The Trump Tax Cut: Even Worse Than You’ve Heard

[Jim in CT]

Originally Posted by wdmso

Wow that’s some crazy thinking they should be thankful for the tax cut in place of a raise that affects their retirement down the road??
Posted from my iPhone/Mobile device

WDMSO, is it that much better to get a $100 raise, than it is to get a $100 tax cut? At the end of the day, if you have $100 more to spend, do you care which column in the balance sheet it came from? If so, could you please explain why? Because I couldn't give a rat's azz.

[detbuch]

Originally Posted by Jim in CT

WDMSO, is it that much better to get a $100 raise, than it is to get a $100 tax cut? At the end of the day, if you have $100 more to spend, do you care which column in the balance sheet it came from? If so, could you please explain why? Because I couldn't give a rat's azz.

Actually, a tax cut will net you more than an equal pay raise. Part of the pay raise will be reduced by income taxes.

[Jim in CT]

Originally Posted by detbuch

Actually, a tax cut will net you more than an equal pay raise. Part of the pay raise will be reduced by income taxes.

Oh shut up with that logic.

Raises are better, especially if they are a result of liberal policies.

[wdmso]

Originally Posted by detbuch

Actually, a tax cut will net you more than an equal pay raise. Part of the pay raise will be reduced by income taxes.

not sure how your retirement works mine is based on. base pay last 3 years tax break does nothing to increase my retirement pay compared to a pay raise ... and not all states tax pension to start with

[Jim in CT]

Originally Posted by wdmso

not sure how your retirement works mine is based on. base pay last 3 years tax break does nothing to increase my retirement pay compared to a pay raise ... and not all states tax pension to start with

You literally have no idea what you are saying.

The Trump tax cut deals with FEDERAL income tax rates, not state income tax rates. If you were drawing on your pension, the federal tax cut would almost certainly have given you a bump in your take-home portion of your pension.

A federal tax cut will not increase your gross pension payment, because that is determined based on your contract. A federal tax cut will increase your net pension payment, and net is what matters.

If your gross pension is, say, $40,000 a year, and your federal tax rate decreases, then you have more money from each pension check How can you deny this?

My net pay increased by $200 a month after the tax cuts took effect, and my gross pay did not change. The increase was because of reduced federal withholding.

You are being completely irrational.

[detbuch]

Originally Posted by wdmso

not sure how your retirement works mine is based on. base pay last 3 years tax break does nothing to increase my retirement pay compared to a pay raise ... and not all states tax pension to start with

The only raises I've had in my Detroit pension were based on cost of living adjustments. In Michigan, pensions acquired after a certain date, don't remember which, are taxed. The Federal government taxes my Social Security. Public sector pay raises (which represent most pensions), as far as I know, are taxable at the federal, state and municipal levels.