Recalculate your 2016 Federal taxes using the current proposed 2018 rules- here

[FIREshrink]

guessRe3iRtH wrote:

You said game changing, not me.

$2500 is enough to cover an extra week long vacation overseas., now that flights abroad can be had for only $500-700. Thats yuuuge in my book.

Also that buys a lot of whiskey and bad decisions.

I think folks will find a way to bash Trump even when you get a free $2500 check hahaha, I love it!

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A grown man, willing to sell out his country’s future for a measly $2500.

Even Joe Boyd sold his soul for more.

I guess it’s true. In a democracy, people will get the leaders they deserve.

[Zaphod]

TheGipper wrote:

I’d be a lot more “OK” with GOP plan if the 35% bracket didn’t start so low. Kicks in at $260,000 for MFJ, while old system kicks in at $416,700. For someone who’s goal is to help the “middle class” whatever that means, a real head scratcher to punish this range of incomes only.

I also hope Orin Hatch brings back his “corporate tax integration” concept in which corporations could avoid double taxation by being able to deduct all or part of their dividends. This would also help a bunch of us docs that are incorporated as Professional Corporations realize the lower corporate rate of say 20% and pay out in deductible dividends, rather than all wages and quarterly bonuses to avoid double taxation. May also sell better to public and Dems. Ie compromise to lower corporate rate to only 25%, instead of 20%, but allow full deduction of shareholder dividends.

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Would be better off by compromising to include more businesses overall, instead of favoring large multinationals only. Say a 25% rate, for all businesses, and of course eliminate any double taxation stuffs.

[TheGipper]

Zaphod wrote:

TheGipper wrote:

I’d be a lot more “OK” with GOP plan if the 35% bracket didn’t start so low. Kicks in at $260,000 for MFJ, while old system kicks in at $416,700. For someone who’s goal is to help the “middle class” whatever that means, a real head scratcher to punish this range of incomes only.

I also hope Orin Hatch brings back his “corporate tax integration” concept in which corporations could avoid double taxation by being able to deduct all or part of their dividends. This would also help a bunch of us docs that are incorporated as Professional Corporations realize the lower corporate rate of say 20% and pay out in deductible dividends, rather than all wages and quarterly bonuses to avoid double taxation. May also sell better to public and Dems. Ie compromise to lower corporate rate to only 25%, instead of 20%, but allow full deduction of shareholder dividends.

Click to expand…

Would be better off by compromising to include more businesses overall, instead of favoring large multinationals only. Say a 25% rate, for all businesses, and of course eliminate any double taxation stuffs.

Click to expand...

No reason can't do both.

In fact, GOP has strategy all wrong this.  Big mistake to try to make a tax reform only bill revenue neutral.  Better approach would've been to go bold and and file reconciliation instructions for a non-revenue neutral bill to sunset in 50 years instead of 10 years (10 years is just an arbitrary number not required by law).  The incompetent & partisan CBO should not have the authority to determine if a bill needs 50 to 60 votes in the senate to be permanent.  Not to mention that they have been wildly off on every major piece of legislation they have tried to model for decades (see ACA).

After a tax cut bill is passed, then move onto to a spending cut bill.  A simple first start would be a 10% across the board cut on all discretionary (non-entitlement) spending, with a hiring freeze.  Eliminate and consolidate entire government agencies as practical and politically possible.  Even better, redistribute all the federal agencies across the country, Dept of Energy to Alaska, Dept of Agriculture to Nebraska, etc...Let the other states share in the taxpayer wealth and watch all the fat-cat DC bureacrats just quit rather than move across the country!

Easy peazy   I'm starting to sound like Rand Paul.

 

[Bmac]

The method doesn't really work for me for looking at our 2016 income and making a comparison. We had an unexpected large capital gain in 2016 (equivalent to about 1/3 of our AGI), which was of course taxed at a favorable rate. But I imagine for our current income levels the new brackets will be favorable based on our recent W-2 income compared to the current brackets. Also, I think having the 25% tax bracket go all the way to $260,000 will be favorable in retirement since currently that bracket only goes to $153,000.

[Re3iRtH]

Zero incentive for me to be a productive middle to upper income worker and physician. This plan incentivizes laziness. Some estimate that as much as 50% of Americans won't be paying any tax.
As I see it, my only 2 viable options are continue as a military physician for as long as I can tolerate it, guaranteed to stay in the 25% tax bracket, while collecting an additional $30-60K of income not subject to taxes at all. Second option is continue with my real estate business full time, where I pay zero tax on my leveraged rentals.