THE ACCOUNTANT’S 2017 RETIREMENT ACT

(Because a lot of accountants will be retiring after this tax season.)

I watched an 8-hour webinar for accountants on Mr. Trump's new tax law. The morning session was informative and understandable. I've been practicing accounting for over 50 years. I started with the 1954 Tax Act (a loooong time ago). In 1986 Congress passed a new tax law that was like playing baseball to playing football. New rules, but they were understandable and we (accountants) learned them and we've been working with them for some 32 years. Mr. Trump's (I won't call him president Trump) 2017 Tax Reform Act is a joke. It gives unreal benefits to the rich. There will be a lot of easier returns because he eliminated the "Other Itemized deductions" on schedule A, which eliminated "Unreimbursed Employee Business Expenses" for all W - 2 wage earners eliminating union dues for actors, tax preparation fees, investment expenses and a whole host of legitimate itemized deductions.

He then came up with his 20% exclusion of earned income from many sources. A good thing!!! But, it is not as it appears as it is the most complicated computation the tax returns have ever seen. And to put a topping on it, The IRS has not come up with procedures to deal with it yet. It is a compilation of an earned income computation, an asset computation and a wage and salary computation that Einstein could not figure out. Like I said, I've been practicing accounting and taxes for over 50 years and this is the worst piece of tax legislation I have ever seen.  By the way, the withholding tables were lowered meaning that less Federal and State withholding taxes will be taken from your paycheck.  That means that you will either get less of a refund, get no refund or have to pay something.  Isn’t life grand!!!

Add all the above to the $10,000 limitation on all taxes on Schedule A and you just hurt New York and California with high income taxes and property taxes. Aren't those BLUE states??? They also cut the mortgage interest deduction to $750,000 in mortgages. How much is an expensive house in Mississippi? Is the answer $200,000? How much is an average house in Los Angeles? Is the answer over $1 million? Who just got hurt? Was it the BLUE state?

I'm supposed to be talking about taxes here but he is an international embarrassment, an angry man seeking vengeance, a politician who lies and lies and lies, and an all around blowhard. I cannot wait for the mid term elections. By the way, the last paragraph was an editorial comment, the rest was not.