Name:   MartiniMan - Subject:   Impact of tax reform Date:   12/21/2017 8:55:12 AM

Goofy:  It's a little complicated when it comes to pass through entities but what I did was eliminate 20% of the anticipated income that is passed through to my personal return to calculate my reduction.  Since we do our taxes on a cash basis the pass through income varies a lot depending upon our collections and what we can pay at the end of each year.  Some years we have lots of payables and the ability to pay them and reduce our tax liability and some year's we have less and pay a lot more.  So it looks like my portion of the pass through income (money I never see) will result in a 6% reduction with the new law.  Also, I am going to pay my state taxes prior to the end of the year so I will still get to deduct the full amount from my taxes one more time.

What will be interesting is to see how high income people in high tax states react to this change in the SALT limit and mortgage deductability.  Will they start to demand lower taxes in their state?  It doesn't matter about their votes for state offices because there are so few Republicans to punish.  Also interesting to see the stories coming out about companies (AT&T, Boeing and thousands of smaller businesses) giving bonuses as a result of the lower tax rates.  When the tax tables change in February and people see more in their take home the tax bill will become more popular and many Democrats in purple states are going to have a hard time demagouging the issue and may actually regret their vote against the bill.