Trump Tax Cut

Bick
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Re: Trump Tax Cut

Post by Bick »

not4u13 wrote: "afford it most" is an interesting statement. Household expenses vary widely. What one person views as a necessary expanse, another may view as a luxury. I think you'd be hard pressed to convince a lot of those folks in that top 10% that they can "afford it most". Looking solely at income is deceiving.
I thought I'd borrow that line from the Dems for this debate. I'm pretty sure the top 10% wage earners was the threshold for those who could "afford it most".

Using car purchases v. home purchases, I'd argue a significant reason the relative cost of cars staying affordable is the absence of the tax incentives offered by home purchases. One of the reasons I support the elimination of the mortgage interest, property and state income tax deductions altogether. Our tax code has created far too many specialized incentives that impact economic activity.
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Re: Trump Tax Cut

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Wabash wrote: The provision(s) that add debt.

Regardless of the amount, debt effectively raises taxes.
So the 68% increase in the national debt the past 8 years was...OK? The only way to increase debt is to spend more than you bring in. Without knowing what the spending is, how do you know how much will be added to the debt?
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Re: Trump Tax Cut

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Bick wrote:Not4u - the threshold for ROI was just lowered, increasing the incentive to take the risk of capital investment. For corporate america, the decisions for what to do with after-tax profits will either be greater returns to shareholders thru dividends or reinvestment for future growth. Either way, the $$ goes from the gov't hands into private hands.
In my professional experience, ROI does not factor in corporate taxes as those are taken AFTER profits are calculated.
I thought I provided ample examples for how that works. When computing ROI or IRR, you look at the costs vs. direct benefits. Other realized benefits that have nothing to do with the investment being made are not computed in the ROI or IRR.
Yes, the tax cut has an effect on the corporate bottom line, but not on how return on investment is calculated (for virtually anything except for things like investing in stocks, which is an entirely different type of investment).
Yes, it does put it in the private sector, which I do favor.

To be very clear, I think lowering the corporate tax rate is a good thing, but I think they lowered it too much. Maybe something closer to 25% would have had just as much benefit, but not as much impact to the deficit.

The possible benefits are where we disagree. Corporate profits will increase and there will be a very modest increase in investments. Corporate overseas investment isn't likely to change much unless there is a belief that the new tax rate will stay in place. Some will take the risk for new investments. Few will change their current multi-national strategy because of these changes.

Where we'll see benefits is how these changes will drive stock markets. Increasing corporate profits will increase market valuation and stock prices will rise. That will put more money into the economy. However, it will continue to grow the gap between the most wealthy and the middle class.
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not4u13
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Re: Trump Tax Cut

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Bick wrote:I thought I'd borrow that line from the Dems for this debate. I'm pretty sure the top 10% wage earners was the threshold for those who could "afford it most".

Using car purchases v. home purchases, I'd argue a significant reason the relative cost of cars staying affordable is the absence of the tax incentives offered by home purchases. One of the reasons I support the elimination of the mortgage interest, property and state income tax deductions altogether. Our tax code has created far too many specialized incentives that impact economic activity.
The average price of a new car has risen considerably over the years. Maybe not as much as home prices, but they have gone up. I recently purchased a 2018 Toyota Camry XSE V6. Beautiful car. Amazing technology. Panoramic moon roof. Looks like this one (http://d1arsn5g9mfrlq.cloudfront.net/si ... 35x457.jpg)
MSRP is $37,000. A 2010 Toyota Camry XLE V6 cost $29,000 when new.

What really concerns me is the reduction in incentives for lower income buyers to get into the housing market to help them build longer term wealth. Where is the incentive if they take only the standard deduction, receiving no benefits for mortgage interest deduction or property tax deduction. They will continue to rent, lining the pockets of the more wealthy property owner whose taking their profits via a pass-through corporation taxed at 22%.

How is that building a strong middle class?
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Re: Trump Tax Cut

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Bick wrote:So the 68% increase in the national debt the past 8 years was...OK? The only way to increase debt is to spend more than you bring in. Without knowing what the spending is, how do you know how much will be added to the debt?
You asked about this bill. You didn't ask about the last eight years.

Trump is president. He was going to fix it. It would be easy. He's not doing that with this bill.
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Re: Trump Tax Cut

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ShiftyMutt wrote:On a personal note, and as a California homeowner.. I have unrepaired earthquake damage that I didn’t want to fix until I was ready to move (which is soon now). Apparently included in this new bill, you cannot write off your losses from earthquakes and wildfires. Anyone know if this is retroactive to 2017 taxes or going forward? In other words, I have about 2 weeks to fix it to get the write off or am I already screwed?
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Re: Trump Tax Cut

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Bick wrote: So the 68% increase in the national debt the past 8 years was...OK?
No. It was necessary and desirable, and it had the intended effect of reviving our economy. This tax cut for the wealthy is none of those things.
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Re: Trump Tax Cut

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not4u13 wrote: AT&T made this announcement to spend $200,000. That's wonderful news for those workers,
It's not $200,000...$1,000 X 200,000 workers = $200,000,000.
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Re: Trump Tax Cut

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John Q. Public wrote:Declare yourself an LLC and call it a flip?
The IRS doesn’t show the answer. I have a feeling I’m screwed.
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Re: Trump Tax Cut

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Professor Fate wrote:It's not $200,000...$1,000 X 200,000 workers = $200,000,000.
I think I read somewhere they made over $10B in profit. These bonuses are pocket lint when context is used.
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Re: Trump Tax Cut

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ShiftyMutt wrote:The IRS doesn’t show the answer. I have a feeling I’m screwed.
Don't expect anything on their website any time soon. Donald cut their budget, so it will take even longer to get updated. SSA's site also has outdated info on it.
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Re: Trump Tax Cut

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Wabash wrote: I think I read somewhere they made over $10B in profit. These bonuses are pocket lint when context is used.
It'd make me happy.
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Re: Trump Tax Cut

Post by Bick »

not4u13 wrote: In my professional experience, ROI does not factor in corporate taxes as those are taken AFTER profits are calculated.
This is true for all but C-Corps, as individuals, S-Corps and Partnerships are taxed at various individual levels for the same investment, making real ROI analysis pretty much impossible. Fact remains C-Corps are more concerned with after-tax ROI as that's what they take to the bank.
not4u13 wrote: The average price of a new car has risen considerably over the years. Maybe not as much as home prices, but they have gone up. I recently purchased a 2018 Toyota Camry XSE V6. Beautiful car. Amazing technology. Panoramic moon roof. Looks like this one (http://d1arsn5g9mfrlq.cloudfront.net/si ... 35x457.jpg)
MSRP is $37,000. A 2010 Toyota Camry XLE V6 cost $29,000 when new.
The average cost of a car has actually dropped in the past 20 years 1994 on an inflation adjusted basis.
http://wgntv.com/2016/04/25/the-average ... were-born/
not4u13 wrote: What really concerns me is the reduction in incentives for lower income buyers to get into the housing market to help them build longer term wealth. Where is the incentive if they take only the standard deduction, receiving no benefits for mortgage interest deduction or property tax deduction. They will continue to rent, lining the pockets of the more wealthy property owner whose taking their profits via a pass-through corporation taxed at 22%.

How is that building a strong middle class?
This is where we'll agree to disagree. I contend the incentives of tax preferences of mortgage interest and property tax deductions has artificially driven up the average price of homes. The higher the tax bracket, the greater the incentive for purchasing a home.
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Re: Trump Tax Cut

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Vilepagan wrote:No. It was necessary and desirable, and it had the intended effect of reviving our economy. This tax cut for the wealthy is none of those things.
In other words Trump and his supporters economic populism was all a hoax.
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Re: Trump Tax Cut

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Their subsequent statements and actions have proven that to be true.
They told me if I voted for Hillary Clinton the president would be emotional, impulsive, and unpredictable. They were right. I voted for Hillary Clinton and got a president that is emotional, impulsive, and unpredictable.

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Re: Trump Tax Cut

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Do you, Vile or Wabash have something other than Huffpo talking points? Something specific about the law that doesn't work for you? Or just the same tired drivel that all things Trump is bad, and all things Obama good?
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Re: Trump Tax Cut

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ShiftyMutt wrote:On a personal note, and as a California homeowner.. I have unrepaired earthquake damage that I didn’t want to fix until I was ready to move (which is soon now). Apparently included in this new bill, you cannot write off your losses from earthquakes and wildfires. Anyone know if this is retroactive to 2017 taxes or going forward? In other words, I have about 2 weeks to fix it to get the write off or am I already screwed?
I'm no expert on this stuff, but if your loss is less than 10% of your AGI, then you won't like be able to deduct the casualty loss under the old law. However, if you're making the repairs, you can add them to your basis and lower your taxable gain.

Not sure about the declaring yourself an LLC thing that JQP recommends.

https://www.irs.gov/publications/p547
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Re: Trump Tax Cut

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So, my question is...did blue state Senators learn their lesson from the tax bill, or do they intend to continue boycotting anything Trump wants? Will they represent their constituents on infrastructure, for example, or shall all the projects go to the red states?
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Re: Trump Tax Cut

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Bick wrote:Wabash have something other than Huffpo talking points?
I don't like that it adds debt. You asked a question. I answered. You don't want to address that negative for some reason.
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Re: Trump Tax Cut

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And the budget showing how much debt is where?
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