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Forums - Politics - Trump's tax proposal: raise taxes on the poor, give to the rich

d21lewis said:
numberwang said:

They will pay no income tax under Trump's plan, so they get 100% tax cuts.

That's pretty sweet for them, then. What about me? I should make about $80k this year.

You done your own taxes ever?

If you have, you should know that raising the standard deduction from $6,000 to $12,000 will help you out. It will help out most all people, except those that have a higher itemized deduction than that. I've done taxes before at a place and you won't find many people that high itemized deductions higher than 12,000. Those that come close or are above are what one woudl call "rich"

Poor people just don't pay enough mortgage or have enough extra money to say donate to charity in those quantities.



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d21lewis said:
numberwang said:

They will pay no income tax under Trump's plan, so they get 100% tax cuts.

That's pretty sweet for them, then. What about me? I should make about $80k this year.

The marginal tax rates are to be lowered but deductions for state and local taxes could be elminated (plan is still under negotiation), so this depends on your local state taxes.



irstupid said:
d21lewis said:

That's pretty sweet for them, then. What about me? I should make about $80k this year.

You done your own taxes ever?

If you have, you should know that raising the standard deduction from $6,000 to $12,000 will help you out. It will help out most all people, except those that have a higher itemized deduction than that. I've done taxes before at a place and you won't find many people that high itemized deductions higher than 12,000. Those that come close or are above are what one woudl call "rich"

Poor people just don't pay enough mortgage or have enough extra money to say donate to charity in those quantities.

I've never done them. 😢 I just go to a preparer and pay them. Even when I was single with no dependents. I just don't trust myself.

numberwang said:
d21lewis said:

That's pretty sweet for them, then. What about me? I should make about $80k this year.

The marginal tax rates are to be lowered but deductions for state and local taxes could be elminated (plan is still under negotiation), so this depends on your local state taxes.

Thanks for the info, man.



In general the tax framework is a windfall for corporations and the top 0.01%. The rest not so much.

The standard deduction would be increased by $6,000, but the personal exemptions removed. The personal exemption is set at $4,150 for 2018. Therefore the net effect for a single filer with no dependents is a $1,850 increase in deductions. However the bottom tax bracket would increase from 10% to 12%. For many this will be a wash, or +/- $100 change in taxes owed.



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LurkerJ said:
sethnintendo said:

"In 2004 under President George W. Bush, Washington let corporations temporarily bring money from offshore profits at a flat rate of around 5.25%. But a few years later, Bush's own chief economic advisors said there was no evidence that jobs were created as a result."

https://www.forbes.com/sites/kenrapoza/2011/09/12/bringing-overseas-corporate-profits-back-to-us-not-necessarily-a-job-booster/

 

Guess what??  They bought back shares instead of bringing jobs.

This is not the type of tax I am discusing with him though. I am talking about taxing the rich after they've died, which is total BS.

They are not taxing the rich after they die, they are taxing the people who inherit the fortune.  Its no different then the gift tax when you get a bonus or something of value from your job.  I know if I have to pay those taxes which I do for ever bonus or vacation house giving to me as a perk from my company then rich people who inherit a crap load of money should also pay their share as well.  Maybe they donot have to pay as much but getting rid of it all together, no way unless they take away the bonus tax and other taxes on personal gain.



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numberwang said:
Final-Fan said:

Okay, but regarding the response I made to the main point of your post, which I perceived to be "the burden of taxation has been getting heavier on the rich and lighter on the poor, therefore tax cuts for them are justified" (and please let me know if I misconstrued your point), I repeat my question, "How does the change on that graph compare to the change in the comparative shares of income of those groups over time?  This is not a rhetorical question."

The main point is that the poor & lower middle class (about 50% of Americans) pay no income tax and hence can get no tax cuts. High incomes pay most of it, the exact proportions are not relevant, just the principle. The headline claims that the poor will pay more taxes (that is false) or get no benefits from Trump's tax cuts (misleadingbecause they already have 100% tax cuts). I am not talking about morality just basic understanding how a progressive tax works.

WHY DID YOU INCLUDE THAT GRAPH IN YOUR POST? 



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Superman4 said:
Final-Fan said:

1.  I don't mean to discourage you from participating in discussion, and I hope to see you get back into it after you find out more on the topic, should you choose to do so. 

2.  True, it's subjective, but I think that could be compensated for by putting the tax threshold really high, to allow room for error, so to speak.  And how is an estate tax that only collects from millionaires really different in concept from, say, the top level of a progressive income tax that only collects its highest percentage from million-makers?  Finally, regarding "collect while you are alive" versus "wait till you are dead, then collect", I really don't see the problem there. 

3.  True, I am not completely on board with his reasons, but my post directly replied to what you gave as one of your two main arguments against him, and the one you spent by far the most time on. 

Since you brought it up, let's go back to "estate tax repeal/welfare lets the rich/poor be lazy" for a moment.  I do not personally think a position based mainly on "take away all their money to make them stop being lazy" is sound, rather things like "After a person is already inheriting more than enough to live on comfortably for the rest of his life, why not tax some of additional amounts rather than tax the working poor who it would hurt a lot more?" and "Aside from humanitarian reasons, the economy benefits from propping up the destitute to be able to participate on a minimal level rather than just starving." 

4.  OK, but I had thought this 2.5 was a pretty basic level conceptual question.  Ordinarily I would completely understand if you didn't feel you were knowledgeable enough to be comfortable taking a position on it, but you clearly felt you were qualified to have a position on repealing the estate tax, so I just thought I'd ask you what you thought the entire system for collecting taxes ought to be centered around at its heart.  If you say, "I don't know", or "I thought I knew but now I am not sure what to think so I don't want to give my previous answer", that's a fair answer. 

Assuming that SOME taxes must be collected, do you think that the taxes should be designed to inflict the least palpable harm, even if it means an unfair tax that takes a lot more from people from whom a lot more can be taken without crippling them?  Or should the taxes be spread more equally across the population, even if it means taking money from people who will, as a result, starve, be unable to afford medical care, lose their jobs, lose their small businesses, etc.?  Or do you favor a third option (other than "do less harm to people" and "tax more equally")?  (from above, modified)

The only way to be fair in collecting taxes is to implement a flat tax. Taxing based on income is discriminatory. A flat 11-13, even 20% tax for everyone with no tax deductions would allow us to provide full medical coverage and probably college education for everyone on top of fund the government. The rich would pay more since 20% of a million is more than 20% of 60K. The low and middle class would still benefit from no healthcare costs or tuition.  I will never be for taxing money already taxed just because you die and honestly cant think of how anyone else would be either. It is a way for the goverment to take wealth away from successfull people and hurt the future generations of that family. Its essentially a spite tax.

It depends on what you mean by fair, but sure, for a certain type of "fair" a flat tax is the best way.  I'm against it because it does more harm to people than a progressive tax, that falls less heavily on people who must necessarily spend a bigger proportion of their income on basic survival.  (Food etc.)  In general, my ideal is in trying to spread the pain fairly rather than trying for mathematical equality.  But I can appreciate that people have different viewpoints on this question. 

Anyway, are you also against sales taxes on the grounds that they also take money from you that you are already paying income taxes on?  Property taxes too?  We should go down to exactly one type of tax to make sure we don't overlap the payments—that is your position? 

P.S.  I'm skeptical of 20% being as revenue positive as you suggest, let alone 11-13% being revenue neutral.  But that's really off topic so I would prefer not to get into that before our current discussion is exhausted.  However, I will add that I'm completely in favor of simplifying the tax code.  But simplification is to be found in eliminatng deductions, credits, etc. rather than the basic structure, whether it's flat or progressive. 



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Final-Fan said:
LurkerJ said:

You sound like someone who's butthurt rich people have a lot of money. For the life of me, I'll never understand the rationalizing behind what you are proposing, which is basically stealing. It also encourges rich people to stop reaching new heights, which would ultimately hurt the poor and the middle class.

(1) The rich hire others to INCREASE their wealth, if they realize that increasing their wealth will ultimately decrease it, they will stop hiring. Even if that was not the case, (2) taking money from people who earned it legally isn't moral, it's theft. It doesn't matter if the majority voted to steal that money, it's still theft.

Oh, and like the guy you quoted, I obviously don't have 5 millions in my bank account.

(1) There is literally no tax in the United States designed such that a person should, upon making MORE money, be left with LESS money after taxes than if they had done nothing.  I won't say it's completely impossible, with the crazy, massive patchwork of tax breaks, credits, incentives, penalties, etc., but if it happens it directly contradicts the designed function of our tax code.  Agree/disagree—if disagree, evidence please.  If agree, I trust you will not ever bring this point up again. 

(2) Do you really intend to say that ALL taxation is theft?  Because that is literally what you're saying.  (If it's not mandatory/compulsory, it's not taxation but rather donation.) 

2.5  If taxation is not inherently theft, and assuming that SOME taxes must be collected, do you think that the taxes should be designed to inflict the least palpable harm?  Or should the taxes be spread more equally across the population, even if it means taking money from people who will, as a result, starve, be unable to afford medical care, lose their jobs, lose their small businesses, etc.?  Or do you favor a third option (other than "do less harm to people" and "tax more equally")? 

https://www.illinoispolicy.org/illinois-warped-welfare-system-traps-families-in-poverty/

While not specifically just taxes, a combination of ending tax credits and straight cut offs on welfare do mean that in some situations, people are worse off from taking pay increases - this is particularly true in low income scenarios.

A single parent of two children in Chicago who takes a pay increase from $12 to $18 will result in an approximate 30% reduction in the household's total income. They won't catch up again until $38 an hour.



Living in the NY area, I'll be hit pretty hard by the elimination of SALT. Though, it's hard to know exactly what will happen as very little has been announced around brackets/credits.

Anybody who claims that taxes are increasing or decreasing on anybody is spreading false information, as nobody knows. The media and think tanks are all basing their calculations on their own assumptions, and those assumptions may or may not have been derived from an agenda.



SamuelRSmith said:
Final-Fan said:

(1) There is literally no tax in the United States designed such that a person should, upon making MORE money, be left with LESS money after taxes than if they had done nothing.  I won't say it's completely impossible, with the crazy, massive patchwork of tax breaks, credits, incentives, penalties, etc., but if it happens it directly contradicts the designed function of our tax code.  Agree/disagree—if disagree, evidence please.  If agree, I trust you will not ever bring this point up again. 

https://www.illinoispolicy.org/illinois-warped-welfare-system-traps-families-in-poverty/

While not specifically just taxes, a combination of ending tax credits and straight cut offs on welfare do mean that in some situations, people are worse off from taking pay increases - this is particularly true in low income scenarios.

A single parent of two children in Chicago who takes a pay increase from $12 to $18 will result in an approximate 30% reduction in the household's total income. They won't catch up again until $38 an hour.

That's terrible.  It's as if there was a 150% income tax bracket (as some people act like there is in these discussions).  I'm totally in favor of eliminating disincentives like that, though the preferred method of reform would no doubt differ among different people.  I stand by my position that this flies completely in the face of the intended design of our tax law.  And, as you point out, it's not tax law that's mainly creating this situation. 

(While I would need additional convincing that the most extreme outcome they cite is realistic, the overall picture is dire enough even taking a big grain of salt—no, a truckload.)



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My advice to fanboys: Brag about stuff that's true, not about stuff that's false. Predict stuff that's likely, not stuff that's unlikely. You will be happier, and we will be happier.

"Everyone is entitled to his own opinion, but not his own facts." - Sen. Pat Moynihan
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The old smileys: ; - ) : - ) : - ( : - P : - D : - # ( c ) ( k ) ( y ) If anyone knows the shortcut for , let me know!
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I have the most epic death scene ever in VGChartz Mafia.  Thanks WordsofWisdom!