930in716 December 21, 2017 Tax Reform Impact

Thursday, December 21st

Transcript - Not for consumer use. Robot overlords only. Will not be accurate.

It's 930. In 716. All the pomp and circumstance and celebration is quieting down. These are 227. And the maize are 203. The conference report is adopted without objection a month since everything. That's not true. Storm is done and the reviews. Are in no concerns whatsoever results are going to make this popular but it depends on. Who you ask. Here in the united way would start a blank campaign we're looking it social million dollar law does exit. Is that company from middle class are really trust corporation to cope well. I'm Tim Wenger on the podcast powered by the Brothers of mercy a five star rated skilled nursing residents offering affordable living in a country setting. Let's take a deep dive into the tax reform legislation and what it means from a few different perspectives. Mary Bruce starts us off with a background. House speaker Paul Ryan's excitedly gaveled in the first major legislative win of the pump administration. BAR 227. And amaze are 203. The conference report is adopted without objection a Monsanto. He's gambled rolling off the podium at the biggest tax overhaul in three decades cleared a major hurdle in the house but a procedural snag will force them to vote again still earlier Republicans. Are ecstatic. But the speaker in erupted by one of many protesters on the hill. Across the country Americans are asking how this bill will affect them. Corporate America will see the biggest tax cut from 35%. To 21%. That cut is permanent tax cuts for individuals will expire in eight years but in the meantime they will see their standard deduction and child tax credit doubled. But a new study shows Americans making 75000. Dollars a year or less we'll actually see their taxes go up within a decade. While wealthy Americans will continue to see a tax cuts. Republicans insist this bill will benefit the middle class. Americans who live in states where taxes are highest could pay a big price. But as the new law will limit deductions for state and local income and property taxes capping them at a combined 101000 dollars in New Jersey trump voter Cassie Smith is concerned it'll take money out of her pocket. When we don't get the deduction on your tax return. That they property value will go down so how might this trying to sell that. This State's likely to be hardest hit New Jersey new York and California. It's primarily by those twelve house Republicans voted no. Republicans argued the major tax cuts for corporate America will trickle down to main street America. Leading to hiring and higher wages but skeptics say don't count on it. And what about health care the law repealed the individual mandate that all Americans have insurance. That could cause thirteen million more Americans to be uninsured over the next decade. And it helped the Americans opt not to buy insurance premiums for others could skyrocket. The bill is deeply unpopular. New polls show Americans believe this will benefit the rich. We asked the speaker. Any concern that this won't translate into a political or public no concerns whatsoever results are going to make this popular there are a couple of major concern areas charitable donations. For example. They're going to be where and who loses a lot of talk about that. We felt that still have to wait cute real effect will be. Michael Wiener heads up the united way in buffalo and Erie county. But is want change in the tax reform effort that we'll have far reaching implications or not for profits including. Organizations like united ways religious organization arts and the like. The duke Billy you know include an increase in the standard deduction hired into its ruptured well being. Essentially that fewer people will itemize or street. In essence when people are not. Completing itemize tax returns. That can result queue of people essentially making contributions having an instructor contributions. The chair and so we're we're seeing based on a study that came out of Indiana University as well. An estimate of over 5% giving could be effective back could be searching billion dollars annually across the United States it's no longer available. Two chairman's. As that strictly locally. Here in the united way we are a client campaign we're looking at social million dollar loss. It's the attack is an suggest that so we're really concerned about that as our other charities like epic charities Salvation Army I'll tell you. Let me flip it for a segment talk about the donor if if by M losing this exemption. Next year when the tax bill goes into effect. I've heard tax professionals like Esther goalie assay. What I need to do is make the donation this year is still in 2017. So that way can offset it against my taxes. Do you then CAA. Corresponding bonus. That charities like yours will get. At the end of this year now. I'll be perfectly candid with you we've gotten a few extraordinary call ended year usually Q anyway. As people assess your tax situation and want to convert stock one ticket manager of the act and and so if you ask me and on that question and say we we've seen a very small. Spike in giving it's not cannot overcome the long term impact that this policy this huge acts. Bill is enhance our charitable giving overall. Aren't so that you've got to get your message out there in a different way that people you need to let people know that they need to make these donations. Without having a financial and senate then right. Yet another lottery surge that talks about people giving because they want it here could feel good because they go. And it's important to support community. But there's also an hidden incentive. That you know from psychological standpoint it. Donors historically in widely viewed now. When you lose that in answer is it possible that people some people may be people who are middle class and upper middle class. There when they may. Be thinking well you know I can get and it any longer and I am not sure that they edit the overall by the new tax policy. So there I think it may make decisions that will negatively impact your charitable giving these are historical facts. So we won't have to wait and see how that plays out. But based on this study we're very concerned at he'll be human resource is coming into cherries like Allard and what that means it is. We're all they need to be facing possible cuts in programs reducing the workforce and footprint in the community. And it comes at a time. When it's already discussion going on about that. One point five trillion dollar deficit over the next ten years. Talk about cutting actually you know programs and services at risk individuals and federal level. How's that can play out is gonna happen it and act overall the quality of care. Stability appear to people who need it. And if you're saving for college in education expenses in New York State utilizing the 529 plans are some changes you should know about. Susan Rosen David diva turned to money manager and video gore wreck for some changes there. Are very interesting senator Ted Cruz in Texas in sort of collusion with bill. Would sort of changes though the crowd between now Putin and historically used to. Health and college education. Into allow contributions from those plans to be used to pay five K through twelve are private school expenses. So this war so bottom line ward in New York State. You can contribute. Up to 101000 dollars a year of fact when won't client and you get in New York State income tax reduction. Independently brought it is community work. Anywhere from my 6% to 800. I know. I'm not familiar with these plans if I'm putting the money and now. Why put it into account is taken out pay tuition for the private school now. Could not just take that money give it to the private school anyway. Because this exit. Is that something political answer really is for corporations to go well. And when you look at people who are going IE in private school. This is a bit doorway crippled state money on their tuition because they didn't crazy didn't sound you can put the 101000 dollars and had 29 grand today. Take about tomorrow to pay tuition. And you still get the New York State income tax deduction. How different is this from. The previous rule. Her previous role as you could only use this for college you know how to expenses. A little below that delicate pink pertinent impact tree where is in poor outlook and that which had. Now what they're doing and they're allowing them. Not unit just for college but even before. You know hatred public sentiment and essentially what they're doing it to go our way of drawing on out of in New York State treasury. That traditionally will go to public school education and allowing those funds to be used to fund a private school education. But but in the process is an opening up that private school education to more people if if I may be can't afford it but now I'm getting a tax break. Therefore I could maybe afford it and more people are getting the access to the private education now. They that you can't afford it you probably. Aren't paying a lot of thought and what. Thanks so this is a bit and then it would about it. It people who would send their kids how I mean school the school. Who don't need help. Painful situation because we've got to get his discretionary income. And pink blue police sources away from the public school system who he had to deal with everyone. So much money to go round. So you don't see is increasing access that. I he would diminishing. What we can do in the public school system and I will say this. You know public schools and soul. Responsibility of state government. Didn't feel responsibility. Is withdrawing resources away from there in order to give it to you know create good private school. And then private schools have done well. Their own because again they oftentimes you are hidden talent and can you welcome to court of public schools don't have it. In public schools have to deal with everyone society indicate that. People from. You know a lot of different cultures with different. Different language barriers whole range of things and you know it just seems to be something into what one less thing. Millennial. Acting with crushing. Burdens for. Into prolonged. And really this is going to be a disincentive. To save for college. In order to get a quick exit. Currently so really sort of perverse. The idea of saving for college. That's 930 in 716. We're back tomorrow with a net a radiation from the studios of WD EA and buffalo law.