Why cut taxes?

[Moliere]

Why cut taxes?

Is it ironic that the Democrats are complaining about the tax bill being over 400 pages and the bill being pushed through quickly without people being given time to read it?


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[Jeff Lebowski]

Is it ironic that the Democrats are complaining about the tax bill being over 400 pages and the bill being pushed through quickly without people being given time to read it?


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Yes

[Uncle Ted]

Is it ironic that the Democrats are complaining about the tax bill being over 400 pages and the bill being pushed through quickly without people being given time to read it?

Well, so much for the dems adjourn motion...

http://thehill.com/blogs/blog-briefi...delay-tax-vote

[Uncle Ted]

What are the odds the house doesn't pass the 'massive tax cuts for the rich' senate bill?

Senate Passes Massive Tax Cuts For The Rich In Middle Of The Night

[Moliere]

Well, so much for the dems adjourn motion...

http://thehill.com/blogs/blog-briefi...delay-tax-vote

Ha! While I don't approve of how the bill was passed, I find it funny that these senators can't read cursive handwriting (which apparently, at least according to many congressional tweeters, isn't all that unusual to have on a bill )

[Uncle Ted]

The dems are taking it better than I thought...

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Yeah, y'all need to vote these guys out and then get congress to raise the corporate tax rate to 85%+. That will show those rich b*turds!

[Moliere]

Who’s Orin?


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[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.

[frank ryan]

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

http://www.independent.co.uk/news/world/americas/us-politics/tax-bill-senate-private-jet-owners-donald-trump-break-vote-bill-latest-a8088226.html

[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?

[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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[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.

[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.

[Jeff Lebowski]

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

[Northwestcoug]

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