GOP tax framework is out

Chris0nllyn

Well-Known Member
20% corporate income tax rate
25% rate for "pass-through" businesses (including partnerships)
35% top income rate
 

Gilligan

#*! boat!
PREMO Member
I've seen both 15% and 25% reported as the proposed pass-through rate for small businesses...what the heck?

http://www.politico.com/agenda/story/2017/04/26/trump-small-business-tax-cut-rich-000430

https://www.usatoday.com/story/money/2017/04/26/small-businesses-get-hefty-tax-cut-trump-plan/100941120/

I'd be doing the happy dance if it ever became 15%. :yay:


Edit: More reporting that it's 25%. Well phooey..that's not going to make that big of a difference.

http://www.businessinsider.com/trump-tax-plan-details-corporate-rate-individual-brackets-deductions-cuts-2017-9
 
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transporter

Well-Known Member
Why don't you all just read the original document? http://apps.washingtonpost.com/g/do...-republican-tax-plan-released-wednesday/2560/

As is typical with everything that comes out of this administration, there really are no details. Trump just sets an unrealistic and generally unobtainable goal; passes the work off to Congress and he goes golfing. When the goal blows up, he blames every one else.

BTW: this isn't "reform", it really only discusses tax cuts. So if you are concerned about the deficit, you should hate this.
 

SamSpade

Well-Known Member
As is typical with any successful businessman Trump just sets an unrealistic and generally unobtainable goal

You can't BEGIN a negotiation with your drop dead offer. Heck, people in Washington do this all the time back when we actually tried to pass *budgets*.
The President's submitted budget was usually turned down close to or almost unanimously.
 

Chris0nllyn

Well-Known Member
Why don't you all just read the original document? http://apps.washingtonpost.com/g/do...-republican-tax-plan-released-wednesday/2560/

As is typical with everything that comes out of this administration, there really are no details. Trump just sets an unrealistic and generally unobtainable goal; passes the work off to Congress and he goes golfing. When the goal blows up, he blames every one else.

BTW: this isn't "reform", it really only discusses tax cuts. So if you are concerned about the deficit, you should hate this.

No one said "reform" and one can be for paying less in taxes, and also for less government spending.
 
Sounds like it raises the lowest tax rate from 10 percent to 12, lowers the highest rate from roughly 40 percent to 35. Can't say that I agree with that.

Where is the money going to come from? I think this will just add more to our debt. However, an honest politican would never get elected. We will see how the details shake out. If there is one thing Trump should be good with, it's taxes. I suppose I shouldn't judge the merits of the changes until I read more about it.
 

Gilligan

#*! boat!
PREMO Member
Where is the money going to come from?.

Increased revenue from increased economic activity? And it makes me cringe every time anyone equates the government confiscating less money from us with a "cost" that must be "paid" somehow. Good grief. The government does not have its own money..it has only what it confiscates from people and businesses.
 

Chris0nllyn

Well-Known Member
Sounds like it raises the lowest tax rate from 10 percent to 12, lowers the highest rate from roughly 40 percent to 35. Can't say that I agree with that.

Where is the money going to come from? I think this will just add more to our debt. However, an honest politican would never get elected. We will see how the details shake out. If there is one thing Trump should be good with, it's taxes. I suppose I shouldn't judge the merits of the changes until I read more about it.

The idea behind lower taxes is that it allows people to have more money in their pockets. This, in turn, allows them to spend more on goods, services, and even starting businesses.

Of course, it's not going to be much help if the govt. doesn;t stop spending so much money. Unfortunately, our current administration (and past ones) don't seem to grasp that concept.
 

Merlin99

Visualize whirled peas
PREMO Member
The idea behind lower taxes is that it allows people to have more money in their pockets. This, in turn, allows them to spend more on goods, services, and even starting businesses.

Of course, it's not going to be much help if the govt. doesn;t stop spending so much money. Unfortunately, our current administration (and past ones) don't seem to grasp that concept.

BO thought it was a good idea, the 2008 stimulus checks.
 
Increased revenue from increased economic activity? And it makes me cringe every time anyone equates the government confiscating less money from us with a "cost" that must be "paid" somehow. Good grief. The government does not have its own money..it has only what it confiscates from people and businesses.


In theory people will spend money if they have more of it. The problem is that people save their money and wait if they are unsure if the "good times" are going to last. Stimulus checks and their mixed record to say the least are an example that lower taxes or increased income do not automatically stimulate the economy in the way we think it will. Economics in many ways is still a very inexact subject to study. There are too many variables to control at one time to state for sure what is going to happen when action is taken.

I will wait until I see more to pass more judgement. Looks like a basic framework more than anything so far.
 

stgislander

Well-Known Member
PREMO Member
The idea behind lower taxes is that it allows people to have more money in their pockets. This, in turn, allows them to spend more on goods, services, and even starting businesses.

Of course, it's not going to be much help if the govt. doesn;t stop spending so much money. Unfortunately, our current administration (and past ones) don't seem to grasp that concept.

How does govt stop spending so much money when nobody wants to address the three (or four) 800lb gorillas in the room?
 

Gilligan

#*! boat!
PREMO Member
Economics in many ways is still a very inexact subject to study. .

You can say that again.

But regardless...I'm beyond sick of watching - decade after decade- irresponsible and reckless government spending piss away the money they confiscated from me. I want to keep more of it. Period.
 

Weems

New Member
Increased revenue from increased economic activity? And it makes me cringe every time anyone equates the government confiscating less money from us with a "cost" that must be "paid" somehow. Good grief. The government does not have its own money..it has only what it confiscates from people and businesses.

It’s not your money kid. It says it right on the front of your bills: “FEDERAL RESERVE NOTE”. Best of luck to you though.
 

Gilligan

#*! boat!
PREMO Member
It’s not your money kid. It says it right on the front of your bills: “FEDERAL RESERVE NOTE”. Best of luck to you though.

Coming from the "joos are evil and conspiracies are everywhere" freak of nature that you are...I'll stick with my own calibrations and 40 years of business experience. But thanks for thinking about me.:huggy:
 

GURPS

INGSOC
PREMO Member
Of course, it's not going to be much help if the govt. doesn;t stop spending so much money.



that my friend is NEVER going to happen with base line budgeting ... entitlements suck way more than the Gov spends on everything else.


 

GURPS

INGSOC
PREMO Member
Is that that weird stuff people call "cash"? I've heard of it.


Indeed .... he is just being Pedantic

however there this some truth ... but for this level of conversation, it isn't required



side note: it is fascinating to read the language on the old bank notes Gold / Silver Certificates ... US Notes, Federal Reserve Notes
 

Clem72

Well-Known Member
Edit: More reporting that it's 25%. Well phooey..that's not going to make that big of a difference.

Seems you might be more up to speed on this than I, why should a business where the profits represent the income of the owner (basically any small business) have a different tax rate than other income? And why a flat 25% instead of graduated like other income sources?

The way I read it, a struggling business owner who only takes home $50k a year after expenses will get hit with the same 25% that a successful business owner (say several million a year) has to pay?

This rate also seems to me to be setup specifically for abuse for those who can funnel their non-business income into a business setup for the sole purpose of lowering their tax burden. They say they will be "smart" about this, but that makes no sense. Are they going to audit every small business to make sure nothing shady is going on?
 

Gilligan

#*! boat!
PREMO Member
Seems you might be more up to speed on this than I, why should a business where the profits represent the income of the owner

Because that's not how it works. In millions of small businesses the owner takes a salary but generally does not touch the profits; the profits are retained in the business to pay for growth (R&D, product development, infrastructure, more employees, etc) - what is left after Uncle Sam takes his wack, anyway.

I posited an example in another thread, to illustrate why Joe Dirt, small business owner, ends up being in the "1%" personal income tax category.

Joe draws a salary of 100K. Business makes a net profit of $200K. Joe's personal income tax obligation is then based on gross income of $300K.

Imagine how much more of that 200K profit would have stayed in the company if only taxed at 15%.

The point appears to be moot though; the proposed 25% limit isn't going to have much effect at all.
 
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