On Saturday, December 30, 2017 at 4:49:50 PM UTC-8, Andy Blackburn wrote:
On Friday, December 29, 2017 at 5:17:48 PM UTC-8, 2G wrote:
Andy,

NINETY FIVE PERCENT of Americans are getting a tax cut. If you are in the 5% group and are a wealthy person living in those states you mention: GOOD LUCK! You will pay for your tax increase thru your wealth gains.

Thanks for the ALL CAPS reply!

I ran the investment return numbers too - it'll take an additional low-to-mid-double-digit run up in asset values for me to break even on the higher tax rates over 20 years. I'm all for a lower corporate rate, BTW - they just should have paid for a bit more of it by reducing the corporate tax preferences. Low rates with low preferences would make investment decisions swing to the US just as well, but wouldn't run the deficit up. If If they's done that they could have dropped a couple more points of each tax bracket on the personal side to cover the elimination of deductions better. You can't make everybody whole, because there is too much state-to-state variation, but it would have made more sense from a policy perspective.I guess I can always move to Nevada or Washington like all the other tax avoiders. Sigh.

Tax reform is, at best, a messy process because of all of the special interests. You guys in high tax states are getting screwed over twice; first by the state and second by tax reform. The first is your choice of where to live. Second is by the Democrats boycotting the tax reform process. Politics work by trading votes for goodies, and Democrats weren't willing to provide any votes. Moving IS an option, and people are doing it. I ran into a newly retired school teacher that had just moved to Nevada from CA for that purpose, but was fervent supporter of all of its liberal policies (obviously not enough to pay for them).

My advice was clearly intended to the vast majority that will be getting a tax cut. I wouldn't be at all surprised if those that aren't getting a tax cut reduce charitable giving by way of compensation. That is a personal decision that I won't argue with.

Tom