Why cut taxes?

[cowboy]

Math.

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[Uncle Ted]

Your taxes go up and it has no long term effect on the deficit. Why don't you people do math?

It is that 15% drop in the corporate tax rate! We should be raising the corporate rate to 90% instead... and building that wall. Not to keep people out but to keep those greedy corporates from leaving and avoiding taxes. And we need to punish those tax dodging fat cats starting with that Burger King.

[Jeff Lebowski]

Your taxes go up and it has no long term effect on the deficit. Why don't you people do math?

[cowboy]

Let's see, my taxes go up and the deficit explodes. Thanks for nothing.

Please, can we stop pretending that republicans care about deficits and fiscal responsibility?

Your taxes go up and it has no long term effect on the deficit. Why don't you people do math?

BTW, I agree Republicans don't care about fiscal responsibility.

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[Moliere]

While I'm definitely not "all in" on this tax bill, the GOP will at least solved a couple problems. They will cut the corporate tax rate to something more in line with developed countries around the world. While most corporations don't pay 35% on net income given the litany of tax deductions, they still pay more than most corporations in "socialist" countries. Maybe the 20% rate is going a bit too far, we don't know. But it's a good start.

The tax holiday on repatriated earnings is a great idea and the move away from a worldwide tax system is even better. A territorial system is needed and this was part of Romney's tax plan. Very few developped countries have a worldwide tax system. I'm looking forward to Apple et al repatriating their earnings to the US and using that money to invest here or pay dividends.

Given the current political environment, it was clear none of this would get done in a bipartisan manner. Dems would never vote for a reduction in corporate taxes because they claim to hate corporations...although that claim is just for show since they love the political contributions and riches they get from corporations. While the personal tax side may not be the best, the GOP at least is helping businesses. Hell, they even lowered the pass through tax rate, which is also great, especially for small businesses. So while the Dems may try to rile up the people about this bill, they might not get the same amount of anger as was created with Obamacare since most of the middle class is either tax neutral or gets a tax cut for most of the 10 years of the bills life.

[Walter Sobchak]

Let's see, my taxes go up and the deficit explodes. Thanks for nothing.

Please, can we stop pretending that republicans care about deficits and fiscal responsibility?

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[Northwestcoug]

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[Jeff Lebowski]

Your taxes go up by a couple thousand. Your 401k goes up by 5x that amount.

[cowboy]

A major landmine in this for small business, and especially businesses that are heavy in hard assets and trying to expand, is the interest deduction limit. The bill limits interest deductions to 30% of EBITDA. This could really hamper expansion of some farms, and hit newly expanded farms and other businesses in a big way. Here's the math:

Banks require a cash coverage ratio of 1.25, 1.5 on bigger loans. This means that EBITDA minus family living allowance (usually $50k) needs to be 1.5 times the payment for the loan to pass muster with the lender. Take a $800k loan by an expanding farmer with an decent coverage ratio of 1.3. The payment on the loan is $60k, with interest of $40k and interest on an operating loan being another $10k.

EBITDA: $128k
Allowable Interest: $38.4k
Interest Paid: $50k
Taxable Interest Expense: $11.6k

This is potentially a big deal, because there are a lot of farmers who have over $1 million in total debt because farming is a capital intensive business. They have borrowed with the understanding that their interest is deductible, and now many will be caught in the tax trap. It is especially bad for farmers with new loans because most interest is paid in the first few payments, so their interest expense will be proportionally high. Coincidentally, this is also when most loans are susceptible to default. Thus, the bill makes high-risk loans even riskier, could slow the lending rate, and make it harder for new and expanding farms to access capital.

I'm using farms because I know farm finance, but the same concept can apply to any highly leveraged business. These are new businesses, heavily invested in durable goods, and generally good for the economy. This puts a brake on a lot of small business - I don't know the impact it will have on the economy, but capital structure is very difficult to change, so it could have a huge impact on people by changing the rules in the middle of the game.

[Northwestcoug]

Your taxes go up by a couple thousand. Your 401k goes up by 5x that amount. Seems like Trump and the GOP finally figured it out. Give lower middle class a cash tax break and give the upper middle class an increase in the stock market (which offsets their cash tax increase). Everyone is happy and the GOP stays in power at the midterms.

The GOP doesn’t care about deficits. The Dems don’t care about the poor or the environment. We all just want more power and more money.


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I’m going to hold you to that.

[Moliere]

Let's see, my taxes go up and the deficit explodes. Thanks for nothing.

Please, can we stop pretending that republicans care about deficits and fiscal responsibility?

Your taxes go up by a couple thousand. Your 401k goes up by 5x that amount. Seems like Trump and the GOP finally figured it out. Give lower middle class a cash tax break and give the upper middle class an increase in the stock market (which offsets their cash tax increase). Everyone is happy and the GOP stays in power at the midterms.

The GOP doesn’t care about deficits. The Dems don’t care about the poor or the environment. We all just want more power and more money.


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[Jeff Lebowski]

Let's see, my taxes go up and the deficit explodes. Thanks for nothing.

Please, can we stop pretending that republicans care about deficits and fiscal responsibility?

[frank ryan]

Some tax relief for you guys with private jets! Desperately needed.

http://www.independent.co.uk/news/wo...-a8088226.html

[CardiacCoug]

I’ve gotta agree with Orin — seems like doubling the standard deduction and increasing the child tax credit would be very good for lower middle class people who rent.

[Moliere]

Who’s Orin?


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