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As long as either or both parties insist on sticking with the current tax code; just tinkering - that is what this is, after all - now and then. We will have inequities, much bigger than your example.
Yet, folks rail against any other system. Flat tax, fair tax or other approaches that do not rob the economy of productive dollars. Don't like the current system, work against it, not just partisanly. Because, sooner or later, your party will be in the 'wrong'. It is the nature of our current tax code.
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Originally Posted by freemkt
Inconvenient truth:
The tax cuts redistribute income from childless taxpayers to parents, who can get up to $1,400 free taxpayer money with the expanded child tax credit. Childless taxpayers NEVER get free taxpayer money; the EITC is DESIGNED to never give them free money while parents can get more than $5,000.
Do you even understand what you are saying? Corporations raise wages within a business model. That may or may not be the case when taxes are lowered. That may or may not be the case when new business is required. First allegiance is to folks who fund the business, the shareholders. Without them, there would be no risk capital.
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Originally Posted by 2sleepy
lol sure thing because corporations always raise wages when they pay less in tax said no one ever
You are ignoring the complete tax burden picture. Pay attention to complete tax picture. Not just one facet.
Quote:
Originally Posted by 2sleepy
that depends on your income, if you are a millionaire then you are right..but if you earn the median income of around $50,000 California income tax is among the lowest of states that impose income tax, the effective tax rate at that income is 3.47%, in North Carolina the effective tax rate for that income would be 4.57% and in Iowa 3.95%
Do yourself a favor and look up the property tax rates in TX before you move there.
Tax rates are around 2.5-2.7 -+% in most areas with no state income tax. Most Blue states have half the tax rate but 2-3 times higher property values along with a State Income Tax.
When JC Penny moved from NJ to TX years ago the CEO said it was like giving their employees at 60% raise.
You're in FL? You have a similar tax structure and it is way better than the Northeast.
What I'm finding fascinating is that for years the complaint was that the "wealthy" (and that's in quotes because we had a recent Governor declare when imposing an income tax increase that it hit only the "wealthy", whom he defined as a married couple with a combined income of $100K) were being rewarded by being able to deduct state and local taxes.
Care to guess which side was criticizing the "wealthy"?
"Pay your fair share" was the Obama battle cry throughout his elections to rally his low end base voters.
Tax rates are around 2.5-2.7 -+% in most areas with no state income tax. Most Blue states have half the tax rate but 2-3 times higher property values along with a State Income Tax.
When JC Penny moved from NJ to TX years ago the CEO said it was like giving their employees at 60% raise.
You're in FL? You have a similar tax structure and it is way better than the Northeast.
We were discussing property taxes. The posted said he cannot retire in NY because of property tax.
JC Penny is on verge of going under, Perhaps it is best to not take the CEO too seriously. 60% raise.....pfffft.
My point was that many do not employ anyone. There are people with multiple pass-thru corporations for other purposes.
Finn, I posted this before but you didn't answer. We were going to take a closer look at this because it leads to more questions. Do you have a link to point to the 70% that you are talking about. But for now...
To prevent everyone from just converting partnerships into S corporations that all pay their owners $0 in salary – to completely avoid FICA taxes – the IRS still requires that S corporation owner-employees be paid “reasonable compensation” for the services they render to the business.
Nonetheless, the reality is that for highly profitable businesses, especially with multiple owners and/or multiple employees, there is clearly a portion of profits, over and above just reasonable salary compensation, that can be distributed as a dividend to the S corporation owners, saving FICA self-employment taxes in the process. For profitable businesses, the tax savings can be thousands or even a few tens of thousands of dollars in savings.
"In 2015, 6.1 million California taxpayers claimed the SALT deduction with the average deduction at around $18,000. Nationwide, of the 43 million Americans who claim the deduction, 87 percent have a gross adjusted income of under $200,000." https://www.cacities.org/Top/News/Pr...-Cap-Will-Hurt
So now we are talking about people making $200k and not $50-$80k? Well Obama said that tax payers with an AGI of $200k was rich.
Of course if you have a great idea you don't wait for a tax cut to start a business LOL. It's businesses who could grow who benefit. Instead of their money being funneled to the government, that money is put to better use, re-investing it in the business to grow the business which many times result in hiring more people.
Let me ask you Goodnight... do you own and run a business? If not, how could you understand. You're allowing politicians and the media with an agenda to educate you.
This was portrayed as an economic expansion, just reducing taxes does not expand the economy. No I don't own a business but I do know plenty of small business men and they don't have any plans for expansion, consumer demand is what drives expansion. I don't need to won a business to understand economics.
Yes it will reduce some overhead but do you think this will be a difference maker for a company like Amazon.
"In 2015, 6.1 million California taxpayers claimed the SALT deduction with the average deduction at around $18,000. Nationwide, of the 43 million Americans who claim the deduction, 87 percent have a gross adjusted income of under $200,000." https://www.cacities.org/Top/News/Pr...-Cap-Will-Hurt
So those are the rich that will be affected. And you have a problem with this ?
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