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How will Trump's tax plan effect you?

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    How will Trump's tax plan effect you?

    Double the standard deduction
    Eliminate all other deductions except charitable and mortgage interest
    3 tax brackets: 10%, 25%, 35%

    For me, it's a mixed bag. I'd lose deductions for my 401k, state/local taxes and FSA. But I'd drop from 39.6% to 35% marginal tax. Depending on where he puts the break point for the brackets, I'd probably end up net positive due to my very high income.

    How about you?

    #2
    Where are you getting this information from? Everything I've read only had the tiers with no mention of income for the tier and standard deductions.

    Comment


      #3
      Originally posted by MooseBucks View Post
      Where are you getting this information from? Everything I've read only had the tiers with no mention of income for the tier and standard deductions.
      The standard deductions came out yesterday. The break points for the tiers have not been published.

      Comment


        #4
        Frankly, until it's signed into law, I don't really care to waste my time worrying about it. I don't have the power to change anything, so I'll just wait & see.

        I will say, however, that I would love to have a tax structure in place that isn't so complicated that it takes hours of concentrated effort to complete, and even then you have to worry if you screwed it up somehow.
        "Praestantia per minutus" ... "Acta non verba"

        Comment


          #5
          Well it would be an advantage for us. We don't have a home with mortgage interest, not live in a state* that taxes military pay, so we have been without taking those itemized deductions. We do take the standard deduction, so any increase would be favorable. Unless we are then in the 25% tax bracket, rather than than the 10%. We are currently in the 15%.

          *well we do live in a state that does tax them, but we file in our home state of record that doesn't tax them.
          My other blog is Your Organized Friend.

          Comment


            #6
            Guys,

            From CNN, here is the text version of the proposal:

            ------------------------------------------------

            Marita I

            2017 Tax Reform for Economic Growth and American Jobs

            The Biggest Individual And Business Tax Cut In American History

            Goals For Tax Reform

            - Grow the economy and create millions of jobs

            - Simplify our burdensome tax code

            0 Provide tax relief to American families?especially middle-income families

            0 Lower the business tax rate from one of the highest in the world to one of the lowest

            Individual Reform

            0 Tax relief for American?families, especially middle?income families:
            0 Reducing the 7 tax brackets to 3 tax brackets of 10%, 25% and 3%
            Doubling the standard deduction
            0 Providing tax relief for families with child and dependent care expenses
            0 Simplification:
            0 Eliminate targeted tax breaks that mainly bene?t the wealthiest taxpayers
            0 Protect the home ownership and charitable gift tax deductions
            Repeal the Alternative Minimum Tax
            0 Repeal the death tax
            0 Repeal the 3.8% Obamacare tax that hits small businesses and investment income

            Business Reform

            0 15% business tax rate
            0 Territorial tax system to level the playing field for American companies
            0 One-time tax on trillions of dollars held overseas
            0 Eliminate tax breaks for special interests
            Process

            0 Throughout the month of May, the Trump Administration will hold listening sessions with stakeholders to receive their input and will continue working with the House and Senate to develop the details of a plan that provides massive tax relief, creates jobs, and makes America more competitive and can pass both chambers.

            Link: http://www.cnn.com/2017/04/26/politi...-tax-proposal/
            james.c.hendrickson@gmail.com
            202.468.6043

            Comment


              #7
              The trump tax plan is absolutely ridiculous for my household.

              My wife has a Scorp..scorp taxes will be 15% as the pass thru income. That's just crazy.

              So my wife making almost 300k/year will be taxed at 15%, while I'll probably end up in the 25% tax bracket making half as much. In conjunction with the standard deduction stuff..I am seeing a tax break of almost 40k.

              Good for North Korea. If this passes, we couldn't afford to fight them..or anyone....

              Comment


                #8
                401k Contribution will not be affected by the new tax plan. So this tax deduction is still valid.

                http://www.cnbc.com/2017/04/27/trump...confusion.html

                Comment


                  #9
                  Originally posted by Singuy View Post
                  401k Contribution will not be affected by the new tax plan. So this tax deduction is still valid.

                  http://www.cnbc.com/2017/04/27/trump...confusion.html

                  Comment


                    #10
                    Originally posted by kork13 View Post
                    I don't have the power to change anything
                    This is pretty much my philosophy in life for everything. If I can't do anything about it, there's no point in stressing over it. If and when the tax structure changes, I'll find out how it affects us.
                    Steve

                    * Despite the high cost of living, it remains very popular.
                    * Why should I pay for my daughter's education when she already knows everything?
                    * There are no shortcuts to anywhere worth going.

                    Comment


                      #11
                      This tax plan is more political than anything. I think it's so generous not even fiscally conservatives will sign up on it. Unless we are gutting something crazy, there's no way we can pay for this.

                      We were thinking about hiring people to work for us...but with this kind of tax cuts..it almost doesn't make sense to give away so much money.

                      It used to cost us 500/day to hire someone but we are actually losing 330 after taxes (33% bracket). Now at 15%, we are losing out on 425 after taxes.

                      Comment


                        #12
                        I quickly grabbed the CNBC link as well.. until I saw someone already posted it.. THta would be huge news if that was taken awya.

                        Comment


                          #13
                          Trump seems to like to throw out his dream deal and see what sticks. I imagine there will be quite a difference between what we are reading in the news now and what tax plan is passed.

                          From what I have read it sounds like the upper half of the current 28% bracket will be bumped up to 35%. This would increase my tax bill.

                          A doubling of the standard deduction would decrease my bill.

                          I am guessing at the end of the day, my tax bill wont change +/- $1000

                          Comment


                            #14
                            Originally posted by bigdaddybus View Post
                            Trump seems to like to throw out his dream deal and see what sticks.
                            That is how all politicians operate.

                            Which is why I won't even run numbers until a new tax law passes.

                            Comment


                              #15
                              Originally posted by kork13 View Post
                              Frankly, until it's signed into law, I don't really care to waste my time worrying about it. I don't have the power to change anything, so I'll just wait & see.

                              I will say, however, that I would love to have a tax structure in place that isn't so complicated that it takes hours of concentrated effort to complete, and even then you have to worry if you screwed it up somehow.
                              We already have that. Just take the standard deduction.

                              Comment

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