The Republican tax bill got worse: now the top 1% gets 83% of the gains

[Dashinka 24,828]

7 hours ago, Il Mango Dulce said:

My tax pro is guiding me to prepay property taxes based on new caps in deductions. So going forward, my local taxes will be paid with after tax money.

Makes sense.  I am paying my Winter taxes today.

[Dashinka 24,828]

5 hours ago, Steeleballz said:

  

   Dang, you like to stereotype people.

If Warren and other Dems are now deficit hawks I would like to see the evidence.  If they are so passionate about this then when they are back in power they can raise the taxes and cut spending to tackle that.  Otherwise it is a lot of hypocritical political bloviating.

[Ban Hammer 13,586]

[Italian_in_NYC 259]

16 hours ago, Il Mango Dulce said:

My tax pro is guiding me to prepay property taxes based on new caps in deductions. So going forward, my local taxes will be paid with after tax money.

Depends on a few factors:

If you don't itemize, then it's irrelevant.

If you do itemize but you fall into the AMT, it's also irrelevant on your Federal return (it depends on the State).

Your local taxes might already be paid with after tax money, if you pay AMT.

In my case, a $10,000 deduction next year will yield a better tax benefit than my $40,000 deduction in 2017 (I'm deep in the AMT).

 

With the double standard deduction, the only people who would have suffered from the repealed (or limited) SALT deduction are the very high-income folks (above the AMT). And that's why they lowered the top rate from 39.6% to 37%.

[Italian_in_NYC 259]

20 hours ago, IDWAF said:

But if the poor are still paying no taxes, and the middle incomes are paying less taxes, and the top earners are paying more taxes with the new bill.... how is the bill “ultimately for the very rich”??

For very rich business owners (not in the service business, unless you're below $315k as MFJ) it will be good. But that's a good thing.

[Italian_in_NYC 259]

19 hours ago, IDWAF said:

What makes it so good for zero income tax states?  I missed that little tidbit...

For example, let's take Florida. Very hard to go over $10,000 deduction between sales tax and property tax.

You can still deduct that (and likely not be in the AMT). If you're in the top bracket, you're paying no SALT (hence you had no deduction) but your taxes decreased by 2.6%, marginally.

If you're in NYC or CA, that 2.6% accounts for the missed tax benefit from the SALT deduction.

[Italian_in_NYC 259]

15 hours ago, Póg mo said:

I am not sure what you have against the estate tax. Probably one of the fairest taxes ever come up with. Personally I would like to see property taxes eliminated, and estate taxes increased.  

Increased?

So basically when a wealthy person dies, the Government should confiscate everything?

I saw many heirs of business owners having to sell the business (at a huge discount, obviously) because they had no cash to pay the huge tax bill.

The estate tax doesn't hit just your bank account. It values the business you own (which might not be very liquid) and taxes at 40% over the exclusion.

[charmander 692]

16 minutes ago, Italian_in_NYC said:

I saw many heirs of business owners having to sell the business (at a huge discount, obviously) because they had no cash to pay the huge tax bill.

I thought the older law had over $5M exclusion, new law made it $11M. If you have clients whose heirs would need to pay this tax, I wanna hang out with a few of those. Seems like they are good source for financial advice.

[Italian_in_NYC 259]

Just now, charmander said:

I thought the older law had over $5M exclusion, new law made it $11M. If you have clients whose heirs would need to pay this tax, I wanna hang out with a few of those. Seems like they are good source for financial advice.

My clients are all multimillionaires and billionaires. I'm their tax advisor. So what?

[charmander 692]

Just now, Italian_in_NYC said:

My clients are all multimillionaires and billionaires. I'm their tax advisor. So what?

As I said, I'd love to hear their financial advice.

[Italian_in_NYC 259]

2 minutes ago, charmander said:

I thought the older law had over $5M exclusion, new law made it $11M. If you have clients whose heirs would need to pay this tax, I wanna hang out with a few of those. Seems like they are good source for financial advice.

If you have a business worth $20m dollars, it doesn't mean you have millions of dollars in cash to pay the estate tax bill.

[Italian_in_NYC 259]

1 minute ago, charmander said:

As I said, I'd love to hear their financial advice.

Rule # 1 is to pay the least amount of tax possible, legally obviously.

That's why they pay firms like the one I work at. And that include the estate tax.

[Boiler 46,163]

If you have lots of money tax becomes voluntarily where ever you live, suckers are the ones that get caught.

[Ebunoluwa 6,136]

3 minutes ago, Boiler said:

If you have lots of money tax becomes voluntarily where ever you live, suckers are the ones that get caught.

And suckers are the poor peasants driving over pot holes on their way to work among a hundred other things.
There is no MAGA without tax money to make it so and improve on all crumbling infrastructure and a long list of other things vital.
So I wouldn't say suckers are the ones who "get caught" but would call them criminals for tax evasion if they are guilty of it.
Suckers are the rest of average Joes.

[Italian_in_NYC 259]

1 minute ago, Ebunoluwa said:

And suckers are the poor peasants driving over pot holes on their way to work among a hundred other things.
There is no MAGA without tax money to make it so and improve on all crumbling infrastructure and a long list of other things vital.
So I wouldn't say suckers are the ones who "get caught" but would call them criminals for tax evasion if they are guilty of it.
Suckers are the rest of average Joes.

Any other populist commonplaces?

11 minutes ago, Boiler said:

If you have lots of money tax becomes voluntarily where ever you live, suckers are the ones that get caught.

Not in the US, believe me.