The House of Representatives and Senate have both passed the “Tax Cuts and Jobs Act.” And President Trump signed this legislation into law.
The compromise bill includes agreements on corporate and individual tax rates, the treatment of pass-through income, the estate tax, and itemized deductions such as those for mortgage interest and state and local taxes, among other areas.
That’s not fair!” – How many times have you heard that cry from a child?
I created a “dadism” about that years ago. I would reply, “I know, life’s not fair then you die.”
Every day since the announcement of the proposed tax legislation, there are many variations of this reply to the elimination of the deduction for State and Local Income Taxes, Property Tax, and Sales Tax.
Those losing the deduction are the people that have been subsidized by nearly two-thirds of Americans. The renters are the ones that should be crying out that it is not fair.
The calendar changed to November just in case you need a reminder in the middle of our 90-degree days! Buddy and I certainly liked the morning walk in the 40’s earlier this week.
With the calendar change, there are 52 shopping days till Christmas and 39 shopping days till Hanukah. The retailers are excited, the FedX and UPS delivery guys are preparing for the crush of deliveries and you might be wondering how did this happen so quickly?
There is lots of talk about “Tax Reform” in Washington DC. If you can ignore the rhetoric and wade through the proposals, then you would see that tax cuts can help boost growth. However, that boost will be temporary.
In the same process, the tax savings will increase your net after-tax income. The increase in take-home cash can either be temporary like tax cuts or become permanent.
Spending is the crucial element to balancing the budget if you’re the USA or creating net worth for individuals and families.
Are there missing Peeps®?
Have you ever had the pleasure of coloring hard-boiled eggs with your children or grand-children and then have the “Easter Bunny” (aka Mom and Dad) hide them for finding on Easter morning?
This was an Easter tradition for our family and it made Easter morning a quick fun filled adventure to find the Easter Eggs. Of course, there is no competitiveness in our family and finding them first and the most was just added pleasure for the day.
When the hunting begins it is filled with screams of joy and laughter as decorated Easter baskets were filled with “their” eggs before breakfast and getting dressed in the NEW Easter dress for church. Three girls – it was a maddening mayhem to do the hair, dresses on, and off to church and lunch with relatives.
Thinking back, it was much like today’s fast-paced data-driven instant gratification life. Too much, too fast and not enough time spent on the important people in your life.
Sounds a lot like email, text, Snapchat, Instagram Facebook, Twitter………………….
Before reading this week’s blog please read the following out loud slowly.
THE IRS DOES NOT SEND EMAILS TO TAXPAYERS NOR WILL THEY CALL YOU AND HAVE YOU VERIFY YOUR IDENTITY OR ASK YOU TO PAY YOUR TAX OWED WITH ITunes Gift Cards.
Now that we have that issue under control, we can move on to the fastest growing IRS fraud. With the deadline looming for taxpayers, the crunch will be on for people scrambling to get their final documents together and submit their official tax return.