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Tax reform

If Trump actually forwards a tax reform proposal with higher nominal rates on high earners in order to fund cuts for businesses and the middle class, how's that going to play with GOP legislators?


Word is that he's reaching across the aisle for some help for conservative dems.


Might get a bit testy when the boys go over across the street and call their "friends" for moolah. Like with Willie Sutton, they're where the money is and they tend to expect ROI.


Interesting. I think that such a move, if decently crafted, would buoy Trump's support a bit but probably mark a new phase of the GOP civil war.


Regardless of the rumors best guess is that they'll just go Reagan/GWB and put tax cuts on the tab. I think they can pass that and claim a win, whatever that gets them other than campaign cash.

3 Replies
Senior Contributor

Re: Tax reform

Naw, he's going to get all sorts of support from Bill Gates and Warren Buffet, both of whom have said they'd love to pay more tax but the law just doesn't let them.


It's always been odd that during the Clinton administration when things were so good, everybody had a job, inflation was under control, the debt was down, and so on that we couldn't lower taxes.


Wish they'd just make federal tax 10% for everybody, make everybody pay all their own social security, remove free health insurance from corporations, and index capital gains.

Re: Tax reform a shirt concise explaination or a link to a more expanded one on just how indexing of capital gains would be implemented?  I've seen it come up often but never anything more than "they should".



Re: Tax reform

Not hard. You have a cost basis and date of acquisition on every asset and you just look up on the table how much to discount it based on the year of acquisition.


Works well if you otherwise tax CGs at the ordinary income rate and that rate be fairly high on very high incomes. No purpose is served by giving preferential tax treatment to quick flips- other than encourage people to cut corners.


In homage to Don, that's essentially how the estate tax should be handled as well. Previously taxed income isn't taxed but all untaxed assets are treated as sale upon death.


Then the heirs get the stepped up basis.