Why cut taxes?

[Uncle Ted]

What do you call it when Bernie Sanders or another politician promise free health care, free college, free child care? Is that not vote buying? Is it really hyperbole to call it that?

And Trump wants to keep out muslims and build a wall. So is it real hyperbole to claim that republicans hate minorities? Is that not vote buying?

We can do this all day.

When are you dummies going to figure out both parties are just full of sh*t and just embrace the libertarian party?

[Uncle Ted]

A belated thanks to cowboy and others for some interesting thoughts. I especially like the changes to Social Security (pushing out the retirement age and lifting the cap). I’d also keep in place the relatively high tax rates for income above $1 Million. I’d kill the “carried interest” feature once and for all, and I’d put a temporary (six months?) tax of only 15% (maybe more, but below 20) on offshore funds being brought back into the U.S. I’d lower the corporate tax rate as well, but with an understanding that if these changes resulted in rising deficits, the higher rates are coming back.

Republicans are caving to PAC's demands... Well, almost.

House GOP tax plan will keep top 39.6% tax rate for rich, delay estate tax repeal for 2-3 years

The much-anticipated House GOP tax plan will keep the current top tax rate of 39.6% for the most affluent Americans but will make that bracket apply only to "substantially" higher incomes than the current $470,700 for couples, House Speaker Paul D. Ryan told a group of conservative interest groups Tuesday.


The plan will also delay any repeal of the estate tax for two to three years, the speaker told the group, according to participants in the private meeting.


Ryan said he wanted the House bill to immediately cut the corporate tax rate to 20% from the current 35%, but he acknowledged that the final version may be different. "I can't speak to what the Senate's going to do," he told the group.
[...]

http://www.latimes.com/politics/wash...htmlstory.html

[PaloAltoCougar]

When are you dummies going to figure out both parties are just full of sh*t and just embrace the libertarian party?

...

So sell me... Where will the significant spending cuts be made?

[Jeff Lebowski]

When are you dummies going to figure out both parties are just full of sh*t and just embrace the libertarian party?

See my sig line below.

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[Uncle Ted]

So sell me... Where will the significant spending cuts be made?

A Plan to Cut Federal Government Spending

https://object.cato.org/sites/cato.o.../9/hb111-4.pdf

[Uncle Ted]

See my sig line below.

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"Socialism is not bad IMHO" - byu71

[frank ryan]

See my sig line below.

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Come on now, Libertarians are serious people with serious ideas. Here is such person during the Libertarian convention.

https://youtu.be/Bl3ylFtOius?t=1m35s

[Uncle Ted]

Come on now, Libertarians are serious people with serious ideas. Here is such person during the Libertarian convention.

https://youtu.be/Bl3ylFtOius?t=1m35s

I think that guy would even be an improvement over our current president and the democrat's "most qualified candidate ever".

[Jeff Lebowski]

Come on now, Libertarians are serious people with serious ideas. Here is such person during the Libertarian convention.

https://youtu.be/Bl3ylFtOius?t=1m35s

Nobody takes libertarians seriously.

[cowboy]

A belated thanks to cowboy and others for some interesting thoughts. I especially like the changes to Social Security (pushing out the retirement age and lifting the cap). I’d also keep in place the relatively high tax rates for income above $1 Million. I’d kill the “carried interest” feature once and for all, and I’d put a temporary (six months?) tax of only 15% (maybe more, but below 20) on offshore funds being brought back into the U.S. I’d lower the corporate tax rate as well, but with an understanding that if these changes resulted in rising deficits, the higher rates are coming back.

Three thoughts:

1) I think the biggest bang for the buck is in capital gains tax cuts, followed closely by repatriation incentives.

2) I'm okay with higher tax rates for income above $1 million if it's indexed for inflation, and it's a marginal rate that begins at $1 million. Also, I think there should be an income averaging option for people who hit a 1-time high earning year. For example, a farmer who has a company build windmills on his place can either take a 20-year payout or a one-time lump sum. The best thing for the economy is for him to take a lump sum so he will invest in machinery, etc. that will immediately impact GDP and also make his farm more efficient. Income averaging would give him more incentive to make that move, where the current structure provides incentive for him to take the long-term payout.

3) I understand your intent with the corporate tax cut, but I'm not sure how one could prove the corporate tax rate affected deficits one way or another.

Other than that, all I have to say is this is an awesome World Series.

[wuapinmon]

1)I'd lower corporate tax rate to 28%, or 20% if you have a defined-benefit retirement plan that meets criteria determined down the line (not by politicians)
2) Raise capital gains exceptions for sale of primary residence to $350,000 per person, $700,000 per couple, once every 3 years.
3)Eliminate cap on Social Security max annual tax. All earnings will be taxed.
4) Raise SSI eligibility age to 72 for people born after 1970. 73 born after 1980, 75 born after 1990. 77 after 2000, 79 after 2010. 81 after 2020.
5) Social Security should require a means test to begin drawing it. If you have assets over a certain amount, you don't need "Social Security Insurance." Just because I've paid into my home, fire, and auto insurance policies my whole life doesn't mean I'm suddenly entitled to checks all the time....Social Security is insurance. The law should be written so that people can't put all their assets in trusts to avoid this rule.
6) Eliminate the mortgage interest deduction. Only slightly more than half of all Americans own a home and interest rates are at near historic lows. Kill the cow before the rates go back up.
7) Reauthorize deductions for EnergyStar windows, doors, appliances, insulation, etc on primary residences.
8) Special 5% deduction in corporate tax rate, beneath the 20% possible one, in any year that a company with over 300 employees keeps a full janitorial staff on the payroll the entire year (no outsourcing allowed) and the executive officers' pay (including options and bonuses--gross compensation) does not exceed the lowest paid employee's annual compensation by more than 35x his/her hourly wage. Also, all employees must enjoy the same health insurance package in order to qualify for this tax rate.
9) Raise the federal excise tax on gasoline from $18.2 where it's been since 1993 to 32¢, where it should be when adjusted for inflation. A gallon of gas costs double what it did in 1993. The tax should go up, and we could use the tax revenue for infrastructure.
10) $10 excise tax on the sale of every new smartphone sold in the USA. The money will go directly into Ajit Pai's personal bank account.

[Uncle Ted]

1)I'd lower corporate tax rate to 28%, or 20% if you have a defined-benefit retirement plan that meets criteria determined down the line (not by politicians)

Maybe that would incentivize to bring a few billion (of their $250b+) from offshore... If I was apple I would just build data centers and manufacturing plants outside of the states rather than pay the premium that the U.S. wants in taxes to build them here.

2) Raise capital gains exceptions for sale of primary residence to $350,000 per person, $700,000 per couple, once every 3 years.
3)Eliminate cap on Social Security max annual tax. All earnings will be taxed.
4) Raise SSI eligibility age to 72 for people born after 1970. 73 born after 1980, 75 born after 1990. 77 after 2000, 79 after 2010. 81 after 2020.

Yeah, sounds good to me.

5) Social Security should require a means test to begin drawing it. If you have assets over a certain amount, you don't need "Social Security Insurance." Just because I've paid into my home, fire, and auto insurance policies my whole life doesn't mean I'm suddenly entitled to checks all the time....Social Security is insurance. The law should be written so that people can't put all their assets in trusts to avoid this rule.

Wat? Change the rules on Social Security on people. I was promised that money! OK, maybe just change it for folks born after 1970.

6) Eliminate the mortgage interest deduction. Only slightly more than half of all Americans own a home and interest rates are at near historic lows. Kill the cow before the rates go back up.
7) Reauthorize deductions for EnergyStar windows, doors, appliances, insulation, etc on primary residences.

And don't forget credits for solar panels! I still need to get some of those.

8) Special 5% deduction in corporate tax rate, beneath the 20% possible one, in any year that a company with over 300 employees keeps a full janitorial staff on the payroll the entire year (no outsourcing allowed) and the executive officers' pay (including options and bonuses--gross compensation) does not exceed the lowest paid employee's annual compensation by more than 35x his/her hourly wage. Also, all employees must enjoy the same health insurance package in order to qualify for this tax rate.
9) Raise the federal excise tax on gasoline from $18.2 where it's been since 1993 to 32¢, where it should be when adjusted for inflation. A gallon of gas costs double what it did in 1993. The tax should go up, and we could use the tax revenue for infrastructure.
10) $10 excise tax on the sale of every new smartphone sold in the USA. The money will go directly into Ajit Pai's personal bank account.

WTF! Maybe apple will start taking Bitcoin.

[Goatnapper'96]

1)I'd lower corporate tax rate to 28%, or 20% if you have a defined-benefit retirement plan that meets criteria determined down the line (not by politicians)
2) Raise capital gains exceptions for sale of primary residence to $350,000 per person, $700,000 per couple, once every 3 years.
3)Eliminate cap on Social Security max annual tax. All earnings will be taxed.
4) Raise SSI eligibility age to 72 for people born after 1970. 73 born after 1980, 75 born after 1990. 77 after 2000, 79 after 2010. 81 after 2020.
5) Social Security should require a means test to begin drawing it. If you have assets over a certain amount, you don't need "Social Security Insurance." Just because I've paid into my home, fire, and auto insurance policies my whole life doesn't mean I'm suddenly entitled to checks all the time....Social Security is insurance. The law should be written so that people can't put all their assets in trusts to avoid this rule.
6) Eliminate the mortgage interest deduction. Only slightly more than half of all Americans own a home and interest rates are at near historic lows. Kill the cow before the rates go back up.
7) Reauthorize deductions for EnergyStar windows, doors, appliances, insulation, etc on primary residences.
8) Special 5% deduction in corporate tax rate, beneath the 20% possible one, in any year that a company with over 300 employees keeps a full janitorial staff on the payroll the entire year (no outsourcing allowed) and the executive officers' pay (including options and bonuses--gross compensation) does not exceed the lowest paid employee's annual compensation by more than 35x his/her hourly wage. Also, all employees must enjoy the same health insurance package in order to qualify for this tax rate.
9) Raise the federal excise tax on gasoline from $18.2 where it's been since 1993 to 32¢, where it should be when adjusted for inflation. A gallon of gas costs double what it did in 1993. The tax should go up, and we could use the tax revenue for infrastructure.
10) $10 excise tax on the sale of every new smartphone sold in the USA. The money will go directly into Ajit Pai's personal bank account.

I am in favor of some types of SSI means test as a pragmatic necessity but it grates on me to some extent as it encourages irresponsibility wrt to saving and planning for one's future, IMO. You call it insurance, I call it a tax designed to redistribute wealth especially if you uncap its assessment levels. But nobody is likely to want me to cry on their shoulder about it.

Really like #10 if it went to funding the only socialistic fund that I like - Federal Universal Service Fund!

[Topper]

I am in favor of some types of SSI means test as a pragmatic necessity but it grates on me to some extent as it encourages irresponsibility wrt to saving and planning for one's future, IMO. You call it insurance, I call it a tax designed to redistribute wealth especially if you uncap its assessment levels. But nobody is likely to want me to cry on their shoulder about it.

Really like #10 if it went to funding the only socialistic fund that I like - Federal Universal Service Fund!

This would be a betrayal of the purpose of the fund when established. You are obligated to pay on the fund, and were promised it would be there when you retire, but then you argue because you are successful despite paying into the fund for a lifetime that you are no longer entitled to receive anything?

I don't believe that is fair or politically viable.

Also lifting the tax cap is counter-intuitive. It is already at $127,000. Imagine that you have a means test where people who pay unlimited into the system have a promise they can never receive anything from it? Doesn't that strike resident socialists or redistributionists as somewhat unfair?

[creekster]

Wuap, social security is not casualty insurance. It is more like an annuity.