New Tax Plan Calculator - will you pay more or less?

tahoebum

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https://taxplancalculator.com


I found this tax calculator online for the new tax bill that is about to pass this week. For some reason I can't get it to paste correctly, you need to remove the s once you paste it into your browser.

With California having the highest state income taxes in the country, my wife and I would be paying quite a bit more under the new tax plan if we weren't moving out of California in the first half of 2018. I can't wait to leave this state!

Most people not in the top 5 highest taxed states making under $400,000 will see their taxes go down under the new GOP plan.
 
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Fortunately we'll be saving about $4k each year now on the new plan if it passes, not a ton but better than what we pay now.

I do have some concerns though about what we're not hearing and how it will change taxes in other areas, and which deductions will disappear over the next few years.
 
Fortunately we'll be saving about $4k each year now on the new plan if it passes, not a ton but better than what we pay now.

I do have some concerns though about what we're not hearing and how it will change taxes in other areas, and which deductions will disappear over the next few years.

They are capping the SALT(state and local) tax deduction at $10,000 and they capped the size of mortgage that you can deduct interest at $750k down from $1mm.

The good news for most everyone that makes under $250k is the standard deduction is now $12k for singles and $24k for couples. They also got rid of the AMT.

For most middle-class people it's going to put more money in their pockets. My sister who is a mid-level manager and her husband who works construction will be paying about $5k less each year in income tax.

It will be interesting to see if some of the high-income tax states will be forced to lower their tax rates or see a migration to lower tax states.
 
It will be interesting to see if some of the high-income tax states will be forced to lower their tax rates or see a migration to lower tax states.

Of course not. Otherwise nobody would stay in CA, NY, MA or NJ now.
There will always be validation, and until residents put pressure nothing changes.
 
We'll save a little bit, but I don't think it's worth going more into deficit as a country. No matter what, without more intelligent spending (Not going to happen), it's really just kicking the can down the road for future generations. Quite sad really.

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Of course not. Otherwise nobody would stay in CA, NY, MA or NJ now.
There will always be validation, and until residents put pressure nothing changes.

I've been to a couple Christmas parties recently with mostly people age 45-55 and all of them realize their biggest tax deduction is about to go away and their taxes are going up. It's a small sample size, but at least 75% of my friends have no intentions of staying in California for retirement. Two of my best friends have already bought homes 80 miles away on the Nevada side of Lake Tahoe and are leaving as soon as their kids graduate from high school. Many other who are still years from retirement are doing as we are and leaving as soon as they can find employment in another state. We are out of here in 170 days!:act-up:
 
I've been to a couple Christmas parties recently with mostly people age 45-55 and all of them realize their biggest tax deduction is about to go away and their taxes are going up. It's a small sample size, but at least 75% of my friends have no intentions of staying in California for retirement. Two of my best friends have already bought homes 80 miles away on the Nevada side of Lake Tahoe and are leaving as soon as their kids graduate from high school. Many other who are still years from retirement are doing as we are and leaving as soon as they can find employment in another state. We are out of here in 170 days!:act-up:

Retirement moving is not the same as employment moving sadly.
 
Of course not. Otherwise nobody would stay in CA, NY, MA or NJ now.
There will always be validation, and until residents put pressure nothing changes.

the amt has captured a lot of people in those states and effectively killed the salt deduction. but higher earners will see a serious hit. it will be interesting to see what happens.

politics aside, there are a lot of things about this new law that i don’t like.


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I've been to a couple Christmas parties recently with mostly people age 45-55 and all of them realize their biggest tax deduction is about to go away and their taxes are going up. It's a small sample size, but at least 75% of my friends have no intentions of staying in California for retirement. Two of my best friends have already bought homes 80 miles away on the Nevada side of Lake Tahoe and are leaving as soon as their kids graduate from high school. Many other who are still years from retirement are doing as we are and leaving as soon as they can find employment in another state. We are out of here in 170 days!:act-up:
All of my similarly situated friends are the same - they are actively planning to leave the state. But as JB notes, it's only at retirement, not while working.
 
I've been to a couple Christmas parties recently with mostly people age 45-55 and all of them realize their biggest tax deduction is about to go away and their taxes are going up. It's a small sample size, but at least 75% of my friends have no intentions of staying in California for retirement. Two of my best friends have already bought homes 80 miles away on the Nevada side of Lake Tahoe and are leaving as soon as their kids graduate from high school. Many other who are still years from retirement are doing as we are and leaving as soon as they can find employment in another state. We are out of here in 170 days!:act-up:

Lots of great people live in California but the tax situation there is crazy. The Land of 10,000 Lakes is in the Top 5 for overall tax burden. 9.85% income tax for the top bracket and 5.35% for the lowest. Ouch! Glad to see the new tax plan addresses SALT and the insurance mandate...even if it has a negative impact on me. Overall, my federal tax bill will be lower under the new plan.
 
We'll save a little bit, but I don't think it's worth going more into deficit as a country. No matter what, without more intelligent spending (Not going to happen), it's really just kicking the can down the road for future generations. Quite sad really.

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Perhaps, but we should wait to see what happens in the dynamic real world instead of the static world of CBO scoring. After Reagan's tax cuts, revenues to the Treasury doubled. Unfortunately, spending increased by more.

If you subsidize something (state and local taxes, home ownership through the mortgage deduction, charitable deductions,) you get more of it. If you tax something (income, economic growth, investment) you get less of it.
 
Perhaps, but we should wait to see what happens in the dynamic real world instead of the static world of CBO scoring. After Reagan's tax cuts, revenues to the Treasury doubled. Unfortunately, spending increased by more.

If you subsidize something (state and local taxes, home ownership through the mortgage deduction, charitable deductions,) you get more of it. If you tax something (income, economic growth, investment) you get less of it.
I agree putting more money in the hands of the consumer is good... But I also think that the consumer still pictures the chaos of 2008/2009 and will save a bit more, rather than spending it. And again, it comes back to the horrific spending errors of our irresponsible government. Makes me wanna hurl...

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I agree putting more money in the hands of the consumer is good... But I also think that the consumer still pictures the chaos of 2008/2009 and will save a bit more, rather than spending it. And again, it comes back to the horrific spending errors of our irresponsible government. Makes me wanna hurl...

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Consumers have literally never done that despite recent history.
 
I am not a fan of this idea that "dont worry, the corporations will hire more and the economy will grow" when historically every attempt to initiate trickle down only results in shareholder buybacks and dividends.

But on a personal note, I am about to get almost 4K back per year.
 
Consumers have literally never done that despite recent history.
I think there's a different generation that hears the Social Security depletion stories and sees what their parents/grandparents went through losing their homes, having to go back to work after retirement, and not being able to afford healthcare and have decided they're going to save. Of course there's the portion of the population that won't save, many of those already past the point of believing they'll ever retire or just trying to get by each day, but at least from what I've seen, heard, and read, I believe those under 40 are definitely saving more and wanting to be more financially secure than any other part generations.

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I think there's a different generation that hears the Social Security depletion stories and sees what their parents/grandparents went through losing their homes, having to go back to work after retirement, and not being able to afford healthcare and have decided they're going to save. Of course there's the portion of the population that won't save, many of those already past the point of believing they'll ever retire or just trying to get by each day, but at least from what I've seen, heard, and read, I believe those under 40 are definitely saving more and wanting to be more financially secure than any other part generations.

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Then the real question is where have they been the last 10 years?
As the future debt has risen, all of the questions were answered with "wait and see".

And I am not speaking political parties, as this crosses both aisles, and until we clear the entire political landscape (which I believe is being attempted), none of it matters.
 
I'll save quite a bit, as will the majority of people.
 
Then the real question is where have they been the last 10 years?
As the future debt has risen, all of the questions were answered with "wait and see".

And I am not speaking political parties, as this crosses both aisles, and until we clear the entire political landscape (which I believe is being attempted), none of it matters.
Exactly what I think. Until the landscape changes completely... It's just kicking it down the road... again and again and again. And yes things quite possibly have begun to change a little bit, as Trump's presidency is like nothing we've seen before, good or bad; but does it continue? Do future politicians put the country and the future of the citizens first? Can all these lifer politicians go away? Term limits? No political pensions? Medicare/Medicaid/Social Security fix? And a million other questions.

It's disheartening to think of where things are headed.... Because how does a country get out of trillions of dollars in debt? States are going to have to declare bankruptcy. Cities already have. The middle and lower class cannot possibly come out benefitting from any of this...even with a short term positive...like a few extra bucks back in a tax return.

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Says we should get a decent savings this year if you can trust the calculator.

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We shall wait and see, says I'd save a whole whopping $614, guess it's better than no savings at all.

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Retirement moving is not the same as employment moving sadly.

They are totally different circumstances but our move out of state is due to my wife taking a new job in Minnesota. After all, Minnesota has the 3rd highest state income taxes at 9.85% but it’s a lot better than the 13.3% top rate in California. If she didn’t have this great opportunity we’d both be working in California while continuing to pursue employment in other states. We’ve had 3 neighbors leave for jobs in Texas and Nevada in the the last 3 years and they all have a decade or more until retirement. I do think the elimination of SALT will cause migration out of high tax states.
 
New Tax Plan Calculator - will you pay more or less?

It’s a win for me and I like how it’s constructed. If they would attack entitlement reform along with this tax plan the deficit would decrease, but the democrats won’t touch entitlements bc they alienante their voting base if they do.

All in all I’ll save money and finally get a little back instead of writing a check each year. I also like how it does away with the Obamacare mandate
 
Anyone pre-paying their 2017 real estate taxes this year, instead of waiting until 2018? With the proposed new brackets and standard deduction...it looks like it's best to get it on the books for this year for us.
 
Retirement moving is not the same as employment moving sadly.

Another small sample size and annedoctoal evidence, but we see plenty of working class people moving to Vegas from CA because they can't afford to live and work there. Some of that is cost of living and housing, but some of it is taxes.
 
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