3 ms·

This doesn't count AMT, everyone in the state who itemizes and makes more than $200k has to pay the amt essentially making deductions completely useless. A NYT

This doesn't count AMT, everyone in the state who itemizes and makes more than $200k has to pay the amt essentially making deductions completely useless. A NYT article showed how elites in Cali and NY will lose money but I calculated various incomes and the only people who would lose money are the ones making $1M plus. The article completely excluded that fact. Steph curry for instance will lose over a million in this new bill because he doesn't pay AMT currently and deducts $2M stats taxes. Not being able to deduct that plus only a minor drop in income tax brackets screws him. This is not a bad bill. Very few people wil have to pay more and those that do are making $1M + and they'd slightly see a decrease while people with $5M+ will see a more significant decrease, so I'm not concerned. That being said, I think there should be even a bigger tax cut on the middle class and greater deductions for disabled seniors. Family making $50k with 2 kids barely saves more than a family $35k with 2 kids especially if they have Medicaid while the other family has insane premiums and deductibles.

imbusy111 9y ago
If everyone pays less, where is the money coming from then?
- tasty_freeze 9y ago
  They claim it will come from a huge economic boom which will be unleashed by cutting corporate tax rates. However, a proposal to automatically undo some of the changes if the "guaranteed to pay for itself" plan fails was scrapped. I'd rather have challenged those claiming the cuts would pay for themselves to put up or shut up: force retirement if the growth didn't appear.
  - propman 9y ago
    That was political grandstanding. Imagine if some war broke out or something like the financial crisis happened in 3 years. Already poor economic growth, 401k crashing, job cutting, businesses losing money and all of a sudden taxes go up 15%? It would sink the economy and force govt to pay trillions. It was a comically absurd idea that becomes easily refuted with 5 seconds of thought. Unfortunately, 99% of politics is grandstanding, just hope that things that pass into actual law are rational.
guelo 9y ago
> This is not a bad bill. What about the $1.5 trillion cost?
- propman 9y ago
  CBO relatively bipartisan analysis says $500B from economic growth, but we can't be sure as it doesn't account for a lot of things. Republicans say it's a lot more, Democrats say it's a lot less. Tax havens that everyone complains about have been taken out which I feel like should be discussed more. Global 10% minimum tax no matter where you make money. If Ireland you pay 1.3% you now pay 8.7% to the US, China 15% you pay 0% to the US. That is going to change the global structure completely and the IP changes haven't been analyzed either. A lot of redundant tax breaks and loopholes are now gone like allowing deductions for executive pay etc, and no more needing to pay crazy taxes to bring overseas profits back, 0% so investment should be high. These 2 were very very important for US and both bipartisan but the politics of "reducing corporate taxes" is awful. No more hiding IP, storing assets without using them. Bush ballooned the debt with stupid wars. Democrats doubled the national debt adding like 11 trillion over 8 years, completely botching up the healthcare allowing the 6 biggest insurance companies to sextuple profits, premiums and deductibles to go sky high and the deficit getting screwed next year. Cabinet budgets went up like crazy. Departments that had 30-50k employees for decades suddenly get 75k full time, bigger budgets approved every year. Spending cuts are next on the docket, but the budget plan is supposed to cut 50B+ a year. Basically I'd take $1T over 10 years over Democrats $11T waste over 8, Bush $8T mess over 8 though like Clinton, hope budget can be balanced. Obviously I wish it was revenue neutral and if it were up to me, I would cut corporate tax to 25%, foreign global minimum to 11%, individual top tax bracket to 45% for $2M+ (doesn't even target top cardiologist couples, just athletes and the very top). That should be revenue neutral and the best way to use a trillion dollars would be to invest it in research and new technologies. That has been the best catalyst for economic growth, increase in QOL, and driver of less poverty. I'd take this over free college and admin making up 75% of faculty and tax dollars drowning in pensions
  - guelo 9y ago
    Alternate take: The CBO estimated the $1.5 trillion with all those loopholes and boost forecasts. All that is factored in. Bush ballooned the debt not only with his wars but also with a massive tax cut. That tax cut led to a period of weak growth and culminated in the biggest recession of our generation. Obama inherited that collapsed economy. His deficits were caused by the recession's drooping tax revenues, extensions of Bush's tax cuts, the stimulus (which also cut taxes), and continuing Bush's increased military budgets. This produced another period of weak growth but left the economy in relatively decent shape which Trump is now taking credit for without having passed his first budget or major law yet. All we've had over the past generation is tax cuts. And. They. Don't. Work. They increase the deficit, don't boost the economy, increase inequality, and make our institutions weaker. But here we are going for another round of the same medicine: tax cuts and increased military spending.

imbusy111 9y ago

If everyone pays less, where is the money coming from then?

tasty_freeze 9y ago
They claim it will come from a huge economic boom which will be unleashed by cutting corporate tax rates. However, a proposal to automatically undo some of the changes if the "guaranteed to pay for itself" plan fails was scrapped. I'd rather have challenged those claiming the cuts would pay for themselves to put up or shut up: force retirement if the growth didn't appear.
- propman 9y ago
  That was political grandstanding. Imagine if some war broke out or something like the financial crisis happened in 3 years. Already poor economic growth, 401k crashing, job cutting, businesses losing money and all of a sudden taxes go up 15%? It would sink the economy and force govt to pay trillions. It was a comically absurd idea that becomes easily refuted with 5 seconds of thought. Unfortunately, 99% of politics is grandstanding, just hope that things that pass into actual law are rational.

guelo 9y ago

> This is not a bad bill. What about the $1.5 trillion cost?

propman 9y ago
CBO relatively bipartisan analysis says $500B from economic growth, but we can't be sure as it doesn't account for a lot of things. Republicans say it's a lot more, Democrats say it's a lot less. Tax havens that everyone complains about have been taken out which I feel like should be discussed more. Global 10% minimum tax no matter where you make money. If Ireland you pay 1.3% you now pay 8.7% to the US, China 15% you pay 0% to the US. That is going to change the global structure completely and the IP changes haven't been analyzed either. A lot of redundant tax breaks and loopholes are now gone like allowing deductions for executive pay etc, and no more needing to pay crazy taxes to bring overseas profits back, 0% so investment should be high. These 2 were very very important for US and both bipartisan but the politics of "reducing corporate taxes" is awful. No more hiding IP, storing assets without using them. Bush ballooned the debt with stupid wars. Democrats doubled the national debt adding like 11 trillion over 8 years, completely botching up the healthcare allowing the 6 biggest insurance companies to sextuple profits, premiums and deductibles to go sky high and the deficit getting screwed next year. Cabinet budgets went up like crazy. Departments that had 30-50k employees for decades suddenly get 75k full time, bigger budgets approved every year. Spending cuts are next on the docket, but the budget plan is supposed to cut 50B+ a year. Basically I'd take $1T over 10 years over Democrats $11T waste over 8, Bush $8T mess over 8 though like Clinton, hope budget can be balanced. Obviously I wish it was revenue neutral and if it were up to me, I would cut corporate tax to 25%, foreign global minimum to 11%, individual top tax bracket to 45% for $2M+ (doesn't even target top cardiologist couples, just athletes and the very top). That should be revenue neutral and the best way to use a trillion dollars would be to invest it in research and new technologies. That has been the best catalyst for economic growth, increase in QOL, and driver of less poverty. I'd take this over free college and admin making up 75% of faculty and tax dollars drowning in pensions
- guelo 9y ago
  Alternate take: The CBO estimated the $1.5 trillion with all those loopholes and boost forecasts. All that is factored in. Bush ballooned the debt not only with his wars but also with a massive tax cut. That tax cut led to a period of weak growth and culminated in the biggest recession of our generation. Obama inherited that collapsed economy. His deficits were caused by the recession's drooping tax revenues, extensions of Bush's tax cuts, the stimulus (which also cut taxes), and continuing Bush's increased military budgets. This produced another period of weak growth but left the economy in relatively decent shape which Trump is now taking credit for without having passed his first budget or major law yet. All we've had over the past generation is tax cuts. And. They. Don't. Work. They increase the deficit, don't boost the economy, increase inequality, and make our institutions weaker. But here we are going for another round of the same medicine: tax cuts and increased military spending.