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We don't deduct sales and local taxes. Nice try, though.
Real estate, property and state income taxes are what most people deduct when they think of SALT. They're now limited to $10,000. Look, I know... I used to live in IL. My real estate taxes, alone, were $19,000+/year. I've posted my real estate tax bill in other threads. I saw this coming, and moved to a lower tax state. I'm still over the $10,000 limit, but much less so because my real estate taxes are 1/3 of what they were on a home of approximately the same value.
Yeah but California gets to claim a budget surplus, by taxing the **** out of its residents. Mix in equal parts Trump hate and "Best Weather" and the zombies eat it up.
The US has one of the highest voluntary compliance rates in the world due to the tax refund structure.
If that statement was true, the IRS would not devote nearly 40% of its budget to enforcement. It's relatively easy to be compliant when the financial and criminal penalties are so severe.
Also, if that statement was true, it would demonstrate that American taxpayers are fools. If you want a bonus at beginning of the year, set aside those additional funds in an interest-bearing account rather than loan it to the government at no cost to them.
Look at this. We have middle class people arguing that other middle class people should be paying higher taxes, while the billionaire class and huge corporations just got a huuuuge permanent tax cut. The pennies associated with middle class pale in comparison to the multi trillion dollar windfall that was handed over to the billionaires. So the billionaires deserve the trillion dollar windfall so the country can go bankrupt over not getting enough revenue, but the middle class homeowner in the Dallas suburbs with an expensive home/high mortgage deserves a tax hike?(Or maybe it makes some more happy if it's a California homeowner rather than Dallas cuz Trump trained you to hate the blue states). Have some middle class Americans turned into a mouthpiece for the billionaire class, having turned on themselves and arguing over minuscule parts of the big picture?
You're missing the point that taxes on corporations and subsequently their investors are paid by the end user/consumer. Tax costs are factored into overhead costs in the pricing formula.
You're missing the point that taxes on corporations and subsequently their investors are paid by the end user/consumer. Tax costs are factored into overhead costs in the pricing formula.
If this was true, consumer prices on goods and services would have decreased massively after the tax cut for corporations took place. This didn't occur. The companies made extra windfalls of cash with the tax cut money.
If this was true, consumer prices on goods and services would have decreased massively after the tax cut for corporations took place. This didn't occur. The companies made extra windfalls of cash with the tax cut money.
Have you not been to a Walmart recently? They always mark their rollback prices.
Have you not been to a Walmart recently? They always mark their rollback prices.
Walmart prices always vary and rollback/forth at times and this has been going on for many years.
However, the price for goods and services has increased in the past year as a whole in the USA and certainly prices have not decreased. Companies are not reducing prices due to their huge tax cut windfall.
Walmart prices always vary and rollback/forth at times and this has been going on for many years.
However, the price for goods and services has increased in the past year as a whole in the USA and certainly prices have not decreased. Companies are not reducing prices due to their huge tax cut windfall.
That may be true. What also may be true is that the prices haven't increased as much as they could have. I know you're keeping supply and demand in mind with your analysis as well as the mandated increase in minimum wage in some locales.
If this was true, consumer prices on goods and services would have decreased massively after the tax cut for corporations took place. This didn't occur. The companies made extra windfalls of cash with the tax cut money.
I price stuff for a living for corporations so let me answer this directly.
Your statement is not accurate and I'll give you an example why so that we can all understand how it works. (If you want the simple non-math short version, skip to the very bottom and it will tell you the same story.)
Company A sells widget for $100.
Their capital is $50 and they have to return a 15% after tax profit to satisfy their investors.
This means they need a 0.15 x $50 = $7.50 after tax profit.
Just for fun, let's say taxes fell from 30% to 20%.
This means the PRE-tax profit margin needed to be $7.50 / (1-.3) =$10.71
Now it needs to be $7.50/ (1 - .2) = $9.38
the reduction is $1.33 (depending how you apply rounding).
Now given annual inflation of 2% for arguments sake, the price increase required to keep up would have eaten up the gain from the tax break so the consumer may have gotten the same price instead of an increase but if you want to take inflation out of the scenario the decrease is not a massive reduction in the prices of goods.
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Feel free to run other scenarios if you like but realize that most profit margins are perhaps 10% give or take, it can vary widely by industry etc. So even cutting their taxes in half would only lower prices by 5% approximately if they passed the savings on and there was NO INFLATION.
Real estate, property and state income taxes are what most people deduct when they think of SALT. They're now limited to $10,000.
Few of us who have lived in CA for any length of time have property taxes over $10 K. And anyone who does can probably well afford whatever taxes they pay.
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