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 Senior Investor

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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 :)
     
  6. SteakTartare

    SteakTartare Senior Investor

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    I am all for Trump's tax cut. I only wish it involved more reduction of the rate as well as a change to the insane regulatory burden the code imposes, but I'll take it! Here's hoping that some day we institute a simple, low, and easily maintained revenue system. (Not holding my breath, by the way.)

    The market seems to have responded as well. Lowering taxes and cutting the bureaucracy is good for business, so this is no surprise.

    Regarding the nearly half of the population who are paying nothing now, but don't like the cut, sorry, I can't take their whining too seriously. Those who are paying large sums of their income into this monstrosity are the ones impacted.

    All and all, it is a great move. 2018 may be a roaring year. :)
     
    Last edited: Jan 30, 2018
  7. longtermbull

    longtermbull Administrator Staff Member

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    I agree Steaktartare,

    I watched a program last year and a young member of the audience summed up socialism in one quote:

    "The problem with socialism is that at some point you run out of other people's money to spend"

    Why do those who can work but dont have an air of entitlement? If you put nothing into the pot (assuming you are fit to work) why should you expect to take anything out?
     
  8. fireopal

    fireopal Senior Investor

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    Not sure what i think of Trumpty's taxes just yet & will post my thoughts after i see my accountant. Little nervous b/c there hasn't been much said for those like me that are self employed (home/office based business ) that live in states with high taxes that have been paying an approximate 33% as an INDIVIDUAL lol. Have never needed to incorporate myself or my small practice, & if i am understanding what i am reading correctly >> i may be losing some write offs along with maybe paying a little more while those that make much more pay less...
     
    Last edited: Feb 3, 2018
  9. longtermbull

    longtermbull Administrator Staff Member

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    Personally, I think small businesses and those who are self-employed are the beating heart of any economy. Quite why the politicians bow down to the larger corporations, often at the expense of small businesses and the self-employed, beats me. There are obviously additional costs associated with running a company but a 33% tax rate as an individual who is self-employed seems criminal to me. We think it is tough in the UK, but compared to the US perhaps we don’t know how well off we are?
     
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  10. fireopal

    fireopal Senior Investor

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    ^^ AND we don't even get universal health care but fortunately i have been very healthy & never needed any medical procedures & have seen my doctor maybe a total of 5x in the last 20 years to get a diagnosis for things i could not heal on my own (knocking on wood right now lol)
     
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