GOP tax framework is out

[This_person]

...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?

How is that bad? Should one business be punished with a higher tax RATE for simply being more successful? Why should one citizen's rate be different than another's? Why would another business be different from the other? (why do we tax businesses in the first place, since all that results in is a hidden tax on the consumer, but that's a whole different thread line)

I am not claiming anything about the tax plan; I have not yet read it. I'm asking my question(s) with respect only to the philosophy that your question seemed to have behind it.

 

[GURPS]

Joe's personal income tax obligation is then based on gross income of $300K.

well ####, whats the point then ... no salary :shrug:

 

[Clem72]

How is that bad? Should one business be punished with a higher tax RATE for simply being more successful? Why should one citizen's rate be different than another's? Why would another business be different from the other? (why do we tax businesses in the first place, since all that results in is a hidden tax on the consumer, but that's a whole different thread line)

I am not claiming anything about the tax plan; I have not yet read it. I'm asking my question(s) with respect only to the philosophy that your question seemed to have behind it.

Not in the mood for one of your pedantic re-directs. I am not debating the merits of a graduated vs flat income tax, and I don't really care what you think about that system as my question had nothing to do with that. What we have now and what is being proposed are both graduated income taxes. I am merely asking why they arbitrarily (or not so arbitrarily in my thinking) decided that personal income from a personal business is no longer normal income subject to the normal rates, but gets a special 25% category.

if 25% is the magic number, why don't we all just pay that.

 

[Chris0nllyn]

Not in the mood for one of your pedantic re-directs. I am not debating the merits of a graduated vs flat income tax, and I don't really care what you think about that system as my question had nothing to do with that. What we have now and what is being proposed are both graduated income taxes. I am merely asking why they arbitrarily (or not so arbitrarily in my thinking) decided that personal income from a personal business is no longer normal income subject to the normal rates, but gets a special 25% category.

if 25% is the magic number, why don't we all just pay that.

Because even those in govt. know that would reduce revenue.

 

[Toxick]

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

So far so good.






As long as there is an accompanying removal of Tax-shelters, loopholes and other bull#### that would allow crony-capitalists and big corporations to manipulate the system and bypass the real actual good that could be done. Otherwise all this is mere hand-waving, posturing and lip-service.

 

[This_person]

Not in the mood for one of your pedantic re-directs. I am not debating the merits of a graduated vs flat income tax, and I don't really care what you think about that system as my question had nothing to do with that.

I apologize for trying to have a discussion on a discussion forum - apparently that's not what this is for? I didn't know that was pedantic.

What we have now and what is being proposed are both graduated income taxes.

Agreed. It seemed that by separating out millionaires from thousandaires you were imputing some sort of differentiation on the way they should be taxes based on income, as if that's a good thing.

if 25% is the magic number, why don't we all just pay that.

Now you're speaking my language.

 

[Gilligan]

I am merely asking why they arbitrarily (or not so arbitrarily in my thinking) decided that personal income from a personal business is no longer normal income subject to the normal rates, but gets a special 25% category.

Because the explanation I provided earlier. The entire goal of the revisions is to spur business growth. That includes small businesses, of course, as much or even more than it includes "C" corporations, since small businesses make up such a large segment of the business economy..

But again, 25% isn't going to amount to much. 15% sure would have...

 

[This_person]

Because even those in govt. know that would reduce revenue.

Probably not. In the long run, we would probably do just fine at a 10-15% flat rate, some minimum to account for the impoverished, with essentially no deductions.

What revenue would decrease is special interest revenue trying to buy special treatment. Being a legislator would become a job for people who want to make things better for the country, not for themselves.

 

[WooterBird]

So far so good.






As long as there is an accompanying removal of Tax-shelters, loopholes and other bull#### that would allow crony-capitalists and big corporations to manipulate the system and bypass the real actual good that could be done. Otherwise all this is mere hand-waving, posturing and lip-service.

Good point, I agree.

A lot of rich think that only idiots pay income taxes. We have possibly trillions of dollars in untaxed money hiding out offshore. Figure out how to tax that and you have a massive revenue source.

 

[Gilligan]

Good point, I agree.

A lot of rich think that only idiots pay income taxes. We have possibly trillions of dollars in untaxed money hiding out offshore. Figure out how to tax that and you have a massive revenue source.

. Corporations that are multinational are not going to return their cash reserves and headquarters from overseas lower rate countries back to employ in US economy and operations until our insanely high corporate rates are more in line with the rest of the developed world.

Individuals who move their money offshore are simply being smart...given the onerous tax burdens here in US and the propensity for our out-of-control government to simply waste most of what they confiscate..

 

[SamSpade]

Good point, I agree.

A lot of rich think that only idiots pay income taxes. We have possibly trillions of dollars in untaxed money hiding out offshore. Figure out how to tax that and you have a massive revenue source.

To TAX it? No. No one's bringing that money back willingly just so it can get taken away.

Change the laws to make it a good return on investment, and you might not get taxes, but you'll get money spent HERE on people in THIS country, and that's a good thing.

 

[Gilligan]

To TAX it? No. No one's bringing that money back willingly just so it can get taken away.

Change the laws to make it a good return on investment, and you might not get taxes, but you'll get money spent HERE on people in THIS country, and that's a good thing.

Exactly.

 

[WooterBird]

To TAX it? No. No one's bringing that money back willingly just so it can get taken away.

Change the laws to make it a good return on investment, and you might not get taxes, but you'll get money spent HERE on people in THIS country, and that's a good thing.

Or that too, good point. I probably am being too idealistic.