Then, when higher taxes actually come around look like
Just wrapped up my returns and I’m paying an additional $23000 in taxes this year despite having similar income YoY. Anyone else getting hosed?
I even dropped my withholdings to zero and I’m still going to have to write a check for over $10k. FML.
- Dropbox 99+Lots of people here are all about social programs and love politicians that talk about 70% tax rates.
Then, when higher taxes actually come around look like
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- You’re triggered and missed the point because of it. I did not call you names. You tried to with me by identity politics “All the maga chuds....”
Your virtue signaling is here: “Well seeing as I grew up with garbage parents, and managed to succeed (PhD at an ivy, work at any major tech company I feel like at the time making awesome shit) almost entirely because of the opportunities given to me by public schools, I find your ignorant comments rather worthless.” It’s actually a virtue signaling and a humblebrag combined.
- I don’t give a shit about orange. I give a shit about how the economy works. Tax breaks don’t equal less income for the government that have to be made up somehow. They create more incentives and jobs indirectly. Tax income from corporations don’t go to the same bucket as tax income from normal citizens like you and I. Take an Econ course at khan academy.
- eBay / ITmanoramamore@biikg are you trying to emphasize the fact that corporate income taxed lower does not benefit the actual owner as well, since when he gets his cut , he still pays again marginal tax ? if yes I understand what you are saying , that corporate taxes does not give advantage to any person as an individual , even the CEO of the company as they also pay marginal tax again on top of it , once they receive income from their own company
- Yea me too. Much higher effective tax rate. Single filers earning more than $200k got hosed regardless of living in higher cost geographies since the federal tax rates aren’t adjusted for cost of living. It was a great way for republicans to screw the people living in the larger, bluer cities.
- It certainly is an increase for someone living in Seattle who is single and earning $415k TC. Look at how much the tax rates increased for those people in high cost areas, combined with the cap on deductions https://www.kdpllp.com/2017-vs-2018-federal-income-tax-brackets/
- Loving my red state.
Tax rate went way down.
Also, ZERO capital gains taxes. Thanks to Opportunity Zones.
Who cares if this blew a giant hole in the budget. Only young people get to worry about that shit
- Now we can start the thread about CA house price plunging once people realize cost of mortgage/property tax effectively doubles now
- That’s a political non starter. Prop 13 won’t go away. Instead, you’ve seen the rise of Mello Roos property taxes, which are a type of property tax not banned by Prop 13.
Same shit (aka higher property taxes), just packaged up differently, in a way that’s politically feasible to implement.
- LinkedIn FireingCalifornia homeowner here and I’m actually saving more than 3k. Tax brackets for married filing jointly were lowered substantially below 350k and that offsets SALT.
- Totally agree. I was homeowner and then moved into a smaller rental and rented my house on Airbnb full time. I got double benefit of new tax law because #1 As a business I have no SALT limitation on business expenses plus I get 20% deduction for small business #2 for my job income I benefit from lower brackets and higher deduction. That's why my saving this year between the old and new law is 24k which is crazy good
- Most people living in high tax state areas don't realize that the biggest benefit of the new law is the changes in AMT rules. Please educate yourself on that and you will see what you would end up paying under old rules. In short, whatever low tax amount you get by using SALT deductions was anyways overruled by the minimum taxes you owe under AMT law. So those benefits were never going to you anyways.
- Don’t buy a house! SALT will get you if live in an area with high property taxes.
A lot of people weren’t going to realize this until the next tax year. The housing market is going to be interesting this season.
- If CA lawmakers don't do anything about this the 2009-2012 housing downturn will just be a warm-up. At that time at least there were stable areas with good schools where prices did not go down as much. This time those very people will also sell so the housing bottom will be much lower....get ready for the ride.... this downturn will also impact the low/no tax states.....when economy goes down it impacts the whole country.....the stock market is the same for Texas and California.....so no need to blame the Californian or high tax states....you will go down as well with them...
- So the only people fucked are the ones with property?
What about people who paid more in state taxes than the 12k standard deduction?
- I thought changes in rates and brackets and the higher standard deduction and pretty much eradication of AMT was going to offset the SALT limitation for most of us. I guess there are winners and losers. I'm saving 23k on my taxes for 2018 because of new law. I'm also in Bay area HCOL.
- People with state income taxes under 12k will use standard deduction
People with state income tax over 12k will use standard deduction.
So who the fuck will use that 10k property and local taxes itemized deduction? I can only think of retirees.