4 ms·

It's not just corporate rates. Doubling the standard deduction is the most reckless thing that has ever been done to our federal tax code for individuals. The f

It's not just corporate rates. Doubling the standard deduction is the most reckless thing that has ever been done to our federal tax code for individuals. The fact that I am going to pay an effective 15% this year on a $100k salary is absolutely insane.

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cobookman 9y ago
Ish, this really benefits renters and penalizes property owners.
- deleted 9y ago
  [deleted]
- citiguy 9y ago
  Not property owners, people with a mortgage.
  - vibrio 9y ago
    People with a mortgage in expensive markets California, Massachusetts, New York...
votepaunchy 9y ago
Doubled the standard deduction but eliminated exemptions but doubled the child tax credit (with much higher phase-out).
- dlp211 9y ago
  But didn't make the child tax credit fully refundable which hurts middle class families. I on the other hand am going to make out like a bandit with an approximate $6k tax cut, but I don't really need it. I'm going to dump it into the market and forget about it for 20 years.
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dindumuffin 9y ago
How can you have a 15% effective tax rate yet benefit from the standard deduction? Your taxable income after the standard deduction is $88,000 after which your state plus federal tax rate is applied to. To have an effect tax rate of 15% on $100,000 you would have to pay only $15,000 in taxes on $88,000 of taxable income. That would mean your state plus federal tax rate is 15000/88000 = 17%, which does not exist anywhere in the United States. You are lying.
- Rebelgecko 9y ago
  Could be lying, or maybe they contribute 12% to their 401k, or pay for daycare with pretax dollars, or have an HSA and an IRA, etc. There's lots of causes for taxable income ≠ salary- there's no need to make baseless accusations
  - liveoneggs 9y ago
    daycare max is only $5000
    - Rebelgecko 9y ago
      Yeah. Although when I looked at the math[1] it's a moot point since if you make $100k/year you're only paying 15% _without_ any of those mitigations. [1] https://www.forbes.com/sites/kellyphillipserb/2018/03/07/new-irs-announces-2018-tax-rates-standard-deductions-exemption-amounts-and-more/ https://www.forbes.com/sites/kellyphillipserb/2018/03/07/new...
- aphextron 9y ago
  >You are lying. No, I'm not. Do the calculations yourself. https://www.calcxml.com/calculators/trump-tax-reform-calculator https://www.calcxml.com/calculators/trump-tax-reform-calcula... I get that it's hard to believe at first how insane this new bill is. I was in absolute disbelief when I first did the numbers. A single person earning $100,000, claiming the standard deduction, will have a total federal tax liability of $15,410 for 2018, or an effective rate of 15.4%.
briandear 9y ago
So send a check to the Treasury. Nobody is stopping you. You could even organize a bunch of like minded people to send checks to the Treasury. I needed the tax cut. If you don’t, you don’t have to keep it. I am a better steward of my money than the government, especially when it comes to saving and investing for my family’s future.
- dlp211 9y ago
  If you needed the tax cut, you likely didn't get much of a tax cut.
  - ryanlol 9y ago
    How can you expect him to afford to keep his ferraris going without the tax cut? Heartless.
- megablast 9y ago
  > I am a better steward of my money than the government, Really, ok what have you done with your money? How many buses do you run? How many schools, roads, armies?
- cycrutchfield 9y ago
  This argument is so lazy and seems to crop up every time income tax is discussed. It's perfectly fair to criticize tax policy while also acknowledging that you (and others like you) are paying a lot less than what you should be paying.
  - ralusek 9y ago
    Why would that person necessarily acknowledge that? I suspect they don't agree with you. It's not as if there is an objectively correct amount of taxation, the matter is up for debate. To the founders of the country, for example, the federal tax rate in the US as it is today would constitute an obscene violation of their expectations.
    - 9y ago
drak0n1c 9y ago
With the new tax reform the top 20% of income earners will still pay more than 87% of income taxes. https://www.wsj.com/articles/top-20-of-americans-will-pay-87-of-income-tax-1523007001 https://www.wsj.com/articles/top-20-of-americans-will-pay-87...
- s2g 9y ago
  Yeah, not nearly enough for that top few percentage points.

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cobookman 9y ago

Ish, this really benefits renters and penalizes property owners.

deleted 9y ago
[deleted]
citiguy 9y ago
Not property owners, people with a mortgage.
- vibrio 9y ago
  People with a mortgage in expensive markets California, Massachusetts, New York...

votepaunchy 9y ago

Doubled the standard deduction but eliminated exemptions but doubled the child tax credit (with much higher phase-out).

dlp211 9y ago
But didn't make the child tax credit fully refundable which hurts middle class families. I on the other hand am going to make out like a bandit with an approximate $6k tax cut, but I don't really need it. I'm going to dump it into the market and forget about it for 20 years.

deleted 9y ago

[deleted]

deleted 9y ago

[deleted]

dindumuffin 9y ago

How can you have a 15% effective tax rate yet benefit from the standard deduction? Your taxable income after the standard deduction is $88,000 after which your state plus federal tax rate is applied to. To have an effect tax rate of 15% on $100,000 you would have to pay only $15,000 in taxes on $88,000 of taxable income. That would mean your state plus federal tax rate is 15000/88000 = 17%, which does not exist anywhere in the United States. You are lying.

Rebelgecko 9y ago
Could be lying, or maybe they contribute 12% to their 401k, or pay for daycare with pretax dollars, or have an HSA and an IRA, etc. There's lots of causes for taxable income ≠ salary- there's no need to make baseless accusations
- liveoneggs 9y ago
  daycare max is only $5000
  - Rebelgecko 9y ago
    Yeah. Although when I looked at the math[1] it's a moot point since if you make $100k/year you're only paying 15% _without_ any of those mitigations. [1] https://www.forbes.com/sites/kellyphillipserb/2018/03/07/new-irs-announces-2018-tax-rates-standard-deductions-exemption-amounts-and-more/ https://www.forbes.com/sites/kellyphillipserb/2018/03/07/new...
aphextron 9y ago
>You are lying. No, I'm not. Do the calculations yourself. https://www.calcxml.com/calculators/trump-tax-reform-calculator https://www.calcxml.com/calculators/trump-tax-reform-calcula... I get that it's hard to believe at first how insane this new bill is. I was in absolute disbelief when I first did the numbers. A single person earning $100,000, claiming the standard deduction, will have a total federal tax liability of $15,410 for 2018, or an effective rate of 15.4%.

briandear 9y ago

So send a check to the Treasury. Nobody is stopping you. You could even organize a bunch of like minded people to send checks to the Treasury. I needed the tax cut. If you don’t, you don’t have to keep it. I am a better steward of my money than the government, especially when it comes to saving and investing for my family’s future.

dlp211 9y ago
If you needed the tax cut, you likely didn't get much of a tax cut.
- ryanlol 9y ago
  How can you expect him to afford to keep his ferraris going without the tax cut? Heartless.
megablast 9y ago
> I am a better steward of my money than the government, Really, ok what have you done with your money? How many buses do you run? How many schools, roads, armies?
cycrutchfield 9y ago
This argument is so lazy and seems to crop up every time income tax is discussed. It's perfectly fair to criticize tax policy while also acknowledging that you (and others like you) are paying a lot less than what you should be paying.
- ralusek 9y ago
  Why would that person necessarily acknowledge that? I suspect they don't agree with you. It's not as if there is an objectively correct amount of taxation, the matter is up for debate. To the founders of the country, for example, the federal tax rate in the US as it is today would constitute an obscene violation of their expectations.
  - 9y ago

drak0n1c 9y ago

With the new tax reform the top 20% of income earners will still pay more than 87% of income taxes. https://www.wsj.com/articles/top-20-of-americans-will-pay-87-of-income-tax-1523007001 https://www.wsj.com/articles/top-20-of-americans-will-pay-87...

s2g 9y ago
Yeah, not nearly enough for that top few percentage points.