So the Dolt45 tax plan kicks in ...

[Texacon]

https://www.democraticunderground.com/100211930845

aggiesal (3,588 posts)


So the Dolt45 tax plan kicks in ...

 
This year I have to pay an additional $10,700+

This really hurts.

Loki Liesmith (2,813 posts)

2. Mortgage interest deduction changes?

aggiesal (3,588 posts)

3. No ...

Deductions I was allowed to use last year,
was removed from this years tax code.

The bastard!

This is what I believe will happen to a lot of other people.

The standard deduction may have increased, but since I itemize,
the standard deduction won't apply because my itemized deduction
exceed the standard.

Except that the repub a$$holes removed all kinds of deductions
that we actually use and will make everyone's taxes higher.

For example, My property taxes are around $12,000/yr. and my State income tax was $6,600
Total $18,600

Last year I was allowed to deduct all $18,600
This year I was only allowed to deduct $10,000
There are more that I can't deduct.

If the Dems campaign correctly, they should use this as pocketbook politics,
like Ronnie Raygun did to Jimmy Carter during the 1980 election.

Hey, here's an idea ... tell your state to stop setting their budgets up to be subsidized by states who have kept their taxes low by not giving out shit their citizens can't afford.  Anyway, back to the story!

metalbot (1,031 posts)

5. How did you lose $50k in deductions?

That's insane. Especially if you only lost $8,600 on state and property tax.

aggiesal (3,588 posts)

6. That was just the easist example ...

There are others, like you can only deduct mortgage interest on up to $750,000 mortgage,
My house has a much larger mortgage, so I lose that difference as well.

There are more. My tax form is 72 pages long.

The republicans only care about the 1%. If you look at any of their legislation, it's all about
what/how they can give more to the 1%.
The 1% don't want a middle class because a strong middle class demands too much. They took a
look at the 60's & 70's and didn't like people protesting everything they wanted.
The Vietnam war was all about making money for the Military Industrial Complex that
Eisenhower warned us about. That's just another simple example.
Medicare & voting rights are more examples.

This new Tax reform is all about taking money way from 99% of us, to pay for the 1% tax breaks

So you lied above when you said it had nothing to do with the mortgage interest deduction and HOLY JEEZE!  A $1,000,000.00 house?!  LOL  That won't be popular with your buddies over there. 

There's some more over there, but I thought it was a funny thread.

KC

[USA4ME]

This primitive should be overjoyed they get to pay more in order to help others less fortunate. Hopefully the other primitives will hold them to this sacred belief.

.

[SVPete]

Maybe there are states whose property taxes are so insane as to exceed property taxes in Silicon Valley, but it sounds like DU-member aggiesal may be one of those people Progs are supposed to believe should pay really high taxes.

[franksolich]

MichMan (2,414 posts)      Mon Mar 18, 2019, 11:24 PM

9. Are you sure you aren't in the 1% ?

A million dollar mortgage doesn't sound very much like middle class to me

MrsCoffee (2,791 posts)      Mon Mar 18, 2019, 11:41 PM

12. Median home price in Bay Area is $820,000.

If you live on the peninsula it’s well over $1M. And that’s for a basic one or very small two bedroom house.

Just an example.

unitedwethrive (1,186 posts)      Tue Mar 19, 2019, 03:30 PM

22. Yup. Strange how the high cost of living states are all Blue States.

I'm sure it's just coincidence that those are the people most affected by this.

[franksolich]

haele (9,322 posts)      Tue Mar 19, 2019, 03:25 PM

21. It's not a millionaire thing. Lots of households make $100K a year with two wage earners.

These can be people who just have an associates from a local CC and a bunch of certificates making $50K - $60K each (because many National companies who do work in California will provide a locality increase in wages for lower to mid level skilled labor) doing lower to mid-level level contractor or technical work. If your'e a contractor or your job requires industry membership - even if you're only making $50K, there's the potential that you can be racking up $5K - $15K a year on what used to be deductible work expenses. Heck, drivers who get paid by the mile, or if you have travel expenses for your work, there's a lot of money out of your pocket just to do your job.

And from what I'm hearing from a lot of contracted, semi-skilled and skilled labor, those deductions are now ether seriously reduced or out and out gone.-- The reduction in mileage is especially difficult for some small indie business owners.

As for near million dollar homes - with good credit, a 20% down payment, and a history of two/three years at around a six figure household income with few debts, a middle aged couple might well have be approved for a 30 year mortgage for an $800K/$900K house in some areas of California over the past decade or so.

From my own experience - since 1992, I have always try to break even, re-setting my exemptions as soon as the new tax tables come out so that I'm usually only $200 a year to the Feds either owing or owed.

This year, I lost around $2500 in business related and SALT deductions that I would normally take, even when taking into account the Trump "Pay Raise" scam, which only would have netted me an extra $1K "in my pocket" for the remainder of 2018.

If I hadn't run numbers and switched up my exemptions right after the tax bill went into effect so that the scam was basically nullified, I would have owed around $4K instead of the $500 I ended up paying the Feds.

<<<thinks  it's a good thing, a great thing, that primitives have to pay more in taxes.

It means their surplus income is being equitably shared with those less fortunate.

[franksolich]

fescuerescue (1,208 posts)     Tue Mar 19, 2019, 01:00 AM

13. So it caps out at $750,000 for a home loan

That's going to put a real hurt on middle class millionaires.

haele (9,322 posts)      Tue Mar 19, 2019, 03:33 PM

23. With a 30 - 40 year mortgage and a hefty down-payment (usually a small inheritance or family "loan")

Lots of two/three income wage earners in California with good credit have bought houses for around $700K - $800K in high CoL locations.

A minimum wage worker will not be able to afford that mortgage, but a teacher and a CVN/nurse, or a SysAdmin and a teacher, or an Engineering Tech and a small business HR rep can usually get enough income between them to be able to earn the $100K a year - $120K a year that a 30 year mortgage and a "cash loan" from retired boomer parents on both sides to make up the 20% downpayment can get them into a nice 1200 sq. ft. California Bungelow with a yard in San Mateo or some place like that.

[USA4ME]

A $1M homeowner on Skin’s island complaining about paying too much in taxes and other primitives rushing in to have their back. What has happened to the old DU?

.

[Texacon]

I’ve got news for them, the rule of thumb on a mortgage is 2-1/2 times your annual income. That means you’ve got to be in the $400k/year range to afford a $1MM mortgage and that is really stretching yourself thin. Most wont venture into this waters until you’re at 1-1/2 times annual income.

I’m guessing the OP is pretty close to a 1%’er.

KC

[DumbAss Tanker]

Heheh, overextended Dems in deep Blue shitholes getting screwed...I'm a happy camper!

[DLR Pyro]

[Zathras]

A DUmmie being screwed over hard? This pleases me.

[FlaGator]

Not figuring in the electoral college with election strategies have consequences.

[SVPete]

Just for background, that high-earning people of high-tax states would find their state/local tax deduction capped was news in late 2017. So DU-member aggiesal is a 5%er whining about what known a year and a half ago ... well ... in part.

His/her state/local taxes were ~$18.6K. That means (s)he was unable to deduct $8600 of that total. Rounding up, that means the state/local taxes cap cost him/her about $3K of the $10.7K of "extra" taxes. So ... were there tax events unique to 2018 (i.e. things not done in previous years, every year)? Did DU-member aggiesal under-withhold severely? Maybe so severely a penalty was charged?

There's a lot to DU-member aggiesal's (s)he is not telling, to the point that (s)he's basically lying ... [Sarcasm] and getting all the DU-sympathy (s)he richly deserves! [/Sarcasm]  

[FiddyBeowulf]

unitedwethrive (1,186 posts)      Tue Mar 19, 2019, 03:30 PM

22. Strange how the high cost of living states are all Blue States.

Hmmmm...what is a mature way to respond to that....

[FunkyZero]

I’ve got news for them, the rule of thumb on a mortgage is 2-1/2 times your annual income.

Dang... never heard that one. That's a threshold too far for me. Quick math tells me I was only at about 1.25 my annual salary. But I also paid it off in 7 years. Some things such as lawyers and insurance adjusters really get under my skin, but paying interest is even a step above those.
This is all a result of getting into trouble with credit cards and also borrowing money for cars when I was young and stupid... I made a vow to never let that happen again because it was so painful getting out of it intact.

[VelvetElvis]

aggiesal (3,588 posts)

6. That was just the easist example ...

There are others, like you can only deduct mortgage interest on up to $750,000 mortgage,
My house has a much larger mortgage, so I lose that difference as well.

There are more. My tax form is 72 pages long.

The republicans only care about the 1%. If you look at any of their legislation, it's all about
what/how they can give more to the 1%.
The 1% don't want a middle class because a strong middle class demands too much. They took a
look at the 60's & 70's and didn't like people protesting everything they wanted.
The Vietnam war was all about making money for the Military Industrial Complex that
Eisenhower warned us about. That's just another simple example.
Medicare & voting rights are more examples.

This new Tax reform is all about taking money way from 99% of us, to pay for the 1% tax breaks

Ahem.
With a $1M house and a 72 page tax return, you sound an awful lot like one of those reprehensible  1%'ers you're railing about, Sweetcheeks.
I wonder how sympathetic your fellow DUmbasses will be with you if they ever figure that one out?

[VelvetElvis]

unitedwethrive (1,186 posts)      Tue Mar 19, 2019, 03:30 PM

22. Yup. Strange how the high cost of living states are all Blue States.

I'm sure it's just coincidence that those are the people most affected by this.

I'm sure it's just coincidence that the highest cost of living states are all Blue, too, Sunshine.
Couldn't have anything to do with the effects of their lunatic Blue policies, though.  That's crazy talk!!

[Texacon]

Dang... never heard that one. That's a threshold too far for me. Quick math tells me I was only at about 1.25 my annual salary. But I also paid it off in 7 years. Some things such as lawyers and insurance adjusters really get under my skin, but paying interest is even a step above those.
This is all a result of getting into trouble with credit cards and also borrowing money for cars when I was young and stupid... I made a vow to never let that happen again because it was so painful getting out of it intact.

FZ, that is a top threshold rule of thumb, but you rarely ever see anyone go there because if they do they will most certainly be 'house poor'.

That is a guideline I learned as a mortgage broker years ago and of course, it moves up and down slightly depending on the interest rates in the markets at the time, but as I said, I've never seen anyone go there, unless they had a tentative sale or a known windfall or something like that coming up where they knew they could reduce the total on mortgage rapidly and not be in that position.

KC

[Old n Grumpy]

There are more. My tax form is 72 pages long.

Sounds like you need an IRS audit, it sounds like you are taking advantage of every loophole you piss and moan about when other fat cats use it to cut their tax bill.
So STFU and pay your fair share, asshole!

[Texacon]

Just for background, that high-earning people of high-tax states would find their state/local tax deduction capped was news in late 2017. So DU-member aggiesal is a 5%er whining about what known a year and a half ago ... well ... in part.

His/her state/local taxes were ~$18.6K. That means (s)he was unable to deduct $8600 of that total. Rounding up, that means the state/local taxes cap cost him/her about $3K of the $10.7K of "extra" taxes. So ... were there tax events unique to 2018 (i.e. things not done in previous years, every year)? Did DU-member aggiesal under-withhold severely? Maybe so severely a penalty was charged?

There's a lot to DU-member aggiesal's (s)he is not telling, to the point that (s)he's basically lying ... [Sarcasm] and getting all the DU-sympathy (s)he richly deserves! [/Sarcasm]  

SV, any idea of what the property tax rate average could be where this person lives?  Do your tax rates have wide differences?  I'm wondering what the actual value of the home is.  Of course, if there are any large tax exemptions it would be hard to tell, but I'm thinking this person is rather well off.

KC

[SVPete]

SV, any idea of what the property tax rate average could be where this person lives?  Do your tax rates have wide differences?  I'm wondering what the actual value of the home is.  Of course, if there are any large tax exemptions it would be hard to tell, but I'm thinking this person is rather well off.

KC

It varies by state. In CA, the rate was capped by Proposition 13 at 2% of taxable assessed value, and post-purchase increases in taxable assessed value are also capped (I don't recall the cap %). As a consequence, two identical neighboring houses could be taxed very different amounts based on when the owner purchased their home. In Silicon Valley, a home owned for 25 years will have a market value far higher than the taxable assessed value. Those are the reasons Lib/Prog pols and their MSM shills HATE Proposition 13 and demonize it whenever possible.

[Texacon]

It varies by state. In CA, the rate was capped by Proposition 13 at 2% of taxable assessed value, and post-purchase increases in taxable assessed value are also capped (I don't recall the cap %). As a consequence, two identical neighboring houses could be taxed very different amounts based on when the owner purchased their home. In Silicon Valley, a home owned for 25 years will have a market value far higher than the taxable assessed value. Those are the reasons Lib/Prog pols and their MSM shills HATE Proposition 13 and demonize it whenever possible.

Doh!  For some reason I made the assumption the OP for the DUmmie thread was a CA resident.  I guess because the SALT losses bit s/he, although I know some other states are getting hickys for that as well.

Yeah, I knew the taxes varied by state ...

Thanks,
KC

[jukin]

It varies by state. In CA, the rate was capped by Proposition 13 at 2% of taxable assessed value, and post-purchase increases in taxable assessed value are also capped (I don't recall the cap %). As a consequence, two identical neighboring houses could be taxed very different amounts based on when the owner purchased their home. In Silicon Valley, a home owned for 25 years will have a market value far higher than the taxable assessed value. Those are the reasons Lib/Prog pols and their MSM shills HATE Proposition 13 and demonize it whenever possible.

SVP, I think it is 1.1% of purchase value for initial property taxes. Then the added value of any permited additions is also taxed a 1.1%. The other is that the tax can only go up 1.1.% per year. Now of course my property taxes bills have almost 30 different assessments that are proportional to the previous but are fixed. On my first house the assessments are almost 30% ofthe overall tax bill.

Clearly the DUmmy is raking in the cash and taking every deduc...er LOOPHOLE it can.

On a final note. I thought everyone was supposed to pay their fair shar and for DUchebags that meant 100% of income of high earners.  I do so love their hypocrisy.

[SVPete]

The OP seems to be getting flak for being too close to a 1%er, but I wonder if there's a second problem DU-folk have with him/her. Here (s)he is an affluent person complaining of being hit by Trump's tax reform. The party-line Prog narrative is that the change benefited, not hit, "the rich", yet one of "the rich" took a hit.

Party-line Prog narrative busted!

[BadCat]

Dimocrats complaining about paying taxes?

Trump really has them all ****ed up.