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Please name 5 loopholes in the tax code. Seriously. Name 5.
The tax code does not name them "loopholes". That is for the smart corporate attorneys - who actually help the GOP congressmen to write the tax laws that they present, even the very language - to manipulate the tax code in order to not pay their fair share. They work in tandem. The Corporations write the laws, lobby the politicians who help pass those laws. They too work in tandem.
One example - the so called carried interest tax for private equity companies.
Quote:
Carried interest is a share of the profits of an investment paid to the investment manager in excess of the amount that the manager contributes to the partnership, specifically in alternative investments i.e., private equity and hedge funds. It is a performance fee rewarding the manager for enhancing performance.
It is performance fee. shouild ordinarily be taxed as ordinary income. it has magically turned into "carried intrest" and is taxed at capital gains rate of 15%. Like if you received a bonus, instead of regular tax, you will only pay 15% . How did that tax rate come about? The corporations lobbied and got it written that way. A legal loophole.
You can multiply the number of such favorable laws written by corporations for themselves. If you an ordinary scmuck working a day job you would would never know about it. And if you are a Trumpy you will BELIEVE it is is GOD's will that tax laws should be written this way for the poor corps.
By many calculations the middle class will lose exemptions, itemize deductions, and the net effect is they will pay more in taxes and have less to spend. The corporation will be cash rich with lower taxes but what are they going to do with the loss sales, which is revenue?
The middle class overwhelmingly will benefit and will have more money to spend to grow jobs and the economy.
Is everyone in agreement on what that middle class income is being discussed? Middle income varies so much across the country and varies considerably within states.
That's a good question Tuborg. For purposes of this discussion, would you say that the top of the 25% Bracket would cover anybody's definition of Middle Class. Currently $151K. That would cover most of the USA,, possible exceptions being NYC or Frisco.
I'm asking your opinion....what would you say ??
Much depends on how any new Tax Brackets shape up.
That's a good question Tuborg. For purposes of this discussion, would you say that the top of the 25% Bracket would cover anybody's definition of Middle Class. Currently $151K. That would cover most of the USA,, possible exceptions being NYC or Frisco.
I'm asking your opinion....what would you say ??
Much depends on how any new Tax Brackets shape up.
My opinion is that you can't define it in a broad based membership like this one. I say that having come from a very wealthy area to NC. Even within NC the concept of middle class is very different. It is with that in mind that I posted the question.
It becomes important because depending on how they set up the tax brackets will determine much about who wins and who doesn't win as much. Those brackets will be the same everywhere in the country so the impact on any given areas middle class will vary.
I have several definitions of middle class depending on the area I have in mind at the time. I am biased to the up side. I will add that at age 70 the top ten percent is about 150k as a beginning point and then it shoots up like a rocket. Here try it on for size yourself. It is another one that just does it nationally by age with no ethnicity etc. https://dqydj.com/income-percentile-by-age-calculator/
A few months ago I came across a calculator that gave Income percentile ranked based on age, state and ethnicity. It was veddddddy interesting. It also gave great insight into CCRC's and the potential size of the market they might be targeting based on their cost structure and region.
You are correct abut that. But we don't have the option of "Geographic" Middle Classes for this discussion, it's got to cover the whole country.
And in practical terms, I'm not sure the Tax Brackets are useful in determining the Middle Class -- Everybody has different deductions/exemptions to get to their AGI Bracket.
What is the predominant Middle Class Income ?
The Answer is a Bell Curve and you have to throw out the 2 extremes and base it somewhere in the wide middle.
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