(04-26-2017 11:35 AM)Redwingtom Wrote:  

(04-26-2017 11:32 AM)Fo Shizzle Wrote:  

(04-26-2017 11:30 AM)Fitbud Wrote:  Awe yes...............Trickle Down economics.


Give big business big tax cuts and the money will eventually make it's way down drip by drip to the poor people.


Hooray.

Hyperbole much?

Why is that hyperbole. Isn't that exactly what the Republicans usually say will happen if they cut taxes for the "job creators"?

The hyperbole is that he assumes there is no tax cut other than this. I expect there will be one for everyone.

(04-26-2017 11:35 AM)Redwingtom Wrote:  

(04-26-2017 11:32 AM)Fo Shizzle Wrote:  

(04-26-2017 11:30 AM)Fitbud Wrote:  Awe yes...............Trickle Down economics.

Give big business big tax cuts and the money will eventually make it's way down drip by drip to the poor people.

Hooray.

Hyperbole much?

Why is that hyperbole. Isn't that exactly what the Republicans usually say will happen if they cut taxes for the "job creators"?

If you can't figure out a way to make money when the economy is on an upswing I have no sympathy for you.

They are releasing it right now.

Business rate 15%.

Top rate for dividends is 20%.

Repeal death tax.

Eliminate tax breaks that benefit only high income earners.

Mortgage deduction is still in tact, as are charitable deductions. The rest are gone.

Rules will be built so that hi income earners cant use the passthru to pay a smaller rate than they should on the personal level.

They are working on the re-patriation rate to bring back the overseas money.

Repeal 3.8% Obamacare tax.

And how does this benefit me?

(04-26-2017 01:55 PM)cb4029 Wrote:  And how does this benefit me?

Without earned income, it won't.

most everyone making less than 40k and having a family pays no income taxes.

Quote:Repeals the Alternative Minimum Tax, which was enacted as a penalty on wealthy individuals.

The AMT was nasty, nasty surprise for many people just hitting upper brackets.

(04-26-2017 02:24 PM)Lord Stanley Wrote:  

Quote:Repeals the Alternative Minimum Tax, which was enacted as a penalty on wealthy individuals.

The AMT was nasty, nasty surprise for many people just hitting upper brackets.

It doesn't really impact the wealthy much anymore. Its a tax on the upper middle class. With the 39.6% top rate, there just isn't any significant impact on the top earners from a 28% AMT.

(04-26-2017 02:24 PM)Lord Stanley Wrote:  

Quote:Repeals the Alternative Minimum Tax, which was enacted as a penalty on wealthy individuals.

The AMT was nasty, nasty surprise for many people just hitting upper brackets.

This! The AMT kicks you in the pants when you are also losing deductions due to AGI. It's like getting punched in the gut and then getting kicked in the crotch.

(04-26-2017 11:32 AM)Redwingtom Wrote:  

(04-26-2017 10:47 AM)bullet Wrote:  

(04-26-2017 09:54 AM)Redwingtom Wrote:  

(04-26-2017 09:38 AM)bullet Wrote:  I don't agree with lowering the business pass through rate.

The issue with corporate taxes is double taxation. The corporations get taxed and then the individuals who own the corporation get taxed.

With the pass through there is only one level of taxation-at the individual level. Business owners already have the possibility of capital gain with lower rates if they sell their business. They also can deduct a lot of expenses incurred in their "job." They don't need the added advantage of getting a lower rate on their earnings than a salaried person.

Can you expound upon exactly what you're talking about here please?

Corporations get taxed on their earnings.

Individuals who own the corporation get "double taxation" as they get taxed on dividends given out of the corporations earnings [(1) taxed at the corporate level and then; (2) taxed again when distributed] and/or on capital gains when they sell the stock, that has appreciated, because of those earnings.

Its why there is a lower rate on certain dividends and why there is a partial deduction for dividends corporations get from other corporations.

Thanks...that's what I assumed you were referring to. However, the earnings aren't usually near a 1:1 basis when compared to dividends.

In addition, many corporation "owners" also receive a salary as the bulk of their income. A salary which the corporation deducts from taxable income.

Part of the reason corporations retain their earnings. It defers the double taxation. Also, owners can sell their stock, which will have a higher value because of the retained earnings, and only pay capital gain rates.

If it was 1:1 and didn't qualify for the lower rates on dividends, a corporation would pay 35% and then the owner would pay 43.4% of the 65% remaining (39.6% top rate + 3.8% Obamacare investment tax). That would be a 63.8% tax rate not counting state taxes. For an individual, it would only be 39.6%.

Your second part is not valid. Closely held companies are almost all pass-through now-LLCs (Limited Liability Corporations that may have a single owner unlike other corporations) or Sub S corporations-so only the owner gets taxed, not the corporation. The double taxation is just too much of a burden. States have allowed for LLCs to retain the liability protection and the Sub S laws have been loosened so closely-held regular "C" Corporations are few and far between.

The double taxation hurts us with multi-nationals. Not only do they get double taxed on earnings, but there is also double taxation on foreign profits as well. We tax world-wide earnings but give them credit for foreign taxes paid. That effectively means the USA gets the difference between our rate and the foreign rate. So corporations set up in Ireland where they have a lower tax rate and don't get double taxed on foreign earnings.

Sweet!

Doubles the standard deduction for a married couple to $24,000. This change also means more couples will no longer need to itemize deductions, making the process of filing taxes simpler.

(04-26-2017 02:49 PM)UofMstateU Wrote:  Sweet!

Doubles the standard deduction for a married couple to $24,000. This change also means more couples will no longer need to itemize deductions, making the process of filing taxes simpler.

As long as they don't continue the phaseout.

(04-26-2017 02:49 PM)UofMstateU Wrote:  Sweet!

Doubles the standard deduction for a married couple to $24,000. This change also means more couples will no longer need to itemize deductions, making the process of filing taxes simpler.

I wonder if that will be the impetus for taking away the mortgage interest deduction?

(04-26-2017 02:49 PM)UofMstateU Wrote:  Sweet!

Doubles the standard deduction for a married couple to $24,000. This change also means more couples will no longer need to itemize deductions, making the process of filing taxes simpler.

That's also a backdoor way of phasing out the mortgage interest deduction which a lot of economists don't like. If you don't itemize, there's no benefit.

(04-26-2017 02:20 PM)hoopfan Wrote:  most everyone making less than 40k and having a family pays no income taxes.

So he screwed me again.

(04-26-2017 03:00 PM)cb4029 Wrote:  

(04-26-2017 02:20 PM)hoopfan Wrote:  most everyone making less than 40k and having a family pays no income taxes.

So he screwed me again.

how?

(04-26-2017 03:00 PM)cb4029 Wrote:  

(04-26-2017 02:20 PM)hoopfan Wrote:  most everyone making less than 40k and having a family pays no income taxes.

So he screwed me again.

Just because Trump didnt load more money onto your EBT card doesnt mean you got screwed.

(04-26-2017 02:16 PM)LeFlâneur Wrote:  

(04-26-2017 01:55 PM)cb4029 Wrote:  And how does this benefit me?

Without earned income, it won't.

that summed up the bizzle....

(04-26-2017 02:56 PM)VA49er Wrote:  

(04-26-2017 02:49 PM)UofMstateU Wrote:  Sweet!

Doubles the standard deduction for a married couple to $24,000. This change also means more couples will no longer need to itemize deductions, making the process of filing taxes simpler.

I wonder if that will be the impetus for taking away the mortgage interest deduction?

We were thinking the same thing.

Its sancrosanct now, but if few people get the benefit, it can be eventually repealed.

(04-26-2017 03:01 PM)VA49er Wrote:  

(04-26-2017 03:00 PM)cb4029 Wrote:  

(04-26-2017 02:20 PM)hoopfan Wrote:  most everyone making less than 40k and having a family pays no income taxes.

So he screwed me again.

how?

Didn't give me a tax break.