What Do You Think Of The Proposed Us Tax Changes?

Discussion in 'Politics Discussion' started by longtermbull, Sep 29, 2017.

  1. longtermbull

    longtermbull Administrator Staff Member

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    Donald Trump this week announced a number of proposed changes to personal and corporation tax bands. They do seem to be more focused towards big business and high earners or is that an unfair summary?
     
  2. JR Ewing

    JR Ewing Super Moderator Staff Member

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    I am all for allowing people and companies to keep more of the $ they earn. Since the bottom 50% pay little or no income tax, the top 20% pay nearly 85% of income taxes, and the top 1% pay nearly half the income tax (and more than the bottom 95%), for a tax cut to be effective and meaningful it must apply across the board.

    Of course it can also be argued that the few super-rich elites who are politically well-connected may buy themselves exemptions and may pay very little, and that some of the biggest corps may be able to write so many things that they pay very little - but those corps often pay a fair amount of income taxes overseas. And some big corps such as Walmart pay relatively high corp taxes.

    Lowering the corporate tax will greatly help small business owners, who hire and employ nearly two thirds of the workforce.

    It's true that successful professional investors like Buffett who buy and hold large amounts of stock for long periods of time end up paying very little relative to their net worths and the amounts of unrealized capital gains they tend to accumulate. But I don't think that the powers that be should just start indiscriminately ripping away deductions - they should tread lightly with any "loopholes" they want to close.

    In general, lowering taxes and regs are a good thing. More business investment = more and better paying jobs and better and cheaper goods and services. The best ways to stimulate the economy are to let businesses do their thing, and to provide poor people with jobs and to provide working people with better and more opportunities.
     
  3. Chartman

    Chartman Active Member

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    I totally agree JR, governments around the world have shown themselves to be inept at managing our money, so put some back in the hands of business owners and employees for greater returns :)

    One thing that bugs me, people keep going on about large corps paying less tax etc etc. People forget the massive income they create for the government via their employees who pay tax on their earnings. Businesses take a large degree of risk investing in expansion and creating new jobs which is never fully appreciated.
     
  4. JR Ewing

    JR Ewing Super Moderator Staff Member

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  5. gowiththeflow

    gowiththeflow Senior Investor

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    Yip, governments want big businesses to take all of the risks and they mop up tax income from all angles. Funny how the politicians always seem to criticise business leaders as we approach elections - currying favour to get votes, surely not :)
     
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