Tax reform impact

[Free bird]

What will be left to spend once higher rates higher inflation & higher energy prices?

 

[Bir48die]

Troll

 

[Pilot2013]

 

[gayl]

I'll answer: pension up $43 hc insurance up $134 .... at least we don't have to run heater

 

[pb4uski]

I'll answer: more that you would have had before tax reform.

 

[ShokWaveRider]

What Tax Reform?

 

[ERD50]

troll

+1

i'll answer: More that you would have had before tax reform.

+1

-erd50

 

[pb4uski]

But would a troll have 222 posts?

 

[audreyh1]

Even Congress didn't call it Tax Reform. They called it the Tax Cut and Jobs Act.

 

[unclemick]

I'm still in shock 4 years post 70 1/2 RMD. Plus I live in Kansas.

I know nothing till my tax account tells me.

heh heh heh - Like Sargent Shultz.

 

[HFWR]

What will be left to spend once higher rates higher inflation & higher energy prices?

I expect interest rates to rise, as will inflation, both to be expected, and probably desirable, at this point in the “cycle”. Whether they stop rising at the right time is questionable... As for energy, seems there’s an excess of capacity, what with tar sands, fracking, etc., which I think will limit the upside.

What the new tax bill will do for tax revenues remains to be determined. Guess we’ll find out. [emoji51]

As for me personally, I expect my tax bill will drop, since the standard deduction will be higher than my current itemized deductions. Didn’t necessarily need or want a tax break, but I’ll take it!

 

[Joylush]

I expect interest rates to rise, as will inflation, both to be expected, and probably desirable, at this point in the “cycle”. Whether they stop rising at the right time is questionable... As for energy, seems there’s an excess of capacity, what with tar sands, fracking, etc., which I think will limit the upside.

What the new tax bill will do for tax revenues remains to be determined. Guess we’ll find out. [emoji51]

As for me personally, I expect my tax bill will drop, since the standard deduction will be higher than my current itemized deductions. Didn’t necessarily need or want a tax break, but I’ll take it!

You don't have to take it if you don't want or need it. I believe you always have the option of paying extra. Just not the option of paying less.

 

[HFWR]

The difference to the US Treasury wouldn’t even register as noise, so the optimal thing to do is just spend it myself... [emoji12]

 

[AndyS]

What will be left to spend once higher rates higher inflation & higher energy prices?

I read a couple of articles the other day about how they are kicking around the idea of increasing the Federal gas tax to fund infrastructure. Saw the figure of an extra 25 cents per gallon mentioned a couple of times. (current is 18.4 cents per gallon)

Anyways, while I'm certainly not looking forward to inflation, I hear it would supposedly help the Federal government servicing the debt.

Even Congress didn't call it Tax Reform. They called it the Tax Cut and Jobs Act.

We're at near full employment anyway ... so I don't really know about the "jobs" part of that title.

 

[Free bird]

I thought higher inflation brings higher interest rates which makes servicing debt more costly. Raising the gas tax would slow the economy as it is a regressive tax. They claim many don't pay taxes but that's not true.

 

[Pilot2013]

They claim many don't pay taxes but that's not true.

Who is they? While it is true everyone pays some taxes (sales, gas, etc), I think "they" are referring to the fact that not everyone pays income taxes.

 

[gerntz]

Raising the gas tax would slow the economy as it is a regressive tax.

Just buy an electric car & dodge it. That's happening now.

 

[Winemaker]

Just buy an electric car & dodge it. That's happening now.

Oregon, and California had proposals at one time for "user fees" since electric cars owners do not pay gas taxes.


As far as I have learned in the past, high interest rates must keep up with the inflation rate, but even higher interest rates are a tool to temper inflation and keep it in check.

 

[Markola]

Apparently, there is a LOT left to spend, if you’re a corporation and want to do stock buybacks. http://money.cnn.com/2018/02/16/investing/stock-buybacks-tax-law-bonuses/index.html

 

[audreyh1]

I read a couple of articles the other day about how they are kicking around the idea of increasing the Federal gas tax to fund infrastructure. Saw the figure of an extra 25 cents per gallon mentioned a couple of times. (current is 18.4 cents per gallon)

Anyways, while I'm certainly not looking forward to inflation, I hear it would supposedly help the Federal government servicing the debt.



We're at near full employment anyway ... so I don't really know about the "jobs" part of that title.

That’s kind of ironic don’t you think? Just got done passing a huge tax cut and then turn around and propose a tax hike because they are short of revenue.

 

[audreyh1]

Apparently, there is a LOT left to spend, if you’re a corporation and want to do stock buybacks. Tax cut scoreboard: Workers $6 billion; Shareholders: $171 billion - Feb. 16, 2018

Wow double the buy-backs!!!

 

[DEC-1982]

Wow double the buy-backs!!!

Or they could give it back as a large one-time dividend. Tax rates are low today.

 

[joeea]

That’s kind of ironic don’t you think? Just got done passing a huge tax cut and then turn around and propose a tax hike because they are short of revenue.

I don't think "ironic" is the word I'd use.
I'd probably use the term "planned".

 

[audreyh1]

Or they could give it back as a large one-time dividend. Tax rates are low today.

Somehow it seems clear they aren’t going to do that. Double the buybacks have already been announced. And at these high prices!

To me it always seems like a way to make a lot of money go poof. Companies seem to have the worst timing when it comes to buying their own stock.

 

[gerntz]

I thought higher inflation brings higher interest rates which makes servicing debt more costly. Raising the gas tax would slow the economy as it is a regressive tax. They claim many don't pay taxes but that's not true.

It is true. Many operate/work outside the tax system in the cash economy & thus aren't taxed ex sales taxes & user fees.