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2017 Federal Tax Reform
#11
Any idea how Social Security will be taxed?
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#12
As a Democrat, I do not seek to apologize for Trump or GOP legislation. As a person with a mathematics degree who has studied Statistics, my sense is that there is a flaw in the chart you presented. I feel (hope) that there is a misinterpretation of some aspect of the plan.
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#13
Just did a quick comparison using my 2016 filing and adjusted for changes for 2017 and 2018. I am slightly better off with new tax code if it stays unchanged. Most of the positive change is due to repeal of AMT. This had been killing me for years. Had you accounted for that?

Question: It appears many millions will be pushed into standard deduction and will not itemize, One am one of them. However, what happens to charitable contributions? If the deduction is lost, non-profits will really be hurt bad.
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#14
(12-01-2018, 03:42 AM)norabird Wrote: Just did a quick comparison using my 2016 filing and adjusted for changes for 2017 and 2018. I am slightly better off with new tax code if it stays unchanged. Most of the positive change is due to repeal of AMT. This had been killing me for years. Had you accounted for that?

Question: It appears many millions will be pushed into standard deduction and will not itemize, One am one of them. However, what happens to charitable contributions? If the deduction is lost, non-profits will really be hurt bad.

These are good questions. AMT and for me it was the "self employment tax". As a full time employee working my assets off, I maxed out  SS, and as an owner of two LLC's I ALWAYS had to pay more - I am pretty tired of Democrats telling me "you didn't build this" and I should pay "my fair share". I doubt the SS part will change!
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#15
Before I even read your synopsis, I like to say: "Thank you for relaying this to the forum". That is what makes it worth the time we dedicate to it.
 
After I read it, Nice work and very important!
Only the paragraph for existing deductions for individuals may need the filing type checked.....I think you meant, married filing separate? You can edit it....
It is the first paragraph of deductions.
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#16
In the 90's, I went through same "pain" you felt. Since my wife made top dollars, my business suffered due to top bracket taxes on all money generated, marriage penalty, SS double taxes, self-funding of retirement account, expenses, etc. In the end, closed the business since I only kept 20 cent on a dollar. Retired quite young (52) and enjoyed giving my services to my favorite non-profits for past 17 years. Always loved my work.
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#17
(12-10-2018, 07:58 AM)lhamo Wrote: In the 90's, I went through same "pain" you felt. Since my wife made top dollars, my business suffered due to top bracket taxes on all money generated, marriage penalty, SS double taxes, self-funding of retirement account, expenses, etc. In the end, closed the business since I only kept 20 cent on a dollar. Retired quite young (52) and enjoyed giving my services to my favorite non-profits for past 17 years. Always loved my work.

That's excellent of you!! I plan on doing very much the same.
 
And to have Obama tell ME I "didn't build that" and the chorus sing behind him "......your fair share....." turned me away strongly from that line of thinking.
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#18
Also as a business owner, I am in the current top tax bracket. I accrue $27,000. per month to pay my quarterly tax payments and it's the biggest nut I have to turn in my life. It dwarfs all the other expenses I have in life. I don't think I would say automatically I'd pay higher wages. At first blush, I'd say thank God the nut I have to turn every quarter got a little lighter. But I've heard commentary that with this new "pass through" tax rate (I am in a LLP) that the tax rate will be 25% and I just don't believe for a minute that the government would ever allow someone like me to pay a 25% tax rate. I think it's all been talk by politicians and lobbyists and the moment someone wakes up and realizes that I am paying 25% they'll slam that door shut. It's WAY premature as far as I'm concerned to be talking about what might happen. I don't think any of the things they talk about today will end up in the law
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