Tax Cuts and Jobs Act

[Limbo Pete]

That's so sad.

I didn't know pod people could feel emotion

 

[Lubaolong]

I didn't know pod people could feel emotion

There are a few ways they can work around this.

1. You school could give out money that's not contingent on your status as an employee or only leave a small chunk of your stipends contingent on teaching or whatever your do.

2. Your school could reduce tuition to a more reasonable amount.

3. They can increase your stipend to cover the cost of increased taxes.

4. Any combination of the above.

It's not that hard. They'll figure something out. Colleges are not going out of business. Take a deep breath.

 

[kpt018]

I'm a physician, and my wife makes pretty decent money. @Limbo Pete knows this, as I've send him pics of my office and prescription pad with his name written on it. He's just your typical angsty middle aged community college history major who externalizes blame, always feels wronged, resentful, disgruntled, and gets off trolling people more successful than him on internet forums.

Just having fun with a common sentiment among regular folks who push for low taxes on big corporations and high income individuals. I don’t know or care what you do for a living.

Just feel compelled to point out many physicians will see their taxes rise.

 

[Limbo Pete]

There are a few ways they can work around this.

1. You school could give out money that's not contingent on your status as an employee or only leave a small chunk of your stipends contingent on teaching or whatever your do.

2. Your school could reduce tuition to a more reasonable amount.

3. They can increase your stipend to cover the cost of increased taxes.

4. Any combination of the above.

It's not that hard. They'll figure something out. Colleges are not going out of business. Take a deep breath.

Why would colleges be going out of business?

 

[Lubaolong]

Just feel compelled to point out many physicians will see their taxes rise.

It looks like a minority from the pdf you posted.

 

[Lubaolong]

Why would colleges be going out of business?

That's the headline that a lot are running with (Tax Plan Will Harm Higher Education, The GOP Tax Plan Will Destroy Higher Education, Tax Plan Threatens Higher Ed, Graduate students are worried--and they should be, etc). I think the sky is not falling. The world is not coming to an end. Everything will be ok.

 

[Limbo Pete]

That's the headline that a lot are running with (Tax Plan Will Harm Higher Education, The GOP Tax Plan Will Destroy Higher Education, Tax Plan Threatens Higher Ed, Graduate students are worried--and they should be, etc). I think the sky is not falling. The world is not coming to an end. Everything will be ok.

Of course the sky isn't falling lol
But just because this isn't a world-shattering calamity doesn't make it ok. Graduate students absolutely should be concerned because our taxable income is going to take a big jump on paper.

 

[Lubaolong]

Of course the sky isn't falling lol
But just because this isn't a world-shattering calamity doesn't make it ok. Graduate students absolutely should be concerned because our taxable income is going to take a big jump on paper.

Colleges aren't going to shut down their grad schools. Education is a business. They'll make adjustments to keep the big wheel turning.

 

[kpt018]

It looks like a minority from the pdf you posted.

Yes, but the 9% seeing increases is way to high if we’re talking about cuts for the rich. And that’s overall. I remember reading it can be as high as 30% for upper middle class folks.

 

[Limbo Pete]

Colleges aren't going to shut down their grad schools.

 

[K1levelgrappler]

Yeah this bill really fucking sucks

 

[PolishHeadlock]

This is pretty interesting @kpt018 @Jack V Savage

https://www.lexology.com/library/detail.aspx?g=46b0281b-3ede-4fc3-840a-322cc48565a4

The current IRS code disallows Compensation of $1M for the top 5 Executives that isn't performance based.

This is one of the reasons that these guy are paid in Stock instead of salary because the company would take a 35% hit on their compensation.

Both bills seem to be eliminating the "Performance Based" language and limiting the deductibility in any Compensation over $1M for the top 5 Executives in any form.

I wonder how companies are going to respond with this.

 

[afrdzak]

I will pay more under this plan. And honestly, I'm ok with the idea of me paying more.

BUT:

I am not ok with paying more so that people in better financial positions than myself can pay less....which is what is happening here.
I'd pay more so those less fortunate could receive more benefits and pay less. Unfortunately, that isn't how this is looking to shake out.

 

[HatchetHarry]

Yeah this bill really fucking sucks

Why does this bill suck? Medicare and Medicaid both need to be cut big time and this is a great start. I'd like to see a complete elimination of Medicaid eventually and it kind of upsets me that this bill doesn't go after that but at least this is some progress at fixing tax inequality.

 

[kpt018]

This is pretty interesting @kpt018 @Jack V Savage

https://www.lexology.com/library/detail.aspx?g=46b0281b-3ede-4fc3-840a-322cc48565a4

The current IRS code disallows Compensation of $1M for the top 5 Executives that isn't performance based.

This is one of the reasons that these guy are paid in Stock instead of salary because the company would take a 35% hit on their compensation.

Both bills seem to be eliminating the "Performance Based" language and limiting the deductibility in any Compensation over $1M for the top 5 Executives in any form.

I wonder how companies are going to respond with this.

Thanks for sharing man. I saw that Silicon Valley, among other startup hotbeds, are going apeshit over the piece in the new bill that would require employees to expense options as they vest instead of when exercised. I wonder if that will get killed, in light of the above as well.

Interesting stuff (at least to us finance geeks).

 

[Jack V Savage]

Thanks for sharing man. I saw that Silicon Valley, among other startup hotbeds, are going apeshit over the piece in the new bill that would require employees to expense options as they vest instead of when exercised. I wonder if that will get killed, in light of the above as well.

Interesting stuff (at least to us finance geeks).

That was killed already.

http://www.latimes.com/business/la-fi-tax-bill-stock-options-20171115-story.html

That one had me sweating.

 

[kpt018]

That was killed already.

http://www.latimes.com/business/la-fi-tax-bill-stock-options-20171115-story.html

That one had me sweating.

Me too, thank god!

 

[HatchetHarry]

I will pay more under this plan. And honestly, I'm ok with the idea of me paying more.

BUT:

I am not ok with paying more so that people in better financial positions than myself can pay less....which is what is happening here.
I'd pay more so those less fortunate could receive more benefits and pay less. Unfortunately, that isn't how this is looking to shake out.

People in better financial positions than you are there for a reason and they pay too much. Why do you want the "less fortunate" to receive more benefits for being deadbeats? How about everyone pays their fair share and stops blaming those with work ethic?

 

[PolishHeadlock]

Pretty great rant by Ross Douthat for those that have twitter

 

[HomerThompson]

Pretty great rant by Ross Douthat for those that have twitter

Thanks for posting that up. It was terrific.