Tax proposals

[MeyerFittings]

Does anybody have a handle on what the House and or Senate versions will do to those small businesses that are truly small. For instance if you are paying !5% now on your taxable income because of write offs and cost of business, will you now be taxed at the "pass through" rate of %25 regardless of taxable income?

[duane88]

depends on how you are set up. I am a sub-chapter s and the corporate income passes through to the shareholder-me, so the profit, if any, at the end of the year, passes through. It might be that the salary that i pay myself will be taxed at a higher rate than the pass through income.

 

i say a flat-tax. nuthin' deducted for nobody.

[Violadamore]

1 hour ago, duane88 said:

i say a flat-tax. nuthin' deducted for nobody.

Military studies run some years ago, when Pentagon concern over a flat-tax was running high, showed that a 7% flat-tax would produce a revenue increase.  I wouldn't have a problem with that.

[MeyerFittings]

Corporate income will decrease to 20%, business income for those who aren't incorporated may go up regardless of amounts to 25% unless I'm not reading it right.

Anybody?

 

 

[palousian]

Given the inability to govern that we have seen thus far from this demolition clown-car derby of a Congress, I wouldn't count on them being able to pass tax legislation of any type whatsoever.  Seriously, see if they can do anything at all before you worry about how you will cope with it.  Friends of mine in graduate school with tuition waivers are truly horrified that their tuition waivers might be taxed.  But hey, you can import elephant heads for your ivory now, whoo-hoo!!

[ctanzio]

Assuming you are primarily using Schedule C to manage your company tax liability: The House and Senate versions of the bill differ significantly in how tax brackets are handled. Currently, the House has fewer brackets with larger steps in the marginal tax rate, while the senate has more brackets with smaller steps in the marginal tax rate. So the answer is it depends. Plus we are not sure what changes will be made to things like depreciation and expensing various business costs.

Also be aware the personal tax deductions are being heavily impacted by some versions. So while the overall tax rates may be reduced, loss of deductions may throw more of your income into a higher marginal tax bracket and increase the amount of tax you pay under current rules.

If you are not using some form of incorporation, definitely investigate that option after the final version of the bill is passed. Corporations are receiving large, permanent tax reductions with no additional rules to encourage capital investment or employee hiring. If we have only past results to go by, it means most of the tax savings will be spent in stock buy-backs or passed through to investors/owners. This is good news if you are a personal corporation or sole owner of all the stock.

As a final note, in order to avoid the need for bipartisan negotiation and support of tax bills, Republicans are required by law to restrict the impact a law might have on the National Deficit. So if they want to dramatically reduce corporate tax, they have to dramatically reduce spending in some areas in order to comply with the law. Right now, the Republican Senate is taking aim at the Affordable Care Act, yet again, in order to save enough money to avoid cooperating with Democrats. It seems likely that such an amendment to the tax bill will get enough Republican senators to vote against it to stop it from passing. 

 

 

[PASEWICZ]

5 hours ago, palousian said:

 But hey, you can import elephant heads for your ivory now, whoo-hoo!!

It has been legal to import elephant heads ALWAYS!  The last treasured leader made it illegal for musicians to travel with their priceless French ivory tipped violin bows, but hunters could import two trophy elephant heads A YEAR.....

[saintjohnbarleycorn]

well if you have a private jet you can deduct that!

 

[PASEWICZ]

2 minutes ago, saintjohnbarleycorn said:

well if you have a private jet you can deduct that!

 

Yep, deduct that and hire 3 more people.

[Violadamore]

7 hours ago, palousian said:

Given the inability to govern that we have seen thus far from this demolition clown-car derby of a Congress, I wouldn't count on them being able to pass tax legislation of any type whatsoever.  Seriously, see if they can do anything at all before you worry about how you will cope with it.  Friends of mine in graduate school with tuition waivers are truly horrified that their tuition waivers might be taxed.  But hey, you can import elephant heads for your ivory now, whoo-hoo!!

I'd advise containing the panic and investigating incorporation, for those with businesses.  Until the exercise is complete, we won't know the full impacts.  I'm concerned over what might happen with Schedule F. which has long been important to me every year.

[Carl Stross]

Just now, Violadamore said:

 I'm concerned over what might happen with Schedule F. which has long been important to me every year.

At a push, you could work for me.

[Violadamore]

1 minute ago, carl stross said:

At a push, you could work for me.

Naw, I figured I'd hire you.  I know you're experienced with fertilizer in its various forms.

[Carl Stross]

3 minutes ago, Violadamore said:

Naw, I figured I'd hire you.  I know you're experienced with fertilizer in its various forms.

Wouldn't mind but I'm worried about your ability to pay - I understand business' been a tad slow for a while by now.

[Violadamore]

12 minutes ago, carl stross said:

Wouldn't mind but I'm worried about your ability to pay - I understand business' been a tad slow for a while by now.

Yup, you for sure have a rare hand at slinging that stuff.  Bet you could clean out a stable in no time.  Have you considered running for legislative office?

[Carl Stross]

Just now, Violadamore said:

Yup, you for sure have a rare hand at slinging that stuff.  Bet you could clean out a stable in no time.  Have you considered running for the Legislature?

Sure. But I'm taking it slowly - first, Alabama. I see things are not going there as smooth as they should.

[PASEWICZ]

Hell, I understand there is a seat soon to be vacant from Minnesota.  

[Ken_N]

Am I the only one who has never in their life ever even thought about taxes.  Never.  Maybe I'm weird. But then again, I've always just been an employee, and they just take them out, and in the spring I do the tax return, and  I get some back.  I never even look at my pay stubs.  Haven't in years.  My wife does!  I never itemize deductions, because the standard deduction is far higher.  

That being said, I don't have any faith in governments or bankers either.  Politics bore me to death, and I never watch the news.  Corporations aren't any better.  

[MeyerFittings]

Do you actually think that trying to french kiss a uncooperative adult, or even having someone take a fake photo, although horrendous behavior, is the same as molesting a 14 year old child, and threatening her with your power to keep her silent?

I still want to know what the propsed changes (without the poitics please) will do to those self employed, non corporate entities that are currently in a bracket less than 25%. The new proposals will make incorporating less available as I understand.

 

[PASEWICZ]

1 hour ago, MeyerFittings said:

Do you actually think that trying to french kiss a uncooperative adult, or even having someone take a fake photo, although horrendous behavior, is the same as molesting a 14 year old child, and threatening her with your power to keep her silent?

 

Oh for Pete’s sake, what the hell are you talking about?

[MeyerFittings]

The former child's testimony.

 

[PASEWICZ]

1 minute ago, MeyerFittings said:

The former child's testimony.

 

About taxes?

[Michael_Molnar]

Relax, Eric. Here is a quote from the New York Times: 

• Senator Ron Johnson of Wisconsin became the first Republican to voice opposition to the Senate’s version of the tax bill, saying he needed to see more favorable treatment for small businesses.

[AtlVcl]

12 hours ago, Jerry Pasewicz said:

Hell, I understand there is a seat soon to be vacant from Minnesota.  

Yes, speaking of clowns....

 

[AtlVcl]

On 11/17/2017 at 8:38 PM, Violadamore said:

Military studies run some years ago, when Pentagon concern over a flat-tax was running high, showed that a 7% flat-tax would produce a revenue increase.  I wouldn't have a problem with that.

No matter how much revenue the government lays their hands on will be spent, and more.  If you "wouldn't have a problem with that", you're not paying attention.

[Violadamore]

58 minutes ago, AtlVcl said:

No matter how much revenue the government lays their hands on will be spent, and more.  If you "wouldn't have a problem with that", you're not paying attention.

No, you weren't.  Seven percent I have no problem with.  Of course, all the corporate billionaires who currently pay less due to tax breaks and weird little deductions nobody else can use effectively would defecate all over themselves if a really flat tax ever passed.

My point was that a low-rate flat tax would not starve the bureaucracy to death, as is often claimed.

Making the government spend responsibly is a whole other question.

I used to joke, decades ago, that we should eliminate taxes altogether, and simply give the Feds a monopoly on vice, gambling, and intoxicants, but that was before I saw them take over some properties in Nevada for back taxes, and prove that they could run casinos and brothels at a loss.