GOP tax plan musing...capping 401k contributions at $2400 year

[sactoking]

Section 1307 of the bill repeals the deduction for tax prep services. While not huge it's a flick in the nuts to the middle class.

 

[sactoking]

Section 1308 eliminates the medical expense deduction completely.

 

[K1052]

Section 1307 of the bill repeals the deduction for tax prep services. While not huge it's a flick in the nuts to the middle class.

Well they can use the postcard...

 

[sactoking]

The child tax credit increases from $1000 to $1600 but is only refundable to $1000. There is a new $30 0 tax credit for parents and people not otherwise eligible for the child credit but it disappears in 2023.

 

[sactoking]

Section 1309 removed alimony deduction.

 

[sactoking]

Section 1310 removes deduction for moving expenses.

 

[sactoking]

Have an ARCHER MSA? Section 1311 removes the deduction for that.

 

[sactoking]

Do you have business related expenses as an employee. You can thank Section 1312 for eliminating those.

 

[sactoking]

You know the 2/5 rule for excluding capital gains from the sale of a principal residence? That's now 5 of 8 years under Section 1402.

 

[senseamp]

Section 1308 eliminates the medical expense deduction completely.

Wow, GOP is really out to screw their own base with a sandpaper condom.

 

[sactoking]

Does your employer pay for dependent care so you can work? That deduction is out as well.

 

[senseamp]

Just so Ivanka can get Trump's estate tax free?

 

[sactoking]

Get a new job? Is your employer helping you relocate? That will be taxable under Section 1405.

 

[sactoking]

Thinking about converting your Roth to a traditional IRA? Do it before December 31 because that goes away under Section 1501.

 

[senseamp]

What are advantages of Roth to Traditional IRA conversion? Do you get to deduct the value from taxes this year? I just converted my after tax 401k to Roth IRA.

 

[vi edit]

Who's the tool GOP guy arguing on MSNBC with Katy Tur? Good lord he's awful at trying to defend this crap.

 

[ivwshane]

So when wages actually decrease (or more generously, when they remain stagnant) can we all agree that trickle down economics doesn't work (righties, "conservatives", Republicans, I'm looking at you)?

When GDP doesn't get to a sustained 4% can we all agree tax cuts don't spur economic growth (again I'm looking at you, righties, "conservatives", Republicans)?

When tax revenue falls dramatically and the debt blows up can we all agree a lower tax rate does not generate more revenue?

 

[UglyCasanova]

Does that mean we can talk about cutting spending?

 

[fskimospy]

Does that mean we can talk about cutting spending?

Since conservatives are all about fiscal responsibility I would assume that they would pair spending cuts with their revenue reductions as to not blow up the deficit. After all as responsible people we wouldn't want to reduce revenues without spending reductions to match.

Wait, is that not happening?

 

[UglyCasanova]

Because they’re full of shite about being fiscally responsible?

 

[K1052]

Because they’re full of shite about being fiscally responsible?

This tracks. It's all "eval Dems and their deficits" until every time the Rs get into power again and it's an unfunded tax cut rager with a buffet of unlimited defense/war spending.

There are a few genuine fiscal hawks in the party but they are much fewer and farther between than the last decade would suggest.

 

[obidamnkenobi]

I mean this tax plan is shitty, but wtf with some of those deductions? Moving expenses? Alimony? What's the reason these particular groups should have special treatment written into the federal tax code? are these the groups in most need of help? Is this the most effective way to provide it? Does it generate a positive return?


At some point when "everyone" gets a deduction of 3% or whatever can we finally agree to remove them all and lower taxes by 3% instead..? This is what happens when everyone just go "mememe!" and gets their own little carve-out. The reason the US has more tax preparers per capita than most countries have nurses.

 

[Jmegapac]

What are advantages of Roth to Traditional IRA conversion? Do you get to deduct the value from taxes this year? I just converted my after tax 401k to Roth IRA.

According to Fidelity:

There may be reasons to reverse a Roth IRA conversion.

• The value of investments in the converted Roth IRA has declined.
• Higher than expected taxable income and/or the additional income from the Roth IRA conversion resulted in a bump to a higher federal income tax bracket.
• Taxable income in retirement will likely be lower than expected, reducing the potential benefits of a Roth IRA’s tax-free distributions.
• Not enough cash on hand to pay the taxes.

 

[Engineer]

The child tax credit increases from $1000 to $1600 but is only refundable to $1000. There is a new $30 0 tax credit for parents and people not otherwise eligible for the child credit but it disappears in 2023.

By removing the personal exemptions and adding this, they are essentially killing people like me from claiming my 17 and older children, in college, on taxes. Even getting the $300 credit, if possible, would be far less than a $4050 income exemption at our current tax rate. I haven't read enough but wouldn't be surprised if they didn't scrap the college credits too!

 

[Jhhnn]

Wow, GOP is really out to screw their own base with a sandpaper condom.

Think of it as a colonoscopy with a roto-rooter machine....