GOP TAX PLAN

[Jim in CT]

If the GOP plan passes this year, would it apply to the 2017 tax returns?

If so, and if the GOP's claims about savings prove to be false, they will get rightfully creamed in the 18 midterms. Creamed.

If the GOP plan does in fact put a few more bucks in the pockets of the middle class (and if the stock market takes off and wages go up), the GOP will clobber the Dems in the midterms.

High stakes game here.

[DZ]

Jury is still out on this. I have at least $500-700 (what I pay my accountant) of potential savings if I can file a return the size of a postcard myself. That said I live in a high tax state and RI will stand to lose some tax revenue - look for them and other blue states to tax the crap out of their residents with state taxes to make up the loss. But I guess its only fair as from what I read the northeast is heavily subsidized by other states. I think our beef will really be with our state legislators if this tax plan goes into effect. Time to cut state spending.

[detbuch]

Originally Posted by DZ

Jury is still out on this. I have at least $500-700 (what I pay my accountant) of potential savings if I can file a return the size of a postcard myself. That said I live in a high tax state and RI will stand to lose some tax revenue - look for them and other blue states to tax the crap out of their residents with state taxes to make up the loss. But I guess its only fair as from what I read the northeast is heavily subsidized by other states. I think our beef will really be with our state legislators if this tax plan goes into effect. Time to cut state spending.

And yet we've been told, including by some on this forum, that the high tax states were subsidizing the rest of the country.

[PaulS]

Originally Posted by DZ

Jury is still out on this. I have at least $500-700 (what I pay my accountant) of potential savings if I can file a return the size of a postcard myself. That said I live in a high tax state and RI will stand to lose some tax revenue - look for them and other blue states to tax the crap out of their residents with state taxes to make up the loss. But I guess its only fair as from what I read the northeast is heavily subsidized by other states. I think our beef will really be with our state legislators if this tax plan goes into effect. Time to cut state spending.

You must have a complicated return. I have partnerships, real estate, div, interest, cap. gains and I do my own.

Where have you read that the NE is subsidized by other states? Do you have any links to articles? I've read many times that the NE states pay more to the feds than they get back.

[Got Stripers]

I'm so glad I'm retired and taxes are not my big worry, but I see it as the rich getting richer.

[DZ]

Originally Posted by PaulS

You must have a complicated return. I have partnerships, real estate, div, interest, cap. gains and I do my own.

Where have you read that the NE is subsidized by other states? Do you have any links to articles? I've read many times that the NE states pay more to the feds than they get back.

Paul,
My taxes are indeed complicated - use to do my own but not anymore. Here is a link to an article that explains both sides of SALT (state and local tax deduction) and how it fits into the plan.
https://www.vox.com/policy-and-polit...tion-explained

[spence]

Originally Posted by Jim in CT

If the GOP plan passes this year, would it apply to the 2017 tax returns?

If so, and if the GOP's claims about savings prove to be false, they will get rightfully creamed in the 18 midterms. Creamed.

If the GOP plan does in fact put a few more bucks in the pockets of the middle class (and if the stock market takes off and wages go up), the GOP will clobber the Dems in the midterms.

High stakes game here.

No, the 2017 law is already set.

The tax benefit to the Middle Class is minimal. The real recipients are the super wealthy and corporations who will, if history is any guide, use the savings to buy back stocks and increase dividends.

Companies in the US area already sitting on over 2 trillion in cash with another 2.5 trillion overseas. A lack of funds isn't inhibiting domestic growth.

You're not going to see much economic impact from this plan if it passes. Many think the market is already overvalued and the idea that more free cash will lead to wage growth is silly. Companies pay based on perceived value, not available money to spend.

[Jim in CT]

Originally Posted by spence

No, the 2017 law is already set.

The tax benefit to the Middle Class is minimal. The real recipients are the super wealthy and corporations who will, if history is any guide, use the savings to buy back stocks and increase dividends.

Companies in the US area already sitting on over 2 trillion in cash with another 2.5 trillion overseas. A lack of funds isn't inhibiting domestic growth.

You're not going to see much economic impact from this plan if it passes. Many think the market is already overvalued and the idea that more free cash will lead to wage growth is silly. Companies pay based on perceived value, not available money to spend.

"The real recipients are the super wealthy and corporations"

Who benefits from doubling the standard deduction? The wealthy itemize deductions, they don't use the standard deduction.

"if history is any guide, use the savings to buy back stocks and increase dividends. "

Buying back stocks, increases stock price. That's good for everyone who has a 401k or an IRA, correct?

"Companies in the US area already sitting on over 2 trillion in cash with another 2.5 trillion overseas. A lack of funds isn't inhibiting domestic growth"

A lack of confidence is stifling growth. The cost of growing here, is an impediment to growth. False?