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Thread: GOP Tax Plan

  1. #226
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    Really weird that people think less brackets is simplification. I don't understand that. No one calculates their own taxes anyways. So it doesn't make it any less or more simple. TurboTax can handle one bracket or 50 brackets in the exact same way and I still get my maximum refund guaranteed.

  2. #227
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    Some people think if they earn more money, they are in a higher tax bracket.
    They think they pay more taxes and may actually have less money left over than they would if they had earned less.

    Say you’re single with no dependents, and your taxable income is $9,000.

    Your marginal tax rate, according to the Federal Income Tax Brackets chart below, is 10%. You pay $900 in income tax. That’s simple.

    What if your taxable income is $19,000?


    As a Single filer, you’re now in the 15% tax bracket. That doesn’t mean you pay 15% on all your income, however.

    You pay 10% on the first $9,325, plus 15% of the amount over $9,325.

    Here’s the math:

    First tax bracket: $9,325 X 10% = $932.50
    Second tax bracket: ($19,000 – $9,325) X 15% = $1,451.25
    Total income tax: $2,383.75 approximately 12.1%

    What if your taxable income is $115,000?

    As a Single filer, you’ve now moved up to the 28% tax bracket so things get a bit more complicated. In this case:

    You pay 10% on the first $9,325,

    plus 15% of the amount between $9,325 and $37,950,

    plus 25% of the amount between $37,951 and $91,900,

    plus 28% of the amount over $91,901.

    Here’s the math:

    First tax bracket: $9,325 X 10% = $932.50
    Second tax bracket: ($37,950 – $9,325) X 15% = $4,293.75
    Third tax bracket: ($91,900 – $37,950) X 25% = $13,487.50
    Fourth tax bracket: ($115,000 – $91,900) X 28% = $6,468
    Total income tax: $25,181.75 approximately 21.75%


    Your tax bracket is not the tax rate you pay on all of your income after adjustments, deductions and exemptions.


    Your tax bracket only determines your individual income tax rates for each additional dollar of income
    Last edited by kevin13697; 11-09-2017 at 09:05 PM.

  3. #228
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    Quote Originally Posted by dbroncos78087 View Post
    Really weird that people think less brackets is simplification. I don't understand that. No one calculates their own taxes anyways. So it doesn't make it any less or more simple. TurboTax can handle one bracket or 50 brackets in the exact same way and I still get my maximum refund guaranteed.
    Reducing the number of brackets does not really "simplify" taxes in the sense that it reduces your filing burden. After all, as you said, few people directly interact with the tax brackets at all.
    It would modestly simplify tax planning (for example, by comparing capital gains tax to your income tax bracket, or the added benefit of tax-advantaged investments) but it's questionable whether that's really an improvement, because fewer brackets makes the system less precise. Most people would prefer to be in a "middle" bracket and have to take that into account, rather than having certainty they'll be in a higher bracket than they are now.

    In short, "simplifying" taxes is a red herring when it comes to reducing tax brackets. The two are not related. I would argue that most people don't actually want simpler taxes if they realize that the complexity generally comes from things that benefit them, like dependent exemptions, itemized deductions or tax credits. Which means the GOP tax plan, could actually make taxes more complicated.
    Last edited by kevin13697; 11-09-2017 at 09:29 PM.

  4. #229
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    Quote Originally Posted by flips333 View Post
    25 million no tax? That's kind of hard to swallow for us plebeians (I noticed you said you haven't made less than 250,000 since the 90s). And please don't call it the death tax. That's some silliness.

    I looked into the farm argument and found this. Was surprised at how little estate taxes bring in.

    https://www.washingtonpost.com/news/...=.10828930a7c0
    If you think through the strategies that individuals use (irrevocable trusts, etc...) it isn't going to make that big of a difference except to the guy at the lower end who doesn't do estate planning (like you said there isn't a lot collected).

    The real problem with it for people with no cash assets is that it forces them to liquidate to raise the cash in a short period of time. Those assets are subject to significant market fluctuations over a short period of time which can be extremely onerous.

    Like I said... I think less should be taxed and modifications to the rules should occur to lessen the impacts of those fluctuations.

  5. #230
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    Quote Originally Posted by dbroncos78087 View Post
    Really weird that people think less brackets is simplification. I don't understand that. No one calculates their own taxes anyways. So it doesn't make it any less or more simple. TurboTax can handle one bracket or 50 brackets in the exact same way and I still get my maximum refund guaranteed.
    I don't disagree with this at all and if you aren't going to go to a system like a flat tax there really is no point ...

    but lets be honest... the tax code is BIG BUSINESS for Public Accounting Firms and Attorneys... gotta keep that voting bloc happy

  6. #231
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    Very disappointed with my friends across the aisle...the best argument to repeal the estate tax is Bruce Wayne. Maybe the reason that no billionaires are becoming super heroes is because of the estate tax. Maybe without it we would have a Batman.
    Think long and hard about why you respond to nonsense. Please!

  7. #232
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    It's getting comical how often the Senate needs to be the parents over the House....

    Senate Tax Plan Diverges From House
    Version, Highlighting Political Pressures


    By JIM TANKERSLEY, ALAN RAPPEPORT and THOMAS KAPLAN NOV. 9, 2017
    WASHINGTON — Senate Republicans outlined their vision on Thursday for
    overhauling the tax code, proposing a one-year delay in President Trump’s top
    priority of cutting the corporate tax rate while reinstating some prized tax breaks
    used by middle-class families.
    The Senate bill differs significantly from the House version approved by the
    Ways and Means committee on Thursday: It would preserve some popular tax
    breaks, including ones for mortgage interest and medical expenses, and would
    maintain a bottom tax rate of 10 percent for lower earners. But it would also jettison
    the state and local tax deduction entirely and delay the enforcement of a 20 percent
    corporate tax rate until 2019, which could rankle the White House and mute the
    economic growth projections that Republicans are counting on to blunt the cost of
    the tax cuts.
    The disparate bills show the competing pressures that Republican lawmakers
    are facing and the calculations that Senate and House leaders are making to ensure
    passage of the bills through their respective chambers. While both bills share the
    main priorities of cutting corporate and individual taxes, they diverge on matters of
    high political sensitivity, particularly for vulnerable House Republicans from hightax
    states and for Senate Republicans concerned about adding to the federal budget
    deficit.....more here: https://www.nytimes.com/2017/11/09/u...ef=todayspaper

    Another breakdown of the differences here:
    https://www.nytimes.com/2017/11/09/u...fferences.html

  8. #233
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    Next week, 600 congressional staffers, lobbyists and think tank employees, as well as Vice President Mike Pence himself, will get together for an annual tradition that is imbued with extra significance this year: the Tax Foundation’s annual gala, known as “Tax Prom,” brought to you by 61 corporations very interested in seeing their tax bills reduced.
    http://www.ibtimes.com/political-cap...x-prom-2612399


    If only the American people could host such an event, maybe we'd have a real say in how our reps vote...

  9. #234
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    Quote Originally Posted by GGGGG-Men View Post
    http://www.ibtimes.com/political-cap...x-prom-2612399


    If only the American people could host such an event, maybe we'd have a real say in how our reps vote...
    Their votes will trickle down to us over time.

  10. #235
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    Quote Originally Posted by Ezekial View Post
    Their votes will trickle down to us over time.

  11. #236
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    Think long and hard about why you respond to nonsense. Please!

  12. #237
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    Quote Originally Posted by dbroncos78087 View Post
    Don't worry, they have the brilliant ability to sell that as a good thing, even to people on their death bed complaining about the loss of coverage.

  13. #238
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    They're working in Obamacare repeal to the tax plan that was already destined to fail.

    Is this sneaky or pure sabotage?




    Sent from my iPhone using Tapatalk

  14. #239
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    Quote Originally Posted by GGGGG-Men View Post
    They're working in Obamacare repeal to the tax plan that was already destined to fail.

    Is this sneaky or pure sabotage?




    Sent from my iPhone using Tapatalk
    That was Rand Paul's amendment. Right?
    Think long and hard about why you respond to nonsense. Please!

  15. #240
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    I will be the first to admit I don't really understand this but it sounds like a clear violation of the GOP's mantra if it means what I think it does.

    Last edited by dbroncos78087; 11-14-2017 at 09:01 PM.
    Think long and hard about why you respond to nonsense. Please!

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