General US Tax Bill

Discussion in 'The Off-topic Lounge' started by mysticmac, Nov 2, 2017.

  1. Belobog

    Belobog First 100
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    "While Republicans were manically outlining their plans to take from the poor to give to the Trumps, they also, accidentally, nullified their corporate donors’ favorite deductions.

    This screwup — like most of the tax plan’s oddest features — was born of a math problem. Due to arcane Senate rules, the Trump tax cuts can only add $1.5 trillion to the deficit over the next decade. Last Thursday, the Senate tax bill already cost about that sum, and then McConnell started making expensive promises to his few holdouts. Susan Collins wanted a $10,000 property tax deduction for Americans in high-tax states; Ron Johnson wanted a 23 percent business-income deduction for the company that his family owns. This left the Senate Majority Leader searching under the tax code’s couch cushions for new sources of revenue.

    Eventually, he came upon the corporate alternative minimum tax (AMT). At present, most corporations face a 35 percent (statutory) rate on their income. But by availing themselves of various tax credits and deductions, most companies can get their actual rates down far below that figure. To put a limit on just how far, the corporate AMT prevents companies from paying any less than 20 percent on their profits (or, more precisely, on the profits that they fail to hide overseas).

    The GOP had originally intended to abolish the AMT. But on Friday, with the clock running out — and money running short — Senate Republicans put the AMT back into their bill. Unfortunately for McConnell, they forgot to lower the AMT after doing so.

    This is a big problem. The Senate bill brings the normal corporate rate down to 20 percent — while leaving the alternative minimum rate at … 20 percent. The legislation would still allow corporations to claim a wide variety of tax credits and deductions — it just renders all them completely worthless. Companies can either take no deductions, and pay a 20 percent rate — or take lots of deductions … and pay a 20 percent rate."
     
  2. Hauler

    Hauler Unknown Member

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    AT&T, Comcast, Fifth Third and Wells Fargo have all responded to the tax bill with raising their minimum hourly wage to $15 for all employees.

    Other companies announced they were handing out $1000 bonuses with their tax savings. AT&T is handing out $1000 to 200,000 workers.

    Wells Fargo has said they will give $400,000,000 to community and nonprofit organizations in 2018, a 40% increase over 2017.

    It certainly feels like these announcements are choreographed to support the tax bill in a unified front, but I don't care.

    It all sounds like good news to me, but I'm sure MSM will find a way to shit all over everything.

    "The little lights aren't twinkling"
    "I know, Art. Thanks for noticing"
     
    #77 Hauler, Dec 21, 2017
    Last edited: Dec 21, 2017
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  3. Pitbull9

    Pitbull9 Daddy

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    I know nothing about this and will know nothing until the end of 2018 when i see whats up with my money.
     
  4. Hauler

    Hauler Unknown Member

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    You are going to have a Rick James moment.

    "I'm rich, bitch!"
     
  5. Zeph

    Zeph TMMAC Addict

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    For a year or two, until the tax breaks for people on middle incomes stop, but the tax breaks for corporations are permanent.
     
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  6. Yossarian

    Yossarian Posting Machine

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    For now indeed. But I am uneasy about this bill.
     
  7. Yossarian

    Yossarian Posting Machine

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    Oh, they'll make that money back sevenfold...
     
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  8. Hauler

    Hauler Unknown Member

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    The old one sucked too.

    The real reform that needs to happen is government spending.
     
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  9. Hauler

    Hauler Unknown Member

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    Good.
     
  10. Hauler

    Hauler Unknown Member

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    I don't believe the doomsayers claiming how bad the bill is, and I don't believe the honks claiming how great it's gonna be.

    As always, I'm sure the truth is somewhere in the middle.
     
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  11. Ted Williams' head

    Ted Williams' head It's freezing in here!

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    [​IMG]
     
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  12. HEATH VON DOOM

    HEATH VON DOOM Remember the 5th of November

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    Because keeping your money even for a few years is such a horrible thing.
     
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  13. Hauler

    Hauler Unknown Member

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    The little lights aren't twinkling...
     
  14. Yossarian

    Yossarian Posting Machine

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    Taxes suck always, they never get better.
     
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  15. Zeph

    Zeph TMMAC Addict

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  16. Hauler

    Hauler Unknown Member

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  17. KWingJitsu

    KWingJitsu ยาเม็ดสีแดงหรือสีฟ้ายา?

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  18. This Pothead

    This Pothead The more I smoke the smaller the phillie gets

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    So much winning.
     
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  19. Hauler

    Hauler Unknown Member

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    You can't look at the end-of-year refund to find out how much more or less you paid in taxes. You have to look at your overall tax burden for the entire year compared to your earnings.

    If people didn't change their deductions based on pay rates, life changes and the new tax bill - that's on them. Your "refund" goal every year should be $0. I always shake my head at the people bragging about a huge windfall of money that they are receiving with their refunds. I don't think they realize it is their money that the government is giving back to them. But I'm sure the government appreciates the interest-free loan.

    [​IMG]

    Also the standard deductions nearly doubled. I'll run it both ways this year, but I'm assuming my days of filing an itemized deduction are over. That's a huge fucking win right there.

    The people screaming "My refund is $400 less than last year! Fuck Trump!" are retarded. And so are the news outlets who report it without explaining the math behind the numbers.

    But libs are gonna lib. Stay enraged.
     
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  20. JonJonesBeard

    JonJonesBeard The Face That Runs the Place

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    I was going to say, up here you only get a refund if your employer has over deducted over the past year. In a perfect world when you do your taxes the balance should be 0.
     
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  21. Hauler

    Hauler Unknown Member

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    Sort of the same here, but people act like they hit the lottery if they get a bunch back. Most don't realize it's their own money the government is returning to them. Correct - a $0 return is best case scenario.

    I usually have to pay - but I'm OK with that because I'd rather have the money throughout the year. You need to be careful with that though, there are penalties if you didn't pay enough throughout the year.
     
  22. Belobog

    Belobog First 100
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    The withholding recommendation to businesses was changed by the government to be lower than what was really needed. They tried to update it later but the damage was done. It was an attempt to make the tax plan look better immediately. This caused many people to not withhold enough during the year. I don't think we can put 100% of the blame on the individual.

    The personal exemption was removed so the standard deduction didn't really double. It went from (6000 + 4050) to 12000.
     
    #97 Belobog, Feb 11, 2019
    Last edited: Feb 11, 2019
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  23. Hauler

    Hauler Unknown Member

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    My point is that saying the new tax plan sucks because you didn't get back as much this year as you did last year is silly. It really has very little to do with your overall tax burden - which is the number people should be concerned about.
     
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  24. JonJonesBeard

    JonJonesBeard The Face That Runs the Place

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    "Bro, where's my tax refund?"
    Uhh, you didn't pay any income tax.
    "Fuck Trump!"
     
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  25. Hauler

    Hauler Unknown Member

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    Instead of paying $0, you could pay me $2000. Then in April of next year I'll cut you a check for $1000. How's that sound?

    Fuck yeah man that sounds awesome! Fuck that no refund bullshit!
     
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