From HousingWire:
New study reveals least affordable city in North America
Home prices are out of control in markets such as San Francisco and Manhattan, which have the lowest levels of affordability in the U.S., however other cities in North America are still less affordable.
A new study, The International Housing Affordability Survey conducted by Point2Homes, shows the least affordable market in North America is located in Canada. The least affordable market in North America is Vancouver, Canada, where the median home sales price is more than $1.1 million and the median family income is only $63,944.
Vancouver’s affordability crisis was fueled by foreign investments in the real estate sector, according to an article by Minh Uong for The New York Times. Now, Vancouver has risen to one of the least affordable housing markets in the world.
The second least affordable market in North America is Manhattan, homes are even more expensive than Vancouver at $1.2 million, however the median income is higher at $77,559.
San Francisco came in as the third least affordable market in North America, and the second least affordable in the U.S. It’s median home price is the highest in North America at nearly $1.3 million, but is also holds the highest median income in the U.S. at $92,094.
The chart below shows how many years it would take to pay off a median priced home if borrowers paid 100% of the area’s median income toward the mortgage for major North American cities.
On the opposite end of the spectrum, Detroit came in as the most affordable city as median income borrowers could pay off their median priced home in just 1.8 years if they dedicated all their income toward their home.
Good Morning New Jersey
Mornin’.
@dashching
25.5% of households face tax increases under the House tax bill.
And those tax increases are about enough to finance…the bill’s tax cuts for the top 1%.
@dashching
The House tax bill is highly regressive. It boosts after-tax incomes of those top 1% by far more than everyone else, even in % terms:
What nobody talks about is elimination of Personal tax exemption. That is $4,050 each person. A family of four that is on the 25% AGI bracket is claming $16,200 in exemption plus a standard deduction of $12,400 for a couple that equals to $28,600. Under the proposal , the tax bracket will remain the same,most will not be able to itemized and will be on the standard deduction of $24,800. That is $3,800 more in taxes we will be paying. While the Joblow will be enjoying his tax cuts
I try to ignore this crap, but not this morning.
You send your kids to Boston Latin and in the same context believe all these conspiracy theories on the Clintons? Do your daughters know this? They must think you are nuts. Listen, if Clintons actually did something. trust me, they would be in jail right now. The republicans would be all over it, but unfortunately, it’s all made up propaganda to tarnish their name. Look at how trump played you and your base with “ lock her up.” What happened to locking her up? Oh that’s right, you had nothing on her, but led your base to believe so. This is what happens when conservatives live in an imaginary world. They come up with bs like the Clintons murdered individuals. How do you even believe crap like that?
The Original NJ ExPat says:
November 9, 2017 at 12:27 am
LOL. If Donna Brazile didn’t show her dishonesty by giving questions in advance to Hillary and… lie about the emails being “doctored” before finally fessing up, she could be a candidate for president in 2020. She must hate the Clintons because they haven’t been actually caught for 75,000 perpetrating 75,000 times what Hillary and Bill did.
Hope people smarten up and realize what this tax reform really is. Unfortunately, you have conservative soldiers like lefty that will support anything that a republican puts out as great for our nation.
yome says:
November 9, 2017 at 7:31 am
What nobody talks about is elimination of Personal tax exemption. That is $4,050 each person. A family of four that is on the 25% AGI bracket is claming $16,200 in exemption plus a standard deduction of $12,400 for a couple that equals to $28,600. Under the proposal , the tax bracket will remain the same,most will not be able to itemized and will be on the standard deduction of $24,800. That is $3,800 more in taxes we will be paying. While the Joblow will be enjoying his tax cuts
The Great Pumpkin says:
November 8, 2017 at 9:55 pm
3b/lefty mindsets. This article sums up your position on north jersey. You guys can’t handle all the problems associated with high cost/productive areas. You think lowering taxes can solve all problems…wish it was that easy. Hope you enjoy the read…it directly highlights the problems with capitalism.
https://www.citylab.com/life/2017/11/how-seattle-fell-out-of-love-with-amazon/545045/
Here in lies the problem…no one pays for what they use.
“But now we know that, despite the millions that have flowed to local governments in the Seattle area from Amazon, that money isn’t believed to be enough to pay for all the problems the company’s growth caused. Constantine is saying Seattle will need much more of it if we want a chance to solve our housing shortage and public transit crisis. And that’s not happening: Since a senior Amazon executive told a tech conference that the Seattle region had a snowball’s chance in hell of winning HQ2, we’re going to have to admit that it’s really time to wean ourselves off our Amazon addiction.“
People making under $150,000 enjoys the full benefit of Tax Exemption
Couple filling jointly making under $150,000 enjoys the full benefit of Tax Exemption
Our great resident grim alluded to this.
“In a healthy relationship, no subjects would be off-limits. But when Seattle tries to raise the topic of new taxes for the region’s many growth-related problems, we get the silent treatment from Amazon.
Seattle city council talked about a tax on foreign homebuyers, which has gone nowhere to date. Then levying a fee on high earners was proposed. The chant “tax the rich” was heard in the council chamber. That measure passed. It easily might not happen (Washington State courts have a history of ruling income taxes illegal), but Amazon seemed to get the message: Within weeks of the council’s vote to tax the rich, the company launched the search for HQ2.
Nonetheless, there are things we’ve managed to hold back from saying to Amazon. And do we get credit? No. So here they are.
1) Are the free bananas you give away in your Community Banana Stands supposed to be your idea of a clever joke?
2) Are your iconic “spheres” anatomically correct? (They are colloquially referred to as “Uncle Jeff’s Balls,” and yet there appear to be three.)
3) If Washington State had an income tax to begin with, would you even be here?”
This Amazon case study points out what I have always stated here. You guys act like businesses are overtaxed when in reality, they don’t even come close to paying for what they use, or the damage they incur. Lefty’s/3bs support this bs claiming businesses are always overtaxed. My fuc!ing a$$, and yes it’s criminsl to make all this money and kick the can down the road for the costs of your business. Absolutely criminal.
Just thinking out loud here…
Say Murphy creates his NJ State Bank. Can he capitalize it by mandating local municipalities and cities put their deposits there? Can he use it to fund his agenda? The guy has said yes to everyone. The money has to come from somewhere. Taxes, fees, tolls, the gas tax have already been raised…
Once the state has control of everyone’s finances…could they somehow bully localities into consolidation long term?
“Big company A want’s to move, city B says move here move here! We’ll give you all kinds of tax breaks to bribe you over…” Company A moves to city B..City B realizes years down the road that it can’t afford all the problems associated with company A, because its tax revenue is low…..GASP….“
“Revenue is not the same as profit. When you take in revenue from Amazon sales and take into account taxes from employee sales transactions you may not be left with enough to support the impact of having the business in the local area. That’s infrastructure, housing, everything that goes along with supporting residents. Just trying to say that just because a company contributes tax revenue doesn’t mean it’s not costing the city and state money, possibly more than it’s generating. That’s just taking into account Amazon, I have no idea if there are other shortfalls.“
Rally around the cry dooming our country….businesses are taxed too much! Reality is, not taxed anywhere close enough.
And orange turd wants to give an even big tax break to business as the individuals expense. When the fu!k does the greed end?
If you are worried everyone paying their fair share in NJ then have no fear.
Amazon isn’t coming so you don’t have to worry about them freeloading. And all of the NJ liberal towns where people are taking large itemized deductions are about to see big tax increases so Trump an Murphy will make things right.
We get it Michael…you hate capitalism, repubicans, and conservatives. You made your point. Can you give it a rest now?
Don’t hate, just hate the extreme versions of all the above. Capitalism is good, but not crony capitalism or capitalism with no regulation.
And extremists on the left are just as dangerous, if not more than their polar opposites. At least extremist lefts have no say or power in our country, can’t say the same for far right.
And extremists on the left are just as dangerous, if not more than their polar opposites. At least extremist lefts have no say or power in our country, can’t say the same for far right.
Have you ever heard of Nancy Pelosi?
Do not feed the troll.
My job is done here today. I’ll let those thoughts sink in.
HousingWire article highlights how inexpensive USA housing is. House prices in Vancouver have hit C$1.8 million for 2 story and C$1.3 million for 1 story. That is $1.4 million and $1.0 million in USD. Similar situation in Toronto. More expensive than San Francisco and New York area houses.
Is it safe yet?
Oh that’s right, you had nothing on her, but led your base to believe so.
Nothing illegal, but plenty to suggest she has no morals and is a giant conflict of interest. She’s the most successful American to ever monetize her position within the U.S. government. And laws should be written to prevent that.
Hee, hee, hee.
Toronto and Vancouver housing bubbles are both EPIC.
Every foreign Uber driver is a house flipper with north of $1m in real estate holdings.
Makes the US housing bubble look like a joke.
Remember the dot com boom? Multiply that by 10x. That’s Canada’s housing bubble.
What nobody talks about is elimination of Personal tax exemption. That is $4,050 each person. A family of four that is on the 25% AGI bracket is claming $16,200 in exemption plus a standard deduction of $12,400 for a couple that equals to $28,600.
I have, since the beginning, the increase in standard deduction while eliminating the personal and dependent exemptions is just smoke and mirrors.
There is no firm agreement on tying that to an increase in any tax credit for children, and even what you hear dribbling out, doesn’t begin to compensate.
At the same time, there is plenty of discussion about eliminating the estate tax… Who the hell does that help? What about finally eliminating the carried interest loophole. Wasn’t this all about eliminating loopholes? Can’t touch that though, it’s protected. Again, who does that help?
Exactly.
@dashching
Some GOP lawmakers are trying to distance their federal tax plan from the failed Kansas tax cuts. But the similarities are strong & lessons clear
“In 2012, Kansas tax-cut proponents helped sell the Kansas tax cuts with supply-side claims that by cutting taxes on high-income people and businesses, Kansas would spur exceptional growth by boosting work, saving, and investment. Kansas Governor Sam Brownback promised the state tax cut would act “like a shot of adrenaline into the heart of the Kansas economy.”[5] Tax-cut advocates Stephen Moore and Arthur Laffer, who helped design the Kansas plan, declared it would have a “near immediate” positive economic impact. “
This is all a load of garbage from the Republicans. Anyone with even a single iota of economic sense will understand that elimination of deductions needs to be phased to minimize negative impacts. Where is the discussion about 5-10 year phase ins of these exemption removals? Why not discussions in earnest about income caps for deductions, instead of wholesale removal?
Sorry, but I could create a more effective tax plan and implement it in a way that minimizes negative repercussions and eliminates most negative consequence loopholes.
” Although proponents claimed these tax cuts would supercharge the state’s economy, Kansas’ job and economic growth lagged behind those of most neighboring states and the nation after the tax cuts took effect, and the deep revenue losses led to round after round of budget cuts in key programs.
This year, state lawmakers considered the damage, and they reversed course and repealed most of the tax cuts.[1]
Yet many policymakers in Washington are now proposing costly, regressive federal tax cuts that have a great deal in common with the tax cuts that performed so poorly in Kansas.[2]”
Apparently the senate version of the tax plan to be released today does not eliminate the estate tax and no deductions period for property tax and state and local income taxes.
puzzy,
You can’t simultaneously defend the Obama stimulus as being effective in recovery from recession and attack tax cuts as being negative to the local economy. These are two ways of accomplishing the exact same thing.
Where these fail is when they are implemented in a winner/loser fashion, which is exactly what the lobbyists want, or in a way that creates numerous perverse inventives/disincentives towards unintended actions. Whoops.
Try to be a bit more open minded. You think that legal mandates around wage increases can fix problems? I would argue it’s exactly more of the same.
My opinion? Please get state, local, federal government out of the f*cking way.
no deductions period for property tax and state and local income taxes.
Individuals can not, businesses can.
Individuals need to itemize these (1040 schedule A), businesses treat these as standard business expenses.
Someone show me in the proposed tax plans that indicate that businesses will not be able to deduct this taxes going forward, and also lose the ability to deduct interest on loans.
The way I read this is that they are eliminated from being itemized deductions. People itemize deductions, businesses don’t. Isn’t this the secret code word? Itemizable?
Poor Pumps. Wait until he finds out how much he lost today.
Grim – In Canada house values have risen sharply in just 2 cities, Vancouver and Toronto. Prices are flattish or even negative across the rest of the country. Vancouver and Toronto housing markets are driven by Asian immigrants pouring a tsunami of cash into Vancouver and Toronto housing. These 2 cities have a higher immigrant % of population than New York and Los Angeles and it is made up of rich Asians.
Similar trend in NJ – the 3 counties that are 10%+ Asian are Hudson, Bergen, and Middlesex and these 3 counties have the fastest rising house values. In the 2 <1% Asian counties, Salem and Cape May, house prices have been falling for years.
I was in Vancouver a few weeks ago, Toronto a few months before that. What are you talking about, it’s a free for all.
Grim right individuals cannot but landlords still can for rental properties.
Time much as Bergen co is expensive and all . There are a few towns in Bergen where you can but plenty of houses from the low 200s to the low 300s. Not so called premier towns but not bad either.
I don’t know if it is the earlier sunset but I have been falling alseep around 9pm each night. Feeling old. One upside, the blog is so much more enjoyable and readable this morning ignoring in total anything splooged out of the gourd.
On substantive stuff…
Nice report up top. Those cities that fall in the 4.0-6.0 times may still be good buys. Would like to see some measure like that for all US cities. Anyone know?
Grim, you blew another tire this morning on the freeway. I understand you are looking for any foothold on the cliff face of personal real estate but ‘itemization’?
Businesses get taxed on the amount remaining after all legitimate expenses associated with doing business. If you want to make an analogy to individuals it is not itemization. Tax individuals at what would be a horrendously high tax rate on what is left of their income after all of their legitimate expenses (ie, savings). Don’t think you want that. Or, tax both businesses and individuals at a nominally smaller rate but on 100% of gross earnings/revenue. No deductions/exemptions/credits for anything at either entity.
Keep digging, someone will come up with a talking point that sounds good, is intellectually honest, and helps NJ real estate in this proposal…….
Listen, this tax package is really easy to understand. If you earn more than $200k and live in the liberal strongholds on the coasts you will be whacked. Why? Mostly, because it’s where the money is. And, a side benefit I have to attribute to another poster, “elections have consequences”.
Look at most items through these two prisms, and the bill makes perfect sense.
“In other words, the two most conventional explanations for rising inequality and falling wages might both be correct. A perfect storm of robots and free trade — and some monopoly power to boot — could be shifting power from the proletariat to the capitalists. With all these factors at work, maybe the real puzzle is why workers aren’t doing even worse than they are.“
https://www.bloomberg.com/view/articles/2017-09-20/why-workers-are-losing-to-capitalists
Lefty,
Grim is right…give up
@ezraklein
In Trump’s America, swamp drains you.
Look my point is simple, if you create two distinct classes, and there are differences in tax treatment between those two classes. No matter how small, an industry will develop focused solely to arbitrage that difference for profit.
This net difference today (before change) is small. Realistically, there are no differences between individuals and businesses and specific tax deductibility associated with most residential real estate.
Speculating on the changes that pass, tomorrow, there will be a difference that doesn’t exist today. That difference may be more or less substantial based on what gets passed.
So, hypothetically, worst case scenario. Completely eliminate MID, State, and Local Individual Deductions (including property taxes) entirely. Now you have, in some cases, what appears to be a staggering difference in tax treatment between businesses and individuals. On an after tax basis, the consumption of 1 unit of real estate will have significantly different treatment depending on ownership. The corporate owned unit, will have a significantly lower after-tax cost compared to individual.
My point is very simple. I don’t know exactly how this will be arbitraged, misused, etc. I don’t know exactly how the unintended consequences will play out. However, what I do know is that it will be arbitraged, and it will create unanticipated changes to the housing market when it is.
It’s really that simple.
^^^^ I concur
Now I can speculate, the impact is going to favor corporate ownership of housing units compared to individual ownership in high tax markets, and I can very easily see this play out in a way that is fairly regressive.
If our goal as a nation is to incentivize corporate ownership of rental properties, and disincentivize individual ownership, this seems like a fairly good way of accomplishing this.
Combine this with less aggressive zoning restriction on the coasts, and I suspect we may see a boom in multi-unit development. Combine with with aggressive anti-development and I can see the housing shortage getting worse. In this situation you would probably see further stratification by income (Brazilificiation) – however this would be nationwide, not as micro-communities within states. Alabama or Mississippi become central points for low-income housing development, where high-income areas completely shut out low-income entirely. Remember the regressive nature of the change.
There are some new benefits to REITs as well, which may further incentivize the shift from individual to corporate ownership.
grim,
Should all deductions/expenses associated with businesses using automobiles (for business related purposes) be extended to individuals on their 1040?
If I was a Kushner would I like or dislike the tax change?
I would rather see tighter restriction of allowable expenses for businesses, since the universe of potential expenses is significantly broader on the business side. Not only that, but it’s been the realm of lobbyists to ensure certain business deductions remain permissible to protect the business of their constituencies.
For example, why are we not discussing the elimination of “entertainment” expenses of businesses. Why exactly should a business not be required to pay taxes on income that pays for golf course greens fees and fancy dinners? The owners of those golf courses or fancy restaurants get to deduct 100% of their property taxes as regular business expenses.
I guess once a deduction / credit / exemption (loopholes) are in place they can never be removed. Hence how an entire industry was formed.
grim,
Agreed. Sounds good let’s eliminate entertainment.
But do you see the point of why are we commingling businesses and individuals solely on property taxes and nothing else?
Or how about the widely abused Section 179 loopholes that provide business owners with massive tax deductions for large SUVs?
Realize this is a giveaway for US auto manufacturers. 8 out of 10 Escalades on the road today were purchased Section 179. Please don’t tell me that the auto lobby didn’t draft every line of Section 179.
But do you see the point of why are we commingling businesses and individuals solely on property taxes and nothing else?
I’m commingling businesses and individuals on this specific case because we are talking about ownership of not just the same broad class of assets, we’re talking about owning the exact same asset. We’re not talking about some obscure tax giveaway to businesses, that has no applicability to individuals.
You can argue that the reason mortgage interest deduction exists as a deduction has nothing at all to do with incentivizing homeownership, but a mechanism to eliminate the net benefit businesses have over individuals, reducing competition of ownership by businesses.
Pumps,
As of Oct 31 of this year, approximately 6,700 retailers have gone out of business.
You tell them their taxes were too low.
CAIRO – One man’s bachelorhood ended with a bang. On the night before his wedding on Tuesday, as men were celebrating during a stag party, guests decided to shoot off their guns in his honor, a traditional Middle Eastern thing. One bullet landed straight in the 28-year-old groom’s gen!tals, the New York Post reports, which we assume prompted a collective gasp. The injured groom, identified in international media as Osman Al-A, took a bullet in his peni$, thigh and hand. Unclear if Tuesday’s wedding was called off, but we can certainly assume bridezilla was not pleased.
grim,
Ok but you can also say the same thing about automobiles. I don’t see corporations buying up every car insight and turning us into a nation of lessors (okay I admit that’s a bad analogy… and I’m sure LW will make a joke about us already being a nation of lessors).
Back to housing … in that case (not arguing just asking) the deductions for taxes and mortgage interest (and add maintenance and depreciation for individual owners too) should be dollar for dollar? One should not need to itemize as it only benefited wealthier taxpayers.
Perfect example of a Politician Bait and Switch.It is the People in the 25% bracket that will get hurt on this,,Red or Blue. Forget about Property Tax deduction at $10,000 if you can not add over $14,400 in Interest and plus what ever will be left in deductions. To me,majority of the middle class will be taking the Standard Deduction. It will be very hard to get above $24,400 standard deduction for a middleclass making $150K. Discussing the Property Tax deduction is pointless. Just bring back the Exemptions and I will take the $24,400 standard deduction
“I have, since the beginning, the increase in standard deduction while eliminating the personal and dependent exemptions is just smoke and mirrors.”
Anyone want to go in on a food truck with me? If we park that thing in front of the dispensaries we would clean up!
Grim, good points.
Counterpoint (which I will keep as relevant to this area until the end):
I grant you limitation of MID and SALT for individuals widens the financial gap between personal ownership and corporate ownership. However, you understate the current financial difference between personal ownership and corporate ownership of the same real estate asset which is currently material. Main difference, depreciation. The effect will of course vary but in most cases will be an amount approximating the MID. Other items where corporate currently has an advantage is that nearly all expenses associated with a property are deductible. Think of your aggregate monthly – lawn care, fall cleanup, snow removal, HOA, boiler repair, painting, gutters, driveway sealant, utilities. And the one time expenses – closing, legal, etc.
At the end of the day a back of the envelope calculation would suggest that a ‘corporate’ owner is not currently at ‘par’ with an individual buyer financially on the same real estate asset but is likely a full 1x more advantaged.
Why does this matter? Because if the scenario were as you described – two parties at par and now one becoming newly and substantively advantaged – I would agree with you a new ‘arbitrage’ industry would develop.
With one party already 1x advantaged moving to, say, 2x it is more difficult to make that argument. Especially in the absence of a current ‘arbitrage’ industry at a full 1x advantage.
Couple the above with the fact that we are discussing this area. Is anyone seriously going to argue with a straight face that people will soon be competing with ‘corporations’ for SFHs in the $500k and up range? RE investors don’t want to own SFHs, and they certainly don’t want to own them in that price range and at this time on the price curve.
The only time I can recall ‘corporates’ coming into highly priced SFHs in size is in 2008-09 when the market held a 25% off sale. And even then they didn’t buy retail, they went straight to the bargain bin of up to 50% off (REO).
Just don’t see it happening here for SFHs, and for most of the country the question is moot since selling prices, deductions, and personal incomes are beneath the radar of this bill.
I am looking at my Mortgage interest on a 15 year at 3%, $290,000 loan for the year is under $6,000 add $10,000 on Property tax that is only $16,000. I need another $8,400 in deductions just to cross the $24,400 standard.
Sure the NJ restaurant lobby will fight that tooth and nail.
There are grumblings already that craft breweries that arrange for food trucks to park outside their businesses, and allow their customers to eat that food inside, while drinking the beer, are violating the craft brewery laws.
(You know, the restrictions that the restaurant lobby forced the brewery laws to have, that food can never be served).
You know, they fought against craft breweries allowing peanuts to be provided on their bar too.
Funny, I heard in Nevada, the alcohol distributors were so powerful, that they fought the legislators to permit only them to distribute marijuana, having a monopoly on distribution of both alcohol and marijuana.
I need another $8,400 in deductions just to cross the $24,400 standard.
Open a business.
Also, point of correction on your mention re: food and entertainment.
It is only 50% deductible. Pick up the tab for a $100 lunch with a bourbon distributor. Use a high tax rate of 35%. You’ve saved $15 in taxes on that $100 expense you paid to try to get the guy to carry your brew.
“I am looking at my Mortgage interest on a 15 year at 3%, $290,000 loan for the year is under $6,000 add $10,000 on Property tax that is only $16,000. I need another $8,400 in deductions just to cross the $24,400 standard.”
Yome, now understand that the vast majority of Americans absent eight states touching the oceans are not even in THAT position. Their home loans are lower and property taxes half.
I wonder if you can pre-pay your property taxes for 2018 and claim them in 2017 before SALT deductions are gone?
Grim, went on the bourbon trail a little over a year ago. Was looking forward to getting some special brews at the distilleries.
Both Buffalo Trace and Woodford were very explicit. Their best and special stuff was NOT offered at the distilleries. Woodford went to the extent of offering to help me find a ‘preferred’ local shop that would be more likely to get inventory.
I expressed my disappointment, and my expectation that like at craft breweries I would have been able to get more, not less, than what was publicly available. Asked why not. They were frank – did not want to cross their distributors.
Left,
knowing what i know now. I will take the Exemptions and file Standard Deduction. Forget the Property Tax deduction. All 25% filers will get hurt on this bait and switch.
Congress should be fighting for the reinstatement of exemptions
Someone should tell Murphy Legal Marijuana taxes could accompany soda and potato chip taxes. Pretty much any munchie potheads eat could have an additional tax. You know…for health.
Read Moran’s editorial today. The guy was a huge Murphy cheerleader, sits on the Star Ledger Editorial board that endorsed him…now today he says there’s no way for Murphy to pay for his promises two days after the election.
http://www.nj.com/opinion/index.ssf/2017/11/taxes_or_broken_promises_murphy_makes_me_nervous_m.html
Unbelievable. Lying sack of…
If the Republicans were thoughtful and brave they would have done a radical tax simplification like the one Steve Forbes pushed for decades. Yes you lose your precious deductions, but virtually everyone’s net taxes are lower, and everyone really would be able to do a 1 page tax return. But to accomplish that you either have to accept higher deficits and/or seriously cut government spending which really means transfer payments. But Republicans decades ago made peace with becoming “caretakers of the welfare state” and have no guts whatsoever in putting an end to robbing Peter to pay Paul. Reagan lost his nerve on that front, and the Bush family have always been big-government “conservatives” a la the “noblesse oblige” attitude of Bush Sr. who couldn’t wait to reverse direction from Reagan. Trump is just an even less intellectual proponent of welfare statism who views redistribution as the central function of government. The only question is who he thinks deserves to win and lose.
The current tax bill is thus tinkering on the margins, helping friends, hurting foes, without really changing the big picture – and essentially locking in Obama-era tax rates generally.
Genrally…that’s very good business practice. OTOH, when it comes to liquor distribution, that statement can be taken one of two ways.
Pumps – if you are having trouble following along, think about your Dad.
They were frank – did not want to cross their distributors.
Generally. nuts.
Hey! I found a Pumps mix tape!
https://www.youtube.com/watch?v=4hK8nmvAUnA&vl=en
The pumps spawn will not be able to cross to the other side of her street safely by herself until she gets a drivers license. Someone should call DCF (DYFS).
grim@11:52,
Open a business that looses money so that you can increase deductions?
Yome
You’re initial post of tr day is wrong. You stated what additional taxable income you would have not taxed owed – which would be a lesser amount.
I expressed my disappointment, and my expectation that like at craft breweries I would have been able to get more, not less, than what was publicly available. Asked why not. They were frank – did not want to cross their distributors.
Some have products not available in all markets. NNJ/NYC are highly allocated markets, so we typically see rare product in volume, compared to somewhere in the middle of nowhere that gets no allocation. So you probably wouldn’t notice something special.
The problem in bourbon today, markup over msrp is significant. If they were to sell at retail, they would be undercutting stores by a massive amount. Even worse, people would go there to buy bottles, bring them home, and sell them secondary market.
There are plenty of bourbons today that sell easily at 100% over MSRP, not cost, RETAIL. There are bourbons today that it’s nearly impossible to get 3 bottles allocated without selling hundreds of mainstream bottles the rest of the year. Those 3 bottles are the perk, you pay $75 for the bottle an then easily sell them for $350 a bottle (over the $95 msrp). And you’ll have 15-25 people lined up outside your door to buy them, and they’ll walk out with something else – so those rare products are a MAJOR bonus for retailers. Those 3 allocated bottles probably drive $2-3k in sales.
From reading this – I honestly think a lot of you should change from Republican to Libertarian.
The republicans have conned everyone to thinking they are fiscally conservative, low tax, etc. It is simply not true at the national level.
Sure certain towns can keep low taxes with R’s in office, but at the national level – R’s and D’s both want to rob you.
Re my statement at 7.31
joyce you are correct that is $3,800 more in taxable income. Will be less in taxed paid
Ways and Means passes tax bill. All 24 Repubs hold the line, no defections. No D obviously.
“House Ways and Means Chair Kevin Brady clarified the House Republican tax bill’s position on pass-through entities and the state and local tax deduction in a letter to Democratic Rep. Earl Blumenauer obtained by The Wall Street Journal.
According to the letter, owners of pass-through businesses who take companies’ profits as personal income are not allowed to deduct state and local taxes from their federal tax bill, as corporations can. Instead, they are limited to the same deductions as individuals.
“State and local income taxes paid by an individual owner of such a business would not be deductible on the individual’s tax return,” Brady’s letter reportedly said.
This seems to coincide with the Joint Committee on Taxation’s assessment of the law rather than the original assessment of the Ways and Means staff.”
http://www.businessinsider.com/trump-tax-plan-state-and-local-tax-deduction-pass-through-business-2017-11
Why did the Senate even bother?
Are landlords still allowed to deduct their property taxes under the senate version? I assume they are?
Looking at this plan again and having forgotten about the individual exemption being removed it is just tinkering. Should have just went the flat tax route. But that will never happen.
I don’t understand the point of the senate version.
Menendez walks.
“joyce you are correct that is $3,800 more in taxable income. Will be less in taxed paid”
But when you add $7,000 in State income tax that will not be deductible,my Federal tax will be going up. $7,000+$3,800=$10,800 at 25% is equal to $2,700 more in Federal Tax I need to pay. What else will not be deductible? My second home Property Tax at $9,000. Now I am looking at an increase of $4,950 in Federal Taxes. Since the increase in Standard Deduction was taken by the elimination of Exemption.Was it suppose to lower tax burden for the Middleclass?
Before the 1986 tax reform, when I was just a pup, you could write off everything on your rental property. My gf and I bought a condo in Perth Amboy but we put it entirely in my name so I could be the “landlord” living in Wayne near my job, and she lived at our (legally “my”) condo near her job. I was down there every weekend “inspecting” my property and writing off even my travel expenses to get there.
One of the big abuses back then was writing off improvements to the property. Landlords would typically spend a fortune on appliances, furnishings, and improvements on their rental properties while all of those new stoves, fridges, air conditioners, carpeting, drapes, etc. somehow went into their personal residences instead of the rental properties.
Hey Pumps – When I was in my early 20’s I not only owned rental property but I also had three things you didn’t:
1. Property I bought without Nana’s help.
2. A professional engineering career.
3. A hot blonde tenant who welcomed my weekly “inspections” (and who cooked for me, cleaned for me, and did my laundry)
My plan at the time was to do it both ways. When I bought my condo in Wayne I was intending for my gf to be the owner and she could write off all the same things on the other end. Alas, she seemed to think that I treated her home as my weekend hotel room.
Of course I did! That’s how we rolled in 1985!
Are landlords still allowed to deduct their property taxes under the senate version? I assume they are?
Remember the old days when women thought they should get an engagement ring after 4 or 5 years just for time served? Silly women;-)
Gotta love that excused juror, she thinks Melgen is innocent too, meanwhile he was covited on all counts.
6:44. I gotcha beat…..married an ex-model who in turn became insanely successful in her field….have not picked up a tab in 20 years.
quick loans online quick loans quick loans for bad credit [url=https://quickloans.us.com]quick loans online[/url]
exJ – That’s the great thing about limited shelf-life professions like actress, model, etc. If you don’t have enough game to get them on the way up, you’ll still get a second crack on the way down. Nice work.
6:44. I gotcha beat…..married an ex-model who in turn became insanely successful in her field….have not picked up a tab in 20 years.
It wasn’t exactly Banff, but my next gf bought a slope-side ski condo while I took a 6 month hiatus from work. We both used to get up early, she’d get dressed and go to her job and I’d wake up, put on my ski gear and make first tracks down the mountain each day (season pass paid for by you-know-who), ski right back to her place for lunch, then run up her bar tab in the evening at the base lodge (yeah, they really had bar tabs for resident members). When I went to Europe for a 3 week vacation with my friends my gf dropped us off and picked us up at the airport. That ain’t working, that’s the way you do it…;-)
Love those hiatuses!
fast loans no credit quick cash payday loans quick payday loans [url=https://quickloans.us.com]easy loan company[/url]
“You can’t simultaneously defend the Obama stimulus as being effective in recovery from recession and attack tax cuts as being negative to the local economy. These are two ways of accomplishing the exact same thing.”
Actually you can. Dumping cash into GM and the banks to keep the lights on, is a lot different from giving the FANGs a break to repatriate cash that they don’t need and will only end up in Share Buybacks.
Hawaiians flipping Hoboken apartment building for $23 million profit. Bought near “peak” in 2008 for $47 million, selling for $70 million in 2017.