I don't think the GOP gives a ****. Most of those hurt by the TCJA are in blue states anyway.

This is by design.

While I agree the GOP probably doesn't give a ****, there have been consequences here in California. I think the GOP losing all those house seats, especially in some real close OC races, can be somewhat linked to how hard hit middle to middle-upper class taxpayers were hit by things such as the mortgage interest cap reduction, etc.

Yeah, getting rid of SALT was a huge mistake on the house side for republicans. My dumb deplorable congresswoman voted for that tax plan and now she's gone.

Yeah, people shouldn't confuse blue states and red. Red states might be gerrymandered straight to hell, but (most) blue states have independent redistricting commissions that give substantial representation to conservative rural and suburban residents.

30k of expenses? I was thinking the only expense that was removed was entertainment, is that wrong?

For what it's worth, from what I have heard, the rank and file GOP reps didn't get much of a chance look at the bill.

The biggest behind the scene fight was equalizing the treatment of partnerships/LLCs to the newly lowered corporate tax rate. To make that happen, the wonks had to find money elsewhere (to comply with budget reconciliation rules) and they basically went: "how do we dig money out of blue states?"

Then the bill was rammed through.

Basically, the GOP leadership ****ed everyone over, including their own members from blue states.

1. Limitation on mortgage interest is big. (designed to hit homeowners in blue states where property values are higher.)
2. Limitation on job expenses is big. (primarily designed to hit coastal white collar professions that have a lot of mandatory continual education and training)
3. a bunch of other random things. The wonks literally were brainstorming deductions to eliminate to get the bill into reconciliation guidelines so a lot of it is really random.

My guess (really, 90% guess) is he was claiming big deductions on the cost of his equipment (truck) and most of it is now disallowed. I don't think that's all of it but I'd be surprised if it's not a big chunk.

I think I was reading the post as 30k of expenses, not pertaining to deductions. Limitation on job expenses wouldn't apply to an independent contractor would it? Why would truck expenses for an independent contractor truck driver no longer be allowed?

This was a recurring gripe when I was canvassing during election day. It's probably 60% why they lost those seats, the other reason being a lot of people weren't happy about healthcare.

Trump can probably thank SALT changes for Orange County flipping blue, given the margin in some of those races

grizy I'm being challenged about your long haul trucker thing on chiefsplanet. They're claiming nothing a trucker would deduct has changed.

Honestly I am having trouble seeing a real independent (owner operator) having 30k In expenses that would be allowed before but disallowed now. I just assumed he’s actually an employee (for IRS purposes) but is happy to call himself independent because he’s not under contract/salaried.

Nah that was me. Anecdote from my accountant - he'd have no reason to lie about it, but who knows.

MM MD

someone getting a smaller return does not mean they paid more taxes. a lot of people are going to be mad anyway though.

The tears of the stupid taste just as sweet.

They should all be happy, time value of money!

Just lol America. A true **** hole country.

Why?

David, are you asking why someone would be foolish enough to drive truck as an independent contractor or why they are likely pro-Trump?

CPA here. Alot of people see their tax situation in the lens of “how big was my refund?” Withholding tables took a while to get updated so a lot of wage earners under withheld from their paychecks which is why there is actually an 85% penalty waiver this year. I obviously do not have access to all of their tax returns, but I imagine a lot of them actually have a lower overall accessed tax, but smaller refund due to withholding less than prior years.

As an unabashed progressive I of course do not share this information with tax ignorant Trump voters/right-leaning independents and only share my deepest sympathies over their tax woes.

If they receive 1099-Miscs and report income/expense on Schedule C - no limitation. In addition they probably qualify for 20% QBI deduction.

If they reported them as unreimbursed employee business expenses which are a 2% itemized deduction - no longer deductible for federal tax, but probably still allowed at state level.

The latter.

White, above median income, blue collar

would be interesting to see specific before/after scenarios.

Yeah, the real con was the republicans changing the withholding formulas so that people’s paychecks got bigger to make them think they were getting a bigger tax cut than they actually were before the midterms.

I'm not sure why any of use would be surprised by people getting confused about withholding / refund math when effective vs. marginal tax rate math is routinely misunderstood by yuge portions of the population.

Having a huge proportion of people who vote based on “muh taxes” is just a massive cultural failing in the US. I guess a lot of people don’t care about anything politically so might as well focus on their pocketbooks but having a few hundred dollars a year be a political football is so gross. I don’t actually think the country can afford tax cuts for the middle class but that plus taxing the wealthy harder is probably a winner for Dems politically, although their donors won’t like it so who knows if it gets off the ground outside of AOC and Bernie.