Are you ready for your taxes to go up?

[ronandannette]

That’s obvious. Sales taxes are among the most regressive taxes out there. Surely that’s the best way to pay for deductibility of the three martini lunch that’s being proposed regularly to help “solve the restaurant industry's problem.”

In theory perhaps because everyone is taxed at the same rate but in practise not so much. It depends on what is exempt from the tax. Here our national sales tax is not applied to food, housing, pharmacy/medically necessities, children’s clothing, educational materials and a host of other essential goods and services that supposedly would consume most of the funds of a lower-income person/family. The tax essentially then becomes applicable to the disposable income of higher-wage earners and even then only if they actually spend it.

 

[cedricandsophie]

My husband and I are very blessed and yes I think those in certain brackets, like us, should pay more in taxes. The last tax break was ridiculous and has only added to our financial problems now. I’m no financial guru by any means but I believe in my heart that corporations and individuals should all pay a fair share based on profits and income levels. Most of the ‘takers’ actually need to ‘take’ to survive. And in a country as rich as ours that is unconscionable.

 

[cabanafrau]

Neal Boorts "The Fair Tax Book" is a good example of doing away with the income tax and replacing it with a tax on goods.Take a look at it.
He doesn't hold out hope of it ever happening though due to lack of Congressional support.

Let's face it, if there is no means for Congress to open up the spigot to their trough any wider without being either undetected or have plausible deniability of having done so they're never going to support it.

 

[BuckeyeBama]

Yep, taxed and taxed and taxed...again and so on. Not all In the EU have the same opinion. Many feel no matter how hard they work, it's impossible to get ahead. It's why they want the opportunities we have as Americans. They think we are very unappreciative.

Americans pay hidden taxes everywhere. As an example, in 2018 Americans paid an average of $11k per person on healthcare. Yep, you read that right - $11k per person. We spent $3.6 trillion dollars on healthcare in 2018.

Taxes, taxes, taxes - we just disguise them here. And the results? Not good:

 

[mrodgers]

We lost a whole lot of what we were able to write off. We get half what we used to back. And remember tax cuts for the wealthy aren't going to expire.

I am only trying to understand with all the people for the past year plus who claim they didn't get a tax cut so I can form my thoughts on it all....

So you were being subsidized for overtaxation of your state then, plus you don't actually know if your taxes are more or less, just that you're refund was smaller. So you could have withheld $10k and taxes were $5k with a $5k refund versus not getting a tax break because $8k was withheld and taxes are $4k so your $4k refund is smaller?

Again, just wanting to understand the tax thoughts of those who think they didn't get a tax break.

 

[tinkerdorabelle]

I am only trying to understand with all the people for the past year plus who claim they didn't get a tax cut so I can form my thoughts on it all....

So you were being subsidized for overtaxation of your state then, plus you don't actually know if your taxes are more or less, just that you're refund was smaller. So you could have withheld $10k and taxes were $5k with a $5k refund versus not getting a tax break because $8k was withheld and taxes are $4k so your $4k refund is smaller?

Again, just wanting to understand the tax thoughts of those who think they didn't get a tax break.

Actually I do know.

 

[Searc]

Actually I do know.

I know how much we paid in taxes, too, and it sure hasn't gone down the last two years. We paid in $4000 more this year than last year and that was with DH increasing his withholdings.

 

[mrodgers]

Actually I do know.

Cool! That's not what your text reads though. You answered my question falsely then and that's ok in today's world. Awesome.

 

[tinkerdorabelle]

Cool! That's not what your text reads though. You answered my question falsely then and that's ok in today's world. Awesome.

What??? lol. Looks like you make a LOT of assumptions. And that's sad in today's world.

 

[RamblingMad]

I am only trying to understand with all the people for the past year plus who claim they didn't get a tax cut so I can form my thoughts on it all....

So you were being subsidized for overtaxation of your state then, plus you don't actually know if your taxes are more or less, just that you're refund was smaller. So you could have withheld $10k and taxes were $5k with a $5k refund versus not getting a tax break because $8k was withheld and taxes are $4k so your $4k refund is smaller?

Again, just wanting to understand the tax thoughts of those who think they didn't get a tax break.

Those who didn’t get a break most likely ran into the SALT cap. They would have seen their taxes go up.

 

[mrodgers]

What??? lol. Looks like you make a LOT of assumptions. And that's sad in today's world.

You answered a question and the response was from the answer. Nothing assumed if that was your answer to the question. Your answer says that you were subsidized with Federal tax breaks because of the overtaxing of your state. Or, there is one more, you could have itemized $23,000 of deductions and now the standard is up to $24,000 and that is why you can't deduct things. I suppose that could be an assumption that it wasn't because you now have a higher deduction from the standard vs previously itemizing.

2nd statement was getting half of what it use to be, which means nothing as far as how much taxes were pre-cut vs. post cut. Thus that is reasonable to assume that one thinks they didn't get a cut because their refund was smaller.

And the 3rd statement has nothing to do with currently getting a tax cut these past 2 years.

No assumptions, just direct responses from a direct answer to a direct question.

 

[tinkerdorabelle]

I go for number 4, you know A LOT less about taxes than you think you do. lol.

 

[mrodgers]

Those who didn’t get a break most likely ran into the SALT cap. They would have seen their taxes go up.

I noted that...

 

[NY Pirate Princess]

Okay. What is anyone actually doing to prepare for the inevitable tax hit? I am piling up all the cash I am saving by working from home in an emergency fund. That cash will be deployed as needed depending on how long this goes on, if we both keep our jobs, and what parts of our extended family need help. As income taxes go up so will my 457 retirement contributions, if I am still fortunate enough to be working. Refinancing house would be too costly for the savings, better to put closing costs of that toward the loan if we feel safe in a few months. No other consumer debt outside of two auto loans and I am making additional payments there already.

 

[mrodgers]

Okay. What is anyone actually doing to prepare for the inevitable tax hit? I am piling up all the cash I am saving by working from home in an emergency fund. That cash will be deployed as needed depending on how long this goes on, if we both keep our jobs, and what parts of our extended family need help. As income taxes go up so will my 457 retirement contributions, if I am still fortunate enough to be working. Refinancing house would be too costly for the savings, better to put closing costs of that toward the loan if we feel safe in a few months. No other consumer debt outside of two auto loans and I am making additional payments there already.

Cancel thinking I'll get a mortgage by retirement age and ever be in a house again. Cancel any thoughts of retiring at 100 like I had planned. I'll move the timeline to 100 for the house and 140 for retirement.

 

[sewdisney]

So, how do you explain the incredible growth with the relaxation of regulations? If anything we saw how too much regulation stifled the economy previously. I just don’t get how and why some people spend so much time focused on why things aren’t fair. Life isn’t fair. Momma told me. Go out there, work hard get the most out of life you can. Enjoy it. Eventually get sick and pass on. It’s life. You aren’t entitled to any guarantees no matter what some slippery politician on either side tells you.

AMEN!!!

 

[cobright]

First...
https://graphics.wsj.com/what-percent/

That source is from 2014

 

[cobright]

And how does that justify the fact that he paid no federal taxes. https://www.cnbc.com/2019/02/15/amazon-will-pay-0-in-federal-taxes-this-year.html

Amazon contributed heavily into research that qualified for the U.S. Research and Development Tax Credit. They stated in a corporate filing that most of their tax credits came this way.

Americans pay hidden taxes everywhere. ...

Taxes, taxes, taxes - we just disguise them here. And the results? Not good:

If you really want to steam, look at how we use import tariffs as a hidden tax. One unequally levied on the poor and working class. Children's sweaters are taxed at 34% while mink furs remain duty free. Women's clothing imports are taxed higher than men's. Even for the same thing, like women's golf shoes have twice the import tax as men's.

 

[teller80]

Any thoughts on whether I should do a rollover from my IRA to a Roth while the tax rates are what they are now? Or could the rates change as soon as next year for this tax year?

 

[BuckeyeBama]

Any thoughts on whether I should do a rollover from my IRA to a Roth while the tax rates are what they are now? Or could the rates change as soon as next year for this tax year?

The government could change the tax laws to no longer protect any of these investments from taxation. Keep that in mind as you make your choices. Our tax world is going to change dramatically over the next 10 years.