Did Our Taxes - Thanks Trump And Republican Majority In Congress

Sep 2007
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#32
That is what I did this year after being warned that I may end up paying more than usual. I ended up with about 200.00 a month from the tax cut from all my employers. I saved every dime because I know I will just end up giving it back. Some tax cut. LOL
But, think of all that interest income you'll end up with from saving all that money, after taxes of course.
 
Oct 2013
24,770
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USA
#33
According to MSNBC news of the early filings of taxes, tax returns are down 8.4% for the average taxpayer thus far. We'll see if that is consistent and if it is then I would guess that those whose incomes are based on wages may see less take home pay if the companies adjust the deductions to cover the discrepancy next year.
 
Nov 2015
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UK
#34
I had a mate that said, "Can't believe it, my tax bill is £13,000". I told him, "It's only £13,000 because you earned the money". He shut up.

Another mate said, "I paid £40,000 last year in tax". I told him, "If you don't wish to pay £40,000 in income tax, quit your £150,000 year job and go get one for your tax allowance, £11,500, so you won't pay a penny".
 
Likes: Minotaur
Oct 2013
24,770
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#36
I had a mate that said, "Can't believe it, my tax bill is £13,000". I told him, "It's only £13,000 because you earned the money". He shut up.

Another mate said, "I paid £40,000 last year in tax". I told him, "If you don't wish to pay £40,000 in income tax, quit your £150,000 year job and go get one for your tax allowance, £11,500, so you won't pay a penny".
Ha. Our system is more a question of deductibles. I think that when they announce the changes are going to benefit the middle class TEMPORARILY and you look at the bottom line on deductions it is human to feel screwed. lol

In our case this may mean that paychecks will be lower next year to adjust for not taking enough out but we'll see. No one likes a decrease in take home pay.
 
Nov 2015
3,992
1,229
UK
#37
Ha. Our system is more a question of deductibles. I think that when they announce the changes are going to benefit the middle class TEMPORARILY and you look at the bottom line on deductions it is human to feel screwed. lol

In our case this may mean that paychecks will be lower next year to adjust for not taking enough out but we'll see. No one likes a decrease in take home pay.
What do you mean by debuctibles?

We have allowances (tax code) so for example the common tax code of 1185L means, the first £11,850 of your wage attracts 0% in tax. The letter also describes the tax code and how the tax is deducted. If you earned £11,850 in the UK, your income tax bill is £0. Then you pay 20% tax on £11,851 to £46,350, 40% on £46,351 to £150,000 and 45% over £150,000.

say you earned £160,000, your income tax is

First £11,850 = £0.00
Next £34,500 @ 20% = £6,900
Next £91,800 @ 40% = £36,720
Last £10,000 @ 45% = £4,500

Total income tax = £48,120.

There's also National Insurance to deduct for state pension.
 
Oct 2013
24,770
21,031
USA
#38
What do you mean by debuctibles?

We have allowances (tax code) so for example the common tax code of 1185L means, the first £11,850 of your wage attracts 0% in tax. The letter also describes the tax code and how the tax is deducted. If you earned £11,850 in the UK, your income tax bill is £0. Then you pay 20% tax on £11,851 to £46,350, 40% on £46,351 to £150,000 and 45% over £150,000.

say you earned £160,000, your income tax is

First £11,850 = £0.00
Next £34,500 @ 20% = £6,900
Next £91,800 @ 40% = £36,720
Last £10,000 @ 45% = £4,500

Total income tax = £48,120.

There's also National Insurance to deduct for state pension.
Interesting because I didn't know how your system worked. We have categories as well (what you called tax codes I believe) plus we have deductibles which are just personal purchases or items you can deduct from the base tax bill like mortgage interest payments, donations, etc. If we had your style health care that too would be deducted as yours is. What the new tax code did was change the deductibles while adding benefits. Where we are now at tax time is that Ponzi scheme trade off where few know whether the benefits are lower than the past deductibles. In other words is the middle class paying more taxes in spite of how it was presented. Thus far based on those who did early taxes, looks like middle class on average is paying more or getting smaller returns. To repeat, it is likely to impact them next year as companies adjust the deductions by lowering their take home pay, or not.

Right now the confusion is because this is a new tax method and does not seem to be matching up to the promises but it is too early to draw a conclusion.
 
Nov 2015
3,992
1,229
UK
#39
Interesting because I didn't know how your system worked. We have categories as well (what you called tax codes I believe) plus we have deductibles which are just personal purchases or items you can deduct from the base tax bill like mortgage interest payments, donations, etc. If we had your style health care that too would be deducted as yours is. What the new tax code did was change the deductibles while adding benefits. Where we are now at tax time is that Ponzi scheme trade off where few know whether the benefits are lower than the past deductibles. In other words is the middle class paying more taxes in spite of how it was presented. Thus far based on those who did early taxes, looks like middle class on average is paying more or getting smaller returns. To repeat, it is likely to impact them next year as companies adjust the deductions by lowering their take home pay, or not.

Right now the confusion is because this is a new tax method and does not seem to be matching up to the promises but it is too early to draw a conclusion.
Ok.

We call deductibles, "Expenses wholly and exclusively used in your job". I know, how long winded is that!! For example, if you're a mechanic and bought a £20 spanner, you could claim the tax back off the cost of the spanner. If you bought a tool box to store the spanner, you can't the tax back off the tool box.

Can I assume you've been promised certain deductibles but reality in claiming hasn't matched? The goal posts have moved?

Why can humans get people on the moon but can't get a tax system right?
 
Likes: Minotaur
Oct 2013
24,770
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USA
#40
Ok.

We call deductibles, "Expenses wholly and exclusively used in your job". I know, how long winded is that!! For example, if you're a mechanic and bought a £20 spanner, you could claim the tax back off the cost of the spanner. If you bought a tool box to store the spanner, you can't the tax back off the tool box.

Can I assume you've been promised certain deductibles but reality in claiming hasn't matched? The goal posts have moved?

Why can humans get people on the moon but can't get a tax system right?
You summed it up perfectly in that last line! Lol. Yes you can assume that promise hasn't matched, at least for some.
 

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