Trump's Full Court Press on Tax Reform

[malchior]

Have you met the parable of the Scorpion and the Frog?

[coopasonic]

That's pretty close to my household, but according to my accountant I should be good. I generally over-withhold anyway.

The 21% example, not the frog.

[RunningMn9]

That's is 21% of Americans? I find that hard to believe.

I’m guessing that it’s not just people in that bracket. It’s poor assholes like me that had to play games with the number of deductions I was claiming to compensate for NJ’s absurd property taxes, etc.

Not letting me itemize those anymore will likely mean I am humped because I neglected to update my W-4. It’s my own fault though, not the tax code’s or my employer’s.

[Kraken]

As long as the people who get screwed are mostly in blue states, nobody cares.

[Smoove_B]

I wonder what is happening?

"It's close to unprecedented," Collender said. "When the economy is doing well, which it's obviously doing and has done for a decade, you would want a fiscal policy that would get the deficit to go down, not up."

But policymakers in Washington have gone in precisely the opposite direction. Earlier this year, Congress boosted spending on both the military and domestic programs. And then there's the tax cut, which the president bragged about at a campaign rally this week.

Also:

"We passed the biggest tax cuts and reform in American history. Biggest cuts in history," Trump told supporters in Tampa.

In fact, these were not the biggest tax cuts ever, but they are cutting in to government revenues, despite repeated promises that the cuts would pay for themselves.

[Kraken]

The Democrats are supposedly the tax-and-spend party. The Republicans are demonstrably the just-spend party. Guess which is more popular?

[Pyperkub]

The Democrats are supposedly the tax-and-spend party. The Republicans are demonstrably the just-spend party. Guess which is more popular?

Even worse, tax cut and spend part.

2/3 of the national debt is directly attributable to this GOP policy.

[Isgrimnur]

The Hill

The federal deficit jumped 20 percent in the first 10 months of the 2018 fiscal year, the Congressional Budget Office (CBO) reported Wednesday.

Spending outpaced revenue between the beginning of the fiscal year, on Oct. 1, and July by $682 billion, $116 billion more than over the same period in the last fiscal year.

The rising deficit is largely the result of the tax cuts President Trump signed into law at the end of last year, as well as a bipartisan agreement to boost spending, according to CBO.

Tax revenues from individuals rose, even as revenues from corporate taxes dropped.
...
The CBO projects that the deficit will reach $793 billion by the end of the year and approach $1 trillion next year. White House estimates have the deficit surpassing $1 trillion in 2019.

Budget watchers have warned that interest payments — the amount the Treasury has to pay just to service the debt — are slated to become the fastest-growing annual expenditure.

[LawBeefaroni]

IIRC, interest will become the top expense in a few years. It was $310B+ in 2018. And it will only compound as the deficit increases and borrowing becomes more expensive.

Tax revenues from individuals rose, even as revenues from corporate taxes dropped.

As planned. I'm sure the money drop from corporations to wages is expected any day now. Any...day...now...

[LawBeefaroni]

Another tax break gem:

Craft distilleries are having the time of their lives, thanks to consumers' ever-increasing thirst for small-batch liquor—and President Donald Trump's 2017 tax bill.

The tax overhaul includes a provision that slashed the federal excise tax on distilled spirits by 80 percent, to $2.70 per gallon from $13.50, for the first 100,000 gallons of annual production. Local businesses are reinvesting that windfall by increasing production capacity, headcount and floor space, even as whispers of a looming shakeout persist.

As much as I love the spirits, I don't see how it's crucial to increase the debt to benefit distillers. I can tell you that the price of Koval in the store hasn't gone down a penny.

Taxes on craft beer and craft cider were also slashed.

[Jeff V]

Taxes on craft beer and craft cider were also slashed.

And consumers were rewarded with a price increase of those items as well.

Just got a love letter from the county assessor's office yesterday. My property tax is going up 6.5% this year. Yay! More winning! It's not so bad...one person in my subdivision had their's go up more than 30% after adding a fence in the past year.

[LawBeefaroni]

Taxes on craft beer and craft cider were also slashed.

And consumers were rewarded with a price increase of those items as well.

Just got a love letter from the county assessor's office yesterday. My property tax is going up 6.5% this year. Yay! More winning! It's not so bad...one person in my subdivision had their's go up more than 30% after adding a fence in the past year.

We got a 15% increase that we fought and got knocked to around 13% IIRC. And we took that running. Most of the neighbors got 20%+ hits.

[Jeff V]

Ours seems to be the average, there's likely nothing to be gained by doing battle. Those who got hit with double-digit increase certainly should.

Let's not forget to give credit where credit is due. Thanks Bruce Rauner!

[TheMix]

I'm still waiting for my county to remember that I added an addition that almost doubled by square footage. My taxes have gone up a bunch over the last couple years, but that's due to the housing market. So far we still haven't gotten the addition "bump". Not looking forward to it.

[GreenGoo]

I'm still waiting for my county to remember that I added an addition that almost doubled by square footage. My taxes have gone up a bunch over the last couple years, but that's due to the housing market. So far we still haven't gotten the addition "bump". Not looking forward to it.

You need to put a giant tarp over the addition, and maybe paint some grass and trees on it.

[TheMix]

I'm still waiting for my county to remember that I added an addition that almost doubled by square footage. My taxes have gone up a bunch over the last couple years, but that's due to the housing market. So far we still haven't gotten the addition "bump". Not looking forward to it.

You need to put a giant tarp over the addition, and maybe paint some grass and trees on it.

[LawBeefaroni]

Ours seems to be the average, there's likely nothing to be gained by doing battle. Those who got hit with double-digit increase certainly should.

Let's not forget to give credit where credit is due. Thanks Bruce Rauner!

Rauner, Madigan, Berios, Preckwinke, Rahm, it's been a real team effort.

[Zarathud]

Nothing like buying a new house and selling the old one to screw yourself with the tax assessor.

[LawBeefaroni]

Nothing like buying a new house and selling the old one to screw yourself with the tax assessor.

But...free Trump money!

Chicago's superluxury home market is having its best year ever as the 1 percent tap their savings from tax cuts and capital gains from the longest bull market in U.S. history to buy multimillion-dollar properties.

Through the end of August, 51 houses and condos sold for at least $4 million in metro Chicago. That's more than were sold through all of 2017 or 2016. And with more than three months to go, 2018 needs just one sale to surpass the 51 in this price range in 2015, the previous peak locally.

[Smoove_B]

Hey, let's check in on all those promises:

According to new data from the Bureau of Labor Statistics, worker wages have been essentially flat since the GOP tax bill was passed in December.

The average hourly wage for production and nonsupervisory employees crept up from $9.25 in August 2018 to $9.27 in September. However, the July figure matches numbers from the same month in 2017 — effectively meaning there was no growth from the year prior.

...

This is different from the future that President Trump outlined when urging Congress to pass the tax cut bill. He said that the average family would receive a $4,000 pay raise. The entire rationale behind the tax cut was to boost Americans’ wages.

Pausing here to allow you to get your fainting couch.

Executives and corporate shareholders, however, have truly benefited from the tax cut bill. According to a chart from the Center for American Progress Action Fund, corporate profits have grown dramatically since the tax bill passed. (ThinkProgress is an editorially independent newsroom housed within the Center for American Progress.)

...

Many of those business, including Walmart, touted the bonuses they were giving just as they were using their tax savings to offer stock buybacks to shareholders and to offset the cost of closing stores where thousands of people worked. And because the bonuses only happen once, workers won’t get more unless yearly wages rise — which they haven’t been, according to the federal government’s own data.

[GreenGoo]

a) The economy is doing so well that the fed increased interest rates.
b) employment is quite high.

That's it. No one is interested in details, not even those with stagnating wages, apparently.

Hearing Drumpf complain about the fed when what it is doing is one of the clearest signs yet that the economy is as good as he thinks it is, is hilarious to me.

It's like complaining about someone telling the world what a great job you are doing. The stock market isn't the only indicator of a strong economy. Hell, it's not even the only way for you and your cronies to make money, shitgoblin (we haven't used this enough recently).

[LordMortis]

Hey, let's check in on all those promises:

According to new data from the Bureau of Labor Statistics, worker wages have been essentially flat since the GOP tax bill was passed in December.

The average hourly wage for production and nonsupervisory employees crept up from $9.25 in August 2018 to $9.27 in September. However, the July figure matches numbers from the same month in 2017 — effectively meaning there was no growth from the year prior.

...

This is different from the future that President Trump outlined when urging Congress to pass the tax cut bill. He said that the average family would receive a $4,000 pay raise. The entire rationale behind the tax cut was to boost Americans’ wages.

Pausing here to allow you to get your fainting couch.

Executives and corporate shareholders, however, have truly benefited from the tax cut bill. According to a chart from the Center for American Progress Action Fund, corporate profits have grown dramatically since the tax bill passed. (ThinkProgress is an editorially independent newsroom housed within the Center for American Progress.)

...

Many of those business, including Walmart, touted the bonuses they were giving just as they were using their tax savings to offer stock buybacks to shareholders and to offset the cost of closing stores where thousands of people worked. And because the bonuses only happen once, workers won’t get more unless yearly wages rise — which they haven’t been, according to the federal government’s own data.

I won't know how to reply to this until March when I receive the last of my SPY dividend receipts for 2018 and do my tax returns. As a single dude, claiming zero with a high paycheck by national average standards and withholding the maximum amount for his 401k broken in to 24 even contributions a year, I am seeing about an extra $200 a month in my check from the tax cut (or about $2400 a year). That means exactly shit until I see my tax return. I received no bonus or raise and I would be laughed at if I inquired about it. This $200 a month is promptly going to a small increase in property tax rate and a large increase in health care and climate control costs. Which, btw, what the actual fuck is up with nearly 90 decree weather in mid October, where I am sure we are now headed from 86 to freezing in like two days. Aren't I supposed to have like four months a year no AC and no heat? September fucked me and it looks like October is not only going to fuck me, it's going to do in BiPolar fashion.

[GreenGoo]

LM, considering everything you have posted about your employment over the years, you are clearly undervalued and overworked. Many people have told you that. That you don't believe it or refuse to act on that knowledge is on you at this point. And that is totally cool. We each have to decide what is right for ourselves, and you are comfortable enough just grumbling about it on the internet. I hope that is cathartic for you.

The idea that your employer would laugh at you for inquiring about being paid what you are worth is another indicator that your employer is playing you, or at least undervalues you. You're worth more than you think.

[Jeff V]

My employer recently urged all US employees to see a tax advisor stat as most will likely have an unpleasant surprise come tax time. Being the withholding cut amounted to $15 less per bi-monthly paycheck in the first place, I'm expecting a fisting of epic proportion wearing the spiked glove of Trump's alt-tax cut.

With 5 paychecks remaining this year, might as well ride it out and see what happens in February.

[Chaz]

Yeah, that's kind of what I'm planning on. I suppose it's possible that the second kid we just added helps out? Maybe? MAGA!

[LordMortis]

The idea that your employer would laugh at you for inquiring about being paid what you are worth is another indicator that your employer is playing you, or at least undervalues you. You're worth more than you think.

Point to clarify. If I were to go in and want to renegotiate my value, they'd come to the table but right now they'd want to renegotiate my value addition. What they would laugh at is the notion that I would receive any raised based on tax cuts to the company. I *do* get a form of merit based profit sharing at the of the year but tax cuts are not figured in to that, as my merit has value addition in relation to tax cuts. That's a windfall for shareholders and the faces that appease them.

[Isgrimnur]

Politico

Republicans thought their massive tax overhaul would be the centerpiece of their midterm strategy. But it turns out they were so wrong they’ve been barely mentioning the $1.5 trillion tax cut on the campaign trail.

With polls showing Americans are more likely to disapprove of the tax law than to approve of it, GOP candidates have been changing the subject to other issues like immigration and health care. Some of the lawmakers who wrote the Tax Cuts and Jobs Act are even struggling to hang onto their seats.

“I would have bet you a lot of money going into this year that, if you cut people’s taxes by thousands of dollars per year, that would be politically popular,” said Ryan Ellis, a prominent Republican consultant. “But it has not worked out that way.”

President Donald Trump tried to steer the conversation back to tax cuts on Saturday, telling reporters that the White House and congressional leaders are working on "a very major tax cut for middle-income people. And if we do that it would be some time I would say just prior to November."

But, if anything, his remarks sparked confusion, since Congress is out of session until after the November election and can’t act before then.

Meanwhile, there’s a lot of frustration and second-guessing among Republicans over how they failed to sell the tax law to voters.

[Pyperkub]

Politico

Republicans thought their massive tax overhaul would be the centerpiece of their midterm strategy. But it turns out they were so wrong they’ve been barely mentioning the $1.5 trillion tax cut on the campaign trail.

With polls showing Americans are more likely to disapprove of the tax law than to approve of it, GOP candidates have been changing the subject to other issues like immigration and health care. Some of the lawmakers who wrote the Tax Cuts and Jobs Act are even struggling to hang onto their seats.

“I would have bet you a lot of money going into this year that, if you cut people’s taxes by thousands of dollars per year, that would be politically popular,” said Ryan Ellis, a prominent Republican consultant. “But it has not worked out that way.”

President Donald Trump tried to steer the conversation back to tax cuts on Saturday, telling reporters that the White House and congressional leaders are working on "a very major tax cut for middle-income people. And if we do that it would be some time I would say just prior to November."

But, if anything, his remarks sparked confusion, since Congress is out of session until after the November election and can’t act before then.

Meanwhile, there’s a lot of frustration and second-guessing among Republicans over how they failed to sell the tax law to voters.

Hey, maybe you CAN'T lie to some of the people ALL of the time and get away with it!

in other words, that "tax cut" was a shit sandwich for 95% of the population. Chocolated-coated to make it go down easier, but the chocolate dissolves even more quickly than usual, and it's sure to leave almost everyone throwing up sooner rather than later.

[milo]

Hey, maybe you CAN'T lie to some of the people ALL of the time and get away with it!

https://www.whitehouse.gov/briefings-st ... arture-18/

THE WHITE HOUSE

Office of the Press Secretary

________________________________________________________________

For Immediate Release October 22, 2018

REMARKS BY PRESIDENT TRUMP

BEFORE MARINE ONE DEPARTURE

South Lawn

2:45 P.M. EDT




Q You said "lower tax cuts." You said that you wanted tax cuts by November 1st. Congress isn't even in session. How is that possible?

THE PRESIDENT: No, we're going to be passing -- no, no. We're putting in a resolution sometime in the next week, or week and a half, two weeks.

Q A resolution where?

THE PRESIDENT: We're going to put in -- we're giving a middle-income tax reduction of about 10 percent. We're doing it now for middle-income people. This is not for business; this is for middle. That's on top of the tax decrease that we've already given them.

Q Are you signing an executive order for that?

THE PRESIDENT: No. No. No. I'm going through Congress.

Q But Congress isn't in session though.

THE PRESIDENT: We won't have time to do the vote. We'll do the vote later.

Q Congress is out.

THE PRESIDENT: We'll do the vote after the election.

On the other hand, you can always try!

[RunningMn9]

He is the dumbest goddamn human alive. It’s not for business, it’s for middle?

He’s going to go through Congress...but vote on it later?

[LordMortis]

[snip]

Wow. Read that whole thing. Hot take after hot take after hot take.

Aiding other countries isn't worth if they can do nothing for us.
Top men in Turkey will have cracked Saudi tomorrow. Top men.
Protecting the country is protecting Trans
Cruz has won Texas in exciting fashion and was only "lying Ted" when he was running against Trump.
When this tax break you got isn't what you thought it was blame yourself for voting D in November.

I don't even know what to make of this about the House:

I think their tremendous spirit, maybe like I’ve never seen, other than in 16′. You don’t remember 16′; you’re too young. I have never seen spirit like the spirit that we have right now, except the week before the race — the presidential race, two years ago.

The running theme that it's OK to flat out lie as long as you win, this time in regard to calling to linking Cruz to the JFK assassination.
Immigration has rioting going on in California sanctuary cities.


It's like sitting at dinner with my absolute nuttiest aunt.

[LordMortis]

While I still don't agree with the tax cut, it's looking probable that it was meaningful to me. My last two paychecks of the year are being increased due to over estimating withholding from our payroll company. Since I started claiming less than 0 (claiming 0 always had me owing. It made no sense) I'd usually been getting about $1000 back from Federal taxes every year, with no ability to play tax game as a single man working for someone else and his meager home paid off. I've been getting something shy of an extra $100 per check or about $2200 per year. Add another $200 at the end of the year... If I still get my $1000 back his tax cut will amount to a very meaningful $2400 a year to me while it lasts.

Now, when I look at what's happening around coupled with the expansion of US debt against our collective future, I'd rather keep paying my old burden, but at least I've been bribed a bit.

[GreenGoo]

Money is money. It's not wrong to like keeping more of it.

[pr0ner]

I noticed that 10% middle class tax cut is nowhere to be found....

[Jeff V]

The election is over. No need to continue duping voters.

[Carpet_pissr]

I noticed that 10% middle class tax cut is nowhere to be found....

Too many words! Very confusing! Please say TrumpTalk in foward time: "I noticed that 10% middle is not, no, no no no."

[Pyperkub]

I noticed that 10% middle class tax cut is nowhere to be found....

Maybe the Press should ask if Trump would swear to his statements under oath before printing them:

No one could find evidence of the middle-class tax cut plan President Trump kept promising before November's midterms. Now, Treasury Secretary Steven Mnuchin won't even confirm it ever existed.

In a Tuesday interview, Mnuchin told Bloomberg the administration's top priority for next year is fixing 2017's tax overhaul. And as for the mysterious tax cut, well, Mnuchin said he was "not going to comment on whether it is a real thing or not a real thing."

[LordMortis]

I still haven't received any of my tax docs and won't even do my taxes until the second round of amended tax documents are released from TD Ameritrade in March (if Scottrade was any indicator) but the internet has suggested that as someone in cheap ass and paid off house who takes standard deductions, I should be one of the elect who is not at the top of the food heap. Taking my standard deduction from $6,350 to $12,000. I think, in total my check went up about $2,300 last year due to this "reform". This suggests, that while ally'all may be in for some suck ass times, my typical refund of about $1,000 should be about $4,500 this year. I'll believe it when I see it.

[LawBeefaroni]

I still haven't received any of my tax docs and won't even do my taxes until the second round of amended tax documents are released from TD Ameritrade in March (if Scottrade was any indicator) but the internet has suggested that as someone in cheap ass and paid off house who takes standard deductions, I should be one of the elect who is not at the top of the food heap. Taking my standard deduction from $6,350 to $12,000. I think, in total my check went up about $2,300 last year due to this "reform". This suggests, that while ally'all may be in for some suck ass times, my typical refund of about $1,000 should be about $4,500 this year. I'll believe it when I see it.

1099s go online at TD Ameritrade on Feb 15th. You can just download them then.

[LordMortis]

1099s go online at TD Ameritrade on Feb 15th. You can just download them then.

Will they accurately reflect December SPY dividends? Scottrade never did until mid march.