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How much income tax did you pay in 2018?

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  • The White Coat Investor
    replied




    Just a fun poll – how much did you pay total in income taxes, and for bonus points what was your total tax rate? Here’s mine to start:

    $72,000; 21.6%
    Click to expand...


    Taxes are the ultimate political topic. As near as I can tell, only 1 or 2 other people answered your poll. The rest of this thread degenerated and started generating more heat than light, so I closed it.

    Leave a comment:


  • Dusn
    replied
    The nation’s debt went up dramatically as a result of this tax law.

    And red states by in large receive far more federal assistance:

    https://wallethub.com/edu/states-most-least-dependent-on-the-federal-government/2700/

    Leave a comment:


  • ENT Doc
    replied


    But I’m pretty sure the recent tax bill targeted blue states. They also happened to be high income tax and high property value states, in addition to high property taxes.
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    You prove my point in your second sentence above.  Just because they happened to be the states where taxes were highest doesn't mean they were "targeted".  They just happened to be disproportionately affected.


    I think the top states providing revenue for the federal government (corrected for population) are mostly blue states. It seems to me that I’m the one bailing out red states while living in a blue state.
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    This is not correct.  You aren't bailing out a state - you are bailing out free loaders.  Those free loaders (those who pay little to no tax) exist in every state, red and blue.  You would be paying the same federal tax regardless of where you lived, red or blue state.  It's your income that is being targeted.


    The blue states used to get some back in the form of deductions for their high state taxes and expensive housing.
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    Again, why should future taxpayers subsidize the people choosing to live in high tax regimes?  The blue states didn't get anything back.  The specific individuals benefiting from the aforementioned deductions benefited - and they shouldn't.  Now if you want to argue that taxes should be lower or less progressive I'm on board with that.  But I'm against deductions, subsidies, and credits.  They make things look cheaper and create market distortions that wouldn't exist if people were made to realize the full cost of things.


    When that got taken away, there is a definite tilt towards the red states benefiting from this tax law.
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    How exactly are red states benefiting here?  Certainly high income and high mortgage individuals in their states are feeling the pain as well.  The government is collecting more money from those not benefiting from the deductions (as much), regardless of their location.  And while I'll concede this will fall disproportionately on blue states, it's not like the federales are now shoveling that money into red states now.  They're simply collecting more money so we can be less badly in debt.

    Leave a comment:


  • Wiscoblue
    replied




    State taxes and mortgage interest have no business being deductible. Why exactly should all other Americans, more specifically future generations, subsidize your high state taxes and high mortgage interest?

    There’s no evidence that this law targeted Democrats. As with any law some people will benefit while some won’t. Just because a specific outcome occurred doesn’t mean that was the intent – it could just as well be a simple byproduct of the law that can’t possibly have equal effects. Further, just because people in blue states tended to pay more there’s no proof that those people actually paying the higher amounts voted Democrat. They’re just paying higher amounts because now they are realizing the full effects of their high state taxes and mortgage decision. If they happen to be Democrats so be it. If they happen to be Republicans so be it.

    You want to talk about “loopholes” that put a hurt on tax revenues to the government? The SALT and mortgage interest deductions are two of the biggest. Feel free to move or vote in people who actually have fiscal restraint. But don’t make unverifiable claims about preferential targeting or complain about the fact that everyone else isn’t bailing you out any more.
    Click to expand...


    I’ve voted republican for as far back as I can remember. But I’m pretty sure the recent tax bill targeted blue states. They also happened to be high income tax and high property value states, in addition to high property taxes.

    And as far as ‘bailing’, I don’t pretend to be an expert in economics but I think the top states providing revenue for the federal government (corrected for population) are mostly blue states. It seems to me that I’m the one bailing out red states while living in a blue state. But that’s looking at it very superficially. The blue states used to get some back in the form of deductions for their high state taxes and expensive housing. When that got taken away, there is a definite tilt towards the red states benefiting from this tax law. Again, I’m not an expert and I’m open to others views and to be educated by knowledgeable people like you on this board.

    Leave a comment:


  • Larry Ragman
    replied
    Ah, right, no bracket reduction over $600K. That would do it.

    Leave a comment:


  • Wiscoblue
    replied




    High state taxes result from the state of residence and only serve that state. I lost $30k in state tax deduction. I’m fine with that. Why would anyone expect to pay a lower federal tax (which benefits everyone) simply because they live in a high tax state? Why should a person in Florida making 250k pay more federal tax than a person living in NY earning the same salary?
    Click to expand...


    I see your point. I hate all taxes.

    Leave a comment:


  • ScopeMonkey
    replied
    How much tax this year?  An amount I can barely fathom.

    Leave a comment:


  • ENT Doc
    replied
    State taxes and mortgage interest have no business being deductible. Why exactly should all other Americans, more specifically future generations, subsidize your high state taxes and high mortgage interest?

    There’s no evidence that this law targeted Democrats. As with any law some people will benefit while some won’t. Just because a specific outcome occurred doesn’t mean that was the intent - it could just as well be a simple byproduct of the law that can’t possibly have equal effects. Further, just because people in blue states tended to pay more there’s no proof that those people actually paying the higher amounts voted Democrat. They’re just paying higher amounts because now they are realizing the full effects of their high state taxes and mortgage decision. If they happen to be Democrats so be it. If they happen to be Republicans so be it.

    You want to talk about “loopholes” that put a hurt on tax revenues to the government? The SALT and mortgage interest deductions are two of the biggest. Feel free to move or vote in people who actually have fiscal restraint. But don’t make unverifiable claims about preferential targeting or complain about the fact that everyone else isn’t bailing you out any more.

    Leave a comment:


  • ZZZ
    replied
    @larry ragman

    "Not sure how others ended up paying more. Every situation is unique, I’m sure, but I live in blue MD and lost ~$20k in deductions to SALT limitations"

    Yeah, the SALT limitation really only hosed high earners with big property tax bills in high tax states. If your total SALT bill was only 30k living somewhere your state + local rate was around 8.75%, you check exactly none of those boxes, so it's unsurprising your total tax bill was lower.

    Think about a surgical specialist in MN making $1M living in a $1.5M house in Minneapolis. That's 120k in lost SALT deductions at the top marginal rate, so despite the bracket changes, they still pay more in federal and total taxes.

    Leave a comment:


  • DCdoc
    replied
    High state taxes result from the state of residence and only serve that state. I lost $30k in state tax deduction. I’m fine with that. Why would anyone expect to pay a lower federal tax (which benefits everyone) simply because they live in a high tax state? Why should a person in Florida making 250k pay more federal tax than a person living in NY earning the same salary?

    Leave a comment:


  • Wiscoblue
    replied




    @wiscoblue
    “High state taxes and high mortgage interests are not deductible any more”
    Yep. Contact your state representatives and governor and tell them you taxes are absurdly high.
    Click to expand...


    I’ve been telling them for many years. Nobody listens! It’s only going to get worse. I will tell them one last time finally when I retire and move to Florida! This year our state will be giving out drivers licenses to ‘undocumented’ people. So they can now be ‘documented’ and vote for more taxes and handouts.

    Leave a comment:


  • ZZZ
    replied
    @wiscoblue
    "High state taxes and high mortgage interests are not deductible any more"
    Yep. Contact your state representatives and governor and tell them you taxes are absurdly high.

    Leave a comment:


  • Wiscoblue
    replied
    Last year I was mad that I was paying so much in state taxes. This year I’m mad that now since I can’t deduct those taxes from my fed return, I have to pay 37% of that to Uncle Sam!

    This tax bill has targeted the high tax states that voted democrat. High state taxes and high mortgage interests are not deductible any more.

    Leave a comment:


  • Vesalius
    replied




    Cant find any info on this so called cliff in NY state taxes. Is this a Manhattan tax? Even on the state calculator stuff it doesnt come up and I put an income of 100M.
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    Here is the tax calculation instruction for NY State.  If you make less than the maximal amount, your brackets are as follows on the attached tax bracket table.  Once you pass the threshold, you use the special tax calculation in the attached worksheet 7, that then calculates the tax at the highest rate for all income, no more graduated brackets.

    Nowhere is this published as an 80% rate, but if you calculate the tax for just below the cliff threshold ($1,077,550), then recalculate the tax with an additional $50,000 in income above the threshold, that 50k in extra income will cost you an extra $40,000 in state tax, or a total of $58,500 in combined federal and state income tax.  That 50k in extra income is definitely is costing you an extra $58,500 in total income taxes.  Ouch!

     

    Leave a comment:


  • Larry Ragman
    replied
    I don't normally track rate, but I do track totals! This string made me curious, because some of you reported paying more taxes. So, my rate was 22% on federal income taxes only, but I paid almost exactly the same amount as last year even though I made ~$50k more.

    Not sure how others ended up paying more. Every situation is unique, I'm sure, but I live in blue MD and lost ~$20k in deductions to SALT limitations. Best I can figure it the tax bracket reduction helped me out. But I did benefit from both TLH and a credit from the AMT no longer applying.

    Leave a comment:

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