All the Rich Folks wanting to move out from High Tax New York State!

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Re: All the Rich Folks wanting to move out from High Tax New York State!

folks, i am not supporting trump or hating him. I am simply laying out the real estate portion of the bill which everyone likes to talk about but dont have all the details. if you think I am wrong, pls correct me. That is all. Here are 3 key bullets.

***1) if you don't have home and no mortgage, most likely you dont itemize your expenses today and must be using standardized deduction today and that amount will be doubled under this new bill i.e will go up from 6000 to 12000. so this is a huge big plus for low income people.

Now lets talk about homeowners now

2) for current homeowners, nothing is changing, they are grandfathered into existing plans and will keep on taking the advantage of old rules. so no issue

3) for new homeowners, homeowners can deduct interest payments on up to $500,000 worth of home loans. The limit used to be $1M before***

what it means that you can still get tax deduction for mortgage interest for home loans up to 500K and i do believe that majority of middle class and lower middle class in US own homes less than 500K (other than maybe NY, washington DC, san fransisco, LA) and if you take loan of more than 500K, first 500k is tax deductible.

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Re: All the Rich Folks wanting to move out from High Tax New York State!

I know you are and that is why I am engaging in discussion with you because you are always rationale and i have seen you to accept if you stand corrected unlike many who just want to debate to satisfy their ego or a point. I am stating the key bullets for the rel estate portion and if you think I am wrong, please point out. tx

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Re: All the Rich Folks wanting to move out from High Tax New York State!

This isnt the complete picture. Yes, the bill doubles standardized deduction, which would be great if that was it. But no. The bill eliminates personal exception COMPLETELY! Right now, you get to deduct $4050 per person - so a family with two kids gets to deduct $16,200 pers. exem. + $12,7000 std ded. from taxable income. Poof. Gone. So the great standard deduction they are touting isnt really that big of a deal. Give some over the table, take more than that away under the table and dont talk about it. If you have more than one kid, you lose money here.

PD man, if you want to understand the tax bill, either read it or read what someone who isnt a GoP stooge has dissected it down into. You are chanting the GoP slogans over and over, the nuanced truth is worse. And like Doppleganger said, it sunsets almost all personal tax benefits it provides, while keeping the corporate ones.

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Re: All the Rich Folks wanting to move out from High Tax New York State!

Also kind of stupid funny how the GoP keeps saying make more babies, we dont want to build our country on immigrant babies. And then pushes this personal exemption elimination which literally punishes people financially for having kids.

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Re: All the Rich Folks wanting to move out from High Tax New York State!

Thx Queer and i dont want a GOP stooge and i dont a democrat stooge either. it is so hard these days to get facts because everyone is emotional based on which camp he or she belongs to. I am not spewing any GOP material. I am just summarizing what I have read and heard from my discussion with some accountants. and i have multiple times said that please provide more color to what I have listed.

from what I know, the personal exemption (currently offering households $4,050 per person in deductions) is eliminated but replaced in theory by the higher child credit going up from 1000 to 2000, lower rates, and higher standard deduction amounts. but yes it will vary based on personal situation.

so you agree on pt no 2 and 3 below?

***1) if you don't have home and no mortgage, most likely you dont itemize your expenses today and must be using standardized deduction today and that amount will be doubled under this new bill i.e will go up from 6000 to 12000. so this is a huge big plus for low income people.

Now lets talk about homeowners now**

2) for current homeowners, nothing is changing, they are grandfathered into existing plans and will keep on taking the advantage of old rules. so no issue

**3) for new homeowners, homeowners can deduct interest payments on up to $750,000 (latest number) worth of home loans. The limit used to be $1M before

***(There were people who were saying that you cannot get any mortgage interest deducted under the new bill. well that is wrong. you can up to 750K of loan. I have also heard people saying that those with loans less than 500K cannot get any mortgage interest deduction but with those who have more than 500K loan can. well the bill is stating the exact opposite. there is just so much confusion because both camps are not willing to tell full truth (including media))

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Re: All the Rich Folks wanting to move out from High Tax New York State!

Gov Cuomo called it a "economic civil war'. Rightly so, as its clearly alienating the twelve blue states.

May be its time these states especially NY, NJ and Cali decide that Fed is just taking away things from them and they may be better off on their own.

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Re: All the Rich Folks wanting to move out from High Tax New York State!

PD je, Mostly yes on points 2 & 3. Mortgage interest deductions can still be done. However, property taxes and state taxes can only be deducted up to a combined total of $10K - the average household in cali that uses these itemized deductions currently get around twice that. Property taxes basically fund public schools. Once again, penalizing kids - the future of America.

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Re: All the Rich Folks wanting to move out from High Tax New York State!

Some indian or pakistani province or better yet, afghan province has a better chance of seceding than any US state. The civil war answered that question and GOP fully knows that.

Democrats we go high when they go low has turned them into losers while the other side is now worse than pakistani politicians. Maybe it is time to run Anthony Weiner for 2020?

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Re: All the Rich Folks wanting to move out from High Tax New York State!

ok thx Queer. and yes i do agree that states like CA, NY and DC are going to get a hit, no doubt about it but there are millions and millions who live in other states who will have their loans way less than 500K and their annual mortgage interest payment is going to be less than 10K. so they will be just fine and in may cases, the fact that standardized deductions are doubled may help them. in some cases depending upon the dynamics, that many not be the case. my point is that blanket statements do not apply. Not you but many are claiming that this bill is only helping rich. it is on certain aspects but it is also helping many others who are not so rich. every one has a different situation. that is all I am saying. thx for a healthy debate. ciao for now

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Re: All the Rich Folks wanting to move out from High Tax New York State!

**I appreciate your level headed answers Queer Sahib, unlike some emotional name calling derogatory remarks passed on the OP that others on this and another board have unashamedly resorted to;

So to answer your question Queer funny you ask me about Kansas, I loved living in the Midwest, Good genuine people mostly Farmers, I lived both in Nebraska and in Kansas a total of 25 yrs and never had to worry about becoming a Target in those days,

The State Tax in Kansas used to be 5% so I decided to move to Washington State where there is No State income Tax!**

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Re: All the Rich Folks wanting to move out from High Tax New York State!

Most American Families only have 2 children and if they are in the 20% bracket then they will loose around $1650/- Tax refund, so I agree that this New Bill will impact mostly Catholics and Southern Families, and probably Desis who have more than two kids!

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Re: All the Rich Folks wanting to move out from High Tax New York State!

The bill is about to pass in Senate..the heavenly days are about to start.. the poor and middle-class will live in the eternal comfort from here onwards.

Hallelujah!!

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Re: All the Rich Folks wanting to move out from High Tax New York State!

**The biggest beneficiaries in this New Tax Bill if it passes are the US Corporations that have parked their profits from overseas operations in foreign Banks and countries that have lower Tax rates like Ireland, it only has 13% Tax for Corporations. those funds will return and I think will be invested in plants and facilities and they will buy their own stocks so the stock market could go up further!

Yes I do concede SID_NY the Corporations windfall may or may not benefit the Poor people, other than the fact they will hire more workers how many no one can tell?

However it does benefit the country as a whole!**

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Re: All the Rich Folks wanting to move out from High Tax New York State!

Invest in plants and facilities - I dont think so. If they do it, they will do so outside the US, where an actual work force exist for these ventures. Manufacturing labor at $30 an hour is unlikely to gain popularity anytime soon. Alphabet/Google just started setting up their biggest venture - and they picked Toronto for it. Canada has raised their skilled immigration caps steadily over the last two years while US is stuck in assbackwardly lawsuits over H-1B. Coincidence? Or smart politics?

Stock buybacks are likely. But at a time when stocks are at all time highs is the worst time for buybacks. Any CEO/board that is sensible will hang onto cash, or invest it in a place of greater RoI than buybacks. Which will basically mean more money funneled to projects outside the US. US is a rich consumer market but not particularly attractive to invest in the coming few years. The policies just arent there. I just dont see wages rising in the US because of these tax cuts, but interest rates are poised for raises - will have to see how inflation does with the expected deluge of money into the rich's hands. Will be interesting to watch 2018 play out.

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Re: All the Rich Folks wanting to move out from High Tax New York State!

PDje,

Think of it this way. The bill borrows a big chunk of money from the future (aka deficit without spending cuts). And it gives this money away over the next decade mostly to corporations, the richest, and while they are at it, give a disproportionately small amount of it to the middle class. Everyone gets something, but the middle class basically gets only a little of what is essentially their national wealth from the future, while they inherit every bit of the deficit created by this - the rich dont need social security when they get old, nor do they need medicare or medicaid or CHIP. All these "socialist" programs will be in mortal danger in a few years.

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Re: All the Rich Folks wanting to move out from High Tax New York State!

Aah, the fancy of millions and billions.. :wink:

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Re: All the Rich Folks wanting to move out from High Tax New York State!

:whistling:

Richest 1 Percent Get 82 Percent Of Benefit Of Final Tax Bill Over Time

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Re: All the Rich Folks wanting to move out from High Tax New York State!

**Ok SID Bhai Sahib after you is done whistling, if you were faced with a similar situation in charge of setting the Taxes of a 300 million population, with similar demographics as US how would you set the Tax Brackets? what do you think is a fair Tax Plan?

and this time let us please not hide behind deflection thing, I would really like to know and I am sure the members on this board would also be interested How the Director of GS would set a Fair and Square Tax Plan?**

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Re: All the Rich Folks wanting to move out from High Tax New York State!

*Well actually while the personal exemption went away, The Child Tax credit for children under age 17 has doubled from $1000/- child to $2000/- per child so the credit is subtracted directly from your Taxes unlike the income exemption is subtracted from AGI, it is incorrect to say "literally punishes people for having children" *

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Re: All the Rich Folks wanting to move out from High Tax New York State!

LOL..LOL..you are soo funny.

Its like someone asking a visitor entering the hospital: Hey how if you are asked to do this transplant how would you perform the surgery!

Now in case you didnt get the memo: I’m still not the president of this country and since I’m not a politician, I wont be either way.
BUT
I’m still a tax payer. Its my right to evaluate a proposed plan and accept or reject it. And here I can totally see the disaster coming ahead. All the CPAs I’ve spoken with, who are experts than me, they all agree that its a horrible plan.
And in one of the above posts thats exactly why I asked queer and Southie cuz I know they have better knowledge.

But yea If I ever be the President I know for sure I wont be protecting 1% of the top filthy rich while showing carrot to the lower middle class. But hey may be this middle class do deserve a carrot and cheer it just like you are cheering. (or may be you aint a middle class, but I’m)

Now if you excuse me, I’ve a whistle to blow while you go ahead and celebrate the new tax bill, a dream come true for you :wink:

:whistling: