Ready to pay more taxes!??

[BMBiology]

The big losers:
- live in a state with income tax (CA)
- new homeowners with a big mortgage (CA)
- homeowners with a huge property tax (CA)
- family with a lot of kids
- single mom/dad with kids

The majority of pharmacists will see their taxes go up.

Here are the winners and losers in the GOP tax plan

Tired of winning yet?

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[297point1]

This was not a good day for California.

They'll need all of their Republican representatives (n=14) to join up with Republicans from other similarly disaffected states (Illinois (n=7), New York (n=9), and New Jersey (n=5)) to block this, (they'll need 21 of these 35 to vote NO)- otherwise this thing is going to get passed.

 

[rxdawg21]

The big losers:
- live in a state with income tax (CA)
- new homeowners with a big mortgage (CA)
- homeowners with a huge property tax (CA)
- family with a lot of kids
- single mom/dad with kids

The majority of pharmacists will see their taxes go up.

Here are the winners and losers in the GOP tax plan

Tired of winning yet?

Not too sure if I agree with that analysis of the article. If tax credit for a child is $1600, under the new tax brackets. A single person with 2 children making 45k would pay $160 in federal taxes compared to $1507 according to HR block for same single person with two kids. (28k taxable income (bracket 12k-45k) at 12%-$3200 for 2 children tax credit). If they had 5 children as the article states they would get $4640 back from the new tax plan (if refundable) and $4017 from the current (if refundable).

If you make 60k and have 4 kids that would be a $6400 tax credit, $3360 in taxes for the 12% bracket and $3750 in the 25% bracket is $7110 in taxes-$6400 is $710 in federal taxes. You add that 5th kid in the article and to break even and pay 0 federal taxes you could make $63560. I wouldn't call that poor or lower class and is marginally different then what they pay in taxes now. (they would get a refund of around $500 for the child tax credit (if its refundable).


Just from back of the napkin calculations I'm going to see about a 3k lower tax bill.

 

[PharmDBro2017]

Looks like I'll be paying less in taxes, sweet.

 

[pezdispenser]

Welcome back BMB! Where have you been?

Ok I did a few quick and dirty scenarios.

Current
Single
$100,000 (already subtracted $18k 401k and health insurance)
- 6,350 standard deduction
- 4,050 personal exemption
89,600 taxable income
18,138.75 tax

New tax proposal
$100,000
- 12,000 standard deduction
88,000 taxable income
16,150 tax, or 1,988.75 less

Current
Married with 2 kids
$200,000
- 40,000 itemized deductions ($16k state income taxes, $20k mortgage interest, 4k property taxes)
- 16,200 4 personal exemptions
143,800 taxable income
27,427.50 tax

New tax proposal
$200,000
- 24,000 standard deduction (state income tax deduction no longer allowed)
176,000 taxable income
2 x 1,600 child tax credits
29,100 tax, or 1,672.50 more

 

[PharmDminus]

Welcome back BMB! Where have you been?

Ok I did a few quick and dirty scenarios.

Current
Single
$100,000 (already subtracted $18k 401k and health insurance)
- 6,350 standard deduction
- 4,050 personal exemption
89,600 taxable income
18,138.75 tax

New tax proposal
$100,000
- 12,000 standard deduction
88,000 taxable income
16,150 tax, or 1,988.75 less

Current
Married with 2 kids
$200,000
- 40,000 itemized deductions ($16k state income taxes, $20k mortgage interest, 4k property taxes)
- 16,200 4 personal exemptions
143,800 taxable income
27,427.50 tax

New tax proposal
$200,000
- 24,000 standard deduction (state income tax deduction no longer allowed)
176,000 taxable income
32,300 tax, or 4,872.50 more

you are missing an important, little-known piece. We were never eligible for child tax credit in past due to income limit of 110,00 for married. With new plan, income limit is 230,000 for married. Thats an extra $1600 credit (much more valuable than deduction) per child

 

[rxdawg21]

Welcome back BMB! Where have you been?

Ok I did a few quick and dirty scenarios.

Current
Single
$100,000 (already subtracted $18k 401k and health insurance)
- 6,350 standard deduction
- 4,050 personal exemption
89,600 taxable income
18,138.75 tax

New tax proposal
$100,000
- 12,000 standard deduction
88,000 taxable income
16,150 tax, or 1,988.75 less

Current
Married with 2 kids
$200,000
- 40,000 itemized deductions ($16k state income taxes, $20k mortgage interest, 4k property taxes)
- 16,200 4 personal exemptions
143,800 taxable income
27,427.50 tax

New tax proposal
$200,000
- 24,000 standard deduction (state income tax deduction no longer allowed)
176,000 taxable income
32,300 tax, or 4,872.50 more

Well that is lame.

 

[lord999]

We do need to actually increase our tax assessments anyway to pay for the military and entitlement benefits. I wish it was just a flat tax myself, but I'm not complaining as the well-off (and yes, that means us) pay a higher share. It will cost me personally to the tune of $12-18k more in taxes as the state offset is a big deal for my household, my wife probably is going to pay double that.

 

[pezdispenser]

you are missing an important, little-known piece. We were never eligible for child tax credit in past due to income limit of 110,00 for married. With new plan, income limit is 230,000 for married. Thats an extra $1600 credit (much more valuable than deduction) per child

You're right. I assumed the income limit was the same so I didn't include it. I'll edit the scenario to include 2 x 1600 child tax credits.

 

[boriqua]

So basically If you're from california or you have 37 kids, you're screwed. I'm not sure if a majority of pharmacists fall into that category. My wife and I will go from 28%-25%. Double the standard deductions. 1 child credit. Corporate tax rate cuts will be good for my business and the 500,000 cap wouldn't affect my 2 rental properties, not that it would matter since i brought them before the new plan.

 

[Charcoales]

Taxes too damn high, I picked up a 12 hour shift last week on top of my regular hours and only got an extra 400 in take home pay after taxes/401k.... makes me want to cry srs

 

[SoylentGreen]

California should have thought of that before they became a blue state.

 

[gwarm01]

Taxes too damn high, I picked up a 12 hour shift last week on top of my regular hours and only got an extra 400 in take home pay after taxes/401k.... makes me want to cry srs

I don't get it when people complain about how 401k affects their pay. You just paid yourself, man! Consider 15% of that 12 hours as sitting in the vault, appreciating at an average of 10% per year, just waiting for you to cash it in.

 

[BMBiology]

Welcome back BMB! Where have you been?

It is good to be back! I am working on something that I hope would create another stream of income.

This bill would pretty much kill any tax benefits to owning a house.

Max $500,000 mortgage interest deduction x 4% interest rate = $20,000
Max property tax deduction = $10,000
Total: $30,000

New standard tax deduction for couples: $24,000

The difference is just $6,000. Assuming 25% tax and since state income tax deductoins would also be eliminated, this couple would save $6,000 x 0.25 = $1,500 in taxes if they decide to itemize their taxes (assuming no other deductions like charity, etc) instead of taking the standard tax deduction.

 

[BMBiology]

Isn't this nice? The carried interest loophole survived (Trump said repeatedly, he would eliminate this loophole for hedge fund managers).

Carried Interest Loophole Preserved in House Republican Tax Bill

I dont get this...the very rich (top 0.1%) will get a huge tax cut while a good number of pharmacists will be paying more taxes. How does this make any sense?

 

[Old Timer]

Isn't this nice? The carried interest loophole survived (Trump said repeatedly, he would eliminate this loophole for hedge fund managers).

Carried Interest Loophole Preserved in House Republican Tax Bill

I dont get this...the very rich (top 0.1%) will get a huge tax cut while a good number of pharmacists will be paying more taxes. How does this make any sense?

It only makes sense if you believe President Prevaricator:

Our framework includes our explicit commitment that tax reform will protect low-income and middle-income households, not the wealthy and well-connected, “They can call me all they want. It’s not going to help. I’m doing the right thing, and it’s not good for me. Believe me.” Third, the tax plan would not increase the deficit. “

President Donald The Prevaricator Trump in a speech in Indiana.

“The wealthy are not getting a tax cut under our plan,”

Gary Cohn, Trump’s top economic advisor, said on Good Morning America.

Trump: 'The rich will not be gaining at all' with my tax reform plan

I haven't pulled out my tax returns from last year, but it looks like I'm gonna get screwed.....

In addition, non-profits will be getting in the @SS, can't deduct high salaries.

The electric car industry is in line to get doinked......

But, hey, they don't want to pick winners or loosers,........ Really.......

 

[WVUPharm2007]

I'll be paying more.

 

[Momus]

That just means I need to do some side hustle to make up the $2-3k/yr loss in taxes. Bring it on...

 

[wagrxm2000]

All that matters is that the market goes up even more.

 

[CetiAlphaFive]

Hopefully we can finally just get a giant buzz saw and chop California right off of the map

 

[AcesHigh]

Let all the bleeding hearts and SJW's cry about the electric car industry or nonprofits, I only care about what is going to be in my wallet at the end of the day. And with this new tax plan I will be saving a chunk of change. Literally, this new tax plan will benefit everybody who works.

 

[babybull]

Relatively new graduate, currently renting in sunny San Diego. I take the standard deduction so I'll see several thousand more every year come tax time $$$ =] Now if only the healthcare mandate would also be eliminated. Trump would be saving me $5000+ every year in returns. Not that I voted for him...

 

[jamesharper]

feeling bad about California

 

[Sine Cura]

Relatively new graduate, currently renting in sunny San Diego. I take the standard deduction so I'll see several thousand more every year come tax time $$$ =]

The $12k deduction is more than what a pharmacist would typically get to deduct pre-GOP plan (I personally deducted $11k in California state income taxes for last year; no other significant income aside from W-2) but the personal exemption is eliminated, so your taxable income will be higher

State income tax deduction would be capped at $10k under the GOP plan

 

[BMBiology]

The $12k deduction is more than what a pharmacist would typically get to deduct pre-GOP plan (I personally deducted $11k in California state income taxes for last year; no other significant income aside from W-2) but the personal exemption is eliminated, so your taxable income will be higher

State income tax deduction would be capped at $10k under the GOP plan

Actually the $10 k cap is on property tax only, not state income tax.

By getting rid of state income tax deduction , you would have less to deduct in CA and therefore, pay more taxes (most pharmacists).

 

[TheBlaah]

While I personally would be negatively affected by the elimination of the SALT deduction, I don't understand the purpose the giving a tax break to states that high inflated property/state taxes. I feel worse for New York pharmacists who have to deal with this and don't have the inflated income salary to back it up.

 

[297point1]

It appears that I am already paying more in taxes- am I the only one who didn't notice (until this pay period) that the social security payroll tax maximum jumped $8,700 this year to a maximum of $127,200? That's a big-arse jump!

2017 Payroll Taxes Will Hit Higher Incomes

 

[BidingMyTime]

I thought Republicrats wanted to discourage abortion and birth control...doing away with the dependent exemption would have the opposite effect.

 

[WVUPharm2007]

While I personally would be negatively affected by the elimination of the SALT deduction, I don't understand the purpose the giving a tax break to states that high inflated property/state taxes. I feel worse for New York pharmacists who have to deal with this and don't have the inflated income salary to back it up.

Back when Republicans were actual conservatives rather than whatever the hell the are now, they had the principles to dislike double taxation even if it helped mostly blue states...and doing things that didn't increase the national debt -- two things this plan will do. Not to mention probably slow the economy down markedly once demands dries up down the financial ladder...but oh well...

I don't even know what the GOP guiding principle is even more other than feed the wealth class.

 

[Sparda29]

I read something that they are also getting rid of the student loan interest payment deduction.

They should make it so that all student loan payments, not just the interest are tax deductible.

 

[WVUPharm2007]

17 point gap. I'm thinking this version of the bill is going to be DOA once it hits the senate.

 

[mentos]

I read something that they are also getting rid of the student loan interest payment deduction.

They should make it so that all student loan payments, not just the interest are tax deductible.

Most pharmacists don't qualify for the student loan interest deduction anyway. You want to give those art majors a bigger tax break?

 

[wagrxm2000]

I feel like this is karma for all the California pharmacists bragging how great it is in California.

 

[Momus]

I feel like this is karma for all the California pharmacists bragging how great it is in California.

Probably Trump trying to punish the blue states.

 

[wagrxm2000]

Probably Trump trying to punish the blue states.

Well that too.

 

[Momus]

Don't get a divorce.
Under Trump’s tax plan, divorces are about to get a lot nastier

 

[lord999]

It appears that I am already paying more in taxes- am I the only one who didn't notice (until this pay period) that the social security payroll tax maximum jumped $8,700 this year to a maximum of $127,200? That's a big-arse jump!

2017 Payroll Taxes Will Hit Higher Incomes

That's one that should have no cap. It's unreasonable the way it is considering the lifespan implications for those who make higher salaries.

 

[PAtoPharm]

So to summarize the bill -- pharmacists (and others who earn six figure incomes) who live in states that don't have high taxes and who don't have kids will be paying less in taxes overall... ?

 

[statepharmagent]

Maybe states like CA should lower their ridiculous tax rates and stop with their wasteful spending.

 

[BenJammin]

So not only will I be paying more in taxes but I will eventually lose out on the tax credit for a possible Tesla? Did we elect a Democrat?

 

[Sine Cura]

So to summarize the bill -- pharmacists (and others who earn six figure incomes) who live in states that don't have high taxes and who don't have kids will be paying less in taxes overall... ?

Basically if you benefit from a lot of itemized deductions (see the example above) you would pay more tax under the current proposed GOP plan.

But single people in high-income-tax states (like California) without any mortgage interest or property tax to deduct (me) would actually pay less tax due to the 28% federal income tax bracket being flattened to 25% to offset increased taxable income (loss of deduction of state income tax and no more personal exemption). For me it would be almost $2k less in tax.

 

[BidingMyTime]

Probably Trump trying to punish the blue states.

Well that too.

Seriously, do you guys really think Trump understands taxes enough to be able to come up with a plan to specifically punish blue states? I think more likely, he asked around, ala Homer Simpson, got a bunch of disparate ideas from people, threw them all together with no rhyme or reason, and viola, a new tax plan.

 

[wagrxm2000]

Seriously, do you guys really think Trump understands taxes enough to be able to come up with a plan to specifically punish blue states? I think more likely, he asked around, ala Homer Simpson, got a bunch of disparate ideas from people, threw them all together with no rhyme or reason, and viola, a new tax plan.

No but I don't think any president knows pretty much anything, including Obama. That's why they have their staff.

 

[pezdispenser]

Here is a calculator for the new tax plan: Tax Plan Calculator by Maxim Lott

 

[Amicable Angora]

Here is a calculator for the new tax plan: Tax Plan Calculator by Maxim Lott

Good work as usual, thank you!

 

[Aznfarmerboi]

I would be in favor of this tax bill if we got equal or more of a tax cut than corporates.

This tax bill is paid for by us and future generations to give CVS a tax break. It makes no sense. Trickle down economy never works. Companies were making record profits during the last few years. They don't need a tax cut. They run on the basis of being as efficient as possible. The idea that CVS will give pharmacists and tech more raises than what is necessary to keep them, or hire more workers than what they can get away with shows that these guys have no understanding of economics....

 

[Aznfarmerboi]

Plus the effect on certain industries like real estate can have real consequences and actually trigger a recession. Not surprised though, recession seems to always happen when ever a republican is president.

I am expecting one from Trump... and have six figures cash waiting to buy when everything goes on sale!

 

[ChalupaBatman86]

Here is a calculator for the new tax plan: Tax Plan Calculator by Maxim Lott

I️ am saving a lot of money. Still hate it. They are mortgaging our future. Will have to raise taxes just to pay the interest on our deficit alone. If we don’t just default on it like Trump does with his other businesses.



Sent from my iPhone using SDN mobile

 

[BMBiology]

Plus the effect on certain industries like real estate can have real consequences and actually trigger a recession. Not surprised though, recession seems to always happen when ever a republican is president.

I am expecting one from Trump... and have six figures cash waiting to buy when everything goes on sale!

The big losers are pharmacists in blue states (state income tax) who also own an expensive house (property tax).

House prices are crazy. If this causes price to go down then it is not a bad thing. Suck for those people who bought a house just for the projected tax deductions.


Sent from my iPhone using Tapatalk

 

[rxdawg21]

I would be in favor of this tax bill if we got equal or more of a tax cut than corporates.

This tax bill is paid for by us and future generations to give CVS a tax break. It makes no sense. Trickle down economy never works. Companies were making record profits during the last few years. They don't need a tax cut. They run on the basis of being as efficient as possible. The idea that CVS will give pharmacists and tech more raises than what is necessary to keep them, or hire more workers than what they can get away with shows that these guys have no understanding of economics....

I guess all these companies announcing pay raises and bonuses along with significant investments isn't happening?

Also let's face the debt is never getting paid back.