Tax return filing deadline moved to July 15

[TaxPhd]

Originally Posted by WRM20

There's nothing wrong with progressive tax rates, and they ensure that the lower paid have enough to live on.

How do progressive tax rates ensure this?

With the increase in the standard deduction to $24,500 for a married couple, the number of people itemizing has dropped tremendously. The $10k limit for state and local taxes means rich folks don't get as many deductions. You would still have to have the deductions for businesses, including sole proprietors, or many businesses wouldn't make a profit at all after taxes. The only really difficult part there is what the depreciation period is for capital assets.

What’s difficult about it?

[WRM20]

Originally Posted by TaxPhd

What loopholes do the rich have?

Nothing the rest of us don't have, other than we don't have enough deductions to get past the standard amount, so we actually get a bigger deduction, percentage of income wise, than the rich.

The rich can also afford to pay accountants to carefully scrutinize everything.

[WRM20]

Originally Posted by TaxPhd

How do progressive tax rates ensure this?


What’s difficult about it?

I can reword the first one to be "more likely to have enough to live on". If we have one rate, then it has to be high enough to raise the necessary revenue, and the poor end up being screwed.

Congress occasionally uses the depreciation periods for capital assets to encourage certain behaviors. We end up with too many choices, and people make mistakes in classification.

[kokonutty]

Fidelity has now posted a message online stating that the deadline for 209 IRA contributions has been moved to July 15 along with the tax filing deadline as part of the first economic package that has already been approved.