Tax Reform

[-Akronite-]

Personally, I'm all for the corporate rate to go down - always have been. But at the same time, I wouldn't mind paying more in the way of income taxes if we could get a functional government with significant infrastructure spending, funding of education, clean energy investments, and universal health care, etc.

This is the one I don't understand. It's always talked about, seems like the easiest to implement in a bi-partisan fashion, and is highly necessary for the future of the country. Why does it ALWAYS get ignored? Oliver did a piece about it and the explanation made it seem like it isn't sexy enough or something but if you throw in a couple mega projects for politicians to measure their dicks against I think it would work out fine.

 

[TyGuy]

Standard deduction is doubled and the child tax credit is significantly increased.

For our situation we would be worse off because doubling the standard deduction doesn't make up for the 4 dependents and none of them qualify for child tax credit.

 

[Maximus]

This speech he's giving is like porn for all my northern Ohio manufacturers/customers...

 

[KI4MVP]

For our situation we would be worse off because doubling the standard deduction doesn't make up for the 4 dependents and none of them qualify for child tax credit.

Is that because of income or age? I don't know if it's part of the plan, but the income thing could certainly be addressed.

 

[TyGuy]

Is that because of income or age? I don't know if it's part of the plan, but the income thing could certainly be addressed.

Age, one is her mother, and the others are cousins that live here that are teenage to early 20's.

 

[KI4MVP]

This speech he's giving is like porn for all my northern Ohio manufacturers/customers...

I just wonder why it took so long for him to get around to this. This really should have been his first priority. A huge part of his campaign was tax reform to grow the economy.

 

[Huber.]

I just wonder why it took so long for him to get around to this. This really should have been his first priority. A huge part of his campaign was tax reform to grow the economy.

It's hard to get stuff done when you're playing wack a mole with all the cucks.

 

[KI4MVP]

I just read an article that said the National Association of Home Builders is against the tax plan because it doubles the standard deduction. They think giving people a higher tax deduction will make them less likely to buy a house, because in their eyes, the only reason people buy a house is so they can deduct their home interest, and the higher standard deduction means less people hit the threshold where that matters.

Did they ever stop to think that the higher standard deduction could mean more people can now afford a house?

 

[Cavatt]

Hopefully, they close a bunch of loopholes. I wouldn't mind the rate going down if they would just sew up the loopholes. No deductions. The only way to close loopholes is to have none at all.

I have been reading up on the death tax. I think it should stay the same and be adjusted for inflation. Go to 10M or something.

 

[The Human Q-Tip]

Hopefully, they close a bunch of loopholes. I wouldn't mind the rate going down if they would just sew up the loopholes. No deductions. The only way to close loopholes is to have none at all.

I have been reading up on the death tax. I think it should stay the same and be adjusted for inflation. Go to 10M or something.

This isndoubly true with respect to business taxes. The tax code encoueages a lot of otherwise inefficient behaviors. Close loopholes, drop the rates.

 

[Maximus]

Hopefully, they close a bunch of loopholes. I wouldn't mind the rate going down if they would just sew up the loopholes. No deductions. The only way to close loopholes is to have none at all.

I have been reading up on the death tax. I think it should stay the same and be adjusted for inflation. Go to 10M or something.

I agree...

 

[DJTJ]

I just read an article that said the National Association of Home Builders is against the tax plan because it doubles the standard deduction. They think giving people a higher tax deduction will make them less likely to buy a house, because in their eyes, the only reason people buy a house is so they can deduct their home interest, and the higher standard deduction means less people hit the threshold where that matters.

Did they ever stop to think that the higher standard deduction could mean more people can now afford a house?

It removes the incentive of writing off home interest, which does, even if it's likely very small, reduces the amount of people willing to buy a home. I bought a home and then found out you write off the interest. So, yeah.

Need more actual information on the plan, because what I read originally was a huge fuck off to everyone who wasn't already rich or didn't own a business.

 

[KI4MVP]

It removes the incentive of writing off home interest, which does, even if it's likely very small, reduces the amount of people willing to buy a home. I bought a home and then found out you write off the interest. So, yeah.

Need more actual information on the plan, because what I read originally was a huge fuck off to everyone who wasn't already rich or didn't own a business.

Homeowners don't lose the deduction, instead it give people some of the deduction without having to buy a home, which makes it easier to save up the down payment in the first place. But if you're only buying a home for the tax deduction, you're doing something wrong.

Also, they are capping the mortgage deduction for mortgage loans of 500k or less, so it's hardly designed to benefit the rich.

The $500k fixed number is problematic

This house in Ohio costs $499k

this house in Los Angeles costs $499k

 

[natedagg]

Homeowners don't lose the deduction, instead it give people some of the deduction without having to buy a home, which makes it easier to save up the down payment in the first place. But if you're only buying a home for the tax deduction, you're doing something wrong.

Also, they are capping the mortgage deduction for mortgage loans of 500k or less, so it's hardly designed to benefit the rich.

The $500k fixed number is problematic

This house in Ohio costs $499k

this house in Los Angeles costs $499k

Yeah huge kick in the nuts to coastal property values and another score for fly-over country. You'd put 20 down on a ~620K house and have a ~500K mortgage, no? So there's the ultimate line in the sand: ~620K... Or maybe you'd have to math out whether to put 20 down, haven't really thought about it yet.....

What about the C-Corp tax down to 20%?!? That's huge. Could be a great day for entity formation lawyers and CPAs. So say I am a successful sole prop. Let's go with a company that cleans vents. So if I make $240K after all deductions and I am married, let's say I form a C-Corp and pay myself $90K after all deductions, now that $ is taxed at 12%, and the balance is at the C-Corp rate of 20%, right? My blended rate is 17%, where as a sole prop, my blended rate is ~23%. 6% of $240K = $14,400. Toss in the fees to get C-Corp'd, extra CPA fees, etc, how am I not still up $10K/year?

 

[KI4MVP]

Part of the new tax plan is to eliminate the tax credit for buying electric cars. ugh.

Story is here

https://electrek.co/2017/11/02/electric-vehicle-tax-credit-expected-slashed-new-house-tax-bill/