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"The Tax Cuts and Jobs Act gave big tax breaks to corporations, lowering the business tax to 21% from 35%. That's allowed corporations to spend hundreds of billions repurchasing their own stock, which helps investors, and boost dividend payments. https://www.cbsnews.com/news/two-yea...is-struggling/
Corporations don't pay taxes. Their clients/customers do.
Think about it... Hypotheticals...
Corp A has $0 in sales and as such has no profit, therefore pays no federal corp tax.
Corp B has $2 billion in sales, with a 10% profit margin, so its taxable profit is $200 million, taxed at 21% for a federal corp tax bill of $42 million.
Where do you think the $42 million comes from to pay the corp tax? From the $2 billion in sales receipts, paid by clients/customers.
Understand?
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Why would billionaires care about SALT deductions? Didn't their unearned income tax drop to 15%?
No. At that income level, It's 20%.
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The only people who care about SALT deductions are middle class wage earners in high COL states.
Nope. And I already posted an example of why that's false, here.
Trumps tax cuts benefited 90% of americans.
Who did they hurt? High income earners for the two big powerhouse liberal states - New York and California. This is where the big money comes from in the Democrat party. The two states also have the most Billionares in the country. The SALT deduction cap ended up given people making in the 500k+ range a substantial tax increase.
The tax bill also removed exemption from some private university. Harvard being a prime example. These universities have endowments the size of a large hedge fund that were growing at ridiculous rates and not really being used for the benefit of students or researchers. Harvards first taxable bill last year was an estimated 50 million.
Repeal the Tax cuts and these two groups are by far the biggest winners while 90% of americans are the losers.
You are starting from a false assumption, that Biden wants to eliminate the $10,000 cap on SALT deductions.
Limit itemized deductions. Under current law, certain itemized deductions are limited individually (for example, the $10,000 limit on state and local tax deductions). The proposal would add a further limit on total itemized deductions. https://budgetmodel.wharton.upenn.ed...biden-tax-plan
Former Vice President Joe Biden would enact a number of policies that would raise taxes, including individual income taxes and payroll taxes, on high-income individuals with income above $400,000. https://taxfoundation.org/joe-biden-...tax-plan-2020/
Penn Wharton Budget Model (PWBM) projects that former Vice President Joe Biden’s tax plan would raise between $2.3 trillion (including macroeconomic effects) and $2.6 trillion (not including macroeconomic effects) in additional revenue in the 10-year window 2021 - 2030 while having very little impact on GDP over time. The majority of this tax increase would fall on the top 0.1 percent of the income distribution, increasing their annual taxes by more than $1 million and reducing their after-tax income by 14 percent. https://budgetmodel.wharton.upenn.ed...biden-tax-plan
So clearly the wealthy are the losers under Biden's tax plan, and average Americans are the winners. That's why the billionaire New York City real estate investor with a penthouse in Manhattan and a mansion in Florida is opposed to Biden.
Democrats have been trying to get rid of the SALT limit for the entire time. They even tried to get around it by calling state taxes a charitable deduction but got slapped down for it.
Per the bolded, I agree mostly. Common infrastructure (like our national freeway system) that clearly benefits all perhaps excluded.
As for the COL in expensive coastal states (which tend to run blue), the argument that there is an imbalance between states that pay in, vice receive, fed tax dollars has never been clearly defined, yet are often claimed.
High regulation and SaLT clearly do impact COL in those states.
Do states with large expensive federal installations and/or military bases count as a fed dollar receiver states, like Virginia, Maryland or California? That doesn't get counted, yet those fed tax dollars are flowing in and creating jobs.
I think those stats of donor and receiver states are due to selective bookkeeping, at least to some degree.
There's also the factor of Federal SS and Medicare benefits, paid to/on behalf of retirees who move/moved to lower-taxed red states after retirement because blue states' COL is too high for those on a fixed SS income.
The rich don't pay taxes anyway, they hire expensive tax consultants to avoid paying taxes. So you raise taxes, and the biggest beneficiaries, as always, will be the tax consultants.
You didn't benefit from a tax cut? Like 47% of Americans don't even pay a federal income tax.
1%-er, here, in regards to income. I didn't get a tax cut. I actually had to pay thousands more in federal income tax. The culprit: the $10,000 SALT deduction limit.
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Originally Posted by Grlzrl
Democrats have been trying to get rid of the SALT limit for the entire time. They even tried to get around it by calling state taxes a charitable deduction but got slapped down for it.
Yep. I remember that.
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