Rich Scumbag Wants To Cut Taxes For Rich Scumbags

[Minimalist]

[Jackalope]

Scumbags of a feather...

[popeyespappy]

In other news one proposal that's been floated to pay for these cuts is the elimination of deferred taxes on 401K contributions.

[Jackalope]

In other news one proposal that's been floated to pay for these cuts is the elimination of deferred taxes on 401K contributions.

Awesome, so let's finance pay cuts for those who don't need it with a tax hike on those that do.

Fucking brilliant. Watch the savings rate of wage earners to drop precipitously if this happens.

This is going to be about as popular as a turd in a swimming pool.

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Back-of-the-envelope math informs me that eliminating the deferred taxes - which would seem to be funding with post-tax dollars and making withdrawals tax free, rather than funding with pre-tax dollars and taxing on withdrawal (presumably at a lower rate) - informs me that this would result in a $4500 annual tax hike on individuals contributing the maximum with a marginal tax rate of 25%. The effect is doubled on two-earner households who both contribute the maximum.

Oh, also - this change will likely push a number of middle-class households into higher tax brackets, for the benefit of corporations, to the detriment of the middle class.

Fuck you, Trump.

[brewer]

I'm for eliminating inheritance tax. A person dies (death or inheritance tax kicks in) and the family now gets taxed extra on money/income/property that the deceased has already paid taxes on. 

For you fellow old farts, I suggest you take the right steps to eliminate as much death tax as possible.

That being said, I don't anticipate much support for his proposal. It does not make financial sense.

[BrianSoddingBoru4]

I never cease to be amused by the claim, 'These tax cuts will pay for themselves by stimulating economic growth.'

The only thing more amusing is how many people continue to believe it, all historical evidence to the contrary.

Boru

[Jackalope]

I'm for eliminating inheritance tax. A person dies (death or inheritance tax kicks in) and the family now gets taxed extra on money/income/property that the deceased has already paid taxes on. 

The "already paid taxes on" issue seems a non-issue. If they're living, gifts of over $14K annually are fully taxable as income - to the person who has presumably already paid tax on the income.

Also, most non-wealthy people are not affected by the death tax at all. One of the biggest issues with it is the inheritance of family farms/homes of substantial value, where the family doesn't have the means to pay the tax, and the property must be sold or split.

That being said, I don't really have a huge issue with reforming the estate tax, but I would prefer to see more generous exemptions to prevent such injustices, such as an exclusion on non-investment real property (i.e. the personal residence). I would not exclude cash or liquid investments at all.

[Jackalope]

By the way, the estate tax exclusion for 2016 is over 5.4 million, i.e. the first 5.4 million in money or property inherited is tax-free.

[Minimalist]

I'm for eliminating inheritance tax. A person dies (death or inheritance tax kicks in) and the family now gets taxed extra on money/income/property that the deceased has already paid taxes on.

Yeah.  We should make things easier for aristocrats to get richer.  Where the fuck is my guillotine when I need it?

[Pat Mustard]

@Min, my thread was first!

I'm for eliminating inheritance tax. A person dies (death or inheritance tax kicks in) and the family now gets taxed extra on money/income/property that the deceased has already paid taxes on. 

For you fellow old farts, I suggest you take the right steps to eliminate as much death tax as possible.

That being said, I don't anticipate much support for his proposal. It does not make financial sense.

You're looking at inheritance tax wrongly, first of all it is not a tax on the deceased, but on the unearned capital windfall of the deceased's inheritors. Therefore you are wrong in saying that it already has taxes paid on it, if that were the case all taxes levied on property changes would be equally as wrong as you say inheritance tax is.

Secondly, inheritance tax limits in the USA are already set with ridiculously high limits on them, meaning that if you end up leaving anything to your wife or children, then the chances are at around 98% that not a penny tax will be paid on. Unless I'm much mistaken the cutoff point at which inheritance tax starts being paid in the US is c. $10m.