Author Topic: Taxes (GOP 2017 edition)  (Read 137696 times)

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Offline star seed 7

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Re: Taxes (GOP 2017 edition)
« Reply #1050 on: December 20, 2017, 10:47:18 AM »
How rich are we going to be for buying a house mid year?

That probably will not help you at all. The standard deduction is going to be pretty hard to beat now.

Well and also these don't apply to 2017
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Offline Cire

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Re: Taxes (GOP 2017 edition)
« Reply #1051 on: December 20, 2017, 10:53:03 AM »
Posted by a board member

Federal Tax Reform Bill Eliminates Advance Refinancing of Bonds

I want to make you aware of one of the changes approved today in the federal tax reform bill that will impact bond issues.  This change primarily impacts school districts and local governments and ultimately your pocketbook!

The federal tax reform bill eliminates the ability for advance refinancing of bonds, which is when an entity refinances bonds in advance of the call date or redemption date on the bond.  Historically the IRS has allowed one advanced refinance prior to the call date so school districts or local governments could refinance the bond if there are circumstances that would allow them to capture savings or shorten the terms.  This is no longer allowed. 

Why Did Congress Include This In The Tax Bill?
One can only guess, but I believe it's an off setting revenue-loss feature.  In other words, in order to "pay for" the tax cut this is a small way to have an off-setting impact and here's how it's done:   Advanced refinancing increases the number of bonds in the bond market. Currently about half of the bond issues in the country are these type of advanced refinancing bonds and they are tax-exempt..  The buyers of these tax exempt bonds don't pay income tax on these bonds.  If you take away this form of refinancing there will be less tax-exempt bonds in the marketplace.  So now the bond market will be reduced and investors will now have more limited investment options and will be driven to buy different kinds of securities that now they'll be paying tax on, thus off-setting the revenue loss due to the tax cuts. 

Where The Rubber Meets The Road (aka "Why Should I Care!?")
This week, the Olathe School District Board of Education approved the advance refinancing of two bonds.  We captured great savings and reduced the term.  This single action saved  $2.3 million dollars while paying off the bonds five years faster than originally planned. 

Here's the real news...the grand total we've saved due to advanced refinancing since 2014 is $25.5 million.  Let me say that again, in the past three years due to our strategic planning and the use of advanced refinancing of our bonds the Olathe School District has saved our citizens $25.5 million dollars and shorted the length of indebtedness by five years.  This is something to celebrate! 

In addition to the large savings and shorter terms, an early and aggressive amortization plan has allowed us to create a plan that will pay off 90% of our total bond indebtedness in just 16 years.  For our growing district, this is a very impressive strategy that will save our district mlutiple-millions and this also allows us to have greater flexibility in the future.

Where Do We Go From Here?
The good news for OSD is that we've done all we can do to capture savings now.  However, this effects us in the future and limits our ability to save money by advance refinancing future bonds.  We likely won't need additional bonds until 2022-ish (based on my unofficial projections) and at that time we will have to be more creative with issuing future bonds that would have unique call features that allow prepayment of bonds earlier than the call date. This handcuffs our flexibility and limits our ability to capture savings in favorable market situations.

I wanted to make you aware of this change and how it will impact us here locally moving forward.  If you care to reach out to our federally elected folks and share your thoughts on this please do so.


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Offline Cire

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Re: Taxes (GOP 2017 edition)
« Reply #1052 on: December 20, 2017, 10:53:51 AM »
This is the kind of bullshit that ksw will be bitching about when his kids schools come knocking


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Offline Rage Against the McKee

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Re: Taxes (GOP 2017 edition)
« Reply #1053 on: December 20, 2017, 10:54:58 AM »
How rich are we going to be for buying a house mid year?

That probably will not help you at all. The standard deduction is going to be pretty hard to beat now.

Well and also these don't apply to 2017

Oh, yeah. Buying that house might actually save Wacky some money this year. Just have to come up with about $12.5k in deductions.

Offline 420seriouscat69

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Re: Taxes (GOP 2017 edition)
« Reply #1054 on: December 20, 2017, 10:59:00 AM »
 :frown:

Offline Rage Against the McKee

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Re: Taxes (GOP 2017 edition)
« Reply #1055 on: December 20, 2017, 10:59:44 AM »
What month did you buy the house, wacky?

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Re: Taxes (GOP 2017 edition)
« Reply #1056 on: December 20, 2017, 11:05:20 AM »
What month did you buy the house, wacky?
September. Yeah, we'll get nothing. For some reason I thought it was July.

Offline Rage Against the McKee

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Re: Taxes (GOP 2017 edition)
« Reply #1057 on: December 20, 2017, 01:26:47 PM »
Was it just impossible to make this tax cut retroactive or did the republicans choose to not do that to keep the cost under $1.5 trillion? Because if they chose not to make it retroactive that is just incredibly stupid. A whole lot of voters who are going to save money under this deal think their taxes are going up and the next election will be before people do their taxes under the new law.
« Last Edit: December 20, 2017, 01:36:58 PM by Rage Against the McKee »

Offline catastrophe

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Re: Taxes (GOP 2017 edition)
« Reply #1058 on: December 20, 2017, 01:36:23 PM »
Was it just impossible to make this tax cut retroactive or did the republicans choose to not do that to keep the cost under $1.5 trillion? Because if they chose not to make it retroactive that is just incredibly stupid. A whole lot of voters who are going to save money under this deal think their taxes are going up and the next election will be before the cut takes effect.

That won't matter because there will be a tidal wave of new jobs entering this country and everyone's employers will give them raises since they will expect to make extra money now.

Seriously though, this will impact no one's voting decision in the near term.  Nearly half the country disapproved of the bill as written.  If anything they will be happy it does not take effect in 2018.

Also, Republicans are banking on the fact that people will start seeing more money in their paychecks because their employers will withhold less per revised IRS guidelines come February 2018 or so.

Offline Rage Against the McKee

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Re: Taxes (GOP 2017 edition)
« Reply #1059 on: December 20, 2017, 01:44:01 PM »
Was it just impossible to make this tax cut retroactive or did the republicans choose to not do that to keep the cost under $1.5 trillion? Because if they chose not to make it retroactive that is just incredibly stupid. A whole lot of voters who are going to save money under this deal think their taxes are going up and the next election will be before the cut takes effect.

That won't matter because there will be a tidal wave of new jobs entering this country and everyone's employers will give them raises since they will expect to make extra money now.

Seriously though, this will impact no one's voting decision in the near term.  Nearly half the country disapproved of the bill as written.  If anything they will be happy it does not take effect in 2017.

Also, Republicans are banking on the fact that people will start seeing more money in their paychecks because their employers will withhold less per revised IRS guidelines come February 2017 or so.

I think it will make a pretty substantial impact. A very large percentage of voters believe their taxes are going up, when that is only true for a very small portion of the population. Distributing an extra $1,000 plus to most of these people when they do their taxes would really go a long way toward changing minds. The republicans just won't get the same effect with that cut distributed over 12-24 paychecks. People won't notice it. You would think the republicans of all people would understand how much more important beliefs are than facts in an election after 2016.

Offline K-S-U-Wildcats!

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Re: Taxes (GOP 2017 edition)
« Reply #1060 on: December 20, 2017, 03:01:11 PM »
I’ll keep a bit more money most likely, but doubling the standard deduction will do nothing for me.

I fully expect to end up paying the difference in increased insurance premiums now that most healthy people have no real reason to buy health insurance.

You should look at buying a policy that doesn't cover a crap ton of stuff you'll never need. Oh wait... that's illegal.
I've said it before and I'll say it again, K-State fans could have beheaded the entire KU team at midcourt, and K-State fans would be celebrating it this morning.  They are the ISIS of Big 12 fanbases.

Offline K-S-U-Wildcats!

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Re: Taxes (GOP 2017 edition)
« Reply #1061 on: December 20, 2017, 03:06:10 PM »
Was it just impossible to make this tax cut retroactive or did the republicans choose to not do that to keep the cost under $1.5 trillion? Because if they chose not to make it retroactive that is just incredibly stupid. A whole lot of voters who are going to save money under this deal think their taxes are going up and the next election will be before people do their taxes under the new law.

Yes, they didn't make it retroactive to stay under the artificial cap. Yes, the vast majority of people will notice because their withholding is automatically adjusted for new rates, so their paychecks will get larger.
I've said it before and I'll say it again, K-State fans could have beheaded the entire KU team at midcourt, and K-State fans would be celebrating it this morning.  They are the ISIS of Big 12 fanbases.

Offline K-S-U-Wildcats!

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Re: Taxes (GOP 2017 edition)
« Reply #1062 on: December 20, 2017, 03:09:14 PM »
This is the kind of bullshit that ksw will be bitching about when his kids schools come knocking

If I understand it correctly, and maybe I don't, this refinancing is exactly the bullshit I hate. It allows a district to extend a bond for another 20 years and tell the residents "vote for this and your taxes won't go up at all!" when the truth is that if the bond expired their taxes would go down. This is the sneaky bullshit that public educators pull all the time. So if it will now be harder for them to do that, great.
I've said it before and I'll say it again, K-State fans could have beheaded the entire KU team at midcourt, and K-State fans would be celebrating it this morning.  They are the ISIS of Big 12 fanbases.

Offline cfbandyman

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Re: Taxes (GOP 2017 edition)
« Reply #1063 on: December 20, 2017, 03:10:49 PM »
How rich are we going to be for buying a house mid year?

That probably will not help you at all. The standard deduction is going to be pretty hard to beat now.

Well and also these don't apply to 2017

Yup, bought a house here too, when I run the math, I maybe get a couple hundred dollars, maybe. My work just gave me more money just to buy a fitness band.

Major victory here guys, like yuge.

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Offline cfbandyman

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Re: Taxes (GOP 2017 edition)
« Reply #1064 on: December 20, 2017, 03:13:34 PM »
For what its worth, a whole lotta rich people in blue states may actually pay more in taxes due to significant reduction in itemized deductions. And even most democrats privately acknowledge that the 35% corporate tax rate was absurd (Obama publicly acknowledged it a few years ago). So the class warfare arguments never really held water, but that won't stop the libs from making them.

Just be happy guys! Are any of you paying higher taxes due to this bill? How much more of your money will you get to keep? :cheers:

You're an idiot but w/e. It's ok, we'll keep ruining it for the poors.

Corporate rate might be high, but that's all this whole crap was about, giving everyone in the middle and low peanuts to get a bigger bump at the top.

Trickle down never, ever, ever has worked.

Oh well.
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Offline K-S-U-Wildcats!

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Re: Taxes (GOP 2017 edition)
« Reply #1065 on: December 20, 2017, 03:20:30 PM »
So basically "you're an idiot" is what you're down to, now. Ok. Merry Christmas! Hope you enjoy keeping some more of your money!  :cheers:
I've said it before and I'll say it again, K-State fans could have beheaded the entire KU team at midcourt, and K-State fans would be celebrating it this morning.  They are the ISIS of Big 12 fanbases.

Offline Rage Against the McKee

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Re: Taxes (GOP 2017 edition)
« Reply #1066 on: December 20, 2017, 03:34:45 PM »
Was it just impossible to make this tax cut retroactive or did the republicans choose to not do that to keep the cost under $1.5 trillion? Because if they chose not to make it retroactive that is just incredibly stupid. A whole lot of voters who are going to save money under this deal think their taxes are going up and the next election will be before people do their taxes under the new law.

Yes, they didn't make it retroactive to stay under the artificial cap. Yes, the vast majority of people will notice because their withholding is automatically adjusted for new rates, so their paychecks will get larger.

I just don't think a ~2% increase in the size of somebody's paycheck is going to be all that noticeable. A huge refund check this March would be very noticeable. Has any other big tax cut been polled as unfavorably as this one? It's really weird to me that so many people believe their taxes are actually going up.

Offline K-S-U-Wildcats!

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Re: Taxes (GOP 2017 edition)
« Reply #1067 on: December 20, 2017, 03:42:13 PM »
Was it just impossible to make this tax cut retroactive or did the republicans choose to not do that to keep the cost under $1.5 trillion? Because if they chose not to make it retroactive that is just incredibly stupid. A whole lot of voters who are going to save money under this deal think their taxes are going up and the next election will be before people do their taxes under the new law.

Yes, they didn't make it retroactive to stay under the artificial cap. Yes, the vast majority of people will notice because their withholding is automatically adjusted for new rates, so their paychecks will get larger.

I just don't think a ~2% increase in the size of somebody's paycheck is going to be all that noticeable. A huge refund check this March would be very noticeable. Has any other big tax cut been polled as unfavorably as this one? It's really weird to me that so many people believe their taxes are actually going up.

Do you really think it is weird? Google "tax reform" and you'll see one negative headline after another. It's been a steady barrage of negative coverage. One more reason why a partisan media makes a big difference. I agree that a lump sum refund will be much more noticeable. But I still think most people will notice their paycheck increased, even a little. And most people can then multiply that increase by 12, 24, or 26nto realize that Trump just saved them hundreds to thousands of dollars.
I've said it before and I'll say it again, K-State fans could have beheaded the entire KU team at midcourt, and K-State fans would be celebrating it this morning.  They are the ISIS of Big 12 fanbases.

Offline catastrophe

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Re: Taxes (GOP 2017 edition)
« Reply #1068 on: December 20, 2017, 04:21:58 PM »
"Partisan media" is one explanation why people believe their taxes will go up.  Here are some others:

1. Republicans have been unable to put together a convincing story yet because they were too focused on ramming the bill through congress

2. People realize that, if a Republican controlled congress led by a Republican controlled president chooses to add 1.5 trillion to the deficit instead of doing anything about spending, they are going to be totally mumped down the road

3. Because they are so bad about curbing spending and unwilling to try to gain any bi-partisan support, Republicans had to make tax cuts temporary on individuals

4. Trump is the least believed and least liked of any president in history (that we can measure), and he says the tax cuts are going to be fantastic

Offline cfbandyman

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Re: Taxes (GOP 2017 edition)
« Reply #1069 on: December 20, 2017, 04:26:26 PM »
So basically "you're an idiot" is what you're down to, now. Ok. Merry Christmas! Hope you enjoy keeping some more of your money!  :cheers:

Reran it, I don't actually.  Andyou're an idiot, and I'm not even down to that, I told you a long time ago all the issues with it.

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Offline K-S-U-Wildcats!

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Re: Taxes (GOP 2017 edition)
« Reply #1070 on: December 20, 2017, 04:45:13 PM »
"Partisan media" is one explanation why people believe their taxes will go up.  Here are some others:

1. Republicans have been unable to put together a convincing story yet because they were too focused on ramming the bill through congress

2. People realize that, if a Republican controlled congress led by a Republican controlled president chooses to add 1.5 trillion to the deficit instead of doing anything about spending, they are going to be totally mumped down the road

3. Because they are so bad about curbing spending and unwilling to try to gain any bi-partisan support, Republicans had to make tax cuts temporary on individuals

4. Trump is the least believed and least liked of any president in history (that we can measure), and he says the tax cuts are going to be fantastic

Yeah those are all good and not so good excuses, but I think we both know (if we're being honest) that it's the constantly drumbeat of negativity from the media. Hopefully people are financially aware enough to realize when their paychecks increase.
I've said it before and I'll say it again, K-State fans could have beheaded the entire KU team at midcourt, and K-State fans would be celebrating it this morning.  They are the ISIS of Big 12 fanbases.

Offline Rage Against the McKee

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Re: Taxes (GOP 2017 edition)
« Reply #1071 on: December 20, 2017, 04:53:57 PM »
The media hasn't outright lied about the tax cuts. At least not that I have seen. They are painting them in a negative light and reporting poll results about a lot of people believing they are getting tax increases in a way that a casual observer might read the article and conclude that a lot of people actually are getting an increase, though. The reporting of this issue has been pretty poor.

I really think this whole thing could have been handled much more effectively by the Republicans and Trump. It shouldn't be that difficult to pass a tax cut that is actually a cut for everyone. The fact that some people get a tax increase is really confusing to the general public, and it makes it easy for opponents to sell to their base that they are the ones getting the increase.

Offline Phil Titola

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Re: Taxes (GOP 2017 edition)
« Reply #1072 on: December 20, 2017, 05:16:54 PM »
You have a president who can't deliver a message trying to promote a package that will greatly benefit him and his business...And he didn't deliver things like eliminating carried interest and simplifying the code that he promised. What do you expect the public reaction to be? People are smart enough not to fall for the "you get 3% more back" and be like ohhhhhh okay.


Offline K-S-U-Wildcats!

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Re: Taxes (GOP 2017 edition)
« Reply #1073 on: December 20, 2017, 06:17:39 PM »
Whole lotta excuses going on here for a misleading media in the tank for one party.... It's hard for liberals to comprehend the bias because they don't have to deal with it.
I've said it before and I'll say it again, K-State fans could have beheaded the entire KU team at midcourt, and K-State fans would be celebrating it this morning.  They are the ISIS of Big 12 fanbases.

Offline star seed 7

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Re: Taxes (GOP 2017 edition)
« Reply #1074 on: December 20, 2017, 06:48:20 PM »
because it's not there
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