Trump Tax Hike for the Middle Class

[Germanauto]

Very shady.

[bimmer456]

I want to see if the corporate tax cut will cause iphones to be made in the US. Doubt it though.

[Lups]

Originally Posted by bimmer456

I want to see if the corporate tax cut will cause iphones to be made in the US. Doubt it though.

They could be! Ask Wisconsin! They apparently lost the batteries of their calculator and almost snatched a huge deal!

[3rdcoast228i]

Since when is a 500k mortgage middle class?

Also AT&T is giving out $1000 bonus to 200k employees.

[dmatre]

Originally Posted by 3rdcoast228i

Since when is a 500k mortgage middle class?

Also AT&T is giving out $1000 bonus to 200k employees.

A 500k mortgage has to be evaluated by region. Assuming 20% down, in SC this is a 6000sq.ft home in a golf community; in some west coast markets this is a sub-2000sf home in a dodgy neighborhood.

Assume 5% down rather than 20% and the west coast Home gets even smaller, and the neighborhood dodgier.

Most don't recognize that a doubling of the Home price means a tripling (or more) of the mortgage size. This is why you become instantly poor moving east coast to west, and instantly wealthy moving the other way.

[ASAP]

Middle class is defined by your income not by the price of your home...

Believe it or not, the median family income in this country is $50k... anything above that is actually slightly better than middle middle class. If that makes you poor in California, then so be it... this statistic does not change based on the region you live in...

[MrRoboto]

$500k mortgage is certainly not 'average' anywhere in the US.

https://www.experian.com/blogs/ask-e...n-every-state/

[bimmerfrk]

Originally Posted by Stronie

No tax deductions on investment properties......hmmmmm.
Is that accurate?

capital gains stay at 23.8 percent but you can write off all your expenses against those profits..... Example. Travel, maintenance, paint & taxes you pay are minus your earnings on the property for the year i believe.

Would need to make sure and ask my accountant but we deduct taxes from the capital gains we pay on our investment props.

[bimmerfrk]

Originally Posted by MrRoboto

$500k mortgage is certainly not 'average' anywhere in the US.

https://www.experian.com/blogs/ask-e...n-every-state/

No its not in the middle of the US but pick a coastal city and look at median......Just saying.

[RickFLM4]

Originally Posted by bimmerfrk

No its not in the middle of the US but pick a coastal city and look at median......Just saying.

Did you look at the link he posted?

[MrRoboto]

Originally Posted by bimmerfrk

No its not in the middle of the US but pick a coastal city and look at median......Just saying.

Based on this study Less than 4% of mortgages in the United States were over $500,000.
http://nlihc.org/article/new-analysi...95-us-counties

[bimmerfrk]

Originally Posted by RickFLM4

Did you look at the link he posted?

Those are entire states and not coastal cities where a majority of people resides.

So yea i can buy a house in bumblefuck NY but how close will my closest neighbor be?

[RickFLM4]

Originally Posted by bimmerfrk

Those are entire states and not coastal cities where a majority of people resides.

So yea i can buy a house in bumblefuck NY but how close will my closest neighbor be?

Well, the change applies to new mortgages (not existing) and the amount is $750K not $500K. People with mortgages above $750K sure as hell better have the income to support servicing the new mortgage with or without a tax deduction for any excess over $750K, wherever they live. It isn't a tragedy.

[dmatre]

Originally Posted by ASAP

Middle class is defined by your income not by the price of your home...

Believe it or not, the median family income in this country is $50k... anything above that is actually slightly better than middle middle class. If that makes you poor in California, then so be it... this statistic does not change based on the region you live in...

The question is actually not 'what is middle class?' but rather 'do people in the middle class ever have 500k mortgages?', and 'will the middle class be affected by capping the mortgage deduction?'.

In South Carolina, and several other low-cost states, the answer is likely 'No', but in some areas of the country, the answer is 'Yes'. Painting everyone in the country with the same brush makes things simple, but is not really accurate.

[ASAP]

Originally Posted by dmatre

The question is actually not 'what is middle class?' but rather 'do people in the middle class ever have 500k mortgages?', and 'will the middle class be affected by capping the mortgage deduction?'.

In South Carolina, and several other low-cost states, the answer is likely 'No', but in some areas of the country, the answer is 'Yes'. Painting everyone in the country with the same brush makes things simple, but is not really accurate.

i hate to be the bearer of bad news... but a certain income is needed to afford a 500k house, if you cant afford it... then perhaps you should move

[dmatre]

Originally Posted by bimmerfrk

No its not in the middle of the US but pick a coastal city and look at median......Just saying.

Can't drill down to cities in the links provided. Is there another page?

Average mortgage in CA is $336,250.

But housing prices in CA range from almost 'Mid-America' prices in rural areas, to prices where a 500k mortgage is not uncommon in others.

Same with just about any other state. VA, MA, NY all have low-cost regions and areas with much higher housing costs.

Specific example: the house I was born in is in Syosset NY, definitely a 'middle class' area. 1320sq ft. price $579,000. With anything less than 16% down, this is a 500k mortgage. For the same type of house in Fort Mill, SC, the going price is $134,000.

Generalizations are easy, but misses many of the details.

[mbanks21]

Originally Posted by UglyBuzzard

If it was anyone but Trump, most would be raving about this. What he said would happen has begun...

AT&T

The telecom giant said Wednesday that more than 200,000 of its employees, including union-represented and non-management workers, will be eligible for a $1,000 bonus. The checks will be in the mail in time for the holidays if Trump finalizes the tax bill with his signature before Christmas. AT&T also said it will invest $1 billion more than expected in the U.S. in 2018, once the cuts are final.

“Congress, working closely with the President, took a monumental step to bring taxes paid by U.S. businesses in line with the rest of the industrialized world,” AT&T Chairman and CEO Randall Stephenson said in a statement. “This tax reform will drive economic growth and create good-paying jobs.”

Boeing

The aerospace and defense company immediately announced $300 million in investments after the bill passed, with $100 million toward corporate giving including employee gift-match programs, $100 million toward workforce development, training and education and $100 million toward enhancing Boeing’s workplaces.

"On behalf of all of our stakeholders, we applaud and thank Congress and the administration for their leadership in seizing this opportunity to unleash economic energy in the United States," Boeing President and CEO Dennis Muilenburg said in a statement. "It's the single-most important thing we can do to drive innovation, support quality jobs and accelerate capital investment in our country."

Fifth Third Bancorp

The Cincinnati-based banking corporation said it would raise the minimum hourly wage for all employees to $15 per hour and dispense $1,000 bonuses for more than 13,500 workers. The company says tax reform was directly responsible for the initiatives.

“It is good for our communities, employees and Fifth Third Bank,” Fifth Third President and CEO Greg Carmichael said.

Wells Fargo

Wells Fargo & Company said it would raise minimum wage for its team members to $15 per hour and earmark $400 million for philanthropic initiatives in 2018. Some $100 million of that total will be committed to boosting small businesses, while $75 million will support neighborhood revitalization efforts.

“We believe tax reform is good for our U.S. economy and are pleased to take these immediate steps to invest in our team members, communities, small businesses, and homeowners,” said Wells Fargo President and CEO Tim Sloan. “We look forward to identifying additional opportunities for Wells Fargo (WFC) to invest, as we continue to execute our business strategies and provide long-term value to all our stakeholders."

Since when do banks pay minimum wage? The average low level bank teller makes $12-13 an hour to start anyway. After a year or two I'm sure they're making $15/hour on their own accord. And unions have contracts tied to the company's profits so those "bonuses" could be contract mandated, not like they payed it out of the kindness of their hearts.

[Taskmaster]

Originally Posted by BayMoWe335

Corporate taxes were too high. 21% is more in line with reality.

Everything else,is a more complicated discussion.

High in comparison to what? What was the actual effective rate?

[kscarrol]

Without diving into the weeds, most folks in coastal states were happily voting for Hillary who was going to raise taxes on the "wealthy", and the most common number thrown around was income of $250,000 or more. I know that would likely change through the legislative process but they were going see a tax increase and were generally ok with that. Now in the new tax bill, many are seeing a tax increase but suddenly it's a problem.

Assuming normal other expenses of car notes etc, you need income north of $250,000 to afford a $500,000 mortgage. And I am talking the mortgage, not the value of the home, assuming some money is put down.

So bottom line is we can argue the merits of the tax cut and whether it is smart given the fiscal challenges the country faces but the folks complaining about increasing taxes under this bill were likely going to see higher taxes if Hillary had won... and supposedly they would have been OK with that.

[Joekerr]

Originally Posted by TheAxiom

High in comparison to what? What was the actual effective rate?

What do you mean re: bolded?

[kscarrol]

Originally Posted by Joekerr

What do you mean re: bolded?

He means that while the "official" corporate tax rate was much higher, through various deductions the "effective" tax rate, what companies actually paid, was much lower....

[mbanks21]

I read a Communications Workers of American Union rep said AT&T promised them a $4000 wage increase but only gave them $1000 and that they had to fight for even that.