Will new tax plan benefit private schools?

youngishbear

Sun, Dec 03 2017, 4:43 pm

octopus wrote:

The rich have lobbyists, the poor have democrats who will fight for their programs, and the hard working middle class gets the brunt of it.

Time to band together, perhaps? Many conservative policies prevent socioeconomic mobility for all of us. It should galvanize the middle class into action instead of handwringing and hiring accountants to find nonexistant tax loopholes.

fraimal

Sun, Dec 03 2017, 8:43 pm

ces wrote:

Since my husband works for a yeshiva, we will be significantly impacted by the elimination of qtr. I live in NJ, so the loss of salt deductions will hurt me. And the increased CTC wil at best balance out the loss of personal exemptions

R u sure about this? Would this also affect parsonage for rabbiem

Mommyg8

Sun, Dec 03 2017, 9:29 pm

octopus wrote:

The rich have lobbyists, the poor have democrats who will fight for their programs, and the hard working middle class gets the brunt of it.

I completely agree with octopus! There's no one out there to fight for the middle class! NOW I know why the middle class is shrinking so rapidly, forget the economists' theories!

When this tax reform bill was first proposed, it did have some good parts to it. But as it went through the House and the Senate, they rapidly discarded all the positive elements, and now we have a tax bill that will do basically nothing except lower the corporate tax rate for ONLY large corporations (the lower tax rate will not help small businesses at all). I used to believe that MAYBE if a different government would come into power they would possibly fix some of the broken pieces - but it looks like this administration is just like the others - promise everything, and does nothing. Bad, bad, bad (to quote Donald Trump).

Mommyg8

Sun, Dec 03 2017, 9:30 pm

youngishbear wrote:

Oh, there are plenty of tax loopholes. But they are all written to benefit the rich. Don't let any of them fool you that they are really paying that higher tax rate.

Jeanette

Sun, Dec 03 2017, 9:41 pm

Losing the personal exemption hurts large families because you're basically paying the same tax regardless of how many dependents you have. The small increase in child tax credit doesn't offset that loss. Also you can only take the child tax credit for each child under 17. So I'm still paying expenses for my children over 17 but don't get any tax break for them at all.

Mommyg8

Sun, Dec 03 2017, 9:43 pm

Jeanette wrote:

I agree. It's a bad law whichever way you turn it.

shyshira

Sun, Dec 03 2017, 9:48 pm

Mommyg8 wrote:

the tax rates are dropping for all corporations. why do you think small corporations will not benefit from a lower rate?

Mommyg8

Sun, Dec 03 2017, 9:53 pm

shyshira wrote:

the tax rates are dropping for all corporations. why do you think small corporations will not benefit from a lower rate?

Because smaller corporations already pay a lower tax rate. Also, many businesses in our community are not structured as corporations, so they pay taxes on the income as personal taxes.

shyshira

Sun, Dec 03 2017, 9:59 pm

Mommyg8 wrote:

Because smaller corporations already pay a lower tax rate. Also, many businesses in our community are not structured as corporations, so they pay taxes on the income as personal taxes.

sticking to corporate tax. Currently every dollar of taxable income over $50,000 is taxed at atleast 25%. That's well within small business range. The proposal is 20% top rate.

SixOfWands

Sun, Dec 03 2017, 10:02 pm

Mommyg8 wrote:

Oh, there are plenty of tax loopholes. But they are all written to benefit the rich. Don't let any of them fool you that they are really paying that higher tax rate.

According to Forbes, Among profitable large companies, 19.5% paid no federal income taxes. The average effective tax rate among the profitable large corporations was 16.1%, under federal tax treatment.

That’s reality. And Congress wants them to pay less. Do you really believe that is going to benefit the middle class? That they’ll suddenly share the wealth in a way they never have before?

In any case, Trump’s main goal, imnsho, is to eliminate the estate tax, which only kicks in at 5.5 million, iirc. To protect his family.

And why do some Republicans think that’s a good idea?

Quote:

“I think not having the estate tax recognizes the people that are investing — as opposed to those that are just spending every darn penny they have, whether it’s on booze or women or movies,” Grassley told the Des Moines Register in an interview published Saturday. Grassley, who serves on the Finance Committee, made the remark when asked about the Senate tax reform measure which would double the exemption for estates to $11 million for an individual and $22 million for a couple. Heirs would inherit the estates tax-free.

Yup. If we gave the average American a break, they would just use it on hookers and blow. So we should really give a break to the rich instead.

Mommyg8

Sun, Dec 03 2017, 10:07 pm

SixOfWands wrote:

Yup. If we gave the average American a break, they would just use it on hookers and blow. So we should really give a break to the rich instead.

As opposed to the rich, who... don't. That's really funny.

I never thought I would ever agree with you, but I do now.

Mommyg8

Sun, Dec 03 2017, 10:14 pm

shyshira wrote:

sticking to corporate tax. Currently every dollar of taxable income over $50,000 is taxed at atleast 25%. That's well within small business range. The proposal is 20% top rate.

The tax code right now is that up to $50,000 is taxed at 15%, from $50,000 to $75,000 it's taxed at 25% - but that's only a marginal rate, so if you're income is $75,000, your actual tax rate is 18.33%. I'm not sure at what point your tax rate will go over 20%, I don't have time to crunch the numbers now, but it might be $100,000. So you would have to be clearing an income of $150,000 just to see a little bit of a difference. Not a lot.

IMHO, though, lowering the corporate tax may affect the US economy if it persuades companies to bring back their money from offshore accounts, and it may balance out if companies don't bother finding loopholes if they think it would not be worth it for them. Also, the lower corporate tax rate could affect regular middle class people if they own stock in corporations, which a lot of us do.

We won't really know the effects of the tax changes until a few years after they are implemented, but it's possible it will be positive for the economy.

Jeanette

Sun, Dec 03 2017, 10:24 pm

If you ask what's going to bring this administration down. It will be this. Not the Russian stuff. Once people realize that their paycheck is getting smaller so some billionaires can have a few more billions. That will get people burning mad.

Huge miscalculation by the GOP.

Why couldn't they have settled for a slightly smaller rate cut for corporations in exchange for a softer blow on the middle class?

It hasn't passed reconciliation though so we will see what happens. Maybe it will dawn on them that soaking the poor and middle class isn't a winning political message.

Mommyg8

Sun, Dec 03 2017, 10:26 pm

Jeanette wrote:

Just to be fair - they're not soaking the poor, as they don't pay taxes. It's just the middle class that they're soaking. It looks like we're too small a political base to matter.

shyshira

Sun, Dec 03 2017, 10:29 pm

Mommyg8 wrote:

Any corporation, large or small which has taxable income of $84,500 will currently pay about 20% tax. Every dollar more than than that, rate will be higher. A cap of 20% will benefit more than large corporations (which is a corporation with over a 1M of taxable income)

Mommyg8

Sun, Dec 03 2017, 10:32 pm

shyshira wrote:

Ok, sorry, I was defining small corporations as really small. Going by what I read when I read the financial analysises in the papers. But now that I just did the numbers myself, I see that you are right. Ok, it's possible there will be some good in this bill. Hopefully.

Jeanette

Sun, Dec 03 2017, 10:56 pm

Mommyg8 wrote:

Just to be fair - they're not soaking the poor, as they don't pay taxes. It's just the middle class that they're soaking. It looks like we're too small a political base to matter.

Who says the poor don't pay taxes? shock

We all pay payroll taxes. And now there is talk of cutting social programs to pay for the tax cut for billionaires. We will all pay for this in big and small ways.

youngishbear

Sun, Dec 03 2017, 11:03 pm

Mommyg8 wrote:

Oh, there are plenty of tax loopholes. But they are all written to benefit the rich. Don't let any of them fool you that they are really paying that higher tax rate.

Yes I meant tax loopholes that apply to the middle class are non-existent.