Listen: Leonard Raskin, America And Raskin discussed on Bill Press
"You had eight terrific weekend and third it's tax day. This is the day where America has to file its taxes. This is the deadline, and what better way is there to take a look at what the impact has been on Americans as they deal with the tax act of two thousand seventeen the same tax act that reduced taxes on corporations in America by a large sum, the same tax act that appears to have been very good to America's wealthy, but leaves us with the question how did the middle class turn out as a result of the tax? Well, we aim to find out today and to help us do that our friend Leonard Raskin owner and CEO of Raskin global financial firm joins us Leonard welcome to the program. Great to be with you. So Leonard as you review now that we have a better sense of what's happening. Two Americans out there as they file their taxes. You would agree with me? If I said that the the the wealthier amongst us came out of this tax act pretty well. Pretty well. Yes. All right now, let's get to the middle class. Then how did they do? They did pretty well. Mostly and giving it a table fifteenth by now everyone that's listening to either filed already they're actors scurrying right now to do them as we tend to procrastinate a lot. And what we'll see is some people will be surprised by the refunds lack thereof the amount they have to pay in more than maybe they thought I think we need to caution people that that's not the measure of how you did the measure of how you did is what was your total tax. And that's what people have to take a good look at and make sure they're aware of what that is versus whether or not they got a refund unfortunately in this country. What we focus on is on April fifteenth, did I get a refund or did I have to pay. Well, let's let's put the refunding SU aside. Just for the moment. We're gonna come back to it. When I'm a little bit focused on. I I read through a study. It was released by center for American progress. The data had come from the institute on taxation and economic policy, which is a non-partisan institute where the report shows that ten million two hundred sixty thousand two hundred sixty three to be precise. American families American families. They saw a tax hike last year over ten million people saw attacks hike as a result of the 2017 tax cutting jobs act that come out a surprise to you. Not particularly I mean on average. There have been about over the last. Let's say ten or so years if we look at the numbers there been about one hundred forty million tax returns filed. So that's what we're looking at one hundred and forty million taxpayers you end up with ten million and had an increase that would be about seven percent. That's all an increase where they come. From is the question, I would say for a large part one of the things that happened was you got really precise window of who ended up paying more and that window hit mostly people in the high income tax states where the salt deduction was taken away. Let's let's make sure everybody's clear on what the salt deduction is so state and local income taxes and property taxes in the prior law, you pay property taxes in your state you pay. State income taxes. Those dollars were deductible completely regardless of the amount. And in states, California, New York, Maryland where I am New Jersey a number of Illinois, a number of the states where they state income taxes significant and the property taxes aren't cheap either. When you add all those up, you could deduct all that although under the new law this year being eighteen the first that they went into effect your capped at ten thousand dollars. So if that number was eleven thousand didn't matter much if that number was ninety thousand one hundred and fifty thousand you're only able to deduct kind of it. So that put a crimp on a number of people who saw that deduction go down dramatically now that supposed to be offset by the lowering of the tax rates and for most people it did. But for a number of people it still caused an increase in taxes, so Leonard as I listened to you kinda check off the states. Lost that salt deduction throughout blue states. Was that was that a coincidence? You know, if you believe in coincidences, it may have been it may just be that they're the highest tax states. And yet they're kind of blue and people are leaving their for some degree because of the tax rates because this is the first year that they've actually seen what we've just talked about. It'll be interesting to see the population flows of those states going forward. Because again, everybody's all the law when it past Christmas seventeen but nobody had to live with it til now. Right. Interesting to see what people do as that happens. I think one of three things is going to happen. A they may leave the higher tax states and move near border states that are less taxes number one. Number two. They might yell at their legislature in the states a little bit to cut the tax rates at the state level. There's days tried to find a way around it. But that hasn't worked yet. And number three. They might just do nothing about it and recognize just a little higher tax in the state. You wanna live in some of you just joining us it is tax day. And we are talking about the impact of that the tax law in two thousand seventeen is having on your average American citizen. We're having that conversation with Leonard Raskin owner and CK o of Raskin global financial, so Leonard, how do you think I look at those ten million plus families who are not getting a tax cut? In fact, they're paying more in taxes, and I can't help but be reminded of what was then candidate Trump had to say in may. 2016 quote, everybody is getting a tax cut, especially the middle class. Well, I have a feeling if you are one of those ten million families you're having a problem with that comment. Well, I would say perhaps. But I would think when you look at those ten well, certainly what you'd have a problem if you wanted to ten million there's no question your taxes might have gone up. You're not you're not happy about that. Having said that I think when you look at that ten those ten million families in the data won't be out, obviously for what a year or two. It takes the government that long to get us actual reporting on who actually was impacted. I don't think that a significant swath of the middle class will have been the ones that did end up paying that necessarily extra tax unless they happen to be upper middle class in a high tax state the tax rates dropping the itemized deductions. Standard deduction going up significantly the bottom end of the tax rates changing from ten fifteen and twenty eight percent to ten twelve twenty two and twenty four percent. I think most people in that middle class section are gonna find it. They. They actually did. Well, and save taxes. They may not feel it again. Because as I said the way we look at taxes in our country. Most people don't review their tax returns for taxable income and tax. They review it for refund versus, oh, it's it's not the right play to take a look and see whether or not you had a good year as to whether or not you gave the government attacks relondo for the whole year. And we will get to that in the next segment. I I know people are curious about the refund situation. I want to read you just a short paragraph that I get from Steve Weymouth who authored the institute on taxation and economic policy studied, this is what I referred to at the top of the segment. Yeah. I'll read you the paragraph, and then we need to take a break. So I'm going to let you think about it through the break. And then we'll talk about it. When we come back. This is what Steve road he said most families did receive a tax cut from the Trump tax lot. The real problem is that the vast majority of the tax cuts went to people who do not need help half the tax cuts went to the richest five percent, which about a quarter. Going to the richest one percent. Those among the top five percent got bigger tax cuts, not just in dollar terms. But even when measured as a share of their total income now now give that a little bit of thought because we're gonna take a break here. But when we continue we will continue our discussion about how Americans are learning. They did in the two thousand seventeen tax cut now that they're filing returns today. And"