Tax Reform/Tax Cuts

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Re: Tax Reform/Tax Cuts

#201

Post by Whatever4 » Fri Dec 29, 2017 8:51 pm

We are also in MA but chose not to prepay because we intend to move to Maine in the late spring and rent for a year. :dance:

But Boston news showed massive lines in a few towns like Newton. High salaries, high property taxes, wicked high property values, and people who can afford to prepay — a perfect storm. Plus the town is full of the elites that red staters love to hate. And members of Stern’s tribe too. Also.


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Re: Tax Reform/Tax Cuts

#202

Post by vic » Fri Dec 29, 2017 10:50 pm

After paying the second installment of this year's property tax today on the advice of my CPA, I received the bill for my DMV renewal in the mail. It's due March 8, but part of it (in my case, just $29) is a property tax and currently deductible. So I paid it as well. And California can use the money.



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Re: Tax Reform/Tax Cuts

#203

Post by Suranis » Fri Dec 29, 2017 10:55 pm

This website shows that once you include payroll taxes the top 20% only contribute 66% of Federal Revenue.
One of the biggest misconceptions about the U.S. tax code is that a large portion of Americans do not pay federal taxes. Although it is true that the bottom 40 percent of income earners pay no individual income tax, they face payroll taxes if they are working. In fact, about 80 percent of American taxpayers pay more in payroll taxes than in individual income taxes. Payroll taxes, which help to finance Social Security, Medicare, and unemployment benefits, are the second largest source of federal revenue, and make up about one-third of total receipts annually. Payroll taxes are deducted from workers’ paychecks through a line item called FICA, which stands for the Federal Insurance Contributions Act.

:snippity:

The U.S. tax system is progressive

Another misconception about the U.S. tax code is that high-income Americans pay less in taxes because they benefit disproportionately from tax breaks, otherwise known as tax expenditures. While that may be true for certain individuals, in the aggregate the U.S. tax code remains progressive — with higher-income taxpayers paying a larger share of their income in taxes — even after tax breaks have been taken into account.

Major tax expenditures — such as lower rates on capital gains and dividends, deductions for charitable contributions, and deductions for state and local taxes — do tend to benefit high income taxpayers more than lower-income groups. The Congressional Budget Office estimates that the top quintile of taxpayers receive 51 percent — around $445 billion — of the value of major tax expenditures, while only 8 percent — around $70 billion — goes to the bottom quintile. However, even with substantial tax expenditures, the top one percent of American taxpayers still pay an effective tax rate of approximately 31.9%, on average, while the bottom 20 percent of the population pays an average of approximately 3.9%.

The Tax Policy Center estimates that 66 percent of taxes collected for 2016 will come from those in the top quintile, or those earning an income above $147,700 annually. Within this group, the top one percent of income earners — those earning more than $717,900 in income per year — will contribute almost a quarter of all federal revenues collected.

So yeah, that whole line about the top 1% contributing 80% of federal revenue is complete bullshit.


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Dan1100
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Re: Tax Reform/Tax Cuts

#204

Post by Dan1100 » Fri Dec 29, 2017 11:24 pm

They left out the worst part.

Social Security taxes are capped. Social security tax is 6.2% of the first $127,200 and nothing after that. So actively regressive.


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Re: Tax Reform/Tax Cuts

#205

Post by Slim Cognito » Thu Feb 01, 2018 12:46 pm

https://t.co/c9RNQeuteY


United States Will Hit Debt Limit Sooner Than Expected Because Of Tax Cuts


"The Congressional Budget Office said on Wednesday that the United States is expected to bump up against its borrowing limit a month earlier than previously expected, a function of last year’s $1.5 trillion tax cut, which is resulting in less revenue for the Treasury Department.

According to the budget office, the borrowing limit will most likely need to be raised in early March after the “extraordinary measures” to extend borrowing employed by the Treasury secretary, Steven Mnuchin, are exhausted. The budget office previously projected that the debt limit would need to be raised beyond its current level of $20.5 trillion in late March or early April.
....
The Internal Revenue Service released new withholding tables this month to reflect the new, lower tax rates, which will result in companies withholding less money from worker paychecks. Beginning in February, the government is expected to see $10 billion to $15 billion less tax revenue each month."


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Re: Tax Reform/Tax Cuts

#206

Post by Suranis » Sat Feb 03, 2018 4:30 pm

Paul Ryan comes out swinging in defense of the tax cut.


Gavin Newsom‏Verified account @GavinNewsom

Guess someone told Paul Ryan you shouldn’t go around praising yourself for giving a working person an extra $1.50 a week — because he deleted this tweet.



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Re: Tax Reform/Tax Cuts

#207

Post by Kendra » Sat Feb 03, 2018 6:27 pm




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Re: Tax Reform/Tax Cuts

#208

Post by kate520 » Sat Feb 03, 2018 6:32 pm

Remember when GHW Bush went to a Piggly Wiggly during a campaign and got all excited about the automatic scanners? He was blasted as out-of-touch with the little people. In his defense, they were still a novelty. And half the people who heard about this focused not on Bush’s cluelessness but on ‘wtf is a Piggly Wiggly?’ :lol:


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Re: Tax Reform/Tax Cuts

#209

Post by gupwalla » Sat Feb 03, 2018 6:39 pm

kate520 wrote:
Sat Feb 03, 2018 6:32 pm
Remember when GHW Bush went to a Piggly Wiggly during a campaign and got all excited about the automatic scanners? He was blasted as out-of-touch with the little people. In his defense, they were still a novelty. And half the people who heard about this focused not on Bush’s cluelessness but on ‘wtf is a Piggly Wiggly?’ :lol:
Last fall, my company had a fundraiser in the cafeteria in which Very Senior Executives donned aprons and served up some grub, with proceeds going to charity.

As it happens, the CxO of my department was having an employee town hall that week. "Please be sure to go to the cafeteria this week, where I will be serving - what is it I'm serving again? - Street Tacos. I don't know - have any of you heard of that? 'Street Tacos?' I'll have to ask for them at [pricey Mexican restaurant] next time I'm there. But I'll be serving 'street tacos' so please stop by. It's for a good cause."

Which prompted me to say sotto voce to my neighbor: "John Smith* - Man of the People!"

*Possibly not his real name.


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Re: Tax Reform/Tax Cuts

#210

Post by Addie » Sat Feb 03, 2018 6:55 pm

WaPo
The U.S. government is set to borrow nearly $1 trillion this year, an 84 percent jump from last year

It was another crazy news week, so it's understandable if you missed a small but important announcement from the Treasury Department: The federal government is on track to borrow nearly $1 trillion this fiscal year — Trump's first full year in charge of the budget.

That's almost double what the government borrowed in fiscal year 2017.

Here are the exact figures: The U.S. Treasury expects to borrow $955 billion this fiscal year, according to a documents released Wednesday. It's the highest amount of borrowing in six years, and a big jump from the $519 billion the federal government borrowed last year.

Treasury mainly attributed the increase to the “fiscal outlook.” The Congressional Budget Office was more blunt. In a report this week, the CBO said tax receipts are going to be lower because of the new tax law.


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Re: Tax Reform/Tax Cuts

#211

Post by Slim Cognito » Sat Feb 03, 2018 7:05 pm

kate520 wrote:
Sat Feb 03, 2018 6:32 pm
Remember when GHW Bush went to a Piggly Wiggly during a campaign and got all excited about the automatic scanners? He was blasted as out-of-touch with the little people. In his defense, they were still a novelty. And half the people who heard about this focused not on Bush’s cluelessness but on ‘wtf is a Piggly Wiggly?’ :lol:
Off Topic
My daughter lists her occupation on Facebook as a pig wiggler.


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Re: Tax Reform/Tax Cuts

#212

Post by Volkonski » Sat Feb 03, 2018 7:20 pm

gupwalla wrote:
Sat Feb 03, 2018 6:39 pm
kate520 wrote:
Sat Feb 03, 2018 6:32 pm
Remember when GHW Bush went to a Piggly Wiggly during a campaign and got all excited about the automatic scanners? He was blasted as out-of-touch with the little people. In his defense, they were still a novelty. And half the people who heard about this focused not on Bush’s cluelessness but on ‘wtf is a Piggly Wiggly?’ :lol:
Last fall, my company had a fundraiser in the cafeteria in which Very Senior Executives donned aprons and served up some grub, with proceeds going to charity.

As it happens, the CxO of my department was having an employee town hall that week. "Please be sure to go to the cafeteria this week, where I will be serving - what is it I'm serving again? - Street Tacos. I don't know - have any of you heard of that? 'Street Tacos?' I'll have to ask for them at [pricey Mexican restaurant] next time I'm there. But I'll be serving 'street tacos' so please stop by. It's for a good cause."

Which prompted me to say sotto voce to my neighbor: "John Smith* - Man of the People!"

*Possibly not his real name.
In fairness, those rich privileged white people often live very sheltered lives. Growing up they go to exclusive private schools. In high school they aren't allowed to date anyone whose parents aren't members of the country club. ("NOC Dear." :fingerwag:) In their (very elite) colleges they reside in exclusive fraternities and sororities after which they are fast tracked into executive positions in top companies. :thumbs: They see black and Hispanic people on TV and in their kitchens and on their lawns but they never speak to them. (Mumsy would have the vapors if ever they did that. :swoon:)

Of course for older generations the oportunities to learn about other regional cultures were limited. Growing up in Massachusetts in the 1950's and 60's I knew almost nothing about Mexican food until I was transferred to Texas for the first time in 1984. (Of course I then started to make up for lost time big time. Fajitas, nachos, ceviche, burritos, tamales, I love them all! :-D )


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Re: Tax Reform/Tax Cuts

#213

Post by Lani » Sat Feb 03, 2018 10:04 pm

Suranis wrote:
Sat Feb 03, 2018 4:30 pm
Paul Ryan comes out swinging in defense of the tax cut.




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Re: Tax Reform/Tax Cuts

#214

Post by Lani » Sat Feb 03, 2018 10:15 pm

I bet that school secretary was being snarky when she thanked Ryan.

Meanwhile, Ryan's stupid tweet is being put to good use.


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Re: Tax Reform/Tax Cuts

#215

Post by RTH10260 » Sat Feb 03, 2018 11:51 pm

Addie wrote:
Sat Feb 03, 2018 6:55 pm
WaPo
The U.S. government is set to borrow nearly $1 trillion this year, an 84 percent jump from last year
:snippity:
What's the government interest rate for borrowing from China?



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Re: Tax Reform/Tax Cuts

#216

Post by Slim Cognito » Mon Feb 05, 2018 6:00 pm


So uh, @CBSNews tracked down the secretary who got the $1.50 @SpeakerRyan was so excited about and she doesn't seem super thrilled.
The link includes video.


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Re: Tax Reform/Tax Cuts

#217

Post by Suranis » Wed Feb 21, 2018 10:46 am

Uh... not many people seem super thrilled, actually...

http://thehill.com/policy/finance/37479 ... x-overhaul
Poll: Most Americans not getting bigger paychecks in wake of tax overhaul
By Max Greenwood - 02/21/18 07:20 AM EST

More than half of U.S. voters say they have not noticed an increase in their paychecks in the wake of a sweeping series of tax cuts signed into law by President Trump last month, according to a new Politico/Morning Consult poll.

Just 25 percent of registered voters reported an increase in their pay, compared to 51 percent who said they did not.

The number of employed voters who noticed an increase was higher, at 37 percent, according to the poll. Still, 53 percent said they haven't noticed an increase in their paychecks.

Respondents who identify as Republicans were more likely to report higher paychecks after the tax overhaul, pollsters found. Thirty-two percent of Republicans said they have noticed higher paychecks, compared to 21 percent of Democrats and 22 percent of independents.

:snippity:

The Politico/Morning Consult poll pegged public support for the law at 45 percent and opposition at 35 percent. That's the same as a similar poll released last month.


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Re: Tax Reform/Tax Cuts

#218

Post by Lani » Mon Feb 26, 2018 12:26 am

Interesting item in the tax bill. Thinking about a divorce? Better get it done this year!
Because of the new tax law, spouses paying alimony won’t be able to take a deduction while spouses receiving alimony will no longer have to report it as income, report Politico, USA Today and Morningstar. The alimony deduction has been in the tax code since 1942.

The change doesn’t affect people who divorce or sign a separation agreement before 2019, according to USA Today.
:snippity:
Spouses negotiating alimony payments may try to pay less when the change takes effect because there will be no tax savings, some experts told the newspaper. Brian Vertz, a family law lawyer in Pittsburgh, said women are more likely to be hurt by the change as they negotiate divorce terms.
:snippity:
Elimination of the deduction will lead to higher revenues overall for the government because the person who deducted the alimony was likely in a higher tax bracket than the spouse declaring the alimony as income, Morningstar says. Eliminating the deduction could also push the alimony payer into a higher tax bracket.
http://www.abajournal.com/news/article/ ... ekly_email


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Re: Tax Reform/Tax Cuts

#219

Post by Addie » Tue Feb 27, 2018 2:02 pm

WaPo - Paul Waldman
Shocker: Democrats’ predictions about the GOP tax cut are coming true

When Republicans put together their tax bill last year, it was not much of a surprise to see that its centerpiece was a gigantic corporate tax cut, lowering the statutory corporate rate from 35 percent down to 21 percent. This cut accounted for about $1 trillion of the bill’s total $1.5 trillion cost, but Republicans said it really wasn’t about helping corporations at all.

No, the real target was the workers: Corporations would take the money and use it to create new jobs and raise the wages of those working for them, as trickle-down economics did its magical work.

Democrats, on the other hand, said it was a scam. They charged that workers would see only a fraction of the benefits, and instead corporations would use most of their windfall for things like stock buybacks, which increase share prices and benefit the wealthy people who own the vast majority of stocks.


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Re: Tax Reform/Tax Cuts

#220

Post by Addie » Fri Mar 02, 2018 10:07 am

The American Prospect - Justin Miller
Trump’s Tax Cuts Incentivized Corporate Offshoring. These Dems Want to Reverse That.

Ever since President Trump and the GOP enacted their gargantuan tax cut, Democrats have done a pretty good job of highlighting how the plan disproportionately benefits the wealthiest few, how it sets the table for future cuts to the federal safety net, and how corporations’ newfound savings have generated more than $200 billion in stock buybacks and minimal increases in worker pay.

But they haven’t done a good job of articulating an affirmative tax policy agenda of their own—let alone whether they even intend to push for a “repeal and replace” of the cuts, should they regain any semblance of political power. ...

That’s that kind of political waffling that has muddied the Democratic response to the tax cuts. But on Tuesday, two Democrats—Rhode Island Senator Sheldon Whitehouse and Texas Representative Lloyd Doggett—put some substance behind the party’s oppositional messaging by introducing the No Tax Breaks for Outsourcing Act. While Trump campaigned on his “America First” message, promising to stop corporations from sending good jobs abroad, the tax bill he signed into law actually incentives companies to set up shop—and stash profits—overseas. Of all the campaign promises that Trump abandoned via the tax law, this one is perhaps the most egregious.

The new law established a lower 10.5 percent tax rate—half the domestic corporate rate—on the income that American corporations earn abroad. As Kimberly Clausing, a tax policy expert at Reed College, told The New York Times, “It’s sort of an America-last tax policy. We are basically saying that if you earn in the U.S., you pay X, and if you earn abroad, you pay X divided by two.” On top of that, American companies do not have to pay U.S. taxes on any profits earned from factories and equipment that is overseas, so long as such profits remain below a certain threshold of overall international investment. Critics say this could spark a new wave of offshored jobs.

The new Democratic bill aims to fix those skewed incentives by equaling out the corporate tax rates for both domestic and foreign profits, repealing the incentives to set up operations abroad, and cracking down on corporate inversions as a tool for international tax evasion.


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Re: Tax Reform/Tax Cuts

#221

Post by Addie » Thu Mar 08, 2018 6:12 pm

The Hill
Harvard economists: Tax law costs $1.2T after accounting for economic growth

The tax law President Trump signed in December costs about $1.2 trillion over 10 years after accounting for its economic effects, two Harvard University economists with different opinions of the law estimated in a new paper.

The findings in the paper, which is published in a Brookings Institution journal, contrast with claims some Republicans have made that the new law will pay for itself through increased economic growth.

The paper was written by Robert Barro, who has spoken favorably about the corporate part of the law, and Jason Furman, a former Obama administration official who has been critical of it.

The Harvard economists found that the law, as written, would increase gross domestic product by 0.4 percent over 10 years, or increase the annual growth rate by 0.04 percentage points. Accounting for those effects, the law would cost the Treasury Department $1.2 trillion over a decade — compared to the $1.5 trillion cost that the Joint Committee on Taxation estimated before considering economic growth produced by the measure.


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Re: Tax Reform/Tax Cuts

#222

Post by Volkonski » Thu Mar 22, 2018 9:29 am



Orly Licious
@Orly_licious

Irresponsible #Repubicans in 2018:
$1.5 TRILLION #GOPTaxScam for billionaires and big corporations
$1.3 TRILLION Budget
The #GOP added $2.8 TRILLION DOLLARS to our #NationalDebt!
U.S. government monthly budget deficit of $215 billion in February, up 12%
https://www.
marketwatch.com/story/us-febru
ary-budget-report-shows-first-signs-of-wider-deficits-to-come-2018-03-12

2:15 AM - Mar 22, 2018
:(


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Re: Tax Reform/Tax Cuts

#223

Post by bob » Tue Mar 27, 2018 2:21 pm

CNN: The US needs to borrow almost $300 billion this week:
Uncle Sam needs to borrow a ton of money this week — in the middle of a fight with its biggest creditor.

The United States plans to sell about $294 billion of debt, according to the Treasury Department. That's the highest for a week since the record set during the 2008 financial crisis.

Federal revenue is declining because of President Trump's tax cuts, so the government needs to borrow more to make ends meet. At the same time, Washington's borrowing costs have climbed rapidly in recent months.

* * *

China holds $1.17 trillion of US debt. It trimmed those holdings by 1.4% between December and January, the latest data show.

"We do rely on international investors in Asia for a good deal of our Treasury funding. And that is something a lot of eyes are focused on now," [a BlackRock executive] said.

* * *

Washington and Beijing are in talks aimed at reaching a deal that would avert a full-blown trade war. One reason to keep China happy is that Trump needs China and other foreign investors to pay for his tax cuts, which are expected to add more than $1 trillion to the federal deficit over the next decade.

* * *

The United States ran a $215 billion deficit in February, the biggest in six years. The annual budget deficit could exceed $1 trillion as soon as next year, according to the Committee for a Responsible Federal Budget. The fiscal watchdog group recently warned that interest payments on US debt alone could quadruple to $1.05 trillion by 2028 if current policies stay in effect.


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Re: Tax Reform/Tax Cuts

#224

Post by Volkonski » Tue Mar 27, 2018 2:51 pm

We're doomed. :(

Congress puts important and popular programs into the budget but then does not have the courage to tax sufficiently to pay for them. That is not sustainable. You don't need to be very intelligent to figure that out.


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Re: Tax Reform/Tax Cuts

#225

Post by Tiredretiredlawyer » Tue Mar 27, 2018 3:04 pm

I wish Republicans were not destructive financial experience proponents. A little borrowing from other economic viewpoints would be nice.


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