I used this WSJ calculator to estimate my taxes under the GOP bills

Rivoli

So I used the Wall Street Journal's calculator to see how my taxes would look under the GOP tax plans that passed the House and Senate. The bills need to be reconciled but according to the WSJ, with their "simplified version of the Penn Wharton Budget Model, which analyzes the impact of the biggest factors in the House bill, you can calculate an estimate your tax liability for 2018 through 2027."

I don't know if this link gets you past the WSJ paywall, but try it:

https://www.wsj.com/graphics/republican-tax-plan-calculator/

According to their tool, my taxes will go up in 2018 by almost $1000 and keep climbing from there, with adjustments made for inflation. To put that in context, I'm a single mom of two making around $110k. After downsizing from Maplewood, I bought one of the cheapest (literally) houses in SOMA but am still paying $12k in property taxes. As SOMA folks know, that's on the very low end for our towns and, using past increases as a predictor, my property taxes should double in 10 years. Don't think my income will.

So assuming the tax "cuts" get rammed through Congress, I have to consider, once again, the cost/benefits of living with such high property taxes. I know and appreciate what I get for those taxes. With a mixed-race family, I moved here for the diversity and relative integration of our schools. But for our area, my income seems to be pretty modest - I think I'm middle-middle class in SOMA. And the way things are going, I'm gonna get pushed out. 


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Michael

I used it as well.  I tried several scenarios just trying to figure out if anyone at any  level, single or married can come out a winner in NY or NJ.  Seems like we all lose and I do not want to move (not that I could considering my job) but I am guessing a lot of people will be considering.  OR a lot of people will put off home improvements and drive less expensive cars.  Suspect BMW and AUDI sales will see a hit in the northeast.  




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LOST

It's a middle class tax cut. The Republicans define the middle class as those earning $500,000 to $1 million per year. The Dems define the middle class as those earning $25,000,00 to $75,000.00 per year.


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ml1


LOST said:

It's a middle class tax cut. The Republicans define the middle class as those earning $500,000 to $1 million per year. The Dems define the middle class as those earning $25,000,00 to $75,000.00 per year.

I'm pretty sure if you live in NY or NJ and your annual HHI is $550K-1MM, you're not getting any tax cut.  It's why I heard a tax expert on the news over the weekend suggesting that every salaried executive in NYC is going to turn him or herself into an LLC so they can get the pass-through tax break.  They'll have their employer direct their pay to John/Jane Smith LLC.  If you are a salaried person and you're paying a lot of state income tax, you're pretty much screwed.


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LOST

Of course I was being sarcastic. 

Can any salaried person simply turn himself or herself into an LLC to avoid the tax hit? If so there is going to be a huge increase in LLCs. In NJ forming one is very simple. 

What prevents an individual from forming an LLC with himself as sole member and then transferring title to his house into the LLC and deducting all property taxes as a business expense?

Tax Lawyers and CPAs are going to benefit greatly from this "Tax Reform".


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Michael


LOST said:

Of course I was being sarcastic. 

Can any salaried person simply turn himself or herself into an LLC to avoid the tax hit? If so there is going to be a huge increase in LLCs. In NJ forming one is very simple. 

What prevents an individual from forming an LLC with himself as sole member and then transferring title to his house into the LLC and deducting all property taxes as a business expense?

Tax Lawyers and CPAs are going to benefit greatly from this "Tax Reform".

Some firms will not pay/hire LLC's as an employee.  and the LLC will also then have to figure out how to get health insurance and those plans will not be as good as what they have as an employee.  No question that some will take this path, but there are some drawbacks.  

CPA's will do fine, H & R block, Liberty Tax, Jackson-Hewitt  - not so much.



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