Politics

psu_dad
Posts: 356
Joined: Sun Aug 13, 2017 6:59 pm

Re: Politics

Postby psu_dad » Thu Dec 07, 2017 9:46 am

Oh, if you're worried about the trillion dollars of debt this is going to add to the deficit, the Republicans plan is to basically start stripping out benefits from Medicare and Social Security starting next year to offset that costs. So, we all have that to look forward to.

I've been assuming right along that the Feds would find a way to screw me out of my SS, so I've planned accordingly.

When this all comes crashing down around year 2030, I'll be safe from the Zombie Apocalypse in my bunker. Don't bother knocking. I have Claymore mines installed everywhere.
Last edited by psu_dad on Thu Dec 07, 2017 9:48 am, edited 1 time in total.

Shore Lion
Posts: 255
Joined: Tue Aug 15, 2017 3:31 pm

Re: Politics

Postby Shore Lion » Thu Dec 07, 2017 10:09 am

The mortgage income deduction is a farce anyway. There is no evidence whatsoever that it promotes homeownership. What it does do is to help artificially inflate prices and encourage people to borrow right up to their limit. It should be phased out.

Now the issue about not being able to deduct local property taxes is a whole other matter and that could have serious consequences for homeownership in a lot of places.

psu_dad
Posts: 356
Joined: Sun Aug 13, 2017 6:59 pm

Re: Politics

Postby psu_dad » Thu Dec 07, 2017 10:42 am

Now the issue about not being able to deduct local property taxes is a whole other matter and that could have serious consequences for homeownership in a lot of places.


Perhaps that's why the Senate compromised and decided to cap that deduction, rather than eliminate it. Who knows.

We constantly switch between having Republicans and Democrats in charge at the federal level. That's mostly because both parties suck and screw things up when they're in charge. But that means that nothing in the new tax bill will be permanent. Anything the Democrats don't like, they'll change the next time they're in charge.

PittGradPSUMad
Posts: 122
Joined: Fri Aug 11, 2017 8:47 pm

Re: Politics

Postby PittGradPSUMad » Thu Dec 07, 2017 10:43 am

Still trying to determine how screwed I will be under the new tax heist. I have always operated under the philosophy of paying myself first and never...and I mean never...carrying credit card debt. Haven't paid a penny of interest to those CC thieves since 1996 when I tired of making monthly payments to multiple CCs and paid them off. The plan seemed draconian to us at first, but it allowed us to build up significant retirements savings. Now, here is the rub. With our pensions and SS, we can live comfortably without touching retirement money and that's a good thing because I am terrified of drawing from that money. I am truly afraid of running out of money. Having said that, I borrowed $50k from home equity (house is paid off) for home improvements at 3.25% in 2014. That rate is now 4.25 and about to go up again. I believed then it was better to borrow money at that rate than to draw from IRA and incur a serious tax consequence. Instead, I chose to keep the money invested in hopes that it would grow at a higher annual rate than what I paid for the HELOC and so far it has. Now, I don't know what to do. I feel certain that we will experience a significant market correction in the near future and it would be better to take the money out of the market by paying off the HELOC and, in effect, put that money back into my property. That move will also put me into a higher tax bracket with tax serious consequences. I am so confused, and then you toss in the possibility that I will pay higher taxes under the proposed tax reform and then I'm pissed on top of all else.
Yeah, well, that's like your opinion, man.

Blue&White
Posts: 653
Joined: Sat Aug 12, 2017 10:01 am

Re: Politics

Postby Blue&White » Thu Dec 07, 2017 11:15 am

There are a couple of tax calculators out there. This one shows you how you fare with both the House and Senate version of the bill. You can compare the results to your 2016 tax return.

I'm screwed. Really, really screwed. I'm going to have to start making extra quarterly payments to avoid getting hit come April.

This sucks.

PittGradPSUMad
Posts: 122
Joined: Fri Aug 11, 2017 8:47 pm

Re: Politics

Postby PittGradPSUMad » Thu Dec 07, 2017 11:34 am

Thanks, Bdub. Plugged in the numbers. I'm screwed. So, someone remind me who this tax bill is designed to benefit? Certainly not me.
Yeah, well, that's like your opinion, man.

psu_dad
Posts: 356
Joined: Sun Aug 13, 2017 6:59 pm

Re: Politics

Postby psu_dad » Thu Dec 07, 2017 2:58 pm

Interesting. I plugged in the numbers from my last federal tax return and my bottom line was almost identical to what it was this past April 15th.

psu_dad
Posts: 356
Joined: Sun Aug 13, 2017 6:59 pm

Re: Politics

Postby psu_dad » Thu Dec 07, 2017 3:41 pm

So, someone remind me who this tax bill is designed to benefit? Certainly not me.


I'm no tax accountant, but it seems to me that a married couple that doesn't have a large amount of Schedule A itemized deductions should benefit quite a bit from the increase in the standard deduction (to $24,000).

Blue&White
Posts: 653
Joined: Sat Aug 12, 2017 10:01 am

Re: Politics

Postby Blue&White » Thu Dec 07, 2017 3:58 pm

I'm no tax accountant, but it seems to me that a married couple that doesn't have a large amount of itemized deductions should benefit quite a bit from the increase in the standard deduction (to $24,000).

Absolutely. There are people who will probably benefit from this. I'm just not going to be one of them. Neither are most of my neighbors or former neighbors in NJ. The removal of these things was based on the assumption that it was going to crush the Blue states, who are generally not voting Republican anyway. But, I've seen some things that significantly challenge that assumption. And, states like PA and OH are going to feel it, and both those states voted for Trump in 2016. Also, the reduce rates are temporary. Under this bill, it all kicks back up and people making under $100k are going to be really feeling the bit of this thing in the later years.

Even for people who it benefits initially, this deal is the legislative equivalent of the Marlins contract with Stanton. Sure, you have him locked in for 13 years but when he turns 35 and you're paying him $30M/year, that's going to really suck.

psu_dad
Posts: 356
Joined: Sun Aug 13, 2017 6:59 pm

Re: Politics

Postby psu_dad » Thu Dec 07, 2017 4:10 pm

There are people who will probably benefit from this.

There are people who will definitely benefit from this. Probably a lot of them. And it's not like we're replacing a wonderful federal tax system. The current system is a frigging mess. I'm generally in favor of making it simpler, which this bill does. I'd like to see a projection on the number of married couples who won't bother itemizing deductions now. I'm guessing its a large number.