Are you looking forward for Tax Day?
Then you should be happy right? Coastal liberals need to pay their fair share! 🤣
Are you talking about income tax rates vs. capital gains? Capital gains have always been lower. Stop hating the players and get your capital gains up.
My taxes increased.
And I'm in Seattle.
Your effective tax rate in Seattle is definitely lower. WA has no state income taxes.
My federal tax rate, which is the subject of this thread, is higher this year.
Overall the impact was negative, but not significant. SALT hit me hard. Had purchased a vehicle in 2018 and was looking forward to deducting almost $20k total (including RE, general sales tax, vehicle sales tax). Elimination of personal exemptions was not good either. But the child credit was not bad.
Which vehicle purchase can get you a deduction of $20k ???
Do we get child credit or child deduction for every kid ? Also how can you deduct vehicle sales tax, never heard of someone doing before
1. get into real estate, (depreciation and expenses) 2. live in a state with no income tax, 3. Get a job that pays as little as mine, 4. Pay no income tax!
If you make your money by working for someone else this is likely a tax increase.
Most people don’t account their own effectiveness tax rate, much less annual tax savings. Most people only care if they’re getting a return, or how much money they may owe.
Does effective tax rate include FICA contribution as well ?
It should, but it depends on what you personally are trying to measure. If you want Total federal effective tax rate, then yes. If you want you overall effective tax rate I would also say yes but also add your state and local taxes as well.