Will new tax plan benefit private schools?

shyshira

Mon, Dec 04 2017, 1:41 pm

Mommyg8 wrote:

Well, once the bill is in its final form, it will be easier to evaluate individual positions.

What's hard about the estimate is predicting how it will affect people in the aggregate - for example, how will it affect families making $100,000 to $150,000 a year - as this is a very broad average that would have to cover many different kinds of families who are currently taking many different kinds of deductions. It would depend a lot on what kind of deductions they are currently taking, and what kind of deductions they will be able to take (or not take) in the future, and even what they're salary will be over next year and the following years. And we also don't know which kind of loopholes will be found in the current tax law, that will make all these estimates moot. We don't know the future rate of inflation.

There are just so many variables in any kind of estimate, that any estimate that is more than a year in the future is purely speculation.

The bills are very detailed - we are beyond the 'vague' ideas phase. Either could in theory be signed and made law. You can evaluate your own position against either bill.

I agree regarding the aggregate - but these models generally explain their assumptions if you dig enough find them.

Mommyg8

Mon, Dec 04 2017, 1:47 pm

shyshira wrote:

These bills are very detailed, but my understanding was that certain provisions were still up in the air. If that has changed over the past few days, then I've missed it, sorry.
Assumptions and facts are not the same, and these models generally don't take into account that people might change their behavior based on the new rules... or not. It's always difficult to predict what people will do.

Edit: I just checked my emails from the WSJ - according to them the tax bill is still being negotiated, and is not yet in its final form.

Last edited by Mommyg8 on Mon, Dec 04 2017, 10:21 pm; edited 1 time in total

ShabbosBaby

Mon, Dec 04 2017, 10:14 pm

Jeanette wrote:

Who says the poor don't pay taxes? shock

We all pay payroll taxes. And now there is talk of cutting social programs to pay for the tax cut for billionaires. We will all pay for this in big and small ways.

Right

Besides, most people in the heimish community are filing as poor and getting tax return refunds, according to this tax plan this will be substantially reduced since they eliminate the personal exceptions and the new CTC won't be refundable

Most people don't yet realize what's about to hit them

Mommyg8

Mon, Dec 04 2017, 10:20 pm

ShabbosBaby wrote:

The new CTC will not be refundable??? That's bad. But the Earned Income Credit is still refundable, which is for the real poor, right? The CTC is not necessarily for people who are filing as poor, and middle income people in the heimish community will benefit by the fact that they doubled that.

ShabbosBaby

Mon, Dec 04 2017, 10:31 pm

Mommyg8 wrote:

The earned income credit is a very small amount (I think arout 300) and only 1 per family not perfect dependent/child

Middle class people here in NY and NJ will definitely lose because of the elimination of the SALT deduction

Mommyg8

Mon, Dec 04 2017, 10:32 pm

ShabbosBaby wrote:

The earned income credit is a very small amount (I think arout 300)

Middle class people here in NY and NJ will definitely lose because of the elimination of the SALT deduction

Some people get around $12000 EIC!!!