Trump tax plan

Originally posted by no1marauder
[b]Matter of fact we will be taking all deductions out other than mortgage interest and charitable donations,

I wonder what will happen when people realize that would mean their contributions to 401(k)s and IRAs would no longer be tax deferred.

Rate on a scale of 0-100 the percentage chance of such a plan being enacted this year.[/b]

Rate on a scale of 0-100 the percentage chance of such a plan being enacted this year.

Based on Trump's performance so far, my rating would be about -8.

Originally posted by Lundos
Trump and his staff are on their way with a new tax plan.

What should we expect from it?

Personally I think this is why he entered politics, so I expect tax cuts for the wealthy and every corporate business model that Trump or his family have invested in or directly own.

Not more tax breaks!

God help us, the US might start running trillion dollar deficits now! 😲

Originally posted by no1marauder
[b]Matter of fact we will be taking all deductions out other than mortgage interest and charitable donations,

I wonder what will happen when people realize that would mean their contributions to 401(k)s and IRAs would no longer be tax deferred.

Rate on a scale of 0-100 the percentage chance of such a plan being enacted this year.[/b]

The White House clarified that 401(k)s wouldn't be affected because they aren't technically "deductions" because you don't declare them as such on your 1040. That's a bit dubious since the amount you contribute is deducted from your gross income by your employer, but whatever. Nothing was said about IRA contributions (which are deducted on your 1040) but the total money in IRAs is only a fraction of what it is in 401(k)s and most of that is "rollovers" from the latter.

Originally posted by no1marauder
The White House clarified that 401(k)s wouldn't be affected because they aren't technically "deductions" because you don't declare them as such on your 1040. That's a bit dubious since the amount you contribute is deducted from your gross income by your employer, but whatever. Nothing was said about IRA contributions (which are deducted on your 1040) but ...[text shortened]... RAs is only a fraction of what it is in 401(k)s and most of that is "rollovers" from the latter.

Bummer. I have only IRA's. Sounds like the deduction for mortgage insurance is out too, but I wonder if they'll keep it because it is related to the mortgage.

And I also wonder if an unintended result of making standard deductions large enough to make itemizing your mortgage interest moot is going to undermine the chief financial advantage of buying a house, thereby weakening the entire housing market, which is bad for banks. Somebody somewhere must be worried about that, no? If there's one thing we should all know, it's that destabilizing the housing market is bad.

Originally posted by Sleepyguy
Yep. Can't argue.

Meanwhile the debt climbs. How are we not going to become Greece?

By keeping the petro dollar intact. We can always print as much as we want with that.