Trump tax plan and itemizing deductions

[Bowsnbucks]

Barndog - Happy to hear you got pay RAISES rather than a one time bonus. Great for you.

 

[SD51555]

Any president can find numbers that look favorable to him. Obama economics were not good for most Americans and the national debt he added to the country added jobs but at what cost. As I understand it many of those jobs were in healthcare driven by the Affordable Care Act which we know is unsustainable. Government and in this case Obama created false demand by government expenditures and not organic growth from consumers. What does that mean, those jobs were created because Obama added 7 trillion to the national debt. For most of his presidency Obama using Harry Reid did not pass a budget and instead spent under an emergency resolution created during the market crash. Jobs maybe but at what cost?

https://budget.house.gov/hbc-publication/252305/

Remember how poorly the trillion dollar stimulus bill did creating jobs? Couple things I'll never forget, when the Caterpillar CEO stood with the president at the WH during the signing of the bill and said how this would be good for America and create jobs. Then in the next year Cat not only didn't hire, but let more people go due to the unending downturn. I'll also never forget the real life joke of PBO and Biden going around taking credit for jobs "saved."

 

[Red Picqua]

the one change to the tax plan that I am having a hard time swallowing is the itemized deductions for medical expenses gone, tax prep fees gone, unreimbursed employee expenses gone. But on the flip side the maximum adjusted gross income for IRS approved charity is increased from 50% to 60%.

 

[Red Picqua]

And the screens for those will be built at Foxcon in Racine, WI which will create ~13,000 new jobs ...

Well... Walker keeps reporting 13K jobs, but the company is starting with 3K and could grow to 13K. It's a great thing for Wisconsin, BUT it is costing the tax payers a pretty penny. I am not poo pooing it, but there are LOTS of economists that are stating this is NOT such a great deal for Wisconsin.

 

[bueller]

the one change to the tax plan that I am having a hard time swallowing is the itemized deductions for medical expenses gone, tax prep fees gone, unreimbursed employee expenses gone. But on the flip side the maximum adjusted gross income for IRS approved charity is increased from 50% to 60%.

I've seen this used and abused for years by many, few ever called out on it by the IRS. IMO this evens the playing field between those that pushed BS through every year and those that played by the rules and didn't "inflate" their returns.

 

[Bill]

Gotta love saving the U.S. a few hundred million $ by cutting Pakistan off.
Pants Suit would never have done that....neither would any of the other D's or R's that wanted the job.

 

[Tree Spud]

Gotta love saving the U.S. a few hundred million $ by cutting Pakistan off.
Pants Suit would never have done that....neither would any of the other D's or R's that wanted the job.

Because he lead from behind ... smelling azzz's ...

 

[Tree Spud]

Well... Walker keeps reporting 13K jobs, but the company is starting with 3K and could grow to 13K. It's a great thing for Wisconsin, BUT it is costing the tax payers a pretty penny. I am not poo pooing it, but there are LOTS of economists that are stating this is NOT such a great deal for Wisconsin.

Kinda confused ... are you a state resident? Do you realize they are just starting to build the plant?

Largest foreign investment ever in the USA... ???

Walker is not reporting anything. his economic team is providing full disclosure of progress as required.

Are you concerned that after 4 months his administration and FoxConn have only produced 3000 jobs? Tey are ahead of schedule.

The average mftg job is projected to be $55/yr, a high skill level of jobs that if both spouses are employed will create $120k/yr in income ....

Are you a sports fan? What investment was made by tax payers for the Bucks, Packers, & Brewers? We seem to think investment in these hi=-profit to ownership/low job production companies that is okay?

The only economists that are concerned are liberal ... their fear is that with all their assaults ... adding more private enterprise & jobs to this state will kill their tax & spend philosophy ... if you want evidence, look at Illinois ....

 

[SD51555]

the one change to the tax plan that I am having a hard time swallowing is the itemized deductions for medical expenses gone, tax prep fees gone, unreimbursed employee expenses gone. But on the flip side the maximum adjusted gross income for IRS approved charity is increased from 50% to 60%.

I worked in the income tax business for 13 years. That 2% line was a joke. The only time I ever saw anyone use it was when they insisted on trying to claim a pile of un-reimbursed work miles that were actually commuting miles, which are not deductible. And every summer the year after they did it, they were coming into my office with their IRS letter and an invoice for $10,000 saying "Prove it, or send us a check. You have 30 days."

And for anyone who thinks they're "too small" for the IRS to come after, I like to mention this. It only costs them 60 cents to mail you a "prove it" letter and ruin your summer.

For anyone who thinks they lost something, remember you also got a rate reduction. There's not a single deduction in the tax code that ever led to behaviors that made anyone richer. If you're paying taxes, you're doing something right.

 

[Red Picqua]

Kinda confused ... are you a state resident? Do you realize they are just starting to build the plant?

Largest foreign investment ever in the USA... ???

Walker is not reporting anything. his economic team is providing full disclosure of progress as required.

Are you concerned that after 4 months his administration and FoxConn have only produced 3000 jobs? Tey are ahead of schedule.

The average mftg job is projected to be $55/yr, a high skill level of jobs that if both spouses are employed will create $120k/yr in income ....

Are you a sports fan? What investment was made by tax payers for the Bucks, Packers, & Brewers? We seem to think investment in these hi=-profit to ownership/low job production companies that is okay?

The only economists that are concerned are liberal ... their fear is that with all their assaults ... adding more private enterprise & jobs to this state will kill their tax & spend philosophy ... if you want evidence, look at Illinois ....

yes resident

Walker has reported 13K jobs numerous times as your post stated. FoxConn has stated 3K to start and by 2022 if projections are met "could be" up to 13K by 2022.

If both spouses are employed it's $110 in income not $120.

Not a sports fan at all. I was completely against any tax levies on sports teams new stadiums. It's a joke.

I am for having the company here, there are just two sides of the coin and I sometimes call tails and sometimes call heads thats all. Long term effects could be huge for Wisconsin both good and bad.

 

[4wanderingeyes]

In the long run, I am sure it will be a huge positive for the state, and hopefully the beginning of production returning to the US.


Sent from my iPhone using Tapatalk

 

[Bill]

Kinda off topic, but so is the whole thread. I did not know about the FoxConn deal in WI. I can't for the life of me figure out why they want a plant in the U.S. Not that it's a bad thing for the U.S.

Back in the Mid to late 80's the company I worked for acquired a screw machine operation that produced connector contacts. We eventually started manufacturing IC sockets (the connectors used to hold chips to a PC board) eventually the market needed cheaper stuff and went to stamped contacts.

Long story short it was a good run until FoxConn took over the market. Connector pricing that was once .10 cents a contact fell to less than .10 cents for the whole connector. They were producing massive amounts of cheap cable assemblies and connectors out of China.

Again, just can't figure out why they want a plant here unless they have a huge US customer that demanded US production. It makes no sense to me. We eventually had FoxConn private label our connectors. We could buy and ship them in for much less than we could make them. That division of our company went from manufacturing to repackaging and shipping.

 

[Doohop65]

I worked in the income tax business for 13 years. That 2% line was a joke. The only time I ever saw anyone use it was when they insisted on trying to claim a pile of un-reimbursed work miles that were actually commuting miles, which are not deductible. And every summer the year after they did it, they were coming into my office with their IRS letter and an invoice for $10,000 saying "Prove it, or send us a check. You have 30 days."

And for anyone who thinks they're "too small" for the IRS to come after, I like to mention this. It only costs them 60 cents to mail you a "prove it" letter and ruin your summer.

For anyone who thinks they lost something, remember you also got a rate reduction. There's not a single deduction in the tax code that ever led to behaviors that made anyone richer. If you're paying taxes, you're doing something right.

This will actually hurt me. I travel about half of Wisconsin for my work in a personal vehicle. I am on a vehicle program but it doesn’t cover all of my allowed costs. I do have proof of work miles every month and could defend against an audit.

I also will be missing out on the office deduction. I have a dedicated home office and can defend that as well.

All that being said I will probably come out slightly ahead with the tax cuts due to the new child credits.

Life has never been fair but I think getting to keep more of your money is a good thing. Last I checked only 30% of people itemize so the larger standard deduction should help a lot of folks.

Ymmv

 

[Red Picqua]

just announced in Wisconsin that Nestle is adding another cold storage facility in the Fox Valley which will be another 100 jobs in that area. That's a solid win.

Bill..
I think Fox con is betting on the come long term. If a republican is threatening a border adjustment tax of 20% my guess is that companies like foxconn and others will look to get these products closer to market.

If you look at putting their supply chain together and unraveling it from the beginning i think it is going to make this move a long term bet. Just raw supplies that go into these products like glass screens which it sounds like another plant will be built in Racine for a fox conn supplier. Meaning if you look at what it takes to build those conductors from a supply chain perspective it is a long term bet that companies are going to position themselves very quickly to feed their 4.26 BB dollar purchases. I think it is a good strategic long term move and I think Wisconsin is well positioned with Rockwell and CREE and others. But like i said before it is going to take some tax money to do it and Foxconn has a history of pulling the plug. I like them coming here, just cautiously optimistic.

 

[swat1018]

Could be Berry Amendment issues. US Gov't contract eligibility requiring US made materials.

 

[Bill]

just announced in Wisconsin that Nestle is adding another cold storage facility in the Fox Valley which will be another 100 jobs in that area. That's a solid win.

Bill..
I think Fox con is betting on the come long term. If a republican is threatening a border adjustment tax of 20% my guess is that companies like foxconn and others will look to get these products closer to market.

If you look at putting their supply chain together and unraveling it from the beginning i think it is going to make this move a long term bet. Just raw supplies that go into these products like glass screens which it sounds like another plant will be built in Racine for a fox conn supplier. Meaning if you look at what it takes to build those conductors from a supply chain perspective it is a long term bet that companies are going to position themselves very quickly to feed their 4.26 BB dollar purchases. I think it is a good strategic long term move and I think Wisconsin is well positioned with Rockwell and CREE and others. But like i said before it is going to take some tax money to do it and Foxconn has a history of pulling the plug. I like them coming here, just cautiously optimistic.

Wow you still have a Rockwell plant ...That's great.
I whitnessed first hand as the Cleveland facility went from 3000 workers to darn near zero in just a few short years. Never understood how those "strategic sourcing" guys felt good about taking everything to China. They beat us to death with Chinese pricing. Heck they even shared our proprietary drawings with them. $50 cable assemblies made in the US were replaced with $15 Chinese cables.

 

[SD51555]

This will actually hurt me. I travel about half of Wisconsin for my work in a personal vehicle. I am on a vehicle program but it doesn’t cover all of my allowed costs. I do have proof of work miles every month and could defend against an audit.

I also will be missing out on the office deduction. I have a dedicated home office and can defend that as well.

All that being said I will probably come out slightly ahead with the tax cuts due to the new child credits.

Life has never been fair but I think getting to keep more of your money is a good thing. Last I checked only 30% of people itemize so the larger standard deduction should help a lot of folks.

Ymmv

I'd have a serious talk with your employer about your travel policy then. If you've got a deduction large enough that it matters, it also means that you're probably paying quite a bit of social security and medicare tax on your company's unreimbursed expenses.