Thanks Trump

[Perfectlap]

My accountant just finished my taxes. First time in 27 years I got a $0.00 tax return. In their infinite wisdom the GOP decided to cap SALT deductions on the very middle class workers already carrying a disproportionate share of the federal tax burden in high revenue generating states. Given that the only time the tax code is overhauled is when one party controls both Congress and the White House, exceedingly rare now, this absurdity of a tax code will likely stick for at least another seven years.

....So my extinct tax return... multiplied by 8 years, plus the lost returns on that money for the next 20 to 30 years and it's basically like I worked the entire 2018 year and had my entire income erased. Awesome. So much winning.


My tax return this year was meant to cover extra at-home care for my terminally ill father that his insurance will not pay for. But it's not all bad news the wealthiest at my place of work had the top income tax bracket reduced by 2% and get tax cuts for buying private jets. The carried interest loophole still nicely untouched so that applicable millionaires can pay lower effective tax rates than I do. And shockingly... despite my company netting a 20% cut in the corporate tax rate I saw no increase in my compensation above the rate of inflation. Did I mention that my family expenses (aka mom and dad) doubled running as high as $20k in a single two month period? (Cancer is not cheap it turns out) I missed several months of work to take care of my very ill parents out of state so my income also took a hit. double whammy. And no not a dime of these family expenses were deductible. You'd better make do as much as you can with that new standard deduction that comes at the cost of miscellaneous deductions getting torched.
I really should have purchased a private jet to fly my sick parents around! Kill two birds with one stone. What was I thinking. Did I need this tax return more this year than any previous year? No says the Greatest President in history according to the GOP.

Thanks Trump! This is exactly what I call tax reform for the working class.

Happy tax day America!! Monday April 15th!!

[KRAM36]

Complain about the high taxes of your state. There is no reason the rest of us should subsidize your state's high tax rates and give you a refund for those higher taxes.

[maytag]

Originally Posted by Perfectlap

My accountant just finished my taxes. First time in 27 years I got a $0.00 tax return.

So funny to me, that you gauge your position on how much of your money that you loaned to the government you get back each year. Why would you overpay, and then ask for it back? Why don't you just pay what you owe?

Anyway.... yeah, they didn't do me any favors either. My medical expense deductions: gone. My charitable donations deductions: gone. But at least trump doesn't offend me the way Obama did, by calling me "rich".

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[particlewave]

You paid in less out of every paycheck because your federal tax went down.
If you want a return, you have to overpay. That's how it works.
If your state tax is too high, don't live in a high tax state. The rest of us were picking up your states slack by paying a higher federal tax.

We made sure that we paid as much federal tax as we did the previous year by having the same amount taken out of our paychecks as before and got our biggest return ever as a result. That's because federal tax went down.

It blows me away that you would complain about having to pay less federal tax.
Maybe you should talk to an accountant that can explain things to you, then move to a state that won't rape you in taxes.

.

[maytag]

Particlewave, I'm not on about state taxes. I'm talking only about the feds. All of my usual deductions are gone. And they cut the standard deduction in half. I appreciate the effort at simplifying, but it didn't help me on the tax-liability front.

On the other hand: it's nice to see my investment accounts on the up. A Republican in the white house House always good for the economy.

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[KRAM36]

New Jersey Taxpayers

New Jersey residents pay famously high income and property taxes. It’s no surprise, then, that 41% of New Jersey tax returns claimed a deduction for state and local taxes. The average amount of that deduction was $17,183.33.

https://smartasset.com/taxes/trumps-plan-to-eliminate-the-state-and-local-tax-deduction-explained

Like I said, when you get these Federal deductions, it is considered a subsidy. So start complaining to your state about being over taxed.

With the deduction for state and local taxes, the federal government is effectively subsidizing high earners in high-productivity states and cities. (Any deduction the federal government offers is a subsidy.) As you might expect, wealthy residents of wealthy states are most likely to pay state and local taxes. They also tend to have the highest average SALT deductions. According to the Tax Foundation, people with incomes over $100,000 receive more than 88% of SALT deduction benefits.

[particlewave]

Originally Posted by maytag

Particlewave, I'm not on about state taxes. I'm talking only about the feds. All of my usual deductions are gone. And they cut the standard deduction in half. I appreciate the effort at simplifying, but it didn't help me on the tax-liability front.

On the other hand: it's nice to see my investment accounts on the up. A Republican in the white house House always good for the economy.

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My response was to the original post, not yours.

Anyway...politics really don't belong on a car forum, "Off Topic" or not. It will only cause strife and I shouldn't have participated.

[KRAM36]

Originally Posted by particlewave

My response was to the original post, not yours.

Anyway...politics really don't belong on a car forum, "Off Topic" or not. It will only cause strife and I shouldn't have participated.

Meh, Perfectlap just needed to let out some frustration. He just needs to know the proper people to place his frustration on.

We are all taxed too much in every State, his just happens to live one of the worse States.

[Perfectlap]

Some here seem to be unaware that high revenue generating states like NJ send more federal tax revenues than they receive back in federal appropriations. These shortchanged states must then run their schools, QUALITY senior citizen healthcare programs and mass transit systems with their own state tax dollars while still paying a disproportionate share of the federal taxes collected. So no your state is not subsidizing our high tax state, it's literally the opposite. My solution, we pass a law: you only get back to your state what you paid for federally. NOT ONE DIME MORE. Deal!?

Unlesss a family of four earn more than $70k they pay virtually no federal income tax. Credit to Trump's own former chief economic advisor for pointing this out when asked why the tax cuts were so miniscule for most. Now take a look at how many states have an average household income above $70k and you'll see that the blue states actually paying federal income tax were the very states that were hit with these absurd tax increases. While the states paying the least amount of federal tax (while still receiving more federal spending than they paid for) were given further tax cuts. Who is subsidizing who again?

And this business about "your tax return was given to you throughout the year instead of one lump sum at tax time" seems oblivious to the fact that working families had literally tens of thousands of dollars in miscellaneous deductions obliterated so that this total fraud of a tax "reform" law could come in under $1.5 trillion dollars. That way it only needed 51 Republican votes in the Senate. Since we couldn't fit the tax cuts for the top 1%, a 20% cut for corporations, preserve these critical working class deductions and still come in below $1.5 trillion one of the three had to go. Naturally the Republicans decided that the middle class deductions were the less important of the three. And yes the real cost of this tax "reform" was actually $2.2 trillion which would have procedurally required more votes than the Republicans had at the ready. And surprise surprise we now have a massive increase in our annual federal deficits, while we await the trickle down effect. This time will be different they promise....

[Perfectlap]

Originally Posted by particlewave

If your state tax is too high, don't live in a high tax state. The rest of us were picking up your states slack by paying a higher federal tax...

it blows me away that you would complain about having to pay less federal tax.
Maybe you should talk to an accountant..
.

If we go to a restaurant and pay for $150 worth of food but the waiter sends $75 of that food to other tables that only paid $75 how are they paying for our table's food again?


See the chart below...and keep scrolling all the way down to #48 out of 50. No one in your state was paying for NJ...

https://wallethub.com/edu/states-most-least-dependent-on-the-federal-government/2700/

P.s.
If my after tax pay checks were bigger from the prior year once our payroll department adjusted to the new witholding tables, like so many millions of people, I hardly noticed. And whether I get an extra bit each week or all of it at the end of the year, or owe a bit makes no difference if my effective rate went up sharply from losing significant portion of my deductions. Not sure why you think everyone saw a tax reduction when no such claim was made by anyone in the Trump administration. Well unless they were talking about the ultra rich who got permanent tax cuts while us peasants have no such certainty.

[Perfectlap]

https://wallethub.com/edu/states-most-least-dependent-on-the-federal-government/2700/

[Perfectlap]

Originally Posted by KRAM36

Meh, Perfectlap just needed to let out some frustration. He just needs to know the proper people to place his frustration on.

We are all taxed too much in every State, his just happens to live one of the worse States.

We get the largest State and Local Tax deductions (or used to before Trump screwed us) because our state government is in the top 10 for receiving the LEAST amount of federal dollars while being the sixth LARGEST contributor to federal tax revenue. Nobody is carrying our federal tax burden for us. Now we get to pay even MORE federal tax so that so many red states can keep getting their free federal ride to run their schools and fund elder care (while warning of lefty socialism!). Interesting that your article made no mention whatsoever of the reality of "federal net beneficiary" states being disproportionately the most Republican states even while discussing the topic of federal subsidizing of states. Leaving out a rather important detail there aren't they.

[KRAM36]

I thought you just needed to blow off some steam, now I see you're not too bright on how taxes work. No wonder you stay in a high taxed state like NJ.

Please stay in NJ, the rest of us don't need your stupidity escaping into our States with the way you idiots vote and ruining our State.

[Starter986]

Originally Posted by KRAM36

I thought you just needed to blow off some steam, now I see you're not too bright on how taxes work. No wonder you stay in a high taxed state like NJ.

And please stay in NJ, the rest of us don't need your stupidity escaping into our states with the way you idiots vote.

Seriously, FFS.

[maytag]

Originally Posted by particlewave

Anyway...politics really don't belong on a car forum, "Off Topic" or not. It will only cause strife and I shouldn't have participated.

Meh..... I've never been one to shy away from a little strife. ;-)

I'm one of those guys who doesn't need everyone to agree with me.... 'it doesn't change that im right. Hahaha.

Thanks PW. !

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[paulofto]

I probably shouldn't weigh in on this but . . . . . I live in Canada. You guys have no idea what high taxes are. But then again, I do have cradle to grave health care and social security. And we do tend to live longer on average than Americans so that does have a cost.

Okay, let's grab some popcorn and let the fun begin.

[Perfectlap]

Originally Posted by KRAM36

I thought you just needed to blow off some steam, now I see you're not too bright on how taxes work. No wonder you stay in a high taxed state like NJ.

Please stay in NJ, the rest of us don't need your stupidity escaping into our States with the way you idiots vote and ruining our State.

You know not that this isn't anything you haven't been told your whole life, but insulting people that you feel intellectually superior to doesn't make you look any smarter. If anything it probably confirms their opinions of you. If you lack the ability to engage in simple debate without resorting to ad hominem then you are correct in staying exactly where you are.

[Perfectlap]

Originally Posted by paulofto

I probably shouldn't weigh in on this but . . . . . I live in Canada. You guys have no idea what high taxes are. But then again, I do have cradle to grave health care and social security. And we do tend to live longer on average than Americans so that does have a cost.

Okay, let's grab some popcorn and let the fun begin.

do you guys have provinces that pay little or no federal tax, receive gobs of federal benefits because they neglect their poor and elderly in their provincial budgets and then cry about the evils of socialism from the other side of their mouths too?

[KRAM36]

Originally Posted by Perfectlap

You know not that this isn't anything you haven't been told your whole life, but insulting people that you feel intellectually superior to doesn't make you look any smarter. If anything it probably confirms their opinions of you. If you lack the ability to engage in simple debate without resorting to ad hominem then you are correct in staying exactly where you are.

With the way you don't understand the difference between Federal, State and Local Taxes, it's no wonder your State has such a high tax rate. You have been living off the Federal Tax system giving you higher subsidies and now that those subsidies have been reduced. You're complaining about a higher tax rate, when it's your State and Local tax rate you should be complaining about. The Federal Government is still giving you a subsidy, just not as high as it was before. Vote in people that will lower your State and Local tax rates or live with consequences and stop complaining. I cringe when I hear people leaving States like California, New York, New Jersey and Illinois as I don't want them turning my State into what they ran away from.

Seriously, since the new Federal tax bill was singed into law, it has been known that States like yours would be hit the hardest because of your State's higher tax rate and the lower Federal subsidy.

I would say if you came out owing nothing and getting nothing back, your taxes were paid perfectly. As maytag pointed out, why are you giving the Federal Government a free loan? All the years you got back money on your Federal taxes, you could have used that money to gain interest for you or paid off a loan faster to reduce the interest paid. Or had more money in your pocket to help your parents right then and there instead of waiting on that free loan you gave the Government to be paid back to you.

[Starter986]

Originally Posted by KRAM36

With the way you don't understand the difference between Federal, State and Local Taxes, it's no wonder your State has such a high tax rate. You have been living off the Federal Tax system giving you higher subsidies and now that those subsidies have been reduced. You're complaining about a higher tax rate, when it's your State and Local tax rate you should be complaining about. The Federal Government is still giving you a subsidy, just not as high as it was before. Vote in people that will lower your State and Local tax rates or live with consequences and stop complaining. I cringe when I hear people leaving States like California, New York, New Jersey and Illinois as I don't want them turning my State into what they ran away from.

Seriously, since the new Federal tax bill was singed into law, it has been known that States like yours would be hit the hardest because of your State's higher tax rate and the lower Federal subsidy.

I would say if you came out owing nothing and getting nothing back, your taxes were paid perfectly. As maytag pointed out, why are you giving the Federal Government a free loan? All the years you got back money on your Federal taxes, you could have used that money to gain interest for you or paid off a loan faster to reduce the interest paid. Or had more money in your pocket to help your parents right then and there instead of waiting on that free loan you gave the Government to be paid back to you.

I love hearing me a, "I'm getting a $4,500 refund!", like they won the ****************ing lottery or something. Idiots.