[CTartist]

There has been some compromise and adjustments between the House and Senate Republicans. This is what they have so far. Some good and some bad for CT.
https://www.nytimes.com/2017/12/13/u...cans-deal.html

Good (except Stamford/Greenwich/Darien/New Canaan)
* "In a compromise between the bills, the deal would cap the popular deduction for interest on mortgage debt at $750,000 for newly purchased homes"............I heard on the news this morning that older homes over $750,000 are grandfathered in and are OK.

* I also heard on the news that the medical deduction will be retained. Also good for our area as we have high healthcare costs.

Not so bad, but not so great (Bad for Fairfield County but Good for the rest of CT)
* "The bill also allows individuals to somewhat choose how to use their state and local tax deduction, giving them the ability to write off up to $10,000 in property taxes, income or sales taxes paid or a combination of property and sales or property and income taxes."

$10,000 for both state and local taxes are not nearly enough in FFC or the tri-state area. I am middle class in FFC and I pay over that amount. People like me might be in a little pickle.

[JayCT]

Originally Posted by Dolce_00

Agreed on the first point. Someone living in a $200K home subsidizing someone living in a $2M home is beyond insane.

Second point: How about nobody gets subsidized by anyone? There's no constitutional right for anyone to buy a house.

How is someone in a $200,000 home subsidizing someone in a $2 million home? They aren't.

I assume you are talking about the tax credit people get for their mortgage interest and property taxes. In case you do not know or understand it, the reason for the deductions is to encourage people to buy their own home. Studies show that homeowners are more responsible and better off financially than non-owners. They are more invested in their communities and in general better citizens. The current tax plan forgets this. The GOP is more interested in giving tax credits to big companies and the wealthy than encouraging the middle class to be more productive members of our society. Jay

[DigitalMilford]

Originally Posted by JayCT

middle class to be more productive members of our society. Jay

Isn't the middle class who manufactures things, teaches our children, delivers our goods and polices the country? That seems pretty damn productive to me....

Sorry, it's not the folks who move money from one place to another who are truly productive...

[Wilton2ParkAve]

I pay 22,000 in property taxes and still come out ahead in the likely final tax bill. Brackets and amt are also shifting but the media is obsessed with the sky is falling narrative. Im hopeful it induces more prudent fiscal policy in runaway tax states as an ancillary benefit. In short, a very good tax plan for middle class earners, corporations and passthroughs.

[CTartist]

Originally Posted by Wilton2ParkAve

I pay 22,000 in property taxes and still come out ahead in the likely final tax bill. Brackets and amt are also shifting but the media is obsessed with the sky is falling narrative. Im hopeful it induces more prudent fiscal policy in runaway tax states as an ancillary benefit. In short, a very good tax plan for middle class earners, corporations and passthroughs.

If you are making out OK I would bet you are pretty high up in the top 20% of wage earners, that is not the middle class. All the goodies are flowing to the top 20% or the top quintile. The middle class is the 2nd, 3rd and 4th quintiles.

The top 20% or top quintile will probably try to get their income into passthroughs also.

The sky is not falling on the top 20% but it will fall like a thud on the middle class....especially the middle class in FFC.

Here are the 2015 income quintiles for a point of reference.
http://www.taxpolicycenter.org/stati...come-quintiles

1) .........0 to $22,800
2) $22,801 to $43,510
3) $43,511 to $72,000
4) $72,001 to $112, 261
5) $112,262 and up (the top quintile)

The 4th quiltile (which I am in, any probably a large portion of FFC) in FFC is going to get hit by the new federal tax bill and probably the state of CT to collect more taxes.

[BPt111]

Originally Posted by CTartist

If you are making out OK I would bet you are pretty high up in the top 20% of wage earners, that is not the middle class. All the goodies are flowing to the top 20% or the top quintile. The middle class is the 2nd, 3rd and 4th quintiles.

The top 20% or top quintile will probably try to get their income into passthroughs also.

The sky is not falling on the top 20% but it will fall like a thud on the middle class....especially the middle class in FFC.

Here are the 2015 income quintiles for a point of reference.
Household Income Quintiles | Tax Policy Center

1) .........0 to $22,800
2) $22,801 to $43,510
3) $43,511 to $72,000
4) $72,001 to $112, 261
5) $112,262 and up (the top quintile)

The 4th quiltile (which I am in, any probably a large portion of FFC) in FFC is going to get hit by the new federal tax bill and probably the state of CT to collect more taxes.

Florida going be 2nd home for FFC residents

[JayCT]

Originally Posted by CTartist

If you are making out OK I would bet you are pretty high up in the top 20% of wage earners, that is not the middle class. All the goodies are flowing to the top 20% or the top quintile. The middle class is the 2nd, 3rd and 4th quintiles.

The top 20% or top quintile will probably try to get their income into passthroughs also.

The sky is not falling on the top 20% but it will fall like a thud on the middle class....especially the middle class in FFC.

Here are the 2015 income quintiles for a point of reference.
Household Income Quintiles | Tax Policy Center

1) .........0 to $22,800
2) $22,801 to $43,510
3) $43,511 to $72,000
4) $72,001 to $112, 261
5) $112,262 and up (the top quintile)

The 4th quiltile (which I am in, any probably a large portion of FFC) in FFC is going to get hit by the new federal tax bill and probably the state of CT to collect more taxes.

I think you may be right. I don't pay anywhere near that amount in property taxes but I figure I will be paying more under the GOP's proposal. Jay

[Dolce_00]

Originally Posted by JayCT

How is someone in a $200,000 home subsidizing someone in a $2 million home? They aren't.

I assume you are talking about the tax credit people get for their mortgage interest and property taxes. In case you do not know or understand it, the reason for the deductions is to encourage people to buy their own home. Studies show that homeowners are more responsible and better off financially than non-owners. They are more invested in their communities and in general better citizens. The current tax plan forgets this. The GOP is more interested in giving tax credits to big companies and the wealthy than encouraging the middle class to be more productive members of our society. Jay

Hilarious. You want to tax the rich more but then whine that Republicans are taking away tax breaks for the wealthy. Or even more ridiculous you think someone in a $2M home is middle class.

As for the notion of encouraging people to buy houses. As with anything the govt does, when it "helps drive costs down" it really increases costs. Don't believe me? Look at health care and education where the govt have been "helping drive costs down" for 50 years. How's that working out?

Allowing a mortgage deduction simply increases prices. Take an easy example. $100K house has $1000 payment. But then the govt decides to subsidize $100 of that payment with the MID. So what happens? The buyer now has an extra $100 to spend on housing. So they buy a $110K house. But since everyone now has that extra $100, the price of the $100K house increases to $110K. That's what happens when the govt subsidizes a product. The price of the product increases by the amount of the subsidy. This is econ 101.

You'll notice the real estate industry is screaming that with this tax plan home prices might fall. Horror of horrors!! Housing will become more affordable for the middle class. And we can't possibly have that, can we? The consumer in the long run won't be affected. But real estate agents will make less commission.

And yes I think I understand a thing or two about how these things work given I have a degree in economics and an MBA. But please, enlighten me some more Jay....

[Dolce_00]

Originally Posted by Wilton2ParkAve

I pay 22,000 in property taxes and still come out ahead in the likely final tax bill. Brackets and amt are also shifting but the media is obsessed with the sky is falling narrative. Im hopeful it induces more prudent fiscal policy in runaway tax states as an ancillary benefit. In short, a very good tax plan for middle class earners, corporations and passthroughs.

Precisely. If you knew nothing about the tax bill other than what the MSM reports, you wouldn't know that

a. Standard deduction is now $24K for married filers
b. Every tax rate is reduced

For probably 90% of Americans, $24K is more than the combined SALT deductions and mortgage deduction. I'm a pretty high earner now and my total deductions run about $25K a year. I live in a low tax state however. If I were in CT that $25K would be more like $45K (which is why I decided not to move to CT). But that's a CT problem, not a federal tax plan problem.

And even if you pay more than $25K the tax rate reductions will offset any deduction losses for everyone more or less (there will always be the oddball exception to the rule but with any policy that's the case).

[CTartist]

Here is a bit of good news for seniors which my husband will be in a few years. I got a flyer in the mail from Marilyn Moore my state senator in Hartford. Here is one of the bullet points of the Bipartisan Budget Deal

Cuts Taxes for Retirees
Eliminates tax on Social Security and pension income for single filers below $75,000 and married joint filers below $100,000. I think it used to be $50,000 for singles and $60,000 for married joint.

I did not hear about this until I got the flyer. I actually think the thresholds are too high.