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Old November 3rd, 2017, 10:23 PM   #1
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Did You Catch the Huge Loophole in the GOP Tax Plan? The Rich Sure Did.

Smoke and mirrors, and the sad thing? The people getting the least benefit will go to bat for the wealthy ones receiving the most benefit.
Did You Catch the Huge Loophole in the GOP Tax Plan? The Rich Sure Did.

In September, shortly after the GOP released the initial framework for its so-called middle-class tax plan, multiple independent analyses revealed that millionaires would reap the greatest benefit, both as a share of the entire tax cut and as a percentage of their income.

The public narrative quickly shifted to the tax plan being a giveaway to the wealthy, and opinion polling revealed the plan was unpopular. So when House leaders unveiled formal legislation on Thursday, they made sure to highlight a provision that maintains a top rate of 39.6% for those reporting income of $1 million or more.

It’s a clever talking point that may temporarily provide political cover, but it is not a game-changer. The nation’s most affluent families tend to earn their money in different ways than the rest of us, and the House bill either creates or retains special loopholes for those types of income that dramatically water down the effect of the 39.6% rate. This is not breaking news. Tax writers are fully aware of this.

Under current law, the top tax rate on most investment income (capital gains and dividends) tops out at just 23.8%—far below the 39.6% rate applied to salaries and wages. This preference for income earned from investments over ordinary wages is the reason Warren Buffett, as he says, pays a lower tax rate than his secretary. The House tax plan leaves this loophole in place. As long as this loophole remains untouched, it will make little difference to wealthy investors whether the top ordinary income tax rate is 35%, 39.6%, or any other level because that rate will not apply to investment income. If lawmakers genuinely wanted to signal to the public that they intend to focus on the middle class, they would have closed this controversial loophole.

Instead, tax writers created more special carve-outs for the highest-income households that make the 39.6% top rate seem far less significant by comparison. Most notably, the plan eliminates the estate tax, which only the wealthiest 0.2% pay, as the first $11 million in wealth is exempt from the tax. The sole reason for repealing this tax is to shower more tax benefits on the wealthy. The legislation also dramatically reduces tax rates for corporations and other highly profitable businesses, and repeals the backstop Alternative Minimum Tax (AMT), which ensures that high-income taxpayers pay at least some basic amount of tax, no matter how many loopholes their accounts helped them find. All these provisions would offer an enormous windfall to the nation’s wealthiest families, despite a 39.6% top rate being left in place for salaries and wages.
More: Trump GOP Tax Plan: Huge Loophole for Rich
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Old November 4th, 2017, 05:02 AM   #2
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THE TOP 20% PAY 95% OF ALL TAXES

80% pay 5% of the taxes

PLEASE UNDERSTAND REALTIY I.T.

Dim-o-rats have already had to delete their tweeted lies about the Tax plan.


My wife and I make ~95k/year.. WE ARE GOING TO SAVE 3700 on this tax plan

(because we get to double the standard deduction)

the average person is going to save 1500-2500 in taxes.

so yes the top 20% are going to get a tax cut.. THEY DESERVE IT they have been carrying the water for the 80% too long.
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Old November 4th, 2017, 06:17 AM   #3
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You are correct IT. The Republicans so called “middle class tax plan” benefits the wealthiest the most while eliminating such programs as college debt deduction. Only an idiot who is middle class would support a bill that would actually widen the wealth gap in this country that is already terribly skewed.
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Old November 4th, 2017, 07:35 AM   #4
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Originally Posted by TNVolunteer73 View Post
THE TOP 20% PAY 95% OF ALL TAXES

80% pay 5% of the taxes

PLEASE UNDERSTAND REALTIY I.T.

Dim-o-rats have already had to delete their tweeted lies about the Tax plan.


My wife and I make ~95k/year.. WE ARE GOING TO SAVE 3700 on this tax plan

(because we get to double the standard deduction)

the average person is going to save 1500-2500 in taxes.

so yes the top 20% are going to get a tax cut.. THEY DESERVE IT they have been carrying the water for the 80% too long.
Carrying the water? Why shouldn't they carry the water? They've got the biggest share of the water. They benefit most from the water. So why shouldn't they shoulder more of the tax burden?

And mind you, this is all going to get worse. Auto-driving vehicles are going to eliminate hundreds of thousands of driving jobs, which as far as the people who don't "carry the water" are concerned, are pretty good jobs.

What are we to do as jobs - including being a prostitute - increasingly are automated (to increase profits for the water carriers)?

I'd like to hear your opinion on that? As the profit motive inspires water carrying capitalists to automate, what will non-water carrying citizens do?
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Old November 4th, 2017, 07:39 AM   #5
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AND then there's the estate (death) tax. Under current law, the estate tax affects a very small number of people each year. A credit is available that effectively lets estates pay no tax if their value falls below a certain amount, which for those who die in 2017 is $5.49 million. Is this the average American??

To suggest that eliminating the estate tax does anything for the average American, is poppycock. Don't buy it. The only people who truly benefit from throwing out the estate tax are families like Trumps. AND imagine what this will do to the deficit.
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Old November 4th, 2017, 07:42 AM   #6
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AND then there's the estate (death) tax. Under current law, the estate tax affects a very small number of people each year. A credit is available that effectively lets estates pay no tax if their value falls below a certain amount, which for those who die in 2017 is $5.49 million. Is this the average American??

To suggest that eliminating the estate tax does anything for the average American, is poppycock. Don't buy it. The only people who truly benefit from throwing out the estate tax are families like Trumps. AND imagine what this will do to the deficit.
The Republicans this week claimed that repealing the Estate Tax would create 140,000 jobs. They just made that crap up.
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Old November 4th, 2017, 07:45 AM   #7
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AND then there's the estate (death) tax. Under current law, the estate tax affects a very small number of people each year. A credit is available that effectively lets estates pay no tax if their value falls below a certain amount, which for those who die in 2017 is $5.49 million. Is this the average American??

To suggest that eliminating the estate tax does anything for the average American, is poppycock. Don't buy it. The only people who truly benefit from throwing out the estate tax are families like Trumps. AND imagine what this will do to the deficit.
Family farms with big assets locked up in acreage will benefit, but a special exemption could have been made for that situation.
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Old November 4th, 2017, 07:46 AM   #8
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The Republicans this week claimed that repealing the Estate Tax would create 140,000 jobs. They just made that crap up.
I heard 240,000 jobs.
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Old November 4th, 2017, 08:01 AM   #9
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Quote:
Originally Posted by TNVolunteer73 View Post
THE TOP 20% PAY 95% OF ALL TAXES

80% pay 5% of the taxes

PLEASE UNDERSTAND REALTIY I.T.

Dim-o-rats have already had to delete their tweeted lies about the Tax plan.


My wife and I make ~95k/year.. WE ARE GOING TO SAVE 3700 on this tax plan

(because we get to double the standard deduction)

the average person is going to save 1500-2500 in taxes.

so yes the top 20% are going to get a tax cut.. THEY DESERVE IT they have been carrying the water for the 80% too long.
IS there anything inaccurate in the OP? Yes or no?

Almost all taxes are on income, property or sales or usage. If the top 20% HAVE the vast majority of the income, POSSESS the vast majority of the property and SPEND the vast majority on taxable products/services WHY on earth would it surprise and/or outrage you those same people PAY the vast majority of taxes?

Many states have what they call a luxury tax, on things such as yachts and private planes, auto over a certain value, etc. I'd bet that the top 20% pay 100% of that tax. Are you outraged?
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Old November 4th, 2017, 08:26 AM   #10
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Family farms with big assets locked up in acreage will benefit, but a special exemption could have been made for that situation.


Those family farms are RARELY over $10 million. 90% of our family farms are small operations. And of those, only about half end up being taxable once all deductions, credits and special provisions are factored in, according to the Tax Policy Center.

In addition, with saavy estate planning, even the most wealthy farm families should have no problem. There are several solutions that easily save the family farm: 1) The farming heir can purchase the farm from his or her parents once they’ve reached retirement age. 2) Parents can split the farm between the kids. 3) Parents can use partnerships/corporations to transfer farm assets 4) They can do a piece-meal transfer, separating livestock and equipment 5) They can whittle down the estate by gifting their children a substantial amount each year. 6) OR even sell off some of the property.

Don't believe the Trump Tax HYPE about how this will save the Mom and Pop operations....the family farm. It's typical Trump/GOP bullcrap.
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