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aggiesal

(8,914 posts) Tue Jan 22, 2019, 12:41 PM Jan 2019

This is my first opinion piece, but I felt compelled to write this because of the economy ...

TRE45ON has been bragging about how well the economy is humming along (Thanks, Obama), and yesterday I read an article about how a Michigan district that voted heavily for IQ45 in 2016, where, some interviewed, also mentioned how the economy was strong.

In previous posts, I've mentioned that the IQ45's tax law's pitfalls for the middle class will not be realized until their 2018 tax returns are filed. Will it is that time.

April 15th, along with the Government Shutdown, has to potential of causing a serious recession.

The IQ45 tax law gave everyone some extra money for each paycheck, tax rates dropped between 1%-4%.
But the removal of all kinds of tax deductions will no doubt eat that tax rate drop and we'll end up paying
more than our original tax rate before this new tax plan.

So take out those pencils and get plenty of erasers, because we are about to see that new tax plan in action.

I'll be curious to see how everyone fares.

Good luck. See you on the flip side of April 15th.

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This is my first opinion piece, but I felt compelled to write this because of the economy ... (Original Post) aggiesal Jan 2019 OP

Shouldn't be long before we start seeing the stories of tax returns. WeekiWater Jan 2019 #1

WeekiWater

(3,259 posts)

1. Shouldn't be long before we start seeing the stories of tax returns.

Reply to aggiesal (Original post)

Tue Jan 22, 2019, 01:17 PM

Jan 2019

But those stories will be from the working class, not the fat cats. I believe it will be specially harmful to the work at home crowd, which is rapidly increasing every year. It will have to do with expensing, as you mention.

I think the continued repatriation of profits is what is holding a lot of the economy up. In 2018 more profits were repatriated than at any point in history. A good portion of those profits were used for stock buy-backs or to increase dividends. These things artificially inflate the value of companies. The DOW was down in 2018 even with this artificial inflation of corporate worth. Without the tax cuts and the massive repatriation of profits the market would have taken a considerable dive. It will be interesting to see how repatriated profits will be used in 2019. I imagine in the same way.

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