Join Early Retirement Today
Closed Thread
 
Thread Tools Search this Thread Display Modes
Old 01-02-2013, 09:05 AM   #41
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 16,471
Quote:
Originally Posted by Midpack View Post
What they did is a step in the right direction IMO and I'm glad they actually finally did something (and some permanent resolutions), but they need to address spending and tax reform (loopholes/deductions) next.
BTW - I read somewhere that extending the AMT patch would add $4.3 trillion to the deficit. Now, I don't know over what time period, etc. I think I saw a $1.9 trillion number somewhere else. But whatever it is, it's BIG and a major reason Congress has been unwilling to make it permanent until now. But it's a fantasy - no one is going to let people in tax brackets as low as $33K/$45K fall into the AMT trap. So ever seriously counting it as future revenue was a big lie. Just one example of all the smoke and mirrors going on.

One advantage of making things permanent (a few deductions/credits are still temporary) is that you have a less malleable basis for comparison going forward.
__________________

__________________
Well, I thought I was retired. But it seems that now I'm working as a travel agent instead!
audreyh1 is offline  
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 01-02-2013, 09:08 AM   #42
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Dawg52's Avatar
 
Join Date: Feb 2005
Location: Central MS/Orange Beach, AL
Posts: 7,438
Quote:
Originally Posted by haha View Post
[COLOR=black][FONT=Verdana]
I do think that eventually Medicare and SS will be considerably weakened. If I were in my 60s now I might be strongly tempted to grab the SS cash while it is available.

They are not going to try clawbacks.

Ha
Agree. Too bad I'm not of SS age.
__________________

__________________
Retired 3/31/2007@52
Full time wuss.......
Dawg52 is offline  
Old 01-02-2013, 09:17 AM   #43
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: Chicagoland
Posts: 11,974
I deleted my OB post (it was out of line on second read), fair enough...
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 60% equity funds / 35% bond funds / 5% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
Midpack is offline  
Old 01-02-2013, 09:22 AM   #44
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Rocky Inlets
Posts: 24,456
Quote:
Originally Posted by audreyh1 View Post
One advantage of making things permanent (a few deductions/credits are still temporary) is that you have a less malleable basis for comparison going forward.
That's a good point. It also makes it easier to do personal tax planning, and hopefully the tax SW can get released earlier.
__________________
MichaelB is online now  
Old 01-02-2013, 09:23 AM   #45
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 16,471
Quote:
Originally Posted by MichaelB View Post
That's a good point. It also makes it easier to do personal tax planning, and hopefully the tax SW can get released earlier.
Yes, it sure does!
__________________
Well, I thought I was retired. But it seems that now I'm working as a travel agent instead!
audreyh1 is offline  
Old 01-02-2013, 09:39 AM   #46
Thinks s/he gets paid by the post
 
Join Date: Jan 2011
Posts: 1,207
I'm at work so could only skim the details of this supposed resolution. But from what I can tell both parties should be ashamed of themselves, and have shown a lack of integrity. Neither side wants to tackle the true thorny issues to get our deficit down (i.e., and not saddle our children and grandchildren with serious financial debt).
They are all too busy with finger-pointing and pushing their own political agendae, with no regard for the economic impact. I definitely have a political leaning, which I am not going to mention. In this case, I strongly believe they are all guilty and delaying this another 2 months only means....that in 2 months they will delay it again, and again, and again......
__________________
mystang52 is offline  
Old 01-02-2013, 10:16 AM   #47
Full time employment: Posting here.
 
Join Date: Mar 2010
Location: Chicago
Posts: 867
Quote:
Originally Posted by MichaelB View Post
So I take it that people in the 10 to 15% bracket will still pay 0 on capital gains and dividends.
__________________
ripper1 is offline  
Old 01-02-2013, 11:02 AM   #48
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: Chicagoland
Posts: 11,974
Quote:
Originally Posted by mystang52 View Post
I'm at work so could only skim the details of this supposed resolution. But from what I can tell both parties should be ashamed of themselves, and have shown a lack of integrity. Neither side wants to tackle the true thorny issues to get our deficit down (i.e., and not saddle our children and grandchildren with serious financial debt).
They are all too busy with finger-pointing and pushing their own political agendae, with no regard for the economic impact. I definitely have a political leaning, which I am not going to mention. In this case, I strongly believe they are all guilty and delaying this another 2 months only means....that in 2 months they will delay it again, and again, and again......
I'll risk being naive but hopeful. Republicans will demand spending cuts as a condition for extending the debt ceiling. "Now the focus turns to spending" and overhauling the tax code, Boehner said in a written statement after the vote.
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 60% equity funds / 35% bond funds / 5% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
Midpack is offline  
Old 01-02-2013, 11:05 AM   #49
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 16,471
Quote:
Originally Posted by ripper1 View Post
So I take it that people in the 10 to 15% bracket will still pay 0 on capital gains and dividends.
That's my take.
__________________
Well, I thought I was retired. But it seems that now I'm working as a travel agent instead!
audreyh1 is offline  
Old 01-02-2013, 11:25 AM   #50
Moderator Emeritus
 
Join Date: May 2007
Posts: 11,044
I am pretty happy with the outcome. A few months ago I was expecting some pretty large tax increases at the federal and state level. After looking at the details of this bill and prop 30 in California, it now looks like the additional tax bite will be pretty benign for us. With DW expecting to retire in 2014, 2013 will be our last year with a 6-figure income and we intend to make the most of it savings-wise and low taxes will help. After that we should fall into the 15% tax bracket and enjoy the 0% tax on LTCG and dividends that y'all are talking about.
__________________
FIREd is offline  
Old 01-02-2013, 11:38 AM   #51
Thinks s/he gets paid by the post
JoeWras's Avatar
 
Join Date: Sep 2012
Posts: 2,524
OK, seems most people here are happy. I guess I am too, for the current bill. Not much effect on me, even though I'm still w*rking.

However, I think phase #2 could cause some more pain for us young dreamers. I think they are really going to have to look seriously at raising retirement ages again, and this could affect those of us under 55 or so. They will probably have to add "means testing" for medicare. Hopefully, this won't be asset based, because those of us without pensions could get bitten by our investment assests. Just guessing here.

Finally, anyone notice that they added a 401k to 401k roth conversion in the bill, much like the current IRA conversion? This will come in handy for me, because I plan to use my early retirement time (before SS) to do conversions up a reasonable tax bracket. (Not doing it now while w*rking.)
__________________
JoeWras is offline  
Old 01-02-2013, 12:23 PM   #52
Thinks s/he gets paid by the post
bUU's Avatar
 
Join Date: Dec 2012
Location: Georgia
Posts: 1,914
I'm coming to the conclusion that that isn't something "added" but rather is something for which the rules are being changed, opening it up to more people. The reason why this nuance is important is that it helps us understand that it doesn't in any way affect the Backdoor Roth.

At least that's my hope.
__________________
bUU is online now  
Old 01-02-2013, 02:56 PM   #53
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,385
Quote:
Originally Posted by mystang52 View Post
I'm at work so could only skim the details of this supposed resolution. But from what I can tell both parties should be ashamed of themselves, and have shown a lack of integrity. Neither side wants to tackle the true thorny issues to get our deficit down (i.e., and not saddle our children and grandchildren with serious financial debt).
They are all too busy with finger-pointing and pushing their own political agendae, with no regard for the economic impact. I definitely have a political leaning, which I am not going to mention. In this case, I strongly believe they are all guilty and delaying this another 2 months only means....that in 2 months they will delay it again, and again, and again......
Well my goodness, this is shocking. Many voters have children and grandchildren that come from groups that have never paid taxes, and never will- but they will get benefits each and every year. So what sort of vote might best guarantee their votes? Other voters have no children or grandchildren, and think that on the long chance if they ever do they will worry about that when it comes along. Others may have children and /or grandchildren, but reasonably enough favor a bird in hand. After all, you can just advise your granddaughter to get a government job.

Once politics is understood one easily comes to this conclusion: always take a bird in hand, and cyncism is always in order.

Ha
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is offline  
Old 01-02-2013, 03:30 PM   #54
Thinks s/he gets paid by the post
bUU's Avatar
 
Join Date: Dec 2012
Location: Georgia
Posts: 1,914
I think that we run the risk of not understanding the situation properly if we assume that what's happening is "not wanting to tackle the true thorny issues". Both sides want to tackle the true thorny issues, but they want to do it differently. There may not be a solution that is acceptable to more than a minority of Americans.
__________________
bUU is online now  
Old 01-02-2013, 03:47 PM   #55
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 19,420
Quote:
Originally Posted by haha View Post
Well my goodness, this is shocking...

Once politics is understood one easily comes to this conclusion: always take a bird in hand, and cyncism is always in order.

Ha
Nearly all of my children and their cousins are liberally minded, and think that the government will put any and all of the taxes it takes in to good use. I am not sure if they have found any tax that they do not like. Well, now that they have been working for a few years and moving up the tax brackets, will they change their mind? Time will tell, but for now, I say unto them that their taxes are supporting my retirement. The same with my still-working brothers.

I think a flat tax would simplify a lot, and keep people from playing the shell game. But hey, how do I refuse gimmes that I can benefit from? We may go down the tube together, but meanwhile I will spend some time to evaluate different liquors and spirits. I went to a liquor store recently, and gosh, there's so much to try, and as I do not really drink that much nor daily, I fear my time is running out.

See, I can only take care of myself and mind my own business.
__________________
NW-Bound is offline  
Old 01-02-2013, 03:58 PM   #56
Thinks s/he gets paid by the post
bUU's Avatar
 
Join Date: Dec 2012
Location: Georgia
Posts: 1,914
The problem with the politicians who propose a flat tax is that they refuse to acknowledge a reasonable base for living. I bet that many liberals would buy-into the idea of a flat tax if the first $46425.60 of income for a typical family of four was not taxed, and then income above that was taxed at whatever rate would leave things revenue neutral, but the politicians who propose a flat tax are always so Richie Rich-friendly that they'd never agree to a living wage as base.
__________________
bUU is online now  
Old 01-02-2013, 03:59 PM   #57
Thinks s/he gets paid by the post
Telly's Avatar
 
Join Date: Feb 2003
Posts: 1,448
I think I'm getting old. I'm starting to care more and more for what kind of world our kids, and our grandkids, will have to slog through.

I did not view the kick-the-can-along as anything but a negative.

Before Federal DEBT reduction, we have to get through Federal DEFICIT reduction... to a budget surplus. I am having doubts that I will live to see it.

There's never a good time to cut expenses, so we just won't do it.

I'll leave one thought on cuts... buried away in a newspaper article a couple weeks ago, in with talk of reducing future SS COLAs by using Chained CPI, was a paragraph about using Chained CPI for SS Wage Indexing, rather than using US Average Wage on a year-by-year basis. Now THAT could be a disaster if applied to wages long gone by, as the AWI increase has exceeded the CPI over almost all years. I would dread to think that someone would want to go back in time and recalculate your SS wage indexing year by year to a lesser amount. The impact could be huge, resulting in people who have not claimed SS yet, but not far off, getting much less than the calculators and old mailed statements would show.
__________________
-- Telly, the D-I-Y guy --
Two fools dancing on the hands of time
Telly is offline  
Old 01-02-2013, 04:18 PM   #58
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
NW-Bound's Avatar
 
Join Date: Jul 2008
Posts: 19,420
Quote:
Originally Posted by bicker View Post
The problem with the politicians who propose a flat tax is that they refuse to acknowledge a reasonable base for living. I bet that many liberals would buy-into the idea of a flat tax if the first $46425.60 of income for a typical family of four was not taxed, and then income above that was taxed at whatever rate would leave things revenue neutral, but the politicians who propose a flat tax are always so Richie Rich-friendly that they'd never agree to a living wage as base.
A correction is in order. I should have said a "flatter and simpler tax", not an absolutely flat tax. I also do not follow politics enough to know the subtle nuances that different pols have proposed, and of course the devil is in the details.

However, so far, all the talk is about taxing the Richie Rich, but are there enough of them to really bring in revenue to support the trillion-dollar deficit?

But now that that side of the equation is settled, let's see how they tackle the spending side next. Or perhaps I should just turn everything off and just get back to surfing the Web for liquor reviews.
__________________
NW-Bound is offline  
Old 01-02-2013, 04:26 PM   #59
Thinks s/he gets paid by the post
JoeWras's Avatar
 
Join Date: Sep 2012
Posts: 2,524
Quote:
Originally Posted by Telly View Post
I'll leave one thought on cuts... buried away in a newspaper article a couple weeks ago, in with talk of reducing future SS COLAs by using Chained CPI, was a paragraph about using Chained CPI for SS Wage Indexing, rather than using US Average Wage on a year-by-year basis. Now THAT could be a disaster if applied to wages long gone by, as the AWI increase has exceeded the CPI over almost all years. I would dread to think that someone would want to go back in time and recalculate your SS wage indexing year by year to a lesser amount. The impact could be huge, resulting in people who have not claimed SS yet, but not far off, getting much less than the calculators and old mailed statements would show.
Agree. And it could be coming to a Young Dreamer near you soon.
__________________
JoeWras is offline  
Old 01-02-2013, 04:38 PM   #60
Moderator
MichaelB's Avatar
 
Join Date: Jan 2008
Location: Rocky Inlets
Posts: 24,456
Thanks all for a lively discussion
Attached Images
File Type: jpg New Year Pig.jpg (65.4 KB, 73 views)
__________________

__________________
MichaelB is online now  
Closed Thread


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


 

 
All times are GMT -6. The time now is 06:00 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.