[stillbourne]

Market Crashes are not that simple. More often than not they are a form of liquidity crisis on debt instruments that are poorly designed and lack the advertised returns after long term investment. Typically these bonds have low security collateral and high risk. In 2008 this was related to the subprime mortgage bubble, the coming bubble is sometimes referred to as the everything bubble. This will probably be escalated by the Trump Tax Cuts as many in the middle class ended up paying more in the last year than in previous years due to punitive removal of certain deductions designed to punish blue states.

[javagram]

> as many in the middle class ended up paying more in the last year than in previous years due to punitive removal of certain deductions designed to punish blue states.

This is basically a politically-motivated myth. https://www.nytimes.com/2019/04/14/business/economy/income-t...

80-90% of households making above $50k/year got a tax cut, yes, including residents of blue states that have their SALT capped.

[astura]

I actually believe it's both.

I believe that the cap on deductions was a deliberate attack on blue states; I also believe a lot of people who received a tax cut believe that their taxes had risen.

[stillbourne]

Most of my co-workers who own a home paid additional taxes than we did last year. For a politically motivated myth it sure looks like $1.5k more than paid last year.

[javagram]

Feels like an anecdote v data situation. Are you sure your coworkers are even right in believing they paid more?

The article I linked shows vast number of middle class people somehow ended up under the impression they paid more even when they actually had paid less.

[stillbourne]

I'm not going to ask them to take a picture of this years vs last years returns and I am aware that an anecdote is not data but I can assure you when most people are expecting a return and get hit with a significant out of pocket debit instead they were quite upset. Out of an office of 10 people, 6 own a home, at least 2 of my coworkers I know for a fact complained that when last year they had a refund, this year they had to pay. I don't know about the others I can't ask because most people are working from home today.

[astura]

Getting a refund or owing at the end of the year has diddly squat to do with amount or percentage of taxes paid.

Are you sure it wasn't due to your company messing up withholdings in 2018? What state do you live in and how much is average property tax in your area?

For reference we live in a blue state and own a home and my family made approx $3k more in 2018 vs 2017 yet we paid $1k less in taxes in 2018. We went from itemizing to taking the standard deduction.

[chrshawkes]

They increase the standard deduction pretty significantly for 2018. I'm assuming in an effort to push less Americans to itemize deductions?

[stillbourne]

Oh, you see, I thought an increase in tax obligations is an increase in taxation. Silly me.

[chrshawkes]

Not trying to be political with my comment but I also own a home and claim more than the standard deduction and got crushed in taxes this year compared to last. Something changed, and at the end, TurboTax said I owed a lot more this year than last and my income was relatively unchanged. That was a shock and now I'm preparing to tighten the belt for the rest of the year. I make substantially more than the Average American (most engineers do) and I paid a ton of taxes last year, I didn't expect to be saddled with a ton more at filing time.