Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I promised to come back and report how the tax bill affected my taxes. I own a small business which has provided us enough income to place us into the top 10%. In December I was told on my final estimate I didn't have to send in the full 4th quarterly payment but about 1/2 of it. For the first time in years I pushed to get my taxes done early and found out I saved over 10k. So what did I do with that? Hired another part time employee who is over 65 and needed to add some income. I also need to provide furnishings and office equipment for them. I am investing the rest in growing the business and if that proves successful the accountant tells me my 2019 taxes will be back to what I paid in 2017 yet will also provide me more income. I believe that most small businesses in America will do the same.

You would be wrong. Most small businesses will pocket the money.

https://prospect.org/article/lost-opportunity-help-small-business

Businesses for Responsible Tax Reform conducted a poll of small-business owners, heavily weighted to Republicans and red states. The poll found thin support for the new tax law. Most believe the tax cut is heavily tilted toward large corporations over small business. The fact that the tax cuts for corporations are permanent and the tax breaks for S corporations are temporary doesn’t encourage the sort of stability that small business needs. Some 69 percent reported that they have no plans to hire new employees as a result of the Tax Act, and 59 percent said they have no plan to increase wages.

Why are you referring to an article written last year before businesses, such as mine, even had a working knowledge of what was going to actually happen? Consider that in what you posted "Most believe the tax cut is heavily tilted toward large corporations over small business." you have an assumption that was used to draw conclusions of what they would in fact do.

FWIW, I didn't vote for Trump nor will I if he runs again. Nor did I support the tax cut as it was written. Should they change the SS tax to unlimited without raising the maximum I will resent the hell out of that. It's bad enough I pay an unlimited 2.9% Medicare tax and pay more for Medicare insurance and see no just reason to add 12.4% more on income .

Cry me a river. I own an LLC and didn't get a tax break for the pass through, so I pay an additional 12% in SE tax AND lost my SALT deduction.

I'm referencing that article because regardless of when it was written, they stated that the wouldn't use the tax savings to hire people or increase wages, just like I had predicted on this form when the tax cuts were being discussed that large corporations would not raise wages or hire more people, but buy back stocks because that's what they usually do. They also indicated in a forum that they wouldn't be hiring more, but Trump and his minions didn't listen.

So no.. most small businesses aren't hiring more people or raising wages.

You didn't pay an additional SE tax (SS) as a result of not qualifying for the deduction. The pass through saved me federal income tax and did nothing to reduce my SE.

"The pass-through deduction is a personal deduction you may take on your Form 1040 whether or not you itemize. ... Moreover, the deduction only reduces income taxes, not Social Security or Medicare taxes."

Had I not gotten the pass through, and since I did itemize, I would have likely paid more in 2018 over what I paid in 2017 given that I do pay state and local income taxes had a qualifying mortgage deduction as well as charitable contributions. Without the SALT it wasn't going to be enough. But before the ruling was handed down as to my business qualifying it wasn't going to be that much more and it certainly didn't affect my SE.

Yes I realize the tax cuts weren't meant to address SE. I have had my LLC for almost 20 years. I'm fully aware of how SE tax works and how the pass through deduction works (applicable to qualified business income and not guaranteed income).

People like you, the very rich, and big corporations got a huge tax break while many of us, including those making about $150k to $200K got a tax increase due to the loss of SALT (check out the Money and Finance forum).

The tax cuts were for the rich. Full stop. And again, based on what's been going on those tax cuts did not produce the higher wages or more jobs like the Rs said they would.

I am no where near that category. If you have an AGI of around 200k you are in the top 5%. After my business deductions I am below that but well above the 10% mark. Fact is those of us in the top 10% pay right at 70% of the federal income tax collected. Top 25% moves that percentage to the upper 80's.

As I stated before, without the pass through my tax would have increased but not by much. And your SE didn't change, as you stated, because of the loss of SALT.

Nope.. my AGI is closer to 100K. Even so, someone making $150K in a high tax state just a got a tax increase while the uber rich got a huge tax cut. It does't matter if I am top 25% or not. The imbalance of the tax cuts is shameful.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I promised to come back and report how the tax bill affected my taxes. I own a small business which has provided us enough income to place us into the top 10%. In December I was told on my final estimate I didn't have to send in the full 4th quarterly payment but about 1/2 of it. For the first time in years I pushed to get my taxes done early and found out I saved over 10k. So what did I do with that? Hired another part time employee who is over 65 and needed to add some income. I also need to provide furnishings and office equipment for them. I am investing the rest in growing the business and if that proves successful the accountant tells me my 2019 taxes will be back to what I paid in 2017 yet will also provide me more income. I believe that most small businesses in America will do the same.

You would be wrong. Most small businesses will pocket the money.

https://prospect.org/article/lost-opportunity-help-small-business

Businesses for Responsible Tax Reform conducted a poll of small-business owners, heavily weighted to Republicans and red states. The poll found thin support for the new tax law. Most believe the tax cut is heavily tilted toward large corporations over small business. The fact that the tax cuts for corporations are permanent and the tax breaks for S corporations are temporary doesn’t encourage the sort of stability that small business needs. Some 69 percent reported that they have no plans to hire new employees as a result of the Tax Act, and 59 percent said they have no plan to increase wages.

Why are you referring to an article written last year before businesses, such as mine, even had a working knowledge of what was going to actually happen? Consider that in what you posted "Most believe the tax cut is heavily tilted toward large corporations over small business." you have an assumption that was used to draw conclusions of what they would in fact do.

FWIW, I didn't vote for Trump nor will I if he runs again. Nor did I support the tax cut as it was written. Should they change the SS tax to unlimited without raising the maximum I will resent the hell out of that. It's bad enough I pay an unlimited 2.9% Medicare tax and pay more for Medicare insurance and see no just reason to add 12.4% more on income .

Cry me a river. I own an LLC and didn't get a tax break for the pass through, so I pay an additional 12% in SE tax AND lost my SALT deduction.

I'm referencing that article because regardless of when it was written, they stated that the wouldn't use the tax savings to hire people or increase wages, just like I had predicted on this form when the tax cuts were being discussed that large corporations would not raise wages or hire more people, but buy back stocks because that's what they usually do. They also indicated in a forum that they wouldn't be hiring more, but Trump and his minions didn't listen.

So no.. most small businesses aren't hiring more people or raising wages.

You didn't pay an additional SE tax (SS) as a result of not qualifying for the deduction. The pass through saved me federal income tax and did nothing to reduce my SE.

"The pass-through deduction is a personal deduction you may take on your Form 1040 whether or not you itemize. ... Moreover, the deduction only reduces income taxes, not Social Security or Medicare taxes."

Had I not gotten the pass through, and since I did itemize, I would have likely paid more in 2018 over what I paid in 2017 given that I do pay state and local income taxes had a qualifying mortgage deduction as well as charitable contributions. Without the SALT it wasn't going to be enough. But before the ruling was handed down as to my business qualifying it wasn't going to be that much more and it certainly didn't affect my SE.

Yes I realize the tax cuts weren't meant to address SE. I have had my LLC for almost 20 years. I'm fully aware of how SE tax works and how the pass through deduction works (applicable to qualified business income and not guaranteed income).

People like you, the very rich, and big corporations got a huge tax break while many of us, including those making about $150k to $200K got a tax increase due to the loss of SALT (check out the Money and Finance forum).

The tax cuts were for the rich. Full stop. And again, based on what's been going on those tax cuts did not produce the higher wages or more jobs like the Rs said they would.

I am no where near that category. If you have an AGI of around 200k you are in the top 5%. After my business deductions I am below that but well above the 10% mark. Fact is those of us in the top 10% pay right at 70% of the federal income tax collected. Top 25% moves that percentage to the upper 80's.

As I stated before, without the pass through my tax would have increased but not by much. And your SE didn't change, as you stated, because of the loss of SALT.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I promised to come back and report how the tax bill affected my taxes. I own a small business which has provided us enough income to place us into the top 10%. In December I was told on my final estimate I didn't have to send in the full 4th quarterly payment but about 1/2 of it. For the first time in years I pushed to get my taxes done early and found out I saved over 10k. So what did I do with that? Hired another part time employee who is over 65 and needed to add some income. I also need to provide furnishings and office equipment for them. I am investing the rest in growing the business and if that proves successful the accountant tells me my 2019 taxes will be back to what I paid in 2017 yet will also provide me more income. I believe that most small businesses in America will do the same.

You would be wrong. Most small businesses will pocket the money.

https://prospect.org/article/lost-opportunity-help-small-business

Businesses for Responsible Tax Reform conducted a poll of small-business owners, heavily weighted to Republicans and red states. The poll found thin support for the new tax law. Most believe the tax cut is heavily tilted toward large corporations over small business. The fact that the tax cuts for corporations are permanent and the tax breaks for S corporations are temporary doesn’t encourage the sort of stability that small business needs. Some 69 percent reported that they have no plans to hire new employees as a result of the Tax Act, and 59 percent said they have no plan to increase wages.

Why are you referring to an article written last year before businesses, such as mine, even had a working knowledge of what was going to actually happen? Consider that in what you posted "Most believe the tax cut is heavily tilted toward large corporations over small business." you have an assumption that was used to draw conclusions of what they would in fact do.

FWIW, I didn't vote for Trump nor will I if he runs again. Nor did I support the tax cut as it was written. Should they change the SS tax to unlimited without raising the maximum I will resent the hell out of that. It's bad enough I pay an unlimited 2.9% Medicare tax and pay more for Medicare insurance and see no just reason to add 12.4% more on income .

Cry me a river. I own an LLC and didn't get a tax break for the pass through, so I pay an additional 12% in SE tax AND lost my SALT deduction.

I'm referencing that article because regardless of when it was written, they stated that the wouldn't use the tax savings to hire people or increase wages, just like I had predicted on this form when the tax cuts were being discussed that large corporations would not raise wages or hire more people, but buy back stocks because that's what they usually do. They also indicated in a forum that they wouldn't be hiring more, but Trump and his minions didn't listen.

So no.. most small businesses aren't hiring more people or raising wages.

You didn't pay an additional SE tax (SS) as a result of not qualifying for the deduction. The pass through saved me federal income tax and did nothing to reduce my SE.

"The pass-through deduction is a personal deduction you may take on your Form 1040 whether or not you itemize. ... Moreover, the deduction only reduces income taxes, not Social Security or Medicare taxes."

Had I not gotten the pass through, and since I did itemize, I would have likely paid more in 2018 over what I paid in 2017 given that I do pay state and local income taxes had a qualifying mortgage deduction as well as charitable contributions. Without the SALT it wasn't going to be enough. But before the ruling was handed down as to my business qualifying it wasn't going to be that much more and it certainly didn't affect my SE.

Yes I realize the tax cuts weren't meant to address SE. I have had my LLC for almost 20 years. I'm fully aware of how SE tax works and how the pass through deduction works (applicable to qualified business income and not guaranteed income).

People like you, the very rich, and big corporations got a huge tax break while many of us, including those making about $150k to $200K got a tax increase due to the loss of SALT (check out the Money and Finance forum).

The tax cuts were for the rich. Full stop. And again, based on what's been going on those tax cuts did not produce the higher wages or more jobs like the Rs said they would.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I promised to come back and report how the tax bill affected my taxes. I own a small business which has provided us enough income to place us into the top 10%. In December I was told on my final estimate I didn't have to send in the full 4th quarterly payment but about 1/2 of it. For the first time in years I pushed to get my taxes done early and found out I saved over 10k. So what did I do with that? Hired another part time employee who is over 65 and needed to add some income. I also need to provide furnishings and office equipment for them. I am investing the rest in growing the business and if that proves successful the accountant tells me my 2019 taxes will be back to what I paid in 2017 yet will also provide me more income. I believe that most small businesses in America will do the same.

You would be wrong. Most small businesses will pocket the money.

https://prospect.org/article/lost-opportunity-help-small-business

Businesses for Responsible Tax Reform conducted a poll of small-business owners, heavily weighted to Republicans and red states. The poll found thin support for the new tax law. Most believe the tax cut is heavily tilted toward large corporations over small business. The fact that the tax cuts for corporations are permanent and the tax breaks for S corporations are temporary doesn’t encourage the sort of stability that small business needs. Some 69 percent reported that they have no plans to hire new employees as a result of the Tax Act, and 59 percent said they have no plan to increase wages.

Why are you referring to an article written last year before businesses, such as mine, even had a working knowledge of what was going to actually happen? Consider that in what you posted "Most believe the tax cut is heavily tilted toward large corporations over small business." you have an assumption that was used to draw conclusions of what they would in fact do.

FWIW, I didn't vote for Trump nor will I if he runs again. Nor did I support the tax cut as it was written. Should they change the SS tax to unlimited without raising the maximum I will resent the hell out of that. It's bad enough I pay an unlimited 2.9% Medicare tax and pay more for Medicare insurance and see no just reason to add 12.4% more on income .

Cry me a river. I own an LLC and didn't get a tax break for the pass through, so I pay an additional 12% in SE tax AND lost my SALT deduction.

I'm referencing that article because regardless of when it was written, they stated that the wouldn't use the tax savings to hire people or increase wages, just like I had predicted on this form when the tax cuts were being discussed that large corporations would not raise wages or hire more people, but buy back stocks because that's what they usually do. They also indicated in a forum that they wouldn't be hiring more, but Trump and his minions didn't listen.

So no.. most small businesses aren't hiring more people or raising wages.

You didn't pay an additional SE tax (SS) as a result of not qualifying for the deduction. The pass through saved me federal income tax and did nothing to reduce my SE.

"The pass-through deduction is a personal deduction you may take on your Form 1040 whether or not you itemize. ... Moreover, the deduction only reduces income taxes, not Social Security or Medicare taxes."

Had I not gotten the pass through, and since I did itemize, I would have likely paid more in 2018 over what I paid in 2017 given that I do pay state and local income taxes had a qualifying mortgage deduction as well as charitable contributions. Without the SALT it wasn't going to be enough. But before the ruling was handed down as to my business qualifying it wasn't going to be that much more and it certainly didn't affect my SE.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I promised to come back and report how the tax bill affected my taxes. I own a small business which has provided us enough income to place us into the top 10%. In December I was told on my final estimate I didn't have to send in the full 4th quarterly payment but about 1/2 of it. For the first time in years I pushed to get my taxes done early and found out I saved over 10k. So what did I do with that? Hired another part time employee who is over 65 and needed to add some income. I also need to provide furnishings and office equipment for them. I am investing the rest in growing the business and if that proves successful the accountant tells me my 2019 taxes will be back to what I paid in 2017 yet will also provide me more income. I believe that most small businesses in America will do the same.

You would be wrong. Most small businesses will pocket the money.

https://prospect.org/article/lost-opportunity-help-small-business

Businesses for Responsible Tax Reform conducted a poll of small-business owners, heavily weighted to Republicans and red states. The poll found thin support for the new tax law. Most believe the tax cut is heavily tilted toward large corporations over small business. The fact that the tax cuts for corporations are permanent and the tax breaks for S corporations are temporary doesn’t encourage the sort of stability that small business needs. Some 69 percent reported that they have no plans to hire new employees as a result of the Tax Act, and 59 percent said they have no plan to increase wages.

Why are you referring to an article written last year before businesses, such as mine, even had a working knowledge of what was going to actually happen? Consider that in what you posted "Most believe the tax cut is heavily tilted toward large corporations over small business." you have an assumption that was used to draw conclusions of what they would in fact do.

FWIW, I didn't vote for Trump nor will I if he runs again. Nor did I support the tax cut as it was written. Should they change the SS tax to unlimited without raising the maximum I will resent the hell out of that. It's bad enough I pay an unlimited 2.9% Medicare tax and pay more for Medicare insurance and see no just reason to add 12.4% more on income .

Cry me a river. I own an LLC and didn't get a tax break for the pass through, so I pay an additional 12% in SE tax AND lost my SALT deduction.

I'm referencing that article because regardless of when it was written, they stated that the wouldn't use the tax savings to hire people or increase wages, just like I had predicted on this form when the tax cuts were being discussed that large corporations would not raise wages or hire more people, but buy back stocks because that's what they usually do. They also indicated in a forum that they wouldn't be hiring more, but Trump and his minions didn't listen.

So no.. most small businesses aren't hiring more people or raising wages.

Anonymous wrote:

Anonymous wrote:I promised to come back and report how the tax bill affected my taxes. I own a small business which has provided us enough income to place us into the top 10%. In December I was told on my final estimate I didn't have to send in the full 4th quarterly payment but about 1/2 of it. For the first time in years I pushed to get my taxes done early and found out I saved over 10k. So what did I do with that? Hired another part time employee who is over 65 and needed to add some income. I also need to provide furnishings and office equipment for them. I am investing the rest in growing the business and if that proves successful the accountant tells me my 2019 taxes will be back to what I paid in 2017 yet will also provide me more income. I believe that most small businesses in America will do the same.

You would be wrong. Most small businesses will pocket the money.

https://prospect.org/article/lost-opportunity-help-small-business

Businesses for Responsible Tax Reform conducted a poll of small-business owners, heavily weighted to Republicans and red states. The poll found thin support for the new tax law. Most believe the tax cut is heavily tilted toward large corporations over small business. The fact that the tax cuts for corporations are permanent and the tax breaks for S corporations are temporary doesn’t encourage the sort of stability that small business needs. Some 69 percent reported that they have no plans to hire new employees as a result of the Tax Act, and 59 percent said they have no plan to increase wages.

Why are you referring to an article written last year before businesses, such as mine, even had a working knowledge of what was going to actually happen? Consider that in what you posted "Most believe the tax cut is heavily tilted toward large corporations over small business." you have an assumption that was used to draw conclusions of what they would in fact do.

FWIW, I didn't vote for Trump nor will I if he runs again. Nor did I support the tax cut as it was written. Should they change the SS tax to unlimited without raising the maximum I will resent the hell out of that. It's bad enough I pay an unlimited 2.9% Medicare tax and pay more for Medicare insurance and see no just reason to add 12.4% more on income .

Anonymous wrote:I promised to come back and report how the tax bill affected my taxes. I own a small business which has provided us enough income to place us into the top 10%. In December I was told on my final estimate I didn't have to send in the full 4th quarterly payment but about 1/2 of it. For the first time in years I pushed to get my taxes done early and found out I saved over 10k. So what did I do with that? Hired another part time employee who is over 65 and needed to add some income. I also need to provide furnishings and office equipment for them. I am investing the rest in growing the business and if that proves successful the accountant tells me my 2019 taxes will be back to what I paid in 2017 yet will also provide me more income. I believe that most small businesses in America will do the same.

You would be wrong. Most small businesses will pocket the money.

https://prospect.org/article/lost-opportunity-help-small-business

Businesses for Responsible Tax Reform conducted a poll of small-business owners, heavily weighted to Republicans and red states. The poll found thin support for the new tax law. Most believe the tax cut is heavily tilted toward large corporations over small business. The fact that the tax cuts for corporations are permanent and the tax breaks for S corporations are temporary doesn’t encourage the sort of stability that small business needs. Some 69 percent reported that they have no plans to hire new employees as a result of the Tax Act, and 59 percent said they have no plan to increase wages.

We have an AGI of 170k and paid 4K more this year thanks to the Trump tax reform. But I am comforted knowing that the Trumps, Kochs and Adelsons will be paying millions of dollars less this year.

I promised to come back and report how the tax bill affected my taxes. I own a small business which has provided us enough income to place us into the top 10%. In December I was told on my final estimate I didn't have to send in the full 4th quarterly payment but about 1/2 of it. For the first time in years I pushed to get my taxes done early and found out I saved over 10k. So what did I do with that? Hired another part time employee who is over 65 and needed to add some income. I also need to provide furnishings and office equipment for them. I am investing the rest in growing the business and if that proves successful the accountant tells me my 2019 taxes will be back to what I paid in 2017 yet will also provide me more income. I believe that most small businesses in America will do the same.

Anonymous wrote:

Just wait til April.

A couple years from now, the whole bill from the corporate welfare rebate for billionaires will be due.

Anonymous wrote:The GOP should not have tinkered with the withholdings. The psychological impact on the market will be bigger than the actual tax owed at the end of the day. People simply do not want to cut a big check to the government, even if they are paying less tax overall in aggregate. It's going to have a big impact on consumer spending and durable goods orders.

This was a huge error by the GOP. They've decimated their support in purple states where MC and UMC right-leaning centrist homeowners rely on the SALT deduction.

No doubt the GOP strategy is to come up with some bullshit messaging to somehow blame Pelosi or Obama or "socialists" or somesuch nonsense. And sadly a big percentage of GOP voters will just nod and agree unquestioningly.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Interesting that the press is touting lower refunds--not lower tax payments.........

I remember the first year I paid taxes--it was the refund that counted. As I got wealthier, I got wiser.

Fixed that for you.

Most Americans don't have enough cash to afford a $500 emergency. Their tax refund is the biggest single payment they receive all year. And hence why it is used by families to make major purchases: a down payment on a new car, a new washer/dryer set, or to finally replace the roof on their house.

They would be wise to pay less taxes with each paycheck instead of loaning their money to the government and then getting it back, interest free, and feeling like it’s a bonus.

You are so blind to the privilege that lets you say that.

That is not privilege.

Anyone can go into the local library, go to the IRS withholding calculator at the beginning of the year with a pay stub in hand and figure out their withholding so that they have bigger take home pay each week. That is something I mentor my junior employees to do each year.

https://www.irs.gov/individuals/irs-withholding-calculator

Now I do understand that withholding forces people to "save" who might not otherwise, but employers should encourage that anyways by offering to move money to a savings account for them upon starting employment, much like how requring people to opt out from 401k savings plans instead of opting in resulting in more retirement savings.

"regular people" (not DCUMers) set up their W4 long ago. They didn't think they would need to change it because they made the same money for year after year and had the same withholding and same refund. They were expecting any withholding reduction would be equal to the tax cut. So you get $1,200 tax cut? That's $100 less withholding each month and the same overpayment/refund when they file and why wouldn't they have thought that?

As an example, my brother makes $30k a year. He always gets about $2,000 a year refund. He isn't good at saving and knows it. He likes over-withholding so that he can receive a large refund and use it on expensive purchases. This year his refund was only $1,750 which is still considerable but somewhat less than he was expecting. He wasn't angry but he certainly wasn't happy about it (I had warned him this might happen and suggested he use the calculator but chose not to). I took a look at his taxes and his total tax did go down so he got a tax cut but withholding went down more. His total tax went down by $180 but his withholding went down about $430 which is why the refund went down. The withholding tables were screwed up. He doesn't have any deductions or credits so the reduction in withholding should have been the same as his reduction in tax.

He's lucky that he always got refunds. The people that "don't want to give the government an interest free loan" are the ones being screwed over and owing money. If he was of that mindset, he'd be writing a check for $250 and wouldn't be able to get new tires for his truck.

People can say what they want about lower total taxes but they completely ignore the fact that the withholding tables reduced withholding by more than the tax reduction. That's why people are calling it a tax scam.

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Interesting that the press is touting lower refunds--not lower tax payments.........

I remember the first year I paid taxes--it was the refund that counted. As I got wealthier, I got wiser.

Fixed that for you.

Most Americans don't have enough cash to afford a $500 emergency. Their tax refund is the biggest single payment they receive all year. And hence why it is used by families to make major purchases: a down payment on a new car, a new washer/dryer set, or to finally replace the roof on their house.

They would be wise to pay less taxes with each paycheck instead of loaning their money to the government and then getting it back, interest free, and feeling like it’s a bonus.

You are so blind to the privilege that lets you say that.

That is not privilege.

Anyone can go into the local library, go to the IRS withholding calculator at the beginning of the year with a pay stub in hand and figure out their withholding so that they have bigger take home pay each week. That is something I mentor my junior employees to do each year.

https://www.irs.gov/individuals/irs-withholding-calculator

Now I do understand that withholding forces people to "save" who might not otherwise, but employers should encourage that anyways by offering to move money to a savings account for them upon starting employment, much like how requring people to opt out from 401k savings plans instead of opting in resulting in more retirement savings.