich) will now expire after 8 years, and all along they were saying it would have to be 10 years because of the Byrd budget reconciliation rule, so that was all bullshit. Rubio's insistence on the child tax credit being refundable meant they would either have had to go to 22% corporate tax rate or leave the highest rate of marginal income tax at 39.6% or screw nearly everyone, so they screwed nearly everyone and went with 21% and 37% respectively.

mrken30

I thought the tax relief is now only available on primary mortgages. I think HELOCs may now be excluded.

Estate tax threshold doubled, now around $10 million individual, $20 million couple.

The $10k property tax deduction, is all State taxes, including income or sales tax.

http://www.bbc.com/news/business-42375212

mrken30

This will give you an idea if you are better or worse off.

Tax Plan Calculator by Maxim Lott

scrubbedexpat091

According to that based on my income last year, if I were to live in California, I would be saving $457/yr under the proposed tax changes.

Current Tax System
You'd save $0

Your federal tax bill: $2,426

Tax Reform Bill
You'd save $457

Your federal tax bill: $1,970

Not sure that $38/month would really be noticed on the take home pay though....