Thoughts on new GOP tax proposal (foreclosure, mortgages, money, property)
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Tax cuts during the Reagan administration resulted in rising revenues because it was true tax reform, which eliminated most deductions. Before those reforms, you used to be able to deduct commuting expenses, credit card and consumer loan interest, and a host of other things. I see no effort to reform the tax code with this round of proposed cuts.
Why did tax cuts during the Reagan administration result in fewer discretionary dollars in my pocket?
Yes I know we all pay taxes. Still, so many say that the rich are getting a benefit out of this. Benefits are something that you got without putting anything out there. Plenty of people get benefits that put no money in. Where does this money come from? Last I heard it did not grow on trees. The poor are subsidized by the rich. It is the rich that pays way more in taxes than any other segment of the population. Tax system is not even close to being equitable.
Give the rich back their money and they will invest it in things that make money, those things that make money will be things that produce jobs, the only source of real job growth comes from the pile of money that the rich have to invest. Take that pile away and they have less to place in investments, less money to use to build more business opportunities. This is what Ronald Reagan was talking about, trickle down.
So the people paying most of the taxes get a cut. The poor and lower incomes can't have a tax cut because they pay no tax. The middle incomes may stay the same or increase because many of them don't pay there fare share. The upper incomes are always getting soaked with taxes. You can't get a tax cut if you did not pay taxes. Why is it that people complain when the rich get a benefit? The truth is that they did not get a benefit, they just got to keep more of what the Government took from them.
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Childless adults working full time at minimum wage DO pay (federal income) tax, so they CAN have a tax cut.
Except the GOP plan appears to increase their annual federal income tax about $200.
I noticed one of the biggest building booms, business booms all because of what Ronald Reagan did. People were much happier as well.
And what happens to low-wage workers whenever there is one of the biggest building booms, business booms...
...rents necessarily skyrocket...I faced five rent increases in five years, was priced out and had to move three times, and spent Reagan's last four months in office living in my employer's offsite rented storage.
Another point- the repeal of the estate tax will actually result in much higher taxes for most Americans. Under the current system, when someone dies with an estate worth less than a certain amount (I believe $5 or $6m in 2017, up to $10m in certain years), no estate tax is owed but the basis in their holdings increases to fair market value. With no estate tax, the assets will transfer to heirs at carryover basis.
What does this mean? If your dad dies and leaves you $300k in stock that he bought for $25k 30 years ago, you pay ZERO tax under the current system but your basis in the shares becomes $300k. You can sell the stock tomorrow and recognize zero gain, and use those funds however you like. However, if your dad dies in a year when there is no estate tax (i.e. 2010, and now maybe 2018 and beyond), there is no transfer tax but now you get those $300k in shares with a basis of $25k, meaning if you were to sell tomorrow, you would owe tax on a gain of $275k. That's a $96k tax!!
The repeal of the estate tax only helps people who have significantly more than the cutoff- you need to have ~$20m+ before you break even and more than that to actually get a positive result from the repeal.
It's a strange outcome from a repeal of a tax, but that's just how it happens in this case.
Yes I know we all pay taxes. Still, so many say that the rich are getting a benefit out of this. Benefits are something that you got without putting anything out there. Plenty of people get benefits that put no money in. Where does this money come from? Last I heard it did not grow on trees. The poor are subsidized by the rich. It is the rich that pays way more in taxes than any other segment of the population. Tax system is not even close to being equitable.
Give the rich back their money and they will invest it in things that make money, those things that make money will be things that produce jobs, the only source of real job growth comes from the pile of money that the rich have to invest. Take that pile away and they have less to place in investments, less money to use to build more business opportunities. This is what Ronald Reagan was talking about, trickle down.
The same Reagan that encouraged the mass offshoring that everyone is now angsting about? The same Reagan who struck the preliminary trade deal that led to NAFTA which everyone wants to renegotiate or outright repealed?
Reagan passed the largest peace-time tax increase in US history in 1982, and followed that up with further tax increases in 1983, 1984, 1985, 1986, and 1987. People don't remember well.
. the top 10% income pay 70% of taxes.
. the bottom 50% pay less than 3% of taxes.
. almost 50% of all citizens pay no taxes.
. tax rates on corporations worldwide average 22% while in the US it is 39%.
A complete revamp of the tax system is badly needed but there are so many special interest positions and lies presented to the public it is very difficult to progress without stupid political resistance.
The top 10% have ~75% of the wealth.The bottom 50% have less than 5% of the wealth. US corporations do not actually pay 39% on their taxes. The average corporate US income tax is 27.1% (12.7% on worldwide income). Our largest corporations average ~19.4%. The primary reason they pay that much is the AMT . . . which the Republicans want to get rid of.
Quote:
Originally Posted by cdelena
Today individuals with the top 1% of income pay 39% of all income taxes.
In 2011, they had 43% of the wealth.
Quote:
Originally Posted by cedarite
That's also about the percentage of the wealth they control.
cutting the loop holes and deductions as well as filing taxes on a postcard sound good to me.
Cutting taxes to stimulate growth is suspect to me especially after Oklahoma cut taxes to the point of hurting the economy.
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