If I can pre-pay 2018 then can I also pre-pay 2019, 2020...?
See, this tax plan monstrosity has created jobs!
Stephen makes a good point:
"The political class loves obscuring capital gain and qualified dividend tax rates by arguing about income tax rates. The rich are taxed at the former while wage earners and (most) small business entities are taxed at the ladder."
Long-term capital gains and "qualified dividends" are taxed at a lower rate than wages. Wealthy people typically don't earn much in wages, but typically do earn a lot in the forms of long-term capital gains and "qualified dividends." As a result, many wealthy people pay lower taxes than some wage earners who make less.
This begs a question whenever I consider the fairness of the carried interest. Essentially, a fund manager claiming his fund-management compensation as a carried interest is insisting that he be taxed at the same (lower) rate that applies to the INVESTORS' share of the fund's profits. They contributed capital; he contributed services. The tax laws impose a higher rate on service-providers than capital providers, and the "carried interest" is one way that service providers attempt (usually successfully) to "transform" high-rate service compensation into low-rate capital gains.
But should it be considered a "reach" for a fund manager to insist on this transformation? Why should capital be "rewarded" more than service?
The real reason? Lower tax rates on long-term gains are necessary to attract capital to the US. If tax rates are too high, investors will simply take their capital elsewhere.
1
I have no desire to file my tax return on a "postcard." But it's clear that tax authorities would prefer that everyone take the standard deduction, which would make filing much simpler. The biggest itemized deductions for most taxpayers are mortgage interest and state and local taxes (with charitable contributions just behind, or even ahead for some taxpayers). With the new cap on the SALT deduction and the reduced cap on the mortgage-interest deduction, fewer taxpayers will see any point in itemizing. Analysts predict that the percentage of taxpayers claiming the (higher) standard deduction will rise from 70% to 90%.
There will still be many taxpayers who itemize (I will). But if the standard deduction is raised still further, and/or various deductions are disallowed or capped even lower, we could reach a point where NOBODY itemizes -- we all simply take the standard deduction.
That, indeed, would be simpler. Not "postcard-simple," but very simple. Frankly, that appears to be what many proponents of this new tax law were aiming for. They didn't get all the way there, as a taxpayer still may choose to itemize, but they did get much closer, with only 10%, rather than 30%, of taxpayers expected to itemize.
A problem, though: You can't deduct charitable contributions unless you itemize. If only 1/3 as many taxpayers itemize, charitable donations could dry up.
Solution?
Congress should authorize charitable deductions even for taxpayers who take the standard deduction.
The IRS predictably will take exactly the opposite of the position it used to take on a key issue.
In the "old days" (pre-Reagan tax act) employee compensation was considered "earned income," subject to a 50% tax rate, max. If an employee also happened to own the company, the company often would argue that the employee's very high pay was ALL compensation and thus subject to the 50% rate. The IRS typically would argue the opposite -- that only a small portion of the employee's pay was service "compensation" subject to the 50% rate; the rest, the IRS would argue, was "unearned income," which in those days was subject to a 70% maximum rate. Many small companies (more accurately: their owner-employees) did battle with the IRS every year, with the employee usually ending up paying 70% on a good portion of his or her pay.
Now the IRS predictably will argue just the opposite: that ALL, or nearly all, of an employee's pay amounts to service "compensation," taxable at the now-higher rate that applies to compensation, not "profits" distributed to the owner-employee and taxable at the lower rate applicable to profits earned by a pass-through company. The taxpayer-employee, by contrast, predictably will dust off some of the IRS' old arguments and claim that only a small portion of his total pay was service compensation taxable at the higher rate, and that the bulk of his pay was "profit," taxable at a lower rate.
1
Now they can charge double time AND travel time AND write off their (families')
vacation!!!! America is back.
2
"Accountants and Analysts Race to Dissect Tax Plan"?
Haven't all the economists of note, or regard, already rendered their opinions of this foul offal?
1
I wonder if the average US citizen realizes that the rest of the world see more than a few aspects of its 'democracy' mirrored in the kind of African regimes (like Zimbabwe) which often are deemed to require UN intervention, a banana republic, where bribery, cronyism, nepotism are rife.
Like appointing, directly, by the President, cabinet members who are unqualified and work for their own, and their kin's, direct financial benefit.
Or a President abolishing the estate tax so his kids don't have to pay it?
How about abolishing supplementary tax to save himself $30m per annum?
A stolen Supreme Court seat perhaps or stacking the judiciary with totally unqualified judges?
The leadership using their position to enrich themselves and their families, at the expense of the greater good of the country as a whole, while restricting those leadership positions to the already rich?
Probably not.
They are living in the American dream.
The fantasy that everyone has the same opportunity as Donald Trump has had and that the $1.5 trillion will somehow trickle down to them.
Yet, the system is designed to protect itself against any significant economic reform.
US democracy is practiced as an art form, a sort of performance art - a triumph of form over substance.
If there were any remaining doubts, this bill will dispel them.
To borrow a time-tested US philosophy and the mantra du jour, I propose
"Make Regime Change in America Great Again".
That includes BOTH parties.
Time is running out.
5
The political class loves obscuring capital gain and qualified dividend tax rates by arguing about income tax rates. The rich are taxed at the former while wage earners and (most) small business entities are taxed at the ladder.
A more accurate title would be "tax cuts for high wage employees and pass through entity reorganization incentive act".
The EITC could have been increased or expanded but some see this as welfare so it's a different political calculation. Rubio capped the refundable portion of the increased child tax credit, most likely, to avoid this issue.
The Corp. tax cut is getting a lot of hate but it could be a good thing. Ideally, the lower cost structure will create enough financial incentive for domestic companies to forgo the geopolitical and logistical risk of overseas operations, and provide enough incentive for companies exporting to the USA, to expand or move here.
And there are some positive signs: the WTO and the EU are already whining about competitive balance.
If the WTO and EU are complaining you are doing something right.
Good comment. You sound like you could answer this question for me:
"Rubio capped the refundable portion of the increased child tax credit..."
I understand that up to $1,400 of the $2,000 child tax credit is "refundable," but it's unclear to me what "refundable" means. I understand that, if the taxpayer owes $1,400 in taxes and had $1,400 withheld from her pay, she can get a $1,400 refund. That part I get.
But what if she owes only, say, $900 in taxes and had $900 withheld from her pay? Does she still get a $1,400 "refund" even though that's more than she ever owed or had withheld? Or is her refund capped at $900?
Relax Mr. Traub, head of Deloitte's tax-policy practice. You can enjoy skiing with your family since Ivanka said taxes are easy, just drop your postcard in the mail.
3
Chaos will reign in accountancy & law firms.....and money will roll in for their billing fees....another cost for the middle class .
2
They just need to give everyone the "postcard" we'll be able to do our taxes on.
1
Of all of the results of the GOP ascendancy and the election of the most successful con artist in our government's history ... I was going to say that the passage of this grotesque, grow the inequality and deficit bill is the greatest threat to our country's solvency, whatever unity still existed and the continuation of a social safety net with a functioning health care system ... but there have been so many assaults on so many institutions, not to mention, our security, the environment and the nation's integrity over the year, it's too difficult to say for certain this is the worst.
In favor of its most pernicious label is the degree to which otherwise normal conservatives with some sense of decency have thrown away their judgment, morality and concern for repercussions for the sake of the florid and ubiquitous brand signature of an utter philistine on this absolutely dreadful and irresponsible bill. Since they are big fans of a man who promises to revive a dying industry, presumably they will happy to see the coal they deserve in their stockings.
4
Boo Hoo...I'm shedding crocodile tears. The Accountants and Lawyers may be scrambling but they will also be laughing all the way to the bank. Boo Hoo...my vacation which I am already on for 2 weeks with my family is ruined...Boo Hoo.
2
What are the chances of court challenges blocking or delaying implementation of this bill?
2
What basis are you thinking of to block this legislation?
This is the Tax Professionals Jobs Act. Only a man like Trump could pretend it has anything to do with “reform.”
2
Does a taxpayer get the new $12000 standard deduction and up to $10,000 in SALT? Or is it one or the other? Or is it impossible to tell yet?
If you itemize, the limit on SALT deductions is $10,000.
If you itemize, the standard deduction does not apply to you.
both
1
proffexpert,
You can deduct SALT only if you itemize. Taking the standard deduction means you're NOT itemizing. So it's one or the other, not both.
So much for a postcard size tax return, eh? Loopholes and other legal finagling will make CPA's a vital part of corporation and businesses of all sizes.
While critics of the Republican bills correctly call it war on the middle class, a more accurate critique would be to call it war on wage earners. Middle-class households that do not primarily live on wages or pensions but rather derive their income from dividends, profits or inheritances will come out ahead. Likewise, those whose very high incomes come solely from wages will do worse. It is likely that many of those who now are paid salaries will try to reorganize themselves so that their salaries are now pass-through business income, which is to be taxed at a much lower rate than wages, salaries or pensions.
As was seen in Kansas, where the rate paid by pass-through entities was reduced so that it was advantageous for those collecting salaries to reorganize themselves into pass-through entities, many highly paid individuals did so. Bill Self, the state's highest paid employee, does not pay state income tax on $2.7 million he earns as the University's men's basketball coach since he uses a Limited Liability Corporation to be compensated for his services rather than a salary.
The IRS and accountants will be determining for all pass-through entities what "reasonable salaries" are for the owners of the pass-through entities. It is mind-boggling to consider how many more Internal Revenue auditors will be needed to make those "reasonable salaries" determinations for the millions of pass-through entities. So much for a simpler tax code..."
https://seekingalpha.com/article/4127862
5
As lawyers and accountants pour over the details of the tax law, we should keep in mind that the likelihood of any company or individual being audited by the IRS in the years ahead is virtually nil. Recent news reports describe the tax agency as under-staffed, filled with anxiety over additional job cutbacks, and ridiculed by conservatives in and out of Congress as hopelessly biased towards liberal causes.
What this means of course is right now incalculable. But it is safe to say that untold millions, if not billions, of dollars in required tax payments will go unfulfilled. Not from little guys who do taxes themselves or end up at HR Block. But from the ultra-wealthy (like Trump) who take great pride in dodging the tax man. The new law's many provisions and contradictions will all but insure that tax collections will decline beyond what the law already envisions.
It couldn't be a more perfect storm for tax dodgers.
2
When you do things for short term gains with no coherent long term plan in mind, you will regret it in a few years.
Normally taxes are shaped to influence behaviour of the population, like saving for retirement investing in your own home and educating your children.
Now the is tax code is shaped to boost the money in the pocket of the 1% over the next two years.
We’ll see how that turns out in the middle term. But by then it will be somebody else’s problem.
3
Trump and the GOP were desperate to have something to crow about. Apparently, they didn't get the fact that crowing about something that most of us see as an assault, not a benefit, is not going to help them. They have paid back their donors for their jobs, but unfortunately that left the rest of us with no lobbyist in D.C., since Congress is supposed to represent our interests, and not just those of their campaign donors... which since Citizens United consists, on the balance, of corporations.
Payroll systems across the country will have to be updated almost overnight once it's possible to understand the changes. Forcing a rush job of a bad bill just before year end, for implementation in the following year, may have worked for the optics, but it will foul the works with rush jobs done in confusion and haste.
SAD. But, at least Trump will pay even less taxes, if indeed he pays any at all. That should make his supporters happy. Too bad the repeal of the individual mandate will make those who like their ACA and need their ACA pay much much much mush more in premiums.
2
This is the biggest Christmas Gift....Ever.
1
This tax plan will have a negative effect on the U.S. economy.
People who have previously had buying power will suddenly have less money to spend, and consumer confidence accounts for a large share of the economy in this country.
3
Folks, it's all gonna fit on a postcard. A 1- foot x 25 - foot-long postcard. A big, beautiful postcard.
Maybe some enterprising lawyer / accountant / software team will come up with "LLCs for Serfs!", which will let us little people get to act like we're part of the 1% when it comes to re-structuring our incomes, taxes and savings. Why should we get stuck with paying for the running of the country, while the fat cats get all the cream?
4
Another commenter complains about private-school textbooks:
:...Creationism and climate change denial are among those ideas..."
There actually are quite a few people (I'm one) who do believe that the planet is getting warmer, but don't believe that some of the predicted consequences are occurring.
Here in SF, for example, I found a source of hour-by-hour temperatures for the year I move here (mid-Seventies) and 40 years later. The average temperature had increased by 6 degrees, which I consider significant. I concluded that global warming had occurred.
Where I had trouble, however, was in accepting the "usual" consequence of that: rises in sea level. I remember very well the turn-of-the-millennium predictions about sea level rise in SF during the next century. They ranged from 3 feet to 8 feet (36-96"); none were less than 3 feet.
We've now got 1/6 of the century under our belt, and sea level in SF -- actually reported! -- has risen about an inch, much less than that in LA. Nor is there any recent acceleration in the rate (another standard prediction). Granted, we still have 5/6 of the century to go, and so things may change but, at some point, we need to pay attention to actual measurements, not just predictions.
For those of you who wonder how sea level can be different in different places: Sea level is a "net" measurement that takes account of both water level and land level.
1
I guess you missed yesterday's New York Times which reported the impact of sea level rise on Jakarta. The city is sinking and global warming plays a big factor because it causes, dare I say it, sea level rise:
https://www.nytimes.com/interactive/2017/12/21/world/asia/jakarta-sinkin...
Here in Florida, sea level rise is seriously threatening major metropolitan areas:
http://www.iflscience.com/environment/the-sea-level-around-florida-is-ri...
And Micronesia is disappearing due to sea level rise:
http://www.newsweek.com/sea-level-rise-vanishing-islands-micronesia-hist...
4
So by doing some summary internet research on isolated data points you are able to debunk findings of scientists around the world who have dedicated their life to this issue. Bravo!
4
Good for you, ThreeCents. You happen to live on top of a subduction zone, where the North American plate pushes up over the Pacific plate, so your area therefore rises. For that, you might have your life knocked down in the next earthquake.
From my house in Massachusetts, I can see the salt marsh caving in, and note the rising height and duration of the tide against a mark on a stone pier of a charted elevation.
1
When you light the match to the Reichstag, timing is everything.
3
Awhh, poor baby! He can't ski the slopes at Breckinridge. Wish I could afford to take my family on holiday to ski in Colorado. Am I suppose to feel sorry for this guy who is going to make thousands if not millions more for his clients on the backs of the poor and middle class? Wonder how much he personally will benefit?
5
I don't begrudge the accountant doing his job. He didn't create the legislation. Also, not everyone with money is repugnant.
7
No one begrudges him, but he’s certainly not a victim as the headline implies
If you're a senior tax partner for a Big Four then you're really smart and you have worked really hard. Your mileage may vary.
2
The only people who benefit from this insane giveaway are the rich and their rich accountants.
3
Funny. Trump strikes again through a proxy war on people that try to save him money. Maybe Trump will buy everyone a Christmas goose and a crippled child will "God Bless everyone."
1
Trump and Republicans are celebrating their big win from their rammed though, self-interested, backroom dealing, Mnuchin one page analysis tax cuts. Estate Taxes on the way out, Corporate Taxes dramatically cut, a bit more money in some taxpayer’s paychecks for a while.
Accountants will likely spend more time reading this tax bill before hitting the slopes midday today than Republicans in Congress. They didn’t care – they just wanted a WIN for themselves and their donors!
The $12 trillion in increased deficits, and debt, over the next 10 years to fund the US will come from borrowing from China, Russia, Tax Havens and others. Why should anyone be surprised since Trump is a serial debtor and bankrupter. Since the following proponents of the cuts spouting half-truths assumed office our $20.6 trillion national debt increased:
Hatch $19.9 T
McConnell $18.7 T
Brady $15.2 T
Ryan $14.9 T
McCarthy $11.8 T
We must find a way to hold self-interested Politicians and their staffers, from both parties, personally liable, responsible and accountable for the lies they have told US, their gross mismanagement of our county, our $20.6 T and growing national debt (108% of GDP), and our $100 T in future, unfunded liabilities they forced on US jeopardizing our economic and national security, while benefiting themselves, their staffers, their party and special interest donors.
http://www.USDebtForum.com
http://www.facebook.com/USDebtForum/
@USDebtForum
3
This entire bill has already been war-gamed by those who wrote it. The only mystery is for we proles.....
2
A question should pierce our eardrums and indeed our consciousness. Why do the rich want to hurt the middle class and the poor? Isn't the middle class the motor of the economy, the source of human resources an economy cannot function without? It baffles the intellect. Has this country succumbed to this extreme kind of stupidity, or are the rich (and their lobby) this extraordinarily mean and unbelievable reckless?
7
Tax deform. Even more loopholes to exploit. Can I send my "postcard" directly to Ivanka? Impeach Trump Now
6
Let finding the juicy loopholes begin....
2
So typically disgusting and during the Christmas season no less. Is the GOP so confident that their Gerrymandering and voter suppression along with white house media (AKA Fox, Breitbart, Infowars, etc, ...) will allow them to win in 2018?
This is a dark time indeed. I only hope the pendulum is ready to swing back towards the forgotten American Dream and basic reality.
6
Money makes the world go round,
The world go round, the world go round
Money makes the world go round
It makes the world go round.
Fun for the feeble minded.
Obviously. Shakespeare got it WRONG: "First, let's kill all the lawyers" should have been "First let's kill all the accountants." Or maybe both.
2
Don't blame the accountants. They didn't make the rules. The lawyers who dominate Congress did.
3
Steve:
Obviously, the snark did not come through. I wrote that as a comic statement.
Line them all up.
3
Not a single committee hearing. No debate. Not even time to read it. Revising it minutes before the vote.
The Republicans did exactly what they falsely accused President Obama of doing with the Affordable Care Act, a law that was crafted over the course of a year with more than 40 committee hearings.
A festering steaming cesspool of 19th century style corruption is all we get from Republicans
15
Tell your 87-year old mother in law not to worry:
"My 87 year old mother in law is very worried about not being able to deduct her considerable medical costs from her taxes..."
The new tax law won't have any effect at all on her "medical expenses" deduction. It's the same as before for 87 year olds, and even better than it used to be for much younger taxpayers.
As for you:
"We are going to take a big tax hit because of the cap on deducting property taxes and state income taxes..."
I'm in the same boat as you. However, taxpayers for whom this is a problem aren't the taxpayers we should be worried about here. Most taxpayers DON'T own a home on which property taxes exceed $10,000 a year, and most taxpayers do NOT have high incomes subject to high state and local income taxes. You and I may, but most taxpayers don't. I ran the number on my own income, and my taxes may go up, but when I reduce the numbers quite a bit, it's clear that taxes will go down for most taxpayers (for 80% of them, I read).
1
Republican House and Senate candidates running in 2018 will change their plans for Town Hall Meetings, not wanting to actually face their voters. Donors will underwrite TV campaigns that twist the truth and attack Democrats as tax & spend liberals. Social Security and Medicare will "need to be fixed" to survive, and Trump is one of America's greatest Presidents, Hoover notwithstanding.
5
As one of many tax professionals who play in this year-end game every year (with this year being the most serious of all), I run the risk of sounding like Inspector Reynaud in "Casablanca" to say that I am shocked that the attitude of blase'-ness, and "business as usual" is prevailing with some of our so-called best and brightest, who are purported to be the movers and shakers in this arena.
Off on a ski slope for a month? Shutdown and a firm blow-off between Christmas and New Years? Acting surprised at all of this? (Really???) Meanwhile, your clients can make (or lose) many thousands of dollars coming down to the wire by information that you, (and only you) can provide, and provide now, more than ever.
To use another one of my favorite movie lines from 1962's "Requiem For a Heavyweight", where were you when the lights went out? This drama has been playing out for seven weeks, and anything other than an "all hands on deck" approach seeing this come down the line should be simply unacceptable.
Perhaps at the end of this, I can hope that clients over the landscape will remember who was there for them during their time of need, and will now hire professionals who will diligently and fully represent and protect them across the table, from the interests of government.
10
if you earn enough to 'need' any kind of 'financial consultant', consider yourself well ahead of the common folks who are squeeking by on what amounts to your "vacation expenses". now, have to reread all my books on the French Revolution, again, i missed something...
A wealthy senior partner in a major law firm, a tax law expert, said to me a week ago: “This tax bill is going to be a financial windfall for me—-but it is still APPALLING.”
I completely agree, although I may reap an outsize benefit from certain provisions. It is still appalling.
8
A different article linked to this one states that this is "a major a legislative victory for Mr. Trump..."
That other article does not allow comments, so the record needs to be correct here.
The tax bill fails to accomplish the two main goals that the Republicans pretended to want to accomplish: A simplified tax code and deficit reduction.
It is wrong to label such an abject failure as a victory.
14
The biggest tax overhaul in decades is neither going to reduce work for the accountants nor have ordinary citizens file their taxes on a postcard. This scam reduces taxes for the rich and the corporations without getting rid of any loopholes.
This Trump-Republican thievery proves extreme capitalism is no better than any other system.
4
The expansion of $10,000 per year in 529 funds to now be able to pay for private schools before college is also a sickening aberration. Here is excerpted from the National Center for Science Education last week:
Publicly funded science miseducation in private schools?
HuffPost logoA new study suggests that textbooks that miseducate students about evolution and climate change may be in wide use in private schools that receive public funding through voucher or tax-credit schemes, according to Rebecca Klein in a lengthy article in the Huffington Post (December 7, 2017).
By searching those schools' websites and e-mailing their administrators, they ascertained that "many of the non-Catholic Christian schools (32 percent) were using Abeka, Bob Jones [University Press,] or ACE [Accelerated Christian Education] textbooks in at least one subject or grade," with Abeka the most and ACE the least popular.
"The ideas in these textbooks often flout widely accepted science and historical fact," Klein observed. Creationism and climate change denial are among those ideas: a former student told the Huffington Post that she was told that climate change was a hoax, and the article quotes an ACE textbook as claiming that evolution "has no real scientific basis."
4
My 87 year old mother in law is very worried about not being able to deduct her considerable medical costs from her taxes, even with the doubling of the standard deduction. We are going to take a big tax hit because of the cap on deducting property taxes and state income taxes, as we live in a place with very expensive housing costs. And our insurance costs for 2018 are preemptively getting raised quite a bit, as a result of the weakening of the ACA by Trump and his lackeys. This tax bill seems to really stick it to the blue states by design.
Good luck getting ANY votes in the midterms, GOP. Your day of reckoning is coming...
29
The Republicans made up, out of whole cloth, the prospective benefits of this tax cut. At the end of the day it is just another bite at the trickle down economics apple, the exact same thing. McConnell and Ryan ( the Ayn Rand disciple who has committed The Fountain Head and Atlas Shrugged , two books, high school students read, to memory) said the economy needs to grow at just .04% to offset the costs of this bill. He assumes that the growth will be far better than that but then doesn't factor in a possible recession, companies deciding to pay dividends with their windfalls rather than higher folks, giving out huge bonuses, or just banking the money.
The lie used to sell the bill was the cut in corporate tax rates from 35% to 20%. That this would spur investment, job creation and a whirlwind of economic growth. But..hardly anyone pays anywhere near that rate today...it is down in the mid 20's already taking into consideration all the tax loopholes available to avoid the highest rates. But the lie worked. The lie was perpetuated by the very people sworn to protect them ( their elected representatives). It is a sickening day for America...
3
I seriously doubt this:
"My poor single retired aunt will pay more taxes..."
I strongly urge you to run some numbers. My taxes will go up a bit, but I can't even imagine how someone's "poor single retired aunt will pay more taxes." You did go on to say she'd be hurt by cuts in Social Security and Medicare, which almost certainly is correct (though no such cuts have occurred).
But your "poor single retired aunt will pay more taxes?" That I doubt -- very seriously.
Run the numbers yourself.
3
Mark these words.
Repeal of the SALT deduction (state and local taxes) will cause a 20 percent reduction in California home values. There will be a huge real estate recession. Get ready for a once-in-a-lifetime buying opportunity for nice homes in expensive areas. (Not a real estate broker.)
The Democrats in the high-tax states won't fix the problem because the states need revenues but also because they want the Republican tax program to cause a recession that will result in a 2018 election Congressional purge and then an impeachment.
2
Totally agree. A real estate bust in all high and mid price areas. Last time this happened there was a major recession. Market’s due for a crash anyway. Look out below!
House values in CA will probably stall and in some price ranges could decline by 10-15%. The property tax deduction has not been preserved for most taxpayers currently using it, despite the 10K deduction because it will be difficult to get above the standard deduction to make it matter.
Democrats have no plan to deal with this other than to complain. There are avenues to address it but it will require a rebalancing of the tax burden that has many older, wealthier homeowners paying a fraction of the property tax that younger, poorer homeowners must pay for homes of the same market value. This is a sad legacy of past “tax reform”. No politician wants to touch this problem, but it is one of the only solutions available now that the burden of these taxes has been increased.
The uncomfortable truth of CA property taxes is that they enshrine generational unfairness into the law and even allow this disparity to be perpetually inherited from ones parents. It is now not uncommon in any given neighborhood to find two homes of similar value that have property tax burdens that differ by a factor of 8. Imagine paying 8K per year on your home while the next door neighbor pays 1K, while enjoying all the same government services as you. Completely unfair, but that is the law.
Many people use tax accounting software for both small business and personal tax returns. I assume the programmers for products such as Turbo Tax and H&R Block are also working between ski runs. We purchased the H&R Block upgrade months ago but it is already obsolete so we will have to buy it again.
7
Here is what I did today. You should rely on the advice of YOUR tax professional, not on me. I am not a tax professional. But my thought process may be useful to you, if you have the cash.
Based on the advice of my tax accountant (a former IRS agent) I just paid nearly $10,000 in real estate tax prepayments on my primary and secondary residences for the first two quarterly payments for each.
I got the money from the RMD that i have to take from my retirement accounts. That does two things.
1. it offests the amoount of income that I would have to recognize from the RMD by the amount paid as the prepayment.
2. it pulls forward enough tax payments so that the $10K allowed for real estate and income tax deductions in 2018 will (just barely) cover my actual real eastste tax expenditures next year. (It will not cover any appreciable amount of my state income taxes.)
Yeah, cry me a bucket of tears. Fortunately, I have the resources to do what I just did, as a one time win. (No, I do NOT make enough that the fat cat tax legislation is going to benefit me. I planned ahead for my retirement, that's all.)
8
Prepaying 2018 property taxes will "work" for many taxpayers, but it may not work for someone subject to the "alternative minimum tax." Property taxes are one of the several deductions that get "added back" to income when you calculate your "alternative minimum taxable income" on Form 6251. If you pay AMT and your AMT rate is the same as your regular rate, prepaying your property taxes won't save you any money at all: Your regular tax will go down because your deductions will have increased, but your AMTI (and, hence, your AMT) will rise by exactly the same amount.
If your "regular" tax rate is higher than your AMT rate, then prepaying property taxes indeed will save you money (and, obviously, it will work if you aren't subject to the AMT at all). But keep this in mind.
2
A dilemma that's existed for years: If you don't itemize deductions, you can't deduct charitable contributions.
That dilemma is likely to become worse because 90% (up from 70%) of taxpayers are likely to take the standard deduction.
As others have noted, there are ways around this.
"Bunching" is one: Don't make charitable contributions in Year 1, and take the standard deduction for Year 1. Then make larger-than-usual charitable contributions in Year 2 and itemize your deductions that year.
A "donor's fund" is another (what another commenter called a "charitable fund"), especially in combination with "bunching." You create a charitable fund and donate a bunch of money to it without specifying which charities will get the money. Someone else will decide later -- next year, for example -- which charities will get the money, but you'll be able to deduct the contribution in the year you make it. There usually are high fees involved, and you part with the money irrevocably when you contribute it to the fund, but this will work.
Another possibility: Congress could permit taxpayers to deduct charitable contributions even if they take the standard deduction. That would eliminate this "dilemma," and I'm sure organizations that depend on charitable donations would like the idea.
5
So, charitable contributions aren't charity at all.
They turn on the greed of the giver.
1
My friends are all talking about the salary increases and bonuses their friends and children are receiving from some of the banks and other large companys and businesses in the area. Is this a tax play on their part? or generosity? or just a way to support the new tax plan?
2
Most poignant section of the article is where the accountant remarks on how so many corporate heads did not expect the tax cut to happen. Another indication of how our political system has managed to break through another floor on this all out race to the bottom.
21
Edwin is always so astute!!
This tax bill only raised everybody’s taxes-other than for trump, gop legislators and their wealthy donors. And it added 1.5 trillion to the deficit. Shredding the social safety net and programs for the poor and middle class will soon follow. My poor single retired aunt will pay more taxes and her medicare and social security will get cut, after working for 40 years as a school teacher. There is no need for accountants for most people.
6
If the republicans really intended to benefit middle income taxpayers (bigly) wouldn't a dramatic cut of their taxes, say a 40% cut like corporations have gotten, been the quickest way to do that?
Think about it, significant more after tax income would encourage these earners to increase their purchases of goods and services that would increase the need for more consumer output from corporations that produce those consumer goods.
I think, though that the fly in that ointment was that these consumers would also probably look to decrease their outstanding credit load by paying it down. Now there's the rub; while that would increase the benefit for middle class taxpayers it would also decrease the enormous interest that the banks and other credit providers consider their right. So something immediately good for middle class citizens by increasing their consumption and decreasing their debt and the interest thereon would not benefit banks. I suppose that it's better to let the drops from government largess to businesses trickle down to the middle class slowly to help prevent any damage to bank's easy pickings.
Don't forget that it is consumer spending that has raised the US economy to its preeminent economic position in the world, not the size of after tax corporate profits.
6
Dick M gets it.
Not sure I feel sorry for tax accountants and tax lawyers who will need to spend extra hours getting up to speed on the new tax law. (I'm one.) That happens whenever there's a major new law -- tax law or otherwise. It comes with the territory.
9
November 6, 2018: Goodbye Republican thieves and criminals.
12
HAHHAHAHA, this is all you got; front page above the fold, so to speak, bunch of accountants have to work over the holidays. and you call yourselves a resistance. Priceless.
7
That so many readers will actually feel sorry for Mr. Traub (working while on his pricey ski vacation) shows how out-of-touch they and the reporters who chose Traub as their poor, put-upon poster child really are.
Of course they were all surprised when Hillary lost and this tax bill passed. They live in an ethereal bubble of privilege, where having to work on one's ski vacation is so noteworthy that it makes the NYT.
Most Americans can't afford pricey ski vacations, especially not during Christmas when prices are especially high.
3
Let's recap today's top stories and how NYT spins them:
Trump gets his tax plan passed as promised.
"Tax Plan Steals Christmas..."
Trump scales back EPA reg's as promised:
" EPA Officials Disheartened, Are Leaving in Droves"
Trump recognizes Jerusalem, plans Ebassy move as authorized by US Congress and as promised:
"U.N. Rebukes U.S. over Jerusalem vote"
Again, Trump gets his tax plan passed as promised.
G.O.P. Wins on Tax Cuts, but Faces a Brutal Election Year
The paper of record. Uh-huh. Edit: Seems they're redone the headline "Tax Plan Steals Christmas..." Guess they had to get the awful word Christmas out of there.
6
Merry Christmas everyone!
1
Fretting over and studying up on the new tax code should not be a priority this holiday season. The law and its implications will still be there come January 1. Enjoy the time you have with your family!
1
Wrong.
Actions taken this year can affect the next year.
6
Run some numbers. Find out for yourself. I did.
Looks like my taxes will go up a bit, but not much -- and I'm in that very small category of taxpayers who will itemize (roughly 10% of all taxpayers) and who typically have high SALT deductions. I'd like to have lower taxes but, candidly, I'm not the sort of taxpayer that I worry most about. I worry more about the taxpayers who have lower incomes.
But don't take my word for it. The new rate tables are out there, as are numerous summaries of the new law. Take a look. Run some numbers for yourself.
I'm not happy about the debt increase this will cause if the Republicans' growth projections don't materialize. Nor am I happy that the Republicans lowered the top rate from 39.6% to 37% (though the dollar amounts are small since most very wealthy people don't have high-paying jobs -- their taxable income is more likely to come from capital gains, on which I don't think rates have been changed).
But on the "tax" part, it appears to me that most taxpayers will save quite a bit. Don't take my word for it -- run the numbers yourself.
6
Please stop lecturing us as if we were children. We know how to "run the numbers". The point is, the government is giving away money which it does not have and will have to be borrowed. Around our house, when we "run the numbers" it includes paying for day to day expenses and only borrowing for large items. This country can't even afford to fix the roads.
Investment (capital gains) income is taxed at a much lower rate than income earned from ordinary labor. If it were lowered any more, it would fall below the lowest ordinary margins. Warren Buffet already ran those numbers for us.
I will continue to support the charities and Church I always have, regardless.
5
Charles,
Sorry to have come across as lecturing -- not my intention.
I agree that the government is spending more than it takes in, and that this tax law will make that even worse if the Republicans' growth projections don't materialize. I wrote that. But give some thought to this: How can one complain on the one hand that tax cuts are bad because they'll increase the deficit but insist, on the other hand, that they're not really tax "cuts" at all, but are actually tax increases?
I recognize that those seemingly contradictory arguments can be made simultaneously if the new tax law slashes taxes on corporations and wealthy people, but raises them for everybody else. But that's where the "run the numbers" suggestion comes in. You say you HAVE run the numbers, but you didn't report what you found. Please tell us all what you found when you ran the numbers.
1
My effective tax rate in 2016 was 18.4% and a quick check indicates for 2017 it will be 16.8%. It s , indeed, a tax decrease for my family. We, however, are still holding our breath waiting to see how much is "eaten up" by increases in our health insurance and Medicare insurance premiums. It's more complicated then most want to admit and the lack of understanding surrounding the implications of this tax plan is enormous. I, as most of us, am simply taking a wait and see approach but, I'm also old enough to have been through this a number of times before.
1
Can't be too difficult to understand by accountants since it began on a three by five index card --- and really didn't go much further.
Mostly it was a BIG ARROW inscribed CORPORATIONS facing down and a slightly smaller ARROW labeled AMERICANS facing up...and in little print "general direction of recommended taxation". Approved by Speaker Ryan and Ayn Rand.
7
"Accountants and Analysts Race to Dissect New Tax Plan"
Trump was quoted yesterday as bragging about he and the republicans keeping quiet on one provision in their tax bill. That was about removing the "Individual Mandate." Trump was over joyed to say that they had effectively killed off the Affordable Care Act, "Obamacare" as the republicans call it.
Doing that has again brought up a severe consequence going back to the republican so-called new health care bill. Rural county public hospitals are not for profit hospitals. Killing off the Individual Mandate takes away funding to keep those hospitals open since it pays for the treatment for people who are in the ACA plan.
These rural hospitals will be forced to close without substitute funding. If people need emergency care they will be out of luck because there is no near by hospital. People will die without a hospital near by. Republicans have been told this since their writing of their health bill earlier this year. They apparently don't care.
17
Piece of advice that I got at Vanguard:
Set up a Charitable Fund before the end of the year. You then can take all the money as a charitable deduction for this year! The charitable fund earns interest tax free. And you can then give the money over time as you choose.
See here: https://www.vanguardcharitable.org/individuals/fees_and_expenses
4
All I can say is……wake up America and pay less attention to your sports, reality TV shows, your cell phones, and to diversions developed to throw us off track from the real problems in this country and the government. Start paying more attention to the actions of your government. This tax bill exemplifies the true nature of the GOP and their attitudes against helping the middle class, working poor and elderly. The GOP continues to defraud and rob and their supporters still have not learned, the plutocracy is blatantly transparent.
Thanks to the GOP, the checks and balances designed to protect the people of the Nation are quickly disappearing in favor of the rich. The irony here is that 50+ million people voted a corrupted incompetent into office that to this day refuses to reveal his income taxes. Adding insult to injury is the diabolical and spineless GOP who has decided to take the low road on major issues affecting the people and country.
34
If we do wake up maybe we can finally get wise to this two party swindle whose perpetuation is due in no small part to the good cop bad cop game of the big bad Republicans lording it over helpless weeping Democrats.
Weekend Warriors should check into the Commodore Hull B&B Inn and Outdoor Treks. Chill in colonial history and enjoy outdoor trek to your skill level. This time is well spent reflecting to help you navigate these trying times.
1
So, what? Trump or Republicans have stolen Xmas from accountants? Does that sell papers? Does the media really not realize how much they hurt their own side when they do things like this? It is almost enough to make one think that they want Trump for 8 years, just for the headlines.
6
Where was the debate for this tax legislation? This bill affects every American and it was carelessly shoved down our throats. Most Congress people never read the final draft for heaven sake. The republican leadership has failed the democracy test and they know it. Party over country. Vote.
34
The debate for this ended in November of 2016 when Trump and Republicans gained control of the White House, the Senate and the House.
For years, middle class voters in "flyover country" had been complaining about the costs of Obamacare, the costs of illegal immigration, the injustice of H1B visas, the rising costs of college and student loan debt, etc.
Democrats flat-out ignored all Americans who were't celebs throwing donor parties. Democrats allowed no debate on these issues. Voters, though, had the last word.
9
DeVoss just made it worse for your college debt situation. These people (GOP) care nothing about you. The last word has not yet been had.
Chaos and Trump are linked like But Abbott and Lou Costello or Stan Laurel and Oliver Hardy.
Tax accountants - working in flux through the Holidays
IRS - working at a breakneck pace through the Holidays
CHIP Program- 9 million children and their families spending their Holidays wondering if they will have health coverage
DACA- 800,000 plus their families spending Christmas wondering - What's next?
Trump wondering what club to pull out of the bag on his second shot on the 18th hole at Mar-a-Logo.
12
Recipe for enacting horrible legislation: (1) Exclude your rival party from any input (2) Ignore regular procedural standards of discussion/debates (3) Foist upon your rivals a voluminous document filled with handwritten annotations and provide them a couple of hours to comb through it (4) Hold no town halls to roll out your plan and answer questions (5) Vote strictly along party lines (6) Present to president (7) Shower him with phony plaudits Enjoy it now. November 6, 2018 is around the corner.
8
Nobody excluded anybody.
The Democrats chose to ignore middle-class Americans who were suffering from Obamacare costs, rising college costs, costs of illegal immigration, costs of H1B visas on wages, etc.
And then the Dems doubled-down by rigging things for Hillary.
So in November of 2016, the voters made themselves heard in a big way. Voters made it clear they no longer wanted to hear from the over 1,000 Democrats who lost elections after Obama was elected.
2
Reading this reminds me of what one of my work cohorts said about a monumentally failed project:
It may be over budget...
It may not accomplish its objectives...
But at least its late.
We are becoming a Banana Republic.
As a former tax preparer, I pity those who have to sort this mess out.
5
The French have a concise saying:
"plus ça change plus c'est la même chose...." (“The more it changes, the more it's the same thing.”)
The Congress said they are simplifying taxes so you can just put on a post card.
Post card may be, but it's a Rube Goldberg designed postcard.
It requires 13 accountants to fill it out, 3 accountants to write the IRS address and 7 accountants to ensure right postage.
And 1 postman to deliver it. IRS may respond in next 3 years.
Nothing has changed but everything has changed.
3
been thinking of Freddie, missing his NY Today contributions and wonder if it’s because of the new (terrible) tax bill.
1
The heathen hedonist pagan Donald John Trump's tax steal creates a massive rotting carcass for the corrupt crony capitalist corporate plutocrat oligarch welfare scavenger class caste aka accountants, lawyers, economists, bankers, financiers and money changers and managers.
Draining the swamp is the worst thing that you can do to among the most productive diverse critical evolutionary ecological environments on Earth after or comparable to tropical rain forests and coral reefs.
The gathering of rats aka Republican Congressional politicians at our White House is what happens when the swamp is drained. Both Paul Ryan and Mitch McConnell have been on the government benefits and employment welfare queen dole all of their adult lives. Donald Trump's business acumen was founded in inheriting a New York City real estate empire from his German American father.
5
I dream of living in a time and country where people are considered more important than money and power. It's a pipe dream, I know, but still...
34
Talk to our new Prime Minister, Jacinda Ardern.
The tax consultant is doing a podcast? Ivanka said we could all file on a postcard, and for the wrong tax year. Oops.
1
It's not like they didn't see it coming.
1
Along with accountants looking at this bill - what about the fact that on Jan 1, 2018 Medicare will immediately lose 25 Billion $$$ in funding?
When will Congress act to prevent Medicare from being raided?
Some elderly people may end up at the ER on Jan 1.
This cannot wait!!!
The incompetence of the White House and the GOP here is breathtaking!
3
Elderly people with Vanguard accounts don't need to worry; in fact, they should be paying more for their healthcare.
2
Tom, retired junk man in Florida. The corporations have NOT been hammered as you say. They have been free riding for years with any tax earned abroad deferred indefinitely. As for the "regular people" you don't say pay any tax, well you are mistaken there. Where do you get your information? Rush Limbaugh?
I am here to tell you that us working regular people pay plenty of federal income tax. I pay $54,000 in federal and another $10,000 in Social Security and Medicare Tax. My peers, also tax professionals pay just as much and we are in the business with years of Big Four tax experience.
I have watched my married children struggle with relatively huge tax burdens even though one spouse is in college and only works part-time. I have paid for day care for my grandchild so that one of her parents could work and the other finish college.
2
I completely disagree with your assessment, but love that you pay for your grandchild's day care. Your adult children will never forget your generosity and it will make your grandchild feel loved.
My daughter came from HS one day and told us that at lunch, so many girls were talking about things their grandparents paid for, including tuition, trips, corrective surgeries, a few cars, and even, in one girl's case, the family's home. She said no one was bragging; everyone simply felt loved. So, they notice. They remember.
5
This "tax" chimera bill will be difficult for non-experts to assess because it has impacts that are not immediate, not directly tax-related, but nonetheless significant for individuals' bottom lines. This is cynically intentional as the GOP knows well their constituency - gullible and conspiratorial, ignorant of net profit and loss, and in search of immediate gratification.
They may see a paycheck with a few dollars more in the next month or two (and that will excite them for sure), but in 2019 they will pay more for health care, more state and local taxes, and more payroll taxes. They will see interest rates rise, so borrowing will cost them more. And generally, prices will begin to rise. Overall their lives will not improve.
Their net "profits" from this tax chimera are destined to be significantly negative but because they don't think in terms of net profit, they will be guided into blaming some conspiracy of the DEMS to deny them an improving life style.
1
Attention out there - the bill is NOT SIGNED. It does not go into effect until it is signed. Putting this off until Jan 1 means things like cute in Medicre WILL NOT show up in an ELECTION YEAR!!
1
“Companies are going to have to think through the implications of where they establish their manufacturing locations. Where do they own their intellectual property rights?”
Not in the USA. Profits on income earned overseas will be taxed at a lower rate.
https://qz.com/1160761/gop-tax-bill-the-republican-tax-plan-is-a-victory...
https://www.cnbc.com/2017/12/19/tax-bill-includes-an-incentive-for-u-s-c...
Over seas profits have been deferred indefinitely which is an incentive to any multinational company to leave this country. That was a big mistake in our tax code that was made years ago!
Doesn't break your heart quite as much as if they were Tiny Tims.
3
What's the problem here? So what if these high priced accountants have to work on this issue. After all that's why they are paid the big bucks! Again, another example of the liberal animus towards work. Thank you.
6
Mr. Traub, Your devotion to your job is great, but if you were to drop dead or the company decided they could do without you, you would be missed for about 2 minutes. They would then carry on, and of course, blame you for everything that went wrong for the next 6 months (very old tradition). Your family however, would miss you for the rest of their lives.
Next Christmas you might want to think about your priorities.
3
Liars, liars, deficit on fire.
3
Mr. Traub knows the average guy is not going to have much sympathy for the fact that he has to miss a little time on the slopes in Colorado. He also knows he comes across as hard-working and successful to his clients. "Them guys ain't dumb."
2
Poor Mr. Traub, having to take time away from his Breckenridge ski vacation. This article would have us pity him. But luckily for him, his employer will be one of the biggest beneficiaries of this outrageous legislation. In fact, Deloitte probably paid lobbyists to support it.
8
“Maybe 50 percent of our clients were following the debate and knew it was headed this way, but I’ve been surprised by the numbers of clients who, by their own admissions, didn’t think this would happen,” said Kate Barton, the vice chairwoman of tax services for the Americas at Ernst & Young.
This gets me. Fifty percent of Ernst & Young clients did not even think this was going to happen. It's like the 2016 election debacle all over again: people who sat on their hands and did nothing, did not write or call their congressional representatives, did not protest in any way, did not even pay attention, because they thought such a massive change would not occur.
What is wrong with people? We live in a participatory democracy. If you -- and this means you, with Uncle Sam pointing his finger straight at you -- hide your head in the sand, stick your fingers in your ears when politics comes up, and hum, "la la la la la" -- then other people who are not acting in your best interest will be elected to do things that will affect you negatively.
If you do not vote, if you do not communicate with your representatives, then things that you do not like are guaranteed to happen. There are not enough of us regular voters and regular participants to stop the Republicans and their runaway theft.
If you are unhappy, you need to switch off the TV or put down your smartphone and do something about it. Starting with learning how to communicate with your reps, and working to elect better ones.
5
Once again the NY Times buries the lead with a Milquetoast Centrist headline. What's the real story? That the tax code was complicated, not simplified. That the rich have more loopholes to thread and abuse, not less. That the country had no time to debate the policies, much less digest the implications. The process was a sham, and Trump lied to his supporters. But sure, let's report on the front page about how wealthy accounts have to bring their laptops to Bermuda. Oh those poor accountants! This paper crucified Hillary on her email scandal and still not recognition or apology. The framing is still laughable. Take a hint from the excellent "Reader's Picks" comments please, and quit chasing centrist Unicorns.
4
The main cost to businesses will be the price of the trucks to drive through the holes in the drafting.
1
Living here in NY, I still get a cut on the taxes I need to send in, however, I know its just a mirage as the gimmicks expire and the top .1% take out 1.5 Trillion. Its got to come from somewhere.. Likely starting with infrastructure, education and yes, health.
The GOP needs to have to deal with a general strike. They will pay attention to nothing less.
2
The Tax Bill is great for one thing and one thing only, further erosion of essentially FDR's New Deal legislation, and further erosion of a broad-based prosperity for Americans, i.e., Robber Baron Days back in full force solidifying the wealth at the top---------welcome to the new social structure and new Brazil, the US.
22
My understanding is that the disparity in income is now greater than it was in 1929. Trump as Hoover? Or just hoovering up all the loose change the middle class had in their pockets?
One cannot escape the irony that Scrooge was an accountant so the picture of Scrooge billing hours on behalf of his clients while Tiny Tim faces death is not exactly sympathy-inducing. A modern "Christmas Carol" would substitute the Republican Congress for Scrooge and the millions of Americans who will be hurt by this bill for Tiny Tim. The original Christmas Carol had a happy ending. The modern version will not. One wonders what a tax bill animated by the spirit of Christmas might have looked like.
2
Mr. trump does not get a bill to sign. He gets a check made out to himself, Republican members of congress, and Republican donors to endorse.
All paid for from the account of John and Jane Q. Public
1
Who knows if Putin's intervention didn't presage that in helping Trump win he may help destroy America a lot faster than all other pernicious weapons at his disposal.
1
Love how this is continuing to be pitched as a rich-get-richer story, when many Times readers, mostly New York/New Jersey/California residents are very affluent high earners that will pay much, much more with the new tax bill.
People like Soros and Trump get a free ride. But others who are not as rich, but doing very well, get fleeced. It doesn't play to the class warfare story you so enjoy, but it's true.
2
Residents in those states consistently vote for Democrats and higher taxes.
Not sure why they're complaining. They wanted higher taxes and they got 'em.
2
Your point is fair. But for the records, not all of us were foolish enough to vote for those profligate spenders. Clearly those states will suffer now for their excessive spending, just like the family that never saved for a rainy day.
I suppose our hearts should be bleeding for these super-paid tax accountants who are obligated to find super loopholes for their rich clients. Here's a solution to their problems: Raise the tax rate to 70% for their rich clients so they won't be so preoccupied with finding loopholes for avoiding taxes. Bah humbug to all of them.
As a CPA myself, I am not surprised when I read this article and the interviews with the Big 4 managers. Those folks are quite honestly the reason I got out of tax entirely...they love big corporate clients that have hundreds of pages in their return because they can bill them more. They golf together. They scheme on the links (oh sorry I mean do tax planning) or in the sauna at the country club. And they dump the actual work on the miserable staff that are working 70-90 hours a week.
Personally I have no hope for this tax bill. Mostly because I don’t own a business and I only make a 5 figure salary at my job.
1
No one is talking about this one! We will be LOSING the personal exemption! A personal exemption is the amount that you can deduct from your income for every taxpayer and most dependents claimed on your return.
Current law: $4,050 per person, which means a married couple with two dependents would receive a personal exemption of $16,200.
New law: The personal exemption is eliminated. The exemption returns after 2025. This will hit the middle class once they do their 2018 taxes next year!
1
they will not be doing their taxes until April 2019 (for 2018), after the election, so most are still unaware that they lost their exemptions.
aw the top 1% are now facing the horrible burden to make sure they can milk the country as much as possible with the help of their new tax law that they corrupted to themselves. I really feel so terribly sorry for them that they can't spend their well deserved holidays in their now estate tax free mansions.
17
Nonsense. The House and Senate bills were passed a few weeks ago. The general contours of what might be in the new law have been out since the 2016 Presidential campaign. Many of the concepts have been staples of tax policy discussions for years. Careful planners and their clients have been doing "intelligent guess," what-if planning scenarios since Labor Day, if not earlier. The fact that the financial markets hardly reacted to the final passage of the bill this week is further proof that the savvy had a good sense of what was going in and have long since baked it into their financial projections.
2
This needs to be higher. As a tax professional, the planning began months ago and the passage of the bills simply gave the green light to go ahead with decisions already made.
1
This Republican Congress could have constructed true tax reform that would have been welcomed by an overwhelming majority of Americans from all economic classes. Instead they rushed through a political agenda in the dark of night which no one who voted for it fully understands. This is no way to run a government. There are undoubtedly good things that will be found in this legislation and probably lots of very bad things. If this tax overhaul comes back to haunt Republicans in the next few years and diminishes their power as a political force in America for the rest of the 21st Century it will be because of the way this legislation was pushed through by partisan forces more than because of the actual economic messes that will ensue. If Ryal and McConnell are proud of themselves today for this tax plan they may be embarrassed over the next several years by what they did in haste. History will be a very stern judge. As for Donald Trump........ We don't need a crystal ball to see how his narcissistic behavior will be judged.
Poor Mr. Taub, having to work on his ski vacation.
My partner worked until midnight last night and is now on his way to his next twelve-hour shift. We haven't been able to afford any vacations since 2015.
I'll be working straight through Christmas and New Year's, wondering how we are going to manage if I, a cancer patient, lose my health insurance next year thanks to skyrocketing premiums, and worrying what will happen to my son in college if our financial situation gets any worse.
We are just barely hanging on, but the IRS wants more money from my partner, who works as a waiter. His paychecks often total ZERO dollars, because his employer pays him less than minimum wage, but his tips are taxed, so the withholding takes literally every cent of his paycheck.
Still, it's not enough for the IRS, which just sent him a letter saying it needs more from him. He can't have more withheld from his paycheck. THERE IS NO MORE to withold, because it's legal to pay tipped employees less than minimum wage.
But the poor, poor tax accountants!
3
And yet the NYT published instant analysis a day after each version was made public. So it can't be that hard for CPAs. Can it?
“The reality is, for certain companies, their tax profile is going to look a lot different."
Seems that's probably the goal of tax reform.
2
Well, let us see how the mortgage interest deduction works for us this year!~ I believe the 'new' cap is much higher than we need be concerned about.
1
Corporate Balance Sheets will look immediately healthier in 1Q 2018 reports, which will hit in 2Q just in time for Trump and friends to claim a bigly effect. Meanwhile, individual payroll witholdings will look slightly better for most during the 2018 mid-term campaigns, as most taxpayers won't try to forecast their liabilities until the following April which is when the rude surprise hits them. Need to be ever vigilant that Ryan doesn't touch Medicare and Social Security in 2018 and to hammer his caucus at the polls if he tries to.
21
Why is there a rude surprise if the vast majority of taxpayers are paying lower taxes?
This bill was rushed through without public hearings, expert testimony, any of the usual legislative procedures to understand its provisions, impact, and implications for the economy or for individuals. However, Koch Brother funded tax exempt entities have been working in this for years. That's why they could come up with a tax plan so quickly. So, if none of the rest of us, including those who voted for it, thoroughly understand it yet, you can bet that the Koch Brothers do and that it is not for the benefit of any of us. That's what happens when you vote for candidates supported by big money.
6
I am a CPA with a practice in NJ and Nevada. Two very different tax scenarios. In a couple of hours I will be taking a tax course on the new law. I may get some sleep in the next few days but I doubt it. I do think that in the long run this tax law will be good for the economy,particularly small business. My clients are already thinking of buying new equipment and expanding. This means new jobs.
7
Yea and add an already under funded IRS that is now due for further cuts. Like rushing any major decision, side effects will be profound..
6
Anyone who gets close to Trump gets burned:
"The writing, rewriting and re-rewriting of the tax code has sent tax professionals into a frantic hyperdrive."
I'm laughing, once again, at the Trump people. They are supposed to drain the swamp, but instead we have:
“Companies, especially large, publicly traded ones, will be spending more on tax advice than ever before,” he said. “The transition between one tax regime and another is so complicated that they will have to really reach out beyond their internal capabilities to make sure they get it right.”
Trump is the schlemiel who comes up with this tax plan, and we are the schlimazels who have to follow it.
I'll get my team of accountants to work on it right away. But unlike Trump people, I think that they should spend the holidays with their families. That ski outing at Breckenridge looks just great.
It's like Capra's great movie, "You Can't Take It with You": Either you find family or you are consumed by the business that you want to control. Well, here's to a lucrative and vindictive Christmas for the Trump people.
To the rest, I wish the very best of holidays with family and friends, and I hope they get something out of this Republican tax fiasco.
6
If certified public accountants, attorneys, and other tax prepares are unhappy with this bill, it seems likely that they will continue to express that unhappiness to voters, in detail. They can use their concerns as justification for why the public should hire them to help prepare taxes, and advise on finances. And with all the law's handwritten corrections and last minute changes, it will be hard to counter any opinions arguing that the bill is a rushed mess, even by congressional standards.
4
I think that a technical corrections act will be passed in 2018. It will clarify some items but the law is not as onerous as you imply.
3
I agree with parts of what you’ve both written. The material changes in the law are what corporations will have to focus on (and their tax experts), and a law passed this quickly is likely to have unintended consequences. As Fisherman points out, that can be fixed in Congress pretty quickly.
But a lot of corporate strategies will need to be rewritten, especially for companies that report on the calendar year. Poor things. For most of them, it’s going to be an exercise in capital allocation in light of decreased taxes. It’ll be worth a few long weekends.
As for the rest of us, probably best to move as many expenses as possible into 2017, but that’s about it.
And as for politics, this bill isn’t what will make or break the Trump administration. Their challenge is to show they can operate at all.
The fact that we're already talking about a Technical Corrections Act before the ink is even dry is not normal. Normally, they are used to correct and clarify minor uncertainties discovered AFTER a bill is signed, not as a safety net to "fix" things that were known to be broken even before a Presidential signature is affixed. So I disagree that your argument is a good counter to mine.
This is somewhat hysterical, in a negative way. Yes, the accountants will make tons, just like they did when Reagan shuffled the deck, created a lot of make work, with the decade ending in deficit. This time we won't be so lucky. By the time the CPA's have this one all worked out the economy will be tanked out. Except it won't be as benign as the end of the 1980's
The word is "depression" You may not believe it now, but please get used the word. No, it won't be like the 1930's there will be differences, like some remnants of the safety net, as it is such. But please, America, face it. The casino mogul is shutting down the three decades old casino that the United States economy became in the 80's under Reagan. Have at it while it lasts....
7
OF course the regular tax payers aren't going to reap a bonanza, they pay very little taxes to begin with so the major benefits will be for corporations and wealthy tax payers. The people who actually pay taxes.
So short of giving lower tax payers cash bonuses the theory is lets get more money in circulation, lets tax our corporations less and allow them to compete with the corporations overseas.
Our corportaions have been getting hammered, they have moved operations out of the country along with the jobs they entail. Lets reverse this job migration starting now.
3
You have an incorrect view of who really pays taxes. The majority of taxes are being paid by people making between $70,000 to $600,000, which cannot be considered "wealthy." Incidentally, these earners will not reap benefits from the current legislation. Corporations and the super rich will.
You are also in the dark about the idea, wildly circulated by republicans, that "corporations are getting hammered." They are not. Corporations are subject to "worldwide competition" though. They have moved operations out the country because it is cheaper for them to do so, not because of taxation, and because they do not care about what happens to American workers, plain and simple. You must be dreaming if you think that they will be bringing jobs back. Corporations operate by the rules of profit and losses and not by a sense of civic duty. And by the way, more money in circulation does not mean more jobs and often leads to inflation. In sum, the Trump administration have given themselves and the super rich and their corporations, a big tax cut at the expense of the rest of Americans.
4
They are flush with cash, profits are over the top and they borrow at some of the lowest rates in history! 35% of the investors in the stock market are foreign investors, so it is anticipated about 45 billion will be flowing OUT of the country.
This bill also has more loopholes for corporations. And you just lost your personal exemption of $4,000 to transfer wealth to the top!
Since you are retired, watch out Medicare and SS next on their radar.
1
Once again the distinction between "taxpayers" and "income taxpayers" is totally ignored. There are millions of low income taxpayers who pay a far higher % of their income on a myriad of taxes than the richest Americans do.
Our corporations that have been "getting hammered" have over $2,000,000,000 lying around. Their real average tax rate is actually half of the official 35%. The tax havens overseas will simply sweeten their deals and these "poor" corporations will act in their shareholders perceived interest, which is not America's national interest. This tax bill will bring a depression within 4 years.
3
Every time there is a major tax change there will be a period of some years until the legal consequences of the changes "shake out."
First, aggressive accountants and tax lawyers will interpret tha language to benefit their clients, and will file taxes based on those aggressive interpretations.
Then the IRS will find a few examples of egregious interpretations, and will go after those.
After a few years of argument and counterargument, some of those cases will go to tax court.
Perhaps a decade after the changes take place, there will be the first decisions, followed by various appeals. Maybe 15 years from now, the legal consequences of some of the new tax provisions will finally be settled law.
In the meantime, it is open season for sharp accountants and tax lawyers to find loopholes for their clients, as long as the clients can pay the freight, and the accountants and lawyers can formulate a facially reasonable, if ultimately incorrect, argument.
Guess who gets the benefit of that? I will give you one clue: if you work under a W-2, you are not even in the game.
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Funny, you are assuming that most people will be able to pay for an accountant in a few years. The top tier will, for sure. Get ready now......
“PriceWaterhouseCoopers, one of the Big Four accounting firms, is not rescinding its tradition of shutting down the entire firm from Christmas to New Year’s Day.”
Meanwhile, accountants who work for private companies (many of whom are CPAs) will put in 80-plus-hour weeks, regardless of the holidays. Their work provides the data needed by employees of public accounting firms for the preparation of tax returns. These very hard-working people will have to sit waiting for input from their tax preparers, apparently while some of them go out skiing with their spouses.
There are plenty of competent CPAs who don’t work for the Big Four. These folks do a hard job and receive very little credit. The least you could do is acknowledge them in this article.
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You may have missed the follow on sentence which read 'This is basically a technicality.' Meaning that all are still working on interpretation and strategy even though the company is 'officially' closed for the period.
4
Nope, I saw it. I’m a retired CPA, so I know that drill very well.
Of course its fun for these tax accountants and lawyers. There is going to being a huge amount of money heading into their clients coffers. New rules to learn how to deploy to their clients advantage. More gray areas that have been created and unintended consequences to cash in on.
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I think the tax plan is going to be great for all except for the states with high income and real estate taxes. I sure those state leaders in NY, NJ, Ct, California are at work today trying to cut income tax and real estate tax rates by 20%.
20 year Pension plans and free health care for life in those states for public employees need to change to be more affordable. Consider one example being a policeman at age 20 retiring at 40, pension and medical for life. at age 65 you can be retired for 25 years!
14
Pensions are more cost effective than any other type of retirement vehicle.
Except when they are deliberately undermined by underfunding by the state or legislation enacted to hobble them as was done to the Postal Service.
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So John, at 65 years old a policeman can be retired 25 years and collecting pension and free medical is reasonable?
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"Jonathan Traub was supposed to spend his family vacation in Breckenridge, Colo., skiing and roasting marshmallows.
Instead, Mr. Traub, the head of Deloitte’s tax-policy practice in Washington, has been holed up in the resort town, producing tax-analysis documents and recording podcasts for clients, trying to explain sweeping tax changes in real time."
Poor, poor Mr. Traub, missing his family vacation in Breckenridge. Well, not missing it because he's in Breckenridge with his family, and he has time to hit the slopes too, with his wife. What a multi-tasker he is, that Mr. Traub!
Lift tickets for Breckenridge are $159 today.
Boo hoo.
These are the people who are benefitting from Trump and his merry band of thieves, Ryan, Mitchell, Corker and the rest of the vile, corrupt, criminal enterprise, previously known as the GOP.
By the way, you are an amazing liar, Senator Corker. You took such great offense at the media talking about the "Corker kickback," but never explained why you voted for a tax bill that would add $1.5 trillion to the deficit, when you said you would never vote for a tax bill that added even one dollar to the deficit. Disgusting.
Traub is sitting on a mountain with his son playing a video game next to him while millions of Americans can't afford healthcare, live below the poverty line, and thousands are homeless. He and the 1% are gleefully looting our country as we turn into plutocracy in record time.
They make me sick.
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Did you ever stop to this that this man is an expert in his field and has spent his entire career learning and digesting extremely complicated tax and political rules? I think someone literally leads tax policy for the largest tax firm in the world can go in a ski vacation without apologizing for being able to afford it!
1
Well Said! A big shame on you to Breckenridge resort as well. I had to check for myself and indeed, an adult lift ticket is $159, while only 14% of the mountain is open. What do they think our names are, Jared and Ivanka?
Why do you resent the fact the the top guy at Price Waterhouse is working hard to assist his or her clients. His work habits have nothing to do with the health care situation.
So this is what the simplification of the tax code looks like? What happened to the postcard?
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It got lost in the mail.
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Gee, glad the big accounting firms are enjoying their "super bowl" since the majority of Americans will be hurt by this horrendous tax bill. Of course, why wouldn't they enjoy it? They take care of the wealthy so it's fun for them.
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Remember guys unless you like looting the treasury and giving the money mostly to billionaire corporations and people, you can do something about it by bringing to justice the republicans who rode the getaway car by voting them out of office next November.
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Expect turbulence. The motto for Team Trump.
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Such a collossal waste of human effort and ingenuity. Rational analysts trying to make sense of a law that was conceived in the back seat of a car, denied a legal abortion and dumped into a trash can of confusion at birth by immature and neglectful parents....and which will be largely revised in four year after Democrats regain control of Congress and the presidency!
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Well, if the Dems can find the spine, huevos, and brains to tell it like it is during the campaign and when they actually have a chance to repeal and replace this raid on the public purse by the oligarchs, with the tiny handouts that are supposed to lull everyone else into acceptance .... and from what's been going on at the DNC, I'm not so sure they will.
Trump has declared he and his spawn won't benefit from this so-called tax reform bill. This is utter brazen lyingt. We have here the most massive transfer of wealth from the middle class to the weathy in US history! By 2027 those earning annually $40-50,000 collectively will pay a total of $5.3 trillion MORE in taxes. While those earning more than a million annually will collectively pay a total of $5.7 trillion LESS in taxes. These are numbers certified by both the CB and the Joint Committee on Taxation. This is so outrageous that people should be up in arms.
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Vultures swarming over the carcass of the Middle Class.
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That government N0T of, by and for people will invariably perish
1
What's to dissect?
The rich steals more money, and unless we vote for better people, we will pay.
It's been happening since Reagan and the Bush crime family. Maybe some day we will learn?
20
If wealthy individual and corporate beneficiaries of this tax scam feel stressed and confused, imagine how the rest of us feel - those of us in the middle class in high-tax states who are getting a tax increase next year. And who will certainly see cuts to Medicare - which we rely on - in order to pay for this obscene give-away to the Republican party's wealthy donors.
21
It's pretty simple, billionaire corporations and CEOs looted the treasury of trillions of dollars and the average Joe got tossed a bone.
Wanted in all 50 states for looting the treasury, Republicans. Bring them to justice in November for voting them out of office.
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OK wanted a simpler tax system. Didn't get it. Got a system ripe for gaming. Somebody gonna make money analyzing it. Rich people gonna get richer. National debt gonna get larger. Children gonna get sicker. Congress continues to get stupider.
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If anyone truly believes that this is about the middle class and not the upper 1% and corporate America, then I have a bridge right down the street in Brooklyn that I can sell you for Christmas.
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Trickle Down Economics in action!
Partners at the Big 4 accounting firms rack up billable hours. The working class weeps that these Partners are cutting back their hours on the slopes. America is truly great again!
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White collar crime in action!
1
No, America is not great again. America is headed for a REAL DEPRESSION in about two years. The one Reagan and W Bush both played chicken with creating. Third time's the charm. I don't enjoy saying it, but basic macro econ should explain. It is going to happen. Belief has nothing to do with it. Get ready.
The only thing that could possibly now fit “on a small postcard” from this evil monstrosity of a bill and holiday gift to the 1%, is Trump’s feeble mind.
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The folks at Turbo Tax will continue to do well selling their software. Try claiming your Foreign Tax Credit (Form 1116) "on a small postcard". How about the extra forms that have to be filled out if your own stocks that issue K1 forms?
1
Eh, just the stamp will suffice for that.
165 page overview to fill out a postcard? Seems like overkill to me.
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Why would anyone need an accountant to figure out their taxes when Ivanka assures us that we can fill them out on a postcard? Isn't tax simplification grand?
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What could go wrong. People will game the system and the IRS has been cut massively.
21
I pay the AMT, but I get a tax increase anyway. It could have been worse. elimination of the health care deduction would have been a disaster. Teh Scrooges of the world are happy
10
Yup, now that the GOP Congress has engineered all sorts of give-backs and new loop holes for "their side", the fun really starts. Waiting for the various non-partisan evaluation agencies to digest this new tax legislation and report to the voters. I'm getting my popcorn ready for 2018.
9
How many pages are in the new tax code vs. the old one?
The tax code is radically simplified.
Fair to debate the actual content of the changes but it is indeed a far simpler tax code now. I wish they could have gotten rid of AMT entirely (although it will affect far fewer people now) and basically every deduction with rate reductions.
We won't know how effective the code changes are until we see corporate behavior as a result. Sure a lot of one time payments to workers are occurring but the bigger picture is whether they keep more income in the US now and also repatriate some of their vast reserves held overseas.
6
It does not replace the existing tax code. It just changes some parts of it. So it is overall MORE complex not simplified
1
It replaces many aspects of the current tax code.
Simple fact.
I think the only real complexity/area for potential abuse coming up is the pass through income tax treatment. Clearly some work to do there.
1
Simpler, @Dan T?
“Companies, especially large, publicly traded ones, will be spending more on tax advice than ever before,” he said. “The transition between one tax regime and another is so complicated that they will have to really reach out beyond their internal capabilities to make sure they get it right.”
@Dan T, is your argument that page count alone is an indicator of complexity without reading the material? Clearly tax accountants are having to deal with the complexity of this tax bill. I think that this is a counter example that refutes your claim. I'm not going to ask you if you have read through this tax bill.
If you are planning any changes, in your life, like retirement, buying a house, refinancing, getting a reverse mortgage, giving a gift to charity, have a home office, searching for work, moving expenses, have to buy books, uniforms, etc. fro work, etc.; you better take care of these things before 31 December. All miscellaneous deductions go away. Also, deductions for points, mortgage insurance, loan origination, etc. get curtailed or eliminated. However, if you are a business, you can deduct miscellaneous expenses.
The changes pretty much discourage people to move to other parts of the country for jobs. Unless your potential employer defrays the costs; they won't, you have to hope you live in an area that has very good jobs.
In other words, these changes only make it easier for employers to hire people from off shore, because they can claim they could not find an able bodied American in their area, to fill a job. So, these are the jobs Trump was talking about creating.
25
I find myself thinking that this new tax plan is, in addition to being a way to give the benefits to the 1%, - - is a way to punish Trump's political opponents, those regions of the country which did not support Trump.
Also, the tax plan also may be away of continuing to manipulate Trump's base by manipulating the Trump base by "giving" them a few monetary benefits in the next year, this, prior to the midterm elections, this in order to get more votes for Trump Republicans.
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When the standard deduction is doubled, or the per child credit is doubled, how exactly does that help the 1%? To me it seems like it helps people like the waiter who brings you your food in a restaurant.
True, the bill does help the 1% and I wish it did not. But I also wish people would stop lying about it and pretending that there is nothing good in it.
4
Of course it is, Lenny. The states getting hit hardest by the new tax bill is NJ, NY, CT and CA. All these states were not Trump supporters. And I wouldn't put it past Steve Bannon that he knew about the Santa Ana winds and threw a match somewhere in the forest to displace the homeowners of California.
1
Aruna, how many personal exemptions did the waiter take last year? All of them are gone now. Can the waiter take the child credit for his two children, ages 18 and 19, in college? https://itep.org/final-tax-bill-hits-parents-of-college-students-harder-...
1
"Corporations that have manufacturing or other operations overseas, or that have highly indebted businesses that will not be as able to deduct interest payments from their taxes, could spend the first half of 2018 restructuring to adapt to the new tax code."
So even more energy is diverted from productive work to the manipulations of the financial sector to maximize profits, rather than create needed products to improve lives.
13
I'm a tax attorney in Ohio, and last year, I worked with an EA who prepares about 1,500 tax returns annually. For about 25 % of the joint returns, we find that opting for "married filing separately" status saves hundreds--and often thousands--of dollars because of the manner in which the Ohio tax table integrates with the federal return. With the new tax law and its elimination of exemptions, I have no idea how this will impact Ohio filers in 2018. One thing for sure: no one has calculated the new law's impact on potential MFS savings. It's just too complicated.
6
What is an EA?
Enrolled Agent. It's a credential issued by the IRS, unlike attorneys and CPAs, who are licensed by individual states. Like attorneys and CPAs, EAs can represent clients in tax matters before the IRS.
Our accountant advises to pay your local 2018 real estate taxes before year end. She is being besieged with calls from her clients. I am going to hand deliver the check to our city hall today. New York homeowners are going to get hit hard by this bill, but it will spark a backlash against our entrenched state and local government bureaucrats, and the fat cat teachers unions whose members are laughing all the way to the bank with their out of line salaries and benefits.
8
In VA that wouldn’t work because 2018 taxes aren’t established yet. Knowing our local tax collector, he would refuse to accept payments for 2018 in 2017. Prepaying real estate taxes isn’t like prepaying a mortgage. There’s a well accepted procedure for mortgage prepayment, but not for prepaying real estate taxes.
“Companies, especially large, publicly traded ones, will be spending more on tax advice than ever before,”
So much for a simpler tax form.
20
Managements of public companies will primarily use this money to buy back stock because that is the single most effective way to consolidate even more power to themselves.
25
The tax code just got more complicated.
This thing has multiple layers of bait and switch, starting with the idea of reform, which turned into a joke.
And ending with changing how brackets are adjusted for inflation, so that bracket creep will raise taxes on the middle class long after the temporary cuts expire.
61
Here in Mass. we are finding out that, as we enter data in our Obamacare State Exchange, the entirety of Obamacare is now difficult to implement, if at all. First, Obamacare is linked to the tax family, but now without personal exemptions, it's better for all family members to enter as their own individuals, and get the new expanded deduction. The tax family makes no sense anymore! (Not that it ever did for healthcare!)
A lot of the implementation speaks about entering somebody as a dependent and claiming a personal exception for them, or not. All those tests and flows are now obsolete. In many ways, Obamacare is now in limbo as it relies on concepts of the tax family, personal exceptions, dependents, etc. and the like that no longer apply in the new tax code, or are irrelevant.
Just as W-2s are no longer based on the count of dependents, will the new IRS forms even ask about dependents when they have no value? Why, outside of the tax credit, report dependents at all? Better to not claim anybody as dependent. Chaos, complete chaos!
33
It is quite possible that very few working people get a noticeable deduction in withholding tax because the elimination of the personal exemption offsets the higher standard deduction.
18
I guess it depends what noticable means to each person. Some people may notice an extra $50 in their pay...some won't. At some point we have to shift the argument from saying people won't come out better financially in the short term, to the long term consequences. 80% of people will get a tax break, yet only 17% think they will. At some point everyone is going to see they are paying less in taxes, and the argument needs to be on why it still doesn't make sense.
6
$50 goes about as far as $5 in today's economy. Let's face it - anyone seeing a change is going to have higher healthcare prices even if they have employer provided plans (premiums were noticeably up). All costs went up and typical working class raises don't offset cost of living hikes.
27
Who will get an extra fifty dollars per paycheck? Almost nobody.
1
"For many tax professionals, it’s thrilling.
“This has, in some ways, been my Super Bowl,” said Dustin Stamper, a Washington-based director at Grant Thornton, an audit, tax and advisory firm. “It’s been the most exciting time of my career.”"
I'm glad someone is thrilled about a tax plan that will help cement plutocracy. As an "ordinary" taxpayer soon to lose valuable tax deductions, I've relied on my accountant to take a few steps that even I, a middle income taxpayer can do before year end to mitigate this new law's effects.
So much for post-card filing and simplicity.
Water seeks its own level. Because of the extreme speed with which this bill was enacted, I have full confidence that tax accountants and lawyers will have a field day seeking all the idiosyncracies and inaccuracies that will help ensure the richest pay the least, further their grab of the country's GNP.
Joe Paycheck, on the contrary will have to wait till February to find out his tax fate, which based on the NYT's tax charts may likely surprise.
"Pennies on the dollar" is an old marketing ploy that should be used to point out that all those pennies taken from the middle class add up to "real money" for the already wealthy.
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I think your last paragraph is backwards. Adding a few million dollars to the wealthy won't appreciably change their lives; they'll still be wealthy. However, losing even a few hundred dollars will be "real money" for those in the lower middle class brackets. Having to give up a family night out, dropping out of clubs to save the dues, or waiting an extra month to perform needed maintenance on their car will be upsetting. And for those who are currently living paycheck to paycheck, taking an extra few pennies from each check or losing even meager employee health coverage can cause real despair. Huey, Dewy and Louie will miss those pennies that will add buckets of money to McScrooge Duck.
1
The GOP and tax lobby are right that it's "Pennies on the dollar": they get to pile our pennies on top of their current dollars!
"Pennies on the dollar" is an old marketing ploy
---
That's the gross profit margin on a news-stand copy of The New York Times. Works for NYT, works for everyone.
After eight years of the slowest economic growth in USA history, we only have up, possible. Thank you, God.
this is exactly what is wrong with this bill. the wealthy and corporations, who can hire accountants, will be the ones who benefit from it.
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Or the majority of those that benefit will do so because they don't need to hire accountants. Those of us who file our own taxes (Turbotax guy here) will have no problem seeing if we benefit or not.
1
The corporations are ALREADY passing on the benefits.
AT&T said it will increase its U.S. investments next year by $1 billion, plus pay a $1,000 bonus to some 200,000 employees. Comcast CEO Brian Roberts, explicitly citing tax reform and the FCC’s decision to end net-neutrality, pledged a $1,000 bonus to about 100,000 employees and vowed to invest “well in excess” of $50 billion over five years.
"Wells Fargo and Fifth Third Bancorp said they would increase their minimum wage to $15 an hour, with Fifth Third also throwing in a $1,000 bonus for 3,000 hourly workers. Nexus Services is giving a 5% pay raise to its employees and hiring 200 more.
Wake up and smell the coffee!
2
C.P., IRS has 10,000,000 free Web pages of accounting information and education, all you have to do, is read it. Really. Not kidding. Seriously.
This Tax Evasion law is a disgrace and insult to the nation's workers and a fresh set of gold bars to the Pirate class.
Looking forward to the weakening of healthcare coverage so billionaires and the companies they own can be fed more delicious caviar.
"Drop dead, America !"
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What?! You mean you don't approve of bigger dividends and share- buy backs?
Oh well. Trump and his pals will be celebrating Christmas this year. This way he can buy another golf course or luxury yacht.
7
"Drop dead, America !"
you get thumbs up for that comment?
why?
1
@Richard Gordon - You mean another money losing investment that he can write off because it becomes a "pass through" business. So continues the grifting of America.
4
A cautionary tale: Some years ago then Governor Pataki initiated a middle class tax cut. Soon afterward I got a check in the mail from the state for $700.
But a few months later the state raised tuition at all the state colleges and universities by $750. It's been going up ever since then.
The moral of the story? Sometimes you don't get what you pay for.
Watch what will soon happen to Medicaid, Medicare and yes, even Social Security.
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"Sometimes you don't get what you pay for."
...unless you're a for-profit college, or a tax prep corp that successfully hoped to make the laws so complicated that understanding of them may as well be proprietary.
Then, you indeed DO get what—and with Pataki, WHO—you pay for.
1
Correct.
Wait until health insurance premiums go up.
#GOPTAXPLAN=BAITANDSWITCH
1
Medicare automatically loses a $25,000.000,000!
Starting Jan 1.
These wealthy embezzlers of our Patrimony should be sued to pay for any elderly person who ends up at the ER on New Year’s Day! (And beyond.)
This has got to fixed. ASAP!
1
The accountant vultures will find ways to earn more while dealing with a new tax system that will take in more from the poor and middle class, and less from the rich!
What a combination!
33
This bill is getting signed by the President in January 2019 in order to hide its negative effects - the spending cuts to Social Security and Medicare won't be mandatory until 2019 as a result, as will the expected rise in health insurance premiums. During 2018, an election year, workers' net pay will seem higher due to lower deduction rates for taxes, and they won't pay attention to the lower payroll tax deductions allowed when they file their taxes in April 2019. Looks like 2019 will be a "winning" years for the taxpayers.
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Pure speculation., tsk, tsk. Knowing the minds and motives of all. And you probably thought Clinton was going to win. Put away the partisan crystal ball of fear and rush to judgement and let's look at the details. Geez.
1
Cuts to Entitlements are not mandatory. They are political. We can easily fix entitlements and must.
This is your retirement that try want to give to Wall Street. Don't let them.
Democrats, prove your worth voting for by organizing a resistance to entitlement theft.
2
Gee, does that mean that Cuomo and de Blasio are going to raise your local and state taxes? And let more non-Americans enter the USA, scot-free?
Res ipsa, Democrats.
1
I believe this is what is called, in GOP Speak, simplifying the tax code.
30