First Paycheck Since the New Tax Rates Were Enacted

[postman]

I saw the statement for my first paycheck for this Friday that uses the new tax rates. I cleared an extra $70. I get paid every two weeks so over the year that amount will be $1820.

Meanwhile Trump saw from his tax cut an extra $420,000. Trump's tax break puts more money into Trumps pocket every two weeks, than he makes annually as president of the united states.

 

[danielpalos]

I saw the statement for my first paycheck for this Friday that uses the new tax rates. I cleared an extra $70. I get paid every two weeks so over the year that amount will be $1820.

Meanwhile Trump saw from his tax cut an extra $420,000. Trump's tax break puts more money into Trumps pocket every two weeks, than he makes annually as president of the united states.

why do the rich need to make more money and not the poor, under Any form of Capitalism?

 

[Dschrute3]

Tossing more of your hard-earned money into the Government Black Hole, just isn't logical at this point. Folks should keep more of their money. They'll spend it far more wisely than Government will. So, YUGE props to President Trump on this.

 

[postman]

why do the rich need to make more money and not the poor, under Any form of Capitalism?

Because they have the money to pay the politicians to make it so.

 

[flewism]

I saw the statement for my first paycheck for this Friday that uses the new tax rates. I cleared an extra $70. I get paid every two weeks so over the year that amount will be $1820. My wife's should be similar since we make about the same amount. Plus throw in the extra $1,000 child tax credit and by the end of this year we'll have an extra $4,000 to $5,000 in our pockets we wouldn't have had if the new tax legislation hadn't passed. I can use a lot of this money to pay down my student loans faster. We've also talked about redoing our master bathroom.

When will Democrats stop lying and claiming that this legislation won't help the middle class?

I think we will all see short term gains
What hurts me is long term losses

My state tax deduction will be capped at $10,000 for 2018. I deducted $24,000 last year
I also don't know what the impact of ending the mandate on overall health insurance costs

I am hoping I can break even

Your state income and property taxed were 24K last year. Well you are making a fine living or live in one of the high tax states.

 

[KissMy]

The Tax Cut Debt / Inflation caused the US Dollar to lose 15% so far. So your paychecks are actually smaller because they already buy %15 less. Salt taxes will rise, inflation will continue to rise & those tax cuts will go away.

 

[forkup]

I saw the statement for my first paycheck for this Friday that uses the new tax rates. I cleared an extra $70. I get paid every two weeks so over the year that amount will be $1820. My wife's should be similar since we make about the same amount. Plus throw in the extra $1,000 child tax credit and by the end of this year we'll have an extra $4,000 to $5,000 in our pockets we wouldn't have had if the new tax legislation hadn't passed. I can use a lot of this money to pay down my student loans faster. We've also talked about redoing our master bathroom.

When will Democrats stop lying and claiming that this legislation won't help the middle class?

Good for you. I do want to interject something. You are celebrating your windfall and citing democrats as liars as the tax cuts being,although anecdotal beneficial to you and not detrimental. There is a moral here. Democrats have a different outlook on what role government should take in your live. You say these tax cuts are good for you because it allows you to pay back student loans. I'm European, I pay way higher taxes then an American, conversely my college degree set me back about 20000 euro IN TOTAL. I funded it by working odd jobs when the academical year was done. In fact a student loan doesn't exist here. Funded by a HIGHER tax rate. My wife is American and I've seen how much her family, who are middle class comparatively struggle with my family which is in general blue collar. I wan't you to keep this in mind when touting the virtues of paying less taxes, with what in essence comes down to your children's money since it increases the debt.

I pay way higher taxes then an American, conversely my college degree set me back about 20000 euro IN TOTAL.

What percentage of high school graduates apply to college in your country?
What's the acceptance criteria? How many are accepted?

Technically there is no acceptance criteria except in the field of medicine, where an entry exam is required. That particular exam has a 80 percent fail rate. Every other field is open to everybody who registers. In practice though the majority of high school kids who go to college come from 1 of 3 possible general directions we have. This particular direction focuses on the stem subjects. We have another one that focuses on the more technical fields which has some people who go to college, the majority in that direction will have a degree in mechanics, general accounting, electricians and the like by the time they finish high school. And a third that prepares for straight up manual trades, carpenters, masons, gardeners etc.
-This brings me to your first question 44.3 percent in Belgium has tertiary education compared to 47.5 for the US Education attainment - Population with tertiary education - OECD Data.
This number does not reflect everything though. Firstly since a lot of the vocational programs in Belgium are taken care of in high school the numbers are a bit skewed. For instance we have no associates degrees. Everybody who goes to college will have at least a bachelor degree. This gives the result that 43 percent of Belgians have at least a Bachelor degree, compared to 36 percent of Americans. And only 11 percent has a Masters degree compared to the 20 in Belgium.List of countries by tertiary education attainment - Wikipedia

 

[forkup]

I saw the statement for my first paycheck for this Friday that uses the new tax rates. I cleared an extra $70. I get paid every two weeks so over the year that amount will be $1820. My wife's should be similar since we make about the same amount. Plus throw in the extra $1,000 child tax credit and by the end of this year we'll have an extra $4,000 to $5,000 in our pockets we wouldn't have had if the new tax legislation hadn't passed. I can use a lot of this money to pay down my student loans faster. We've also talked about redoing our master bathroom.

When will Democrats stop lying and claiming that this legislation won't help the middle class?

Good for you. I do want to interject something. You are celebrating your windfall and citing democrats as liars as the tax cuts being,although anecdotal beneficial to you and not detrimental. There is a moral here. Democrats have a different outlook on what role government should take in your live. You say these tax cuts are good for you because it allows you to pay back student loans. I'm European, I pay way higher taxes then an American, conversely my college degree set me back about 20000 euro IN TOTAL. I funded it by working odd jobs when the academical year was done. In fact a student loan doesn't exist here. Funded by a HIGHER tax rate. My wife is American and I've seen how much her family, who are middle class comparatively struggle with my family which is in general blue collar. I wan't you to keep this in mind when touting the virtues of paying less taxes, with what in essence comes down to your children's money since it increases the debt.

I pay way higher taxes then an American, conversely my college degree set me back about 20000 euro IN TOTAL.

What percentage of high school graduates apply to college in your country?
What's the acceptance criteria? How many are accepted?

Less than here. That's the catch

No that's not the catch. The catch is that the relative value of a college degree is less then in the US, making graduating college less profitable.

 

[flewism]

The Tax Cut Debt / Inflation caused the US Dollar to lose 15% so far. So your paychecks are actually smaller because they already buy %15 less. Salt taxes will rise, inflation will continue to rise & those tax cuts will go away.

"So far", compared to what? since when?

 

[forkup]

I saw the statement for my first paycheck for this Friday that uses the new tax rates. I cleared an extra $70. I get paid every two weeks so over the year that amount will be $1820. My wife's should be similar since we make about the same amount. Plus throw in the extra $1,000 child tax credit and by the end of this year we'll have an extra $4,000 to $5,000 in our pockets we wouldn't have had if the new tax legislation hadn't passed. I can use a lot of this money to pay down my student loans faster. We've also talked about redoing our master bathroom.

When will Democrats stop lying and claiming that this legislation won't help the middle class?

Good for you. I do want to interject something. You are celebrating your windfall and citing democrats as liars as the tax cuts being,although anecdotal beneficial to you and not detrimental. There is a moral here. Democrats have a different outlook on what role government should take in your live. You say these tax cuts are good for you because it allows you to pay back student loans. I'm European, I pay way higher taxes then an American, conversely my college degree set me back about 20000 euro IN TOTAL. I funded it by working odd jobs when the academical year was done. In fact a student loan doesn't exist here. Funded by a HIGHER tax rate. My wife is American and I've seen how much her family, who are middle class comparatively struggle with my family which is in general blue collar. I wan't you to keep this in mind when touting the virtues of paying less taxes, with what in essence comes down to your children's money since it increases the debt.

Why would I want to pay a higher tax rate so someone else can go to college for "free?" What if I hadn't gone? Why should I have to pay for someone else to go?

I don't believe in a system where dirty politicians take my money and then give it back to me through bribes at election time.

Why would you want to pay for roads? An army? Bridges were you don't personally live?
Society decides a set of things they want and the government chooses to collect taxes to pay for those things. Giving a decent affordable education to as many people possible seems like a smart investment for prosperity in a country.
'No Man is an Island'
No man is an island entire of itself
MEDITATION XVII
Devotions upon Emergent Occasions
John Donne

 

[rightwinger]

I saw the statement for my first paycheck for this Friday that uses the new tax rates. I cleared an extra $70. I get paid every two weeks so over the year that amount will be $1820. My wife's should be similar since we make about the same amount. Plus throw in the extra $1,000 child tax credit and by the end of this year we'll have an extra $4,000 to $5,000 in our pockets we wouldn't have had if the new tax legislation hadn't passed. I can use a lot of this money to pay down my student loans faster. We've also talked about redoing our master bathroom.

When will Democrats stop lying and claiming that this legislation won't help the middle class?

I think we will all see short term gains
What hurts me is long term losses

My state tax deduction will be capped at $10,000 for 2018. I deducted $24,000 last year
I also don't know what the impact of ending the mandate on overall health insurance costs

I am hoping I can break even

Your state income and property taxed were 24K last year. Well you are making a fine living or live in one of the high tax states.

Both

 

[flewism]

I saw the statement for my first paycheck for this Friday that uses the new tax rates. I cleared an extra $70. I get paid every two weeks so over the year that amount will be $1820. My wife's should be similar since we make about the same amount. Plus throw in the extra $1,000 child tax credit and by the end of this year we'll have an extra $4,000 to $5,000 in our pockets we wouldn't have had if the new tax legislation hadn't passed. I can use a lot of this money to pay down my student loans faster. We've also talked about redoing our master bathroom.

When will Democrats stop lying and claiming that this legislation won't help the middle class?

I think we will all see short term gains
What hurts me is long term losses

My state tax deduction will be capped at $10,000 for 2018. I deducted $24,000 last year
I also don't know what the impact of ending the mandate on overall health insurance costs

I am hoping I can break even

Your state income and property taxed were 24K last year. Well you are making a fine living or live in one of the high tax states.

Both

You need to petition your state to rework their tax laws.

Their has never been a mandate that the federal government is required to subsidize state taxes with by allowing SALT deductions.

Right now under current law my taxable income on my state return will go up 8K for the 2018 filing year. Our governor and legislative leaders are saying they will fix that this summer.

 

[Tresha91203]

Well, that's were being an owner of a business sucks, at least in the measurement context described in the OP. One's "paychecks" have no such withholdings, so seeing the impact requires more effort than looking at a pay stub. C'est la vie....

Agreed, until I discovered I'm a pass-through! While I can't crunch ACTUAL numbers just yet, that 20% off the top eases the anxiety a bit.

 

[rightwinger]

I saw the statement for my first paycheck for this Friday that uses the new tax rates. I cleared an extra $70. I get paid every two weeks so over the year that amount will be $1820. My wife's should be similar since we make about the same amount. Plus throw in the extra $1,000 child tax credit and by the end of this year we'll have an extra $4,000 to $5,000 in our pockets we wouldn't have had if the new tax legislation hadn't passed. I can use a lot of this money to pay down my student loans faster. We've also talked about redoing our master bathroom.

When will Democrats stop lying and claiming that this legislation won't help the middle class?

I think we will all see short term gains
What hurts me is long term losses

My state tax deduction will be capped at $10,000 for 2018. I deducted $24,000 last year
I also don't know what the impact of ending the mandate on overall health insurance costs

I am hoping I can break even

Your state income and property taxed were 24K last year. Well you are making a fine living or live in one of the high tax states.

Both

You need to petition your state to rework their tax laws.

Their has never been a mandate that the federal government is required to subsidize state taxes with by allowing SALT deductions.

Right now under current law my taxable income on my state return will go up 8K for the 2018 filing year. Our governor and legislative leaders are saying they will fix that this summer.

Hard to do when state budgets have already been established
Supposedly, the Trump cutting of state tax deductions will result in a 7.5% reduction in the value of real estate in my state

 

[Tresha91203]

I saw the statement for my first paycheck for this Friday that uses the new tax rates. I cleared an extra $70. I get paid every two weeks so over the year that amount will be $1820. My wife's should be similar since we make about the same amount. Plus throw in the extra $1,000 child tax credit and by the end of this year we'll have an extra $4,000 to $5,000 in our pockets we wouldn't have had if the new tax legislation hadn't passed. I can use a lot of this money to pay down my student loans faster. We've also talked about redoing our master bathroom.

When will Democrats stop lying and claiming that this legislation won't help the middle class?

When will Democrats stop lying and claiming that this legislation won't help the middle class?

I have yet to see/hear any Democrat say the tax cut won't now help the middle class. The charge I've heard Democrats (and the CBO) make is that the tax cut is inequitable because over time, for the poorest taxpayers, what is in 2018 a tax cut will become a tax increase. See also:

• Distributional Analysis of the Tax Cuts and Jobs Act
• Distributional Analysis of the CBO sent to Sen. Orin Hatch -- This document provides a nice summary chart that shows the progressive diminution of the cut by income group.

They intend for them to be permanent. There's a Senate rule that would not allow beyond 10 years. Republicans would not let them expire. I doubt Democrats would either if they want to be reelected. The truth is, nothing is permanent in any of it. If an opposing party gets in, they start undoing it. I think it plays well for Republicans in 2024 if anyone is afraid of the Democrats sunsetting the cuts.

Analysis | Republicans explain why their tax cuts are temporary, but not really temporary

One key policy in Senate Republicans' proposed tax overhaul is that tax cuts for individuals will expire within 10 years, while those for corporations will be permanent.

Senate Republicans say that their intention is for Congress to extend these individual tax cuts, too, so the effect of their expiration shouldn't be included in analyses of the bill. “The expectation, they hope, is always that it stays permanent,” said Sen. James E. Risch (R-Idaho).

But in interviews Wednesday, Senate Republicans also said that it would be wrong to include these tax cuts in the long-term assessment of the bill's effect on the deficit. The sunsetting individual tax cuts were included in the bill so it complies with Senate rules that legislation can be passed with a simple majority only if it doesn't drive up the deficit 10 years after passage.

 

[usmbguest5318]

Well, that's were being an owner of a business sucks, at least in the measurement context described in the OP. One's "paychecks" have no such withholdings, so seeing the impact requires more effort than looking at a pay stub. C'est la vie....

Agreed, until I discovered I'm a pass-through! While I can't crunch ACTUAL numbers just yet, that 20% off the top eases the anxiety a bit.

While I can't crunch ACTUAL numbers just yet, that 20% off the top eases the anxiety a bit.

OT:

What you can do is review the provisions of Trump's tax bill and then apply them to your 2017 or 2016 financial activities (business and personal), either directly or via "delta analysis." Alternatively, you can take your 2017/-16 activity and project them forward to 2018 and then apply the provisions of Trump's tax code. That's what I did, and I'll "sleep comfortably" for the remainder of the year, barring the occurrence of major changes I cannot now foresee.

Either approach will provide you with an reasonably good idea of what impact the changes will have on you and thereby confirm or cogently refute whatever basis you have for feeling anxiety or tranquility about the impact of the changes. And let's be honest, insofar nobody likes uncertainty, performing either of the analyses described above generally does one a world of good. In all financial matters, having a very, very solid basis for knowing what kinds of events will militate for one's having anxiety is a far more pleasant position in which to be than is "hoping it'll all work out well."​

 

[usmbguest5318]

I saw the statement for my first paycheck for this Friday that uses the new tax rates. I cleared an extra $70. I get paid every two weeks so over the year that amount will be $1820. My wife's should be similar since we make about the same amount. Plus throw in the extra $1,000 child tax credit and by the end of this year we'll have an extra $4,000 to $5,000 in our pockets we wouldn't have had if the new tax legislation hadn't passed. I can use a lot of this money to pay down my student loans faster. We've also talked about redoing our master bathroom.

When will Democrats stop lying and claiming that this legislation won't help the middle class?

When will Democrats stop lying and claiming that this legislation won't help the middle class?

I have yet to see/hear any Democrat say the tax cut won't now help the middle class. The charge I've heard Democrats (and the CBO) make is that the tax cut is inequitable because over time, for the poorest taxpayers, what is in 2018 a tax cut will become a tax increase. See also:

• Distributional Analysis of the Tax Cuts and Jobs Act
• Distributional Analysis of the CBO sent to Sen. Orin Hatch -- This document provides a nice summary chart that shows the progressive diminution of the cut by income group.

They intend for them to be permanent. There's a Senate rule that would not allow beyond 10 years. Republicans would not let them expire. I doubt Democrats would either if they want to be reelected. The truth is, nothing is permanent in any of it. If an opposing party gets in, they start undoing it. I think it plays well for Republicans in 2024 if anyone is afraid of the Democrats sunsetting the cuts.

Analysis | Republicans explain why their tax cuts are temporary, but not really temporary

One key policy in Senate Republicans' proposed tax overhaul is that tax cuts for individuals will expire within 10 years, while those for corporations will be permanent.

Senate Republicans say that their intention is for Congress to extend these individual tax cuts, too, so the effect of their expiration shouldn't be included in analyses of the bill. “The expectation, they hope, is always that it stays permanent,” said Sen. James E. Risch (R-Idaho).

But in interviews Wednesday, Senate Republicans also said that it would be wrong to include these tax cuts in the long-term assessment of the bill's effect on the deficit. The sunsetting individual tax cuts were included in the bill so it complies with Senate rules that legislation can be passed with a simple majority only if it doesn't drive up the deficit 10 years after passage.

There's a Senate rule that would not allow beyond 10 years.

The rules to which you refer have nothing to do with time. They combine to limit what the Senate can do under Reconciliation rather than as regular legislation, and the terms of the rules have to do with legislation's budgetary/fiscal/economic impact. Congress opted to pass a bill containing provisions whereby the budgetary constraints could only be complied with over a ten year span.

• Byrd Rule
• Congressional Budget and Impoundment Control Act of 1974
• The Rule That Broke the Senate

Were the GOP of a mind to pass the tax cuts as regular legislation, they would have faced no constraints pertaining to the Reconciliation process. McConnell opted to pass the tax bill under Reconciliation provisions rather than craft and pass a tax bill that had stuff in it that would appease ten Democrats enough that they'd vote for it.

 

[Tresha91203]

I saw the statement for my first paycheck for this Friday that uses the new tax rates. I cleared an extra $70. I get paid every two weeks so over the year that amount will be $1820. My wife's should be similar since we make about the same amount. Plus throw in the extra $1,000 child tax credit and by the end of this year we'll have an extra $4,000 to $5,000 in our pockets we wouldn't have had if the new tax legislation hadn't passed. I can use a lot of this money to pay down my student loans faster. We've also talked about redoing our master bathroom.

When will Democrats stop lying and claiming that this legislation won't help the middle class?

How many years can you count on that income?

Same as always: until the Democrats take it away. Republicans aren't going to let it expire. Something many people will be thinking around election time IMO.

 

[Tom Horn]

So you are another one of those folks who make claims and then expect others to support them.

There are a lot of people like that on this forum.

Especially you...find that C.A.R. yet, loser?

 

[Tresha91203]

Well, that's were being an owner of a business sucks, at least in the measurement context described in the OP. One's "paychecks" have no such withholdings, so seeing the impact requires more effort than looking at a pay stub. C'est la vie....

Agreed, until I discovered I'm a pass-through! While I can't crunch ACTUAL numbers just yet, that 20% off the top eases the anxiety a bit.

While I can't crunch ACTUAL numbers just yet, that 20% off the top eases the anxiety a bit.

OT:

What you can do is review the provisions of Trump's tax bill and then apply them to your 2017 or 2016 financial activities (business and personal), either directly or via "delta analysis." Alternatively, you can take your 2017/-16 activity and project them forward to 2018 and then apply the provisions of Trump's tax code. That's what I did, and I'll "sleep comfortably" for the remainder of the year, barring the occurrence of major changes I cannot now foresee.

Either approach will provide you with an reasonably good idea of what impact the changes will have on you and thereby confirm or cogently refute whatever basis you have for feeling anxiety or tranquility about the impact of the changes. And let's be honest, insofar nobody likes uncertainty, performing either of the analyses described above generally does one a world of good. In all financial matters, having a very, very solid basis for knowing what kinds of events will militate for one's having anxiety is a far more pleasant position in which to be than is "hoping it'll all work out well."​

That's what I would have done, but this is year 1 for owning my own business. I opened January 2, 2017. I am going to go back and look at the numbers if I had opened the doors on Jan 1, 2016. It should not be bad this year, as I've got plenty of startup deductions for my work-from-home self employment. My business is in my front yard.