Tax Cuts and Jobs Act

[Rod1]

The non-partisan Tax Foundation reports that their "results indicate a reduction in tax liability for every scenario we modeled, with some of the largest cuts accruing to moderate-income families with children and fixed-income retirees. Individuals with pass-through income also benefit substantially from the lower pass-through rate."

https://taxfoundation.org/gets-tax-cut-tax-cuts-jobs-act/

Where are the state taxes deductions in that model?

 

[Rational Poster]

The estate tax stuff is completely asinine. Currently only the wealthiest 0.2% of estates pay taxes at all.

Republicans looking out for mooching kids of that 0.2% at the expense of everyone else.

tbh, the estate tax generates so little revenue and has been so neutered, we're better off just getting rid of it to appease the cry babies and then tax them somewhere else.

 

[kpt018]

Waiting for GOP Reps and Senators to block this because it doesn't cut enough taxes.

I'm waiting for the GOP Senators that will kill it because it creates really high deficits.

Paul, Corker, where are you?

 

[Sycho Sid]

This will npt effect me at all, except the student loan deducyions.

My parents get screwed pretty hard though.

 

[Revolver]

Personally would like to see corporate tax cuts somehow tied to payroll growth, they're just going to put their savings in their hoards.

Yup. You know the extra tax savings will just be issued out in dividends to stock holders.

 

[Lubaolong]

i'm cautiously optimistic about the corporate tax cuts and repeal of the AMT

Do you have any pass through income? That could be the biggest boost next year for me I think, assuming this goes through.

 

[Rational Poster]

I'm waiting for the GOP Senators that will kill it because it creates really high deficits.

Paul, Corker, where are you?

Oh come on, you know they don't actually care about debt and deficit when they control government.

 

[Revolver]

Do you have any pass through income? That would be the biggest boost next year for me I think, assuming this goes through.

Wonder what "several rules they'll place to prevent abuse". Will they eliminate the need for S-Corp owners to pay themselves a reasonable salary in order to avoid payroll taxes? As well as having general partners in partnerships and LLC's report income earned as self employment?

 

[kpt018]

Oh come on, you know they don't actually care about debt and deficit when they control government.

I think there is a small handful of ideologues that are stuck on paying off the debt or at least zero deficits.

I agree with your sentiment, most of those clowns only care about deficits when it's policy they don't like (I had a joke post about this in another thread). But Rand Paul is consistent on this and Corker, who is retiring and out of fucks to give and hates Trump has come out and said he won't vote for a bill that adds to the deficit.

So that leaves room for one more. Collins? Murkowski? McCain? We'll see, but this fucker is no slam dunk.

 

[MeatheadMike]

tbh, the estate tax generates so little revenue and has been so neutered, we're better off just getting rid of it to appease the cry babies and then tax them somewhere else.

I disagree. Even though it generates less than one percent of total federal revenue, it still generates enough to cover the amount the government spends on the FDA, EPA and CDC, combined.

https://www.cbpp.org/research/federal-tax/ten-facts-you-should-know-about-the-federal-estate-tax

Repealing it means that everyone else basically has to foot the bill.

Edit: Also the only reason we are in a position to feel that we should just give it up is because through the years we have been giving them more and more. Around 2002 the estate tax kicked in at around $1M. You give them an inch they will eventually take a mile.

 

[Rematch]

A gif and off topic? Composing a PM to the mods right now! No empty/shit posting. Its in the rules.

Get him. Get him! GET HIM!!!

He needs to pay for his treachery!

 

[kpt018]

I disagree. Even though it generates less than one percent of total federal revenue, it still generates enough to cover the amount the government spends on the FDA, EPA and CDC, combined.

https://www.cbpp.org/research/federal-tax/ten-facts-you-should-know-about-the-federal-estate-tax

Repealing it means that everyone else basically has to foot the bill.

Edit: Also the only reason we are in a position to feel that we should just give it up is because through the years we have been giving them more and more. Around 2002 the estate tax kicked in at around $1M. You give them an inch they will eventually take a mile.

Right. Current estimates show this tax plan will cost about $200b over ten years but it is phasing out and the cut to zero is in year 6 I believe. So the next decade will be even more expensive.

Shit, maybe we should increase the estate tax.

 

[Lubaolong]

Wonder what "several rules they'll place to prevent abuse". Will they eliminate the need for S-Corp owners to pay themselves a reasonable salary in order to avoid payroll taxes? As well as having general partners in partnerships and LLC's report income earned as self employment?

So I've read some about this 70/30% rule, where many small business owners would be taxed normally on 70 percent of their income with 30 percent qualifying as business income for the 25 percent pass-through rate. One of the safeguards to prevent abuse will prevent professional services, like lawyers and consultants, from participating. But there is some provision regarding the capital investment of business owners who are behaving as owner-operators, like doctors who invest in assets like medical equipment, that more of their income could be classified as business income. Time will tell how much of a tax avoidance strategy this will turn out to be.

 

[MASShole]

How does this affect student loan interest? I make too much money to write it off on my taxes each year.

 

[kpt018]

How does this affect student loan interest? I make too much money to write it off on my taxes each year.

It's on the chopping block. If this bill passes no one is going to be able to deduct it.

 

[HunterSdVa29]

they actually raised the child credit.....that surprised me. I'd be fine if that was completely removed tbh, didn't see that coming

 

[MASShole]

It's on the chopping block. If this bill passes no one is going to be able to deduct it.

Interesting. I make too much to deduct anyway so it wouldn't affect me, but man I'd love for the cap to be removed from it so I can deduct it.

This whole scenario seems so fucked up, and not nearly as beneficial as it should be.

 

[kpt018]

Interesting. I make too much to deduct anyway so it wouldn't affect me, but man I'd love for the cap to be removed from it so I can deduct it.

This whole scenario seems so fucked up, and not nearly as beneficial as it should be.

Hugely beneficial for people with large estates and big corporations (or at least highly profitable). For regular people it will depend on circumstances, some will see increased taxes some will see moderate decreases.

IMO the tax bill is fucking atrocious and indefensible.

 

[Rational Poster]

Hugely beneficial for people with large estates and big corporations (or at least highly profitable). For regular people it will depend on circumstances, some will see increased taxes some will see moderate decreases.

IMO the tax bill is fucking atrocious and indefensible.

I think on the surface it looks fine with the changes with the tax brackets, but once you start looking into the details of the deduction changes, etc.

It starts falling apart.

 

[kpt018]

I think on the surface it looks fine with the changes with the tax brackets, but one you start looking into the details of the deduction changes, etc.

It starts falling apart.

Definitely true for some. My big issue with it is it actually hurts some middle and upper middle class folks, does nothing for low income earners and the vast majority of cuts go to corps and large estates.

We know why the morally corrupt GOP wants this but it's a fucking dumpster fire.