Economy Biden's tax plan doesn't change anything for those under 400K

[ToxicShocker]

That’s assuming that Trumps tax cuts wouldn’t have been extended.

I thought that Trumps "Cuts" had an ~8 year schedule where they rose until 2025. That the 2017 law as it was already written rose taxes each year until then.

 

[C0NCH3TO]

So it affect us $700k+ a year neurosurgeons greek god body sherbros banging 9.5/10. We are all set4lyfe here.

 

[NastyNinja]

The money is leaving the U.S

Both will come together ... In my 20s it was those rich people vs the common people ... now its red vs blue like street gangs

 

[Lubaolong]

I thought that Trumps "Cuts" had an ~8 year schedule where they rose until 2025. That the 2017 law as it was already written rose taxes each year until then.

They were originally scheduled to end in 2025. The latest budget summary indicated plans to extend the tax cuts.

 

[panamaican]

If he eliminates tax deductions and people end up paying more money in taxes, then that is increasing people’s taxes, even if the base rates remain the same. It’s just semantics. He’s increasing the amount of taxes people will be paying.

No, they end up having fewer deductions, that's not increasing their taxes. It's reducing the options to lower their taxable income. And that's not a semantics difference.

First, the deductions are elective, not mandatory. To explain - you can contribute to your 401(k) right now and never take the deduction. You'd be a fool not to take the deduction but you're not obligated to do so.

Second, there is a significant difference between raising someone's taxes and changing the deductions available to them. To take it to another example - you could duplicate the deductions by giving more to charity or using some other combination of deductions to get the same reduction in taxable income. The end result being that the amount paid in taxes wouldn't change.

Third, you're talking about 401(k)s, where the deduction is a tax deferral, not an elimination of the tax responsibility. You put in pre-tax dollars now and pay taxes when you take it out down the road. Maybe your bracket is lower then but maybe it's not. Either way, your tax responsibility never disappeared, it was only deferred.

 

[Octavian]

Yep, it doesn’t change a thing at all because the wealthy and corporations are going to eat those increased taxes. They will not pass those costs down to the consumers and poor folks.

The companies might pass it on but the wealthy wouldn’t.

 

[panamaican]

That’s assuming that Trumps tax cuts wouldn’t have been extended.

They haven't been extended and that means that if Joe Biden does nothing, people's taxes will go up.

You can bank on that assumption if you wish but that's bad tax planning when you have the House and Senate on different pages about the value of said cuts. The Senate is who pushed for the sunset provisions in the first place to maintain revenue neutrality over the long term, I doubt Mitch and friends are going to suddenly change heart under Biden's administration and that's going to run until 2024.

 

[ChuckSteak]

Listen, Trump's tax cuts had sunset provisions in them. They are going to expire anyway.

So whether Joe does something or not, your taxes are going to go up. I'm assuming your "fuck you" is now directed at Trump?

Didn’t Ted Cruz propose legislation to make the tax cuts permanent? It’s sitting dead because Democrats don’t support making the cuts permanent I believe .

 

[Octavian]

How exactly do you think that raising personal income taxes on wealthy taxpayers will "pass those costs down to the consumers and poor folks."

In the case of corporate tax hikes, you at least have a theoretical point even if you may not have an actual point. In the case of personal income taxes, it makes no sense.

He doesn’t think.... /s

 

[panamaican]

Ted Cruz proposed legislation to make the tax cuts permanent. It’s sitting dead because Democrats don’t support making the cuts permanent.

It's sitting dead because Mitch isn't going to put it to a vote. He could easily put it in front of the Senate and then put the pressure on the House to do something. But he hasn't and he probably won't because those sunset provisions exist to keep the TJCA revenue neutral over 10 years and the few budget hawks that remain in the GOP wouldn't support it.

 

[cincymma79]

https://www.investopedia.com/explaining-biden-s-tax-plan-5080766

"Higher taxes on corporations and the wealthy, no increase under $400k"

Unless you have rental property

 

[bobgeese]

Oh good, now do $4 gas prices.

 

[Staph infection]

This is a weird way of looking at it. If the corporations raise their prices there is no guarantee people will continue to buy whatever product they are selling. Your acting like every single corporation out there can simply raise their prices and people will pay it no matter what because we are forced to.

It may seem weird but look at the buying trends over the last 10 or so years. Everyone pretty much buys things from the same few retailers. Mom and pops are going the way of the dinosaur. At some point there will only be Walmart and Amazon.

 

[ineverpost]

Taxes going to have to go up to pay for President Trump's Covid-19 bailout fuck up fund package.

 

[Lubaolong]

No, they end up having fewer deductions, that's not increasing their taxes.

It pretty much is, but I see you're not willing to admit it. Tax burden is increased. All the rest is semantics.

 

[ToxicShocker]

I thought that Trumps "Cuts" had an ~8 year schedule where they rose until 2025. That the 2017 law as it was already written rose taxes each year until then.

They were originally scheduled to end in 2025. The latest budget summary indicated plans to extend the tax cuts.

You are misunderstanding my possible misunderstanding.

Trumps tax cuts raise taxes each year until 2025 when a new plan would have to be created.

I.E. Under trumps plan we pay more in taxes each year after the first year or two which was an actual decrease.

 

[ToxicShocker]

Unless you have rental property

Most landlords making 400k net income off rentals would own $6-10 million worth of rentals.

Thats not a mom and pop.

 

[panamaican]

It pretty much is, but I see you're not willing to admit it. Tax burden is increased. All the rest is semantics.

You mean you didn't understand how deductions work in general, how your 401(k) is a tax deferral so you still owed the taxes, that deductions are elective, etc. and can't/won't admit it. Which is why you cut out the rest of my post explaining why it's not semantics.

Of course the absurdity of trying to discuss taxes and tax deductions but then claiming that the details are "semantics" is how we got here in the first place.

 

[Rob Battisti]

Can someone explain his 401k plan? I remember seeing something months ago but can’t remember

 

[Lubaolong]

This is a weird way of looking at it. If the corporations raise their prices there is no guarantee people will continue to buy whatever product they are selling.

I think what he means is that Biden is going to raise corporate taxes and take away certain corporate tax breaks, which is going to create a trickle-down effect that will indirectly increase taxes on most Americans.

Another group that under $400k that will pay increased taxes is anyone itemizing in a higher tax bracket than 28%. That's basically a guy making over $163k.