I hear we get more of our money on paychecks in February . Also hear at the end on 10 years not so good for US. Mike

 

It expires for personal taxes after the 2025 tax year so it is good for seven years. There is no expiration on the corporate tax side.

Even with an expiration, congress could vote to extend them or change them. Heck, if they wanted to, they could repeal them long before 2025 if they turn out to be a disaster. The majority of payroll systems are expected to be updated by February especially the big ones like ADP.

 

I'm looking forward to the tax cuts, based on my early look at it I should see about a $3,000 savings. Will see in February what the paycheck brings in as that is when the new tax tables will go into effect.:flag6:

 

It is always good when you are able to keep more of your own money! The economy is roaring and this bill is like pouring rocket fuel on a fire.:flag6:

 

rich get richer and national debt increases. :hammer: never minded paying my fair share. :gba:

 

I live on Long Island. Enough said. Lol... Glad for those who benefited from this deal.

 

Tax reform will only be a part of a bigger debt issue. I think tax reform was necessary. I too feel sorry for the people in high taxed states but I agree, that is more a state issue. They will have a hard time not extending or reworking the personal tax issues before they expire. Be nice if they could all work together for the good of the whole USA :flag6:

 

It's a step in the right (correct) direction. Love or hate Trump, his self allegiance is shacking things up.
Jim

 

Remember that the "tax cut" is supposed to be "revenue neutral" (by whatever rules they made up to define "revenue neutral"). Which in simple terms means that for all those who got a cut means someone else pays more to "make up for it".

I think the corporate tax cut is the right thing to do. I don't worry about the fact that some corporations were not paying the full 35%. Some won't have to pay the full 21% now either. It puts us in a better situation vs. most other countries.

There is a provision for "repatriation" of corporate money brought in that's now held in other countries, at a low tax rate. I think that also is the right thing. And I'm guessing the money is "free money" that offsets "revenue neutral". In other words the tax on that money wouldn't have ever been collected had the repatriation not been done.

I do think the corporate tax cut and the repatriation will result in companies investing it in this country. Also there is a provision to be able to write off capital investment as expense (i.e., a full deduction the first year) rather than depreciating it.

I think they should have gone farther but the Senate rules prevented that. Of course the Senate could reject their rules, but that's politics they haven't chosen to do.

The fact that the individual cuts expire in 7 years doesn't mean anything. If Congress has the votes, they can raise or lower taxes anytime. Remember how many times the "Bush tax cuts" got extended? And then finally defeated?

 

I don't make 75K, or anywhere near that, so I don't think I'll see much positive change.

 

Well, in raw dollars, perhaps not. But you will probably see a 5% reduction. If a real high earner, only sees a 1% savings, they may see more raw dollars in savings than you. That is how some folks make the spin that wealthy people benefit more than non-wealthy.

So, if 47% of the households pay no taxes, then they will not see a tax decrease obviously. So you can make the numbers look like only the wealthy get the breaks

 

Time will tell but I am optimistic that folks will by and large pay less taxes and the economy will expand( jobs). Now we should see spending cuts and get the deficit under control.
Larry

 

Unfortunately, this did not happen when regan tried it, and it failed again when bush tried it. Oh, but it’s going to work this time, yea right.

Let’s face it, additional money for corporations will only result in a new standard for higher pay and greed for the CEO’s and if there is anything left, it will go to the stockholders. It will not, in any meaningful way, result in a trickle down economic boost to the middle class and to the extent anything does trickle down it certainly will not provide any kind of real money, and I mean real money, not just 1 or 2 thousand over the course of a year, but something significant over the course of a year. What a disgrace.

All that was done here was to rush through legislation that was not thoroughly vetted, is opposed by a majority of Americans, and maybe provides a couple of dollars to some but not all members of the middle class for a short period of time, big dollars to corporations on a permanent basis, and saddled our kids and grand kids with the bill. What a disgrace. What a disgrace.

 

Agree 100%
And more jobs will only appear when ordinary people increase demand for products. Companies do not hire just because they have more money.

 

I hope it will bring more manufacturing jobs back to this country.

 

This is my biggest hope ..... 3:
Cowboy :flag6:
:gba:
bowtie-trifive

 

Dragsix, I have to disagree with everything you said. The Reagan tax cuts and "supply side economics" worked very well. In fact they carried us through the last half of Reagan's years, the Bush 41 years and most of the Clinton years with positive results.

Thing is, then like now, someone will always challenge what's happening and spin it their way. And these days that challenge is even greater. In fact it's huge. There are political factors here.

I think that optimism for the economy based on the tax cuts is very high, and it will come true. The stock market, GDP, and employment data show that. Like all economic upswings, it won't last forever. And who knows what will trigger a downturn or when.

As a stockholder, I like it. Unlike your outlook, I think corporations are our friends, not our enemies. Many of us work for a corporation or have. Our success is tied to their success and vice versa.

 

Seems to me the new tax package adds well over ONE TRILLION $ to the national debt & brings almost no manufacturing jobs back to this country! Oh, and the Feds will keep subsidizing oil companies, corporate farms etc., just saying! :flag6:

 

Yeah,and under the previous Admin. the national debt went from 10 trillion to 20 trillion.Oh,and also the big fella said if you like your doc you can keep your doc,if you like your plan you can keep your plan.Just saying.:sign0020:

 

High Tax States vs Low Tax States - depends on who is riding the horse.

All in all I think it is a good deal.

When you buy a product or service the sales price includes the vendors tax load.

Several large Corporations immediately announced bonuses for employees as well as pay raises and investments.

Competition with other countries should be on a more even par.

 

I own a small corporation in California with about 200 employees, My Fiscal Year ends On October 31st which means my taxes are due by January 15th. All of my employees already got their bonuses last week, and their pay raises have already been calculated for January 1st.
My company did well last year, and we owe it all to a dedicated staff. I was not going to wait for a tax reform to thank my employees.
Being as my Fiscal Year won't end until Oct 31, 2018. I won't see my tax cut until 2019... Oh well.
Bob

 

Ok, my economics training is high school at best. With a little self taught.

For the life of me, I cannot understand the reasoning behind, “trickle down doesn’t work”.
My wife’s business is flourishing because it does work. The people with money hire her to take care of their gardens. People with “lesser incomes” can’t afford her. And she is not the only one working for the people “with money”.
Everyone can’t be “with money”, or else nothing would get done.
Her and I are doing relatively well, or at least comfortably.
BUT, my point being, the money does trickle down, not everyone is going to see it, and there-in lives the need for more jobs. Corporate hires, then paychecks get handed out, and if the paychecks are enough, people get hired to do stuff.
To me THAT is trickle down economy.

On a different note, I hope the disability I’m getting goes up with the cost of living. And maybe VA hospitals can get their collective shit together ?

And isn’t an oil company, and a farm, and even a delivery service, a “manufacturing company”, in a broad sense of the word? It is here, just not in the same way it was 50 years ago.

 

On a personal basis, I am gonna get hosed big time being as I'm a resident of California, a high taxed state.
Being semi-retired I get my income from several sources. No payroll check, but I do collect money from SS, IRA, rents, portfolios, and bonus checks from my company, which is a C-type Corp.
In the past I've been allowed to deduct all property taxes, and all mortgage interest. I am no longer allowed these deductions except for $10,000 in mortgage interest which amounts to less than three monthly mortgage payments.
I was very happy to see a 2 point drop in my tax rate. It helps. What's really going to help is that due to the big drop in the corp rate, I can now afford to draw a much bigger bonus to offset what I will lose with the loss of tax deductions. This is also a way of eliminating Double Taxation, but much better when Corp and personal tax rates are about equal.
Just economics...
Bob

 

One bright note is that I'll be getting about $6 per month more in Social Security. 😅

 

Got you beat by the price of 1 beer.:sign0020: What a joke. I feel bad for those depending solely on SS. My wife actually lost a little. How is that possible with the "hold harmless" provision.:bowtier:

 

What a SCAM, my question is for a bill this large and complicated, and will affect so many, why was it rushed through one sidedly?
This is a disgrace, and proves just how money hungry and corrupt Washington is.
When someone keeps telling me "believe me", it makes me wonder why thy're saying that.
The bonus is it adds 1.5+ trillion to the debt, what will suffer to pay for it.?

 

I believe its time to pull this blog before it gets too political

 

I work for a small company, sort of like what Bob is talking about. Like Bob sharing profits with employees as a bonus, where I work it happens here too. So the corporate tax rate drop should provide for a bigger bonus next year, likely more so than what I'll see on my personal tax rate change. Additionally, companies may reinvest in capital equipment, thus spreading the money out across the economy. I see it as a good deal. As far as the national debt is concerned... next up: Entitlement reform.

 

Personal taxes will go down for essentially all low/middle class taxpayers, but one thing I noticed in a yahoo article https://www.yahoo.com/finance/news/tax-cuts-jobs-act-could-131400908.html

is that they doubled the estate tax exclusion (from $11M to 22M for a couple); which will save the heirs of rich people $millions. Not many low/middle class folks are going to pass along more than $11Million to their heirs! This is one that the RICH FOLKs slipped in... and I'd like to see that portion repealed.

 

This was part of the very first draft of tax reform and survived all the rounds of changes. Inheritance taxes are taxes on money that has already been taxed so it really should not be taxed again when you die.

 

Remember this, poor people don't pay income tax (or very much) - rich people pay the bulk of income taxes, and the rates get progressively higher - so who do you expect gets the benefit of a tax break? That's right, those who pay them, and that does include the middle class.

I got a Social Security raise for 2018. I now get $50 less per month because Medicare went up way more than SS did. How's that for a raise?

 

The medicare rates did not go up. Your income did in 2016 so now you have moved from the base rate to the next tier which does add about $50/month. Another case where the higher income folks in Medicare pay more. I'm okay with that.

 

I stand by my position. Hey, you never know, I could be wrong, and maybe not even a little wrong, and I hope that I am, I do. I am just incensed over how this bill was pushed through, no real vetting or analysis, and the truth be told, I simply do not trust our legislators in the current climate to be legislating for "we the people," as opposed to pressing some party platform forward or rushing it through just so you can say you got a major piece of legislation passed, which is what this appeared to be.

My own congressmen have not even articulated their own analytical process as to how they independently confirmed the effects of this new law on those of us who they represent. And the fact is, they could not have even if they tried. The bill is voluminous and with all the last minute hand written edits and amendments, there was no time to study it thoroughly. Many of our legislators are lawyers, and they know the importance of words and the placement of punctuation, and how the words effect the outcome. They had no time to do any real analysis and if any say they did they are not telling the truth.

I looked at the house version, and it was profoundly dense and took time, a lot of time, to parse the various paragraphs out and determine how they interacted with other provisions in the bill. I tinkered with it for a couple of hours and did not scratch the surface.

I think John McCain has it right, there is a desperate need to go back to the older legislative ways and have proposed legislation fully discussed and vetted in a bipartisan way so that legislation gets enacted correctly, with full discussion, negotiation, compromise and a bipartisan effort underlying the law.

The fact that this legislation was rushed through by one party, was developed essentially behind closed doors, with little to no input by the other party, voting split completely along party lines, and that most Americans are opposed (right or wrong) should make all of us pause and think as to just exactly how did we get to this point. This is not bipartisan legislation or even brisk bipartisan debate, it does not garner confidence in the process. It was nothing but a rush to get something, anything done. That and a trillion dollars in debt, a trillion! How do we justify heaping this debt on future generations.

I know, I am on my soapbox, my apologies, lol. I just think we are not being very well served by our elected representatives and that we really do need a better method then the one that just occured. With that, I surrender the podium, lol.

 

Agreed..... It was passed too quickly.... reminds me of this...

https://www.youtube.com/watch?v=hV-05TLiiLU

 

As long as we're throwing out numbers, Drag six quoted a 1 trillion increase in the national debt as a result of tax reform. Unkie stated over 1.5 trillion.
Republicans are not tax and spend creatures. To start with 338 billion in health insurance subsidies will go away. These are largely young healthy people that think they have no need for health insurance. You and I have been paying for it.http://money.cnn.com/2017/11/08/news/economy/tax-reform-individual-mandate-cbo/index.html
Time will tell what other cuts the administration will gain control over such as the massive blundering EPA that dumped millions of gallons of heavy metal contaminates into our SW rivers. The state and tribal law suits were enormous. You and I again paid for it.
The balance sheet is also impacted by an big increase in military, security expenditures. I think infrastructure spending (roads,bridges) will also be forthcoming. Maybe even squash a bug called N. Korea.
All said and done we will be stronger. Those that can, will be wealthier. Those that have paid the lions share of federal taxes should get more relief. The incentive to go elsewhere is removed.
Just my layman's armchair analysis.
Jim

 

How many who have an opinion good or bad have actually read the bill?
The fact it was rushed through makes me suspect the latter.