Actually of course it does. Income from capital gains is taxed at a lower rate than income from labor. And other sources of income are not taxed at all
The game is over, and you lost. You refused to answer the question, because you know that is destroys your position.
Based on what's being talked about this morning it's not clear to me if my taxes would go up or down. There are too many changes proposed. However, a couple of things caught my attention. Verbatim if you're middle class you'll probably pay less taxes based off the same AGI. The problem is that your AGI is computed a lot differently with the GOP plan. The standard deduction nearly doubles except that a good portion of that gets eaten by the removal of the personal exemption. With the higher standard deduction I'd imagine less people will itemize which reduces the mortgage and charitable giving advantage. The child tax credit will increase to $1600 from $1000. I'd have to run the scenarios through but at first glance if you're a middle class married couple without kids who has a mortgage and gives a lot of money to charity you'll be disadvantaged compared to your peers. If you have kids, don't have a mortgage, and don't give your money away you may be preferentially treated. Again, I'd have to run the numbers to see how it actually plays out. Anyone else have thoughts on how this might affect the middle class?
That's a great question. My guess is conservatives will dodge and refuse to answer it. Because basically they don't give a **** about people who have to struggle to get by as long as the m/billionaires get big tax cuts so they can have bigger mega-yachts.
With what we know so far you have it right. The other major issue is of course the cut in the corporate rate which was originally supposed to be offset by elimination of the special exemptions that allows many companies to pay low or no taxes. Those strangely seem to be mssing so far. Since you seem to be quite knowledgable one thing that puzzles me is if we allow repatriation of overseas profits at a 10% rate while taxing domestic at 25% why would this discrepacy not motivate companies to move more money and jobs overseas. I know the corporation do pay taxes overseas but it seems to me this change cannot possibly be for the good except of course it will raise dividends and stock buybacks at least in the short term and thus enrich stockholders.
Well the one thing for sure is under the current system the rich are controlling a greater and greater percentage of the total wealth and this tax reform is just going to accelerate the trend even further. I doubt very much that continuing that trend is going to benefit America.
Think FED. Think monetary system. Our economy has been financialized. The wealth disparity is happening in the financial, paper shuffling sector. Tax the transactions directly. The income tax system you love so much only prevents you and me from becoming rich, and jacking up rates only makes it worse. Indirect taxation of income was unconstitutional for a reason. The FED changed that in 1913. Now that sector controls us all. Sure, raise income taxes. Watch the wealthough disparity grow and scratch your head wondering why
Personally I'd dump income tax and go with sales tax in a Constitutional Amendment ending one and starting the other. I can hear the arguments now, Hey you buy too much we have to tax you even more....
No the arguement is that sales tax is highly regressive with the rich spending a much lower percentage of thrir income on goods and services.
Sorry but your assumption that the tax system has prevented me from becoming rich is incorrect. In fact the preferable treatment of long term capital gains has been a great boon. Stepped up basis of inheritance has helped as well. In fact the system is perfectly aligned with the concept of dynastic wealth. And taxing financial transactions will make no difference. It isn't the day traders or financial shufflers that get rich in this country. Invest smartly, spend little, hold for the long term and anyone can accumulate money but the more you start with the easier it is. And then you pass it to your heirs tax free and if brought ip properly they will do the same.
