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hardnox
Advisor

Tax bill going down

Homebuilders flip to nay, which is a big nail in the coffin.

 

Actual bill to be released tomorrow and a whole lot of people will figure out that they'll get the shaft- rumored 401K caps, mortgage interest and property tax deductions to help pay half the bill for giving the top 1% 79% of the cuts.

 

Some large minority of the bottom 80% are just mad at Hillary, Harvey, the coastal elites and would welcome anything that makes their guy look like he's winning.

 

The top 1-2% are the ones who can make a fat investment into getting their taxes cut (typically the best ROI going) but the next 10% or so are nearly equal in influence and you mess with them at your peril.

 

Isn't to say that there isn't some real reform due. #1 would be to eliminate any tax preference for financial deals- reduced capital gains on large transactions, carried interest for hedge and private equity operators (which is one of about a million things that Trump teased at during his populist campaign and then disappeared). If there's a need to strip out companies or play other games then so be it, but there's no reason to create financial incentives to do it. Wall Street stole as many jobs as Mexico did. But serving those interests is the #1 priority of Ryan and McConnell.

 

And, of course, the Don Kraft Plan is the only fair and logical way to deal with large estates although the GOP prefers the discourse be yes/no revolving around those poor family farmers. Their funders really, really want this, as do Ivanka and the boys.

 

I'll also throw in the Hardnox Plan- an even lower tax rate for the first $1-200K of income on C Corps. Please follow your passion and build your business but you're going to pay taxes on what you take out of it or if you make it big and sell.

 

Anyhow, looks likely that year 1 of the Trump Admin. will end with no legislative accomplishments. Butt Gorsuch.

10 Replies
wehav
Senior Contributor

Re: Tax bill going down

Each time taxes have been lowered they remove deductions.  Then when Democrats get back in power they raise taxes without the former deductions.

 

Capital gains on property held for a certain period of time should be indexed.  I sold some property last year and will end up with less buying power now than what I invested 37 years ago because capital gains will take so much.

 

It's ridiculous that after paying income tax on the return from the investment, property tax on the property, sales tax on goods that maintained and improved the property the government grabs anything from the sale.

 

As to removing state income tax deduction and telling me that the AMT removal will make up for it, bull.  The AMT doesn't apply to me or anybody I know but we all pay state income taxes and property taxes.

 

Some body always brings up the old tax rates from years ago, something about 90%, it's lunacy to believe that anybody ever paid that after the deductions that were available. 

 

It's time congress got their act together and did two things, do what the people have wanted and quit spending.

r3020
Senior Advisor

Re: Tax bill going down

The tax bill is going down because the 1% want to deduct their state taxes from their federal taxes.

hardnox
Advisor

Re: Tax bill going down

The math doesn't work on that.

 

The 10%, yes it does, and the two groups are roughly equal in terms of political influence.

 

The remaining 90% carries about the remaining third of influence. 

 

Curiously, though, the net benefit of the tax proposals accrue to the highest cohort at more than twice that proportion.

 

 

hardnox
Advisor

Re: Tax bill going down

Well, if you want a balanced budget and don't touch SS, Medicare, defense/intelligence/security and a few other things like criminal justice,  Corps of Engineers, Transportation, some disaster response capacity etc., you can basically eliminate everything else and have no room for much in the way of tax cuts.

 

As far as the Corps, Transpo etc. you could make them self funding like for a toll charge on locks and dams (maybe a 5 cent tax on a bushel of corn) and toll roads everywhere.

 

But those are all taxes, albeit somewhat more regressive.

bruce MN
Advisor

Re: Tax bill going down

Oh you old progressive, you!

AllenJwi
Senior Contributor

Re: Tax bill going down

Are you saying that you are paying more as a percentage of your income than a rich person or are you just upset they are not paying your free ride in this world? 

r3020
Senior Advisor

Re: Tax bill going down

The SS tax is suppose to pay for SS and medicare tax is suppose to pay for medicare. There are no talk of cutting those.

schnurrbart
Veteran Advisor

Re: Tax bill going down

The govt doesn’t grab anything until you and your wife have more than $11 million and then only on the amount over that. I doubt you have to worry about it.
AllenJwi
Senior Contributor

Re: Tax bill going down

If you are talking to me Bart yes it could take a bit of my bottom line. Not that we made all the cash our self.