Originally Posted by
iahflyr
GOP tax reform just created winners and losers. If you make 157-200k, our marginal tax rate went from 28% to 32%. We lost our write offs for union expenses and per diem. We can no longer write off all our state income tax and property tax. Lots of pilots will see a higher tax bill due to this GOP tax law.
The 100% guarantee that your taxes went up is if you are a pilot for a union airline, single, make 157k-200k, live in a state with state income tax (43 out of 50 of them charge state income tax) and own a home. Find me anyone in that situation and I guarantee your taxes go up in 2018.
IAH, you’re full of it. Even though you cherry-picked a certain income level where you thought would best represent your Pelosi Armageddon drakonion tax increase narrative, actual math unfortunately doesn’t support your position. (Ironically this is a forum of 1%ers complaining about paying taxes on four times the average $54,000 gross income of U.S. family. Ok maybe more accurately 3 to 4%ers. Either way, it’s a first world problem.)
I used $200,000 as the baseline income where you tried to cherry-pick the marginal increase in tax rate for $43,000 of those dollars. Unfortunately you failed to account for the large decrease in tax on the other $157,000. The federal tax on $200,000 under the old system equates to $48,212. The tax under the new system is $44,831. A reduction of $3,381 under the new plan. (This is known as “crumbs” to opponents of the new tax plan.)
I got hit with AMT in 2017, and it hit me for an additional $5,500 in taxes ABOVE the old federal tax due. Now that AMT has raised the exemption limit, and the exemptions which would have forced me to AMT are gone, I won’t be subject to that extra $5,500 tax. Plus the marginal rates are $3,300 lower on that $200K (see above). Sounds like a rather large tax cut for us 3%ers.
This is where you would normally eat crow but I suspect you’ll double down with emotion when you lost the battle with facts.