2017 Trump Tax Cuts did not go to the wealthiest 1%

[struth]

The tax cuts had to have a sunset cause due to congressional rules

Tax cuts for corporations didn’t sunset in the Trump tax cut. There’s no rule saying they have to sunset.

nope the confessional rules didn’t require it

but that’s not keeping them peremanent

as we see the dembots trying to raise taxes there to...as if inflation under their policies hasn’t been enough...yet another burden to the cost of products and services to the working class

The Republican Congress could have made tax cuts for the middle class permanent, but would have to add sunset provisions to the corporate tax cut. They had to chose who to prioritize and it wasn’t the average joe.

being made permanent doesn’t matter as the next congress can change the laws

the realilty is the dems didn’t support the tax cuts and are now raising taxes

just admit the truth

They’ll raise taxes on some, which is exactly what they campaigned on.

Just remember, when Republicans had to make a choice between middle class and corporations, they went for the corporations. Priorities.

nope on every worming american

and no that’s not what they campaigned on

they didn’t make a choice they want raise it on everyone

 

[Winston]

Why can't you invest when taxes go up? You don't pay taxes on money you put back in the business, so what difference does the tax rate make when it comes to making an investment?

Use WACC.......show that it makes no difference.

The WACC is irrelevant in this case. You don't pay taxes on money you reinvest in the business. So why should the tax rate make a difference?

You still haven't figured out your WACC confusion, have you?

I am not confused,

The rate of corporate tax that companies pay in the U.S. plays a major part in determining WACC because as tax rates go up, the WACC falls.

How Does the Corporate Tax Rate Affect WACC? | Bizfluent

A company’s weighted average cost of capital, commonly abbreviated as WACC, is part of the calculation of a required return necessary to make a capital-budgeting project worth undertaking. Corporate taxes impact the WACC calculation because of many factors, including deductions and the tax rate.

yourbusiness.azcentral.com

Cool. So prove your claim that someone is more likely to invest at a 35% corporate rate than at a 21% corporate rate. Assume a pre-tax profit of $1 million.......

Do you really believe that a company would refuse a one million dollar profit because they have to pay taxes? Let's say the tax rate is 50%, what, the company doesn't want to put a half million dollars in the bank at the end of the year?

But you are creating a scenario that has no bearing on the real world. Companies don't know if a capital investment will pay off or not. If you want to know how the WACC factors in, along with the marginal tax rate, I will give it a shot.

Typically companies have an IRR that is required to initiate a capital investment. The anticipated IRR is usually projected using a Monte Carlo stimulation with an optimistic projection, a pessimistic projection, and an average baseline projection. If the results project a higher than required IRR the project will be implemented. We have already established that the WACC is inversely related to the marginal tax rate, so the higher the marginal tax rate the lower the WACC and thereby the higher the generated IRR. Typically, that required IRR is lower when marginal tax rates are higher because the risk of loss is offset by the tax implications of that loss.

We see that playing out today. Companies are sitting on piles of cash, and the investments they are making are usually very low risk, low returning, investments. That is because the lower corporate tax rate has increased the cost of a bad investment, they are risk averse. There is an old saying among old time investment managers. It is not the return on an investment a business is concerned with, it is the return of the investment.

So I will make a prediction. If Biden is able to push through a corporate tax increase, which I doubt he can with the current Senate, business investment will increase more sharply than it did when Trump cut that rate.

Do you really believe that a company would refuse a one million dollar profit because they have to pay taxes?

Do you really believe investment is higher at 35% than at 21%?

Corporate tax rates and economic growth since 1947

Cutting corporate taxes won't spur economic growth, and there is no evidence that high corporate taxes have a negative impact on the economy. In fact, there is no correlation at all between corporate tax rates and economic growth.

www.epi.org

 

[edthecynic]

the cuts for wage earners are completely gone by 2025,

The Dems could make that cut permanent....today.

So you want Dems to cut the taxes Tramp is raising.
They want to do just that but they want to pay for that tax cut by raising taxes on the wealthy rather than by borrowing like the GOPQ want to do, but the GOPQ are blocking the middle class tax cut of Biden.

 

[edthecynic]

The tax cuts had to have a sunset cause due to congressional rules

BULLSHIT!
Congressional rules didn't require them to sunset the middle class tax cuts, they could just as well sunset the tax cuts for the wealthy. The GOPQ chose to screw the middle class, as they ALWAYS do!

 

[edthecynic]

Wealth is defined as the value of your assets.

Net value. That's why a property tax is different from a wealth tax.

But isn't your property asset part of your net worth?
Why yes, yes it is!

 

[Dragonlady]

We now have over 600 billionaires, If its true that most of us struggled to remain in our attained level of living, then how during this on going mess did those at the top manage to increase their wealth by a trillion dollars?

When I was young the Chinese rode bikes to work, now they ride Mercedes. They have more billionaires than the US

List of Chinese by net worth - Wikipedia

en.wikipedia.org

Wikipedia is not a reliable source. There are NOT more billionaires in China than the US. But considering that their workers are paid almost nothing, it's not taking them long to catch up. That's what happens when the all the money goes to the business owners. The rich get richer.

The 10 Richest Chinese Billionaires In 2021

From the man behind TikTok to a bottled water mogul, China’s billionaires have had a bounce back year, as its 10 richest roughly doubled their fortunes compared to a year ago.

www.forbes.com

The ONLY way reason the USA has more billionaires is that your workers are paid so much less than the first world. In other first world countries, workers get a much larger piece of the pie, plus health insurance is included in taxes.

 

[Toddsterpatriot]

So you want Dems to cut the taxes Tramp is raising.

The Dems don't want to cut middle class taxes? Weird.

 

[Toddsterpatriot]

Wealth is defined as the value of your assets.

Net value. That's why a property tax is different from a wealth tax.

But isn't your property asset part of your net worth?
Why yes, yes it is!

The equity in my home is part of my net worth.
Is property tax based on the equity?

 

[Toddsterpatriot]

Why can't you invest when taxes go up? You don't pay taxes on money you put back in the business, so what difference does the tax rate make when it comes to making an investment?

Use WACC.......show that it makes no difference.

The WACC is irrelevant in this case. You don't pay taxes on money you reinvest in the business. So why should the tax rate make a difference?

You still haven't figured out your WACC confusion, have you?

I am not confused,

The rate of corporate tax that companies pay in the U.S. plays a major part in determining WACC because as tax rates go up, the WACC falls.

How Does the Corporate Tax Rate Affect WACC? | Bizfluent

A company’s weighted average cost of capital, commonly abbreviated as WACC, is part of the calculation of a required return necessary to make a capital-budgeting project worth undertaking. Corporate taxes impact the WACC calculation because of many factors, including deductions and the tax rate.

yourbusiness.azcentral.com

Cool. So prove your claim that someone is more likely to invest at a 35% corporate rate than at a 21% corporate rate. Assume a pre-tax profit of $1 million.......

Do you really believe that a company would refuse a one million dollar profit because they have to pay taxes? Let's say the tax rate is 50%, what, the company doesn't want to put a half million dollars in the bank at the end of the year?

But you are creating a scenario that has no bearing on the real world. Companies don't know if a capital investment will pay off or not. If you want to know how the WACC factors in, along with the marginal tax rate, I will give it a shot.

Typically companies have an IRR that is required to initiate a capital investment. The anticipated IRR is usually projected using a Monte Carlo stimulation with an optimistic projection, a pessimistic projection, and an average baseline projection. If the results project a higher than required IRR the project will be implemented. We have already established that the WACC is inversely related to the marginal tax rate, so the higher the marginal tax rate the lower the WACC and thereby the higher the generated IRR. Typically, that required IRR is lower when marginal tax rates are higher because the risk of loss is offset by the tax implications of that loss.

We see that playing out today. Companies are sitting on piles of cash, and the investments they are making are usually very low risk, low returning, investments. That is because the lower corporate tax rate has increased the cost of a bad investment, they are risk averse. There is an old saying among old time investment managers. It is not the return on an investment a business is concerned with, it is the return of the investment.

So I will make a prediction. If Biden is able to push through a corporate tax increase, which I doubt he can with the current Senate, business investment will increase more sharply than it did when Trump cut that rate.

Do you really believe that a company would refuse a one million dollar profit because they have to pay taxes?

Do you really believe investment is higher at 35% than at 21%?

Corporate tax rates and economic growth since 1947

Cutting corporate taxes won't spur economic growth, and there is no evidence that high corporate taxes have a negative impact on the economy. In fact, there is no correlation at all between corporate tax rates and economic growth.

www.epi.org

So that's a yes?

You really believe investment is higher at 35% than at 21%?

 

[task0778]

Just looked at my 2020 tax returns ... the first $441,450 in capital gains is tax free* ... $0 ... my entire tax liability was 1.3% of my AGI ... thievin' bastards ... thank you all for paying my fair share of the tax load ... seven come eleven baby, Las Vegas wouldn't be the same without y'all's generosity ...

* = Qualified Dividend and Capital Gains Worksheet, Instructions for IRS Form 1040 (2020), page 35, line 13 ...

Just looked at my 2020 tax returns ... the first $441,450 in capital gains is tax free*

You're confused.

Section 1231 property ... look it up ...

"the first $441,450 in capital gains is tax free* ... $0"

Bullshit, that is a lie. The only way you can get out of paying CG tax of that magnitude is if you offset it with CG losses of a equal amount, or you had some other write-off.

Here's the reality.............

View attachment 497143

Okay, I stand corrected, apologies to ReinyDays.

 

[Toddsterpatriot]

Just looked at my 2020 tax returns ... the first $441,450 in capital gains is tax free* ... $0 ... my entire tax liability was 1.3% of my AGI ... thievin' bastards ... thank you all for paying my fair share of the tax load ... seven come eleven baby, Las Vegas wouldn't be the same without y'all's generosity ...

* = Qualified Dividend and Capital Gains Worksheet, Instructions for IRS Form 1040 (2020), page 35, line 13 ...

Just looked at my 2020 tax returns ... the first $441,450 in capital gains is tax free*

You're confused.

Section 1231 property ... look it up ...

"the first $441,450 in capital gains is tax free* ... $0"

Bullshit, that is a lie. The only way you can get out of paying CG tax of that magnitude is if you offset it with CG losses of a equal amount, or you had some other write-off.

Here's the reality.............

View attachment 497143

Okay, I stand corrected, apologies to ReinyDays.

Don't apologize, he was wrong.

"the first $441,450 in capital gains is tax free* ... $0"

Wrong. Below $40,000 in taxable income, capital gains is untaxed.
Between $40,001 and $451,450 in taxable income, capital gains is taxed at 15%.

 

[frigidweirdo]

Doesn't mean they weren't paying LESS in tax on what they were making. The US economy was better in 2018 than 2017, they should have been paying MORE in 2018.

Yes, it was better, that was the whole point of cutting tax rates, to make the economy grow stronger.

The problem with the US and their tax cutting is that they're encouraging boom and bust. Which benefits the rich.

 

[LAUGHatLEFTISTS]

Trump's tax cut was across the board every income tax payer under $500,000 per year got one...and undoing it will raise everyone's taxes....

With being almost 30 trillion in debt would be the thing to do.

You do understand taxes can be cut and the resulting economic activity can and has generated more tax revenue for the federal government ? Would you like to see the numbers after Kennedy cut taxes?

Yes, it worked with Kennedy, because marginal tax rates for those in the highest income classes were close to 90%. But it does not always work. It did not work with Reagan, nor Bush, nor Trump. It will not work when marginal tax rates are less than fifty percent, probably not work when they are less than sixty percent. The whole concept of cutting taxes to increase revenue is based on the Laffer curve, and the key word there is curve. Tax cuts result in more revenue at the high end of the curve, less revenue at the low end of the curve.

Yes, in leftist land tax cuts only work when a democrat is president hahahaha.
Sorry, they worked under Reagan Bush and Trump. The numbers agree.

 

[LAUGHatLEFTISTS]

Trump's Tax Cut Was Very Good to the $200,000 to $1 Million Set

Changes to the Alternative Minimum Tax brought big benefits to those with high — but not the highest — incomes, 2018 tax data show.

www.bloomberg.com

The biggest benefit went to the $250-$450K income group

And?

 

[LAUGHatLEFTISTS]

the cuts for wage earners are completely gone by 2025,

The Dems could make that cut permanent....today.

So you want Dems to cut the taxes Tramp is raising.
They want to do just that but they want to pay for that tax cut by raising taxes on the wealthy rather than by borrowing like the GOPQ want to do, but the GOPQ are blocking the middle class tax cut of Biden.

Pure fantasy.

 

[LAUGHatLEFTISTS]

We now have over 600 billionaires, If its true that most of us struggled to remain in our attained level of living, then how during this on going mess did those at the top manage to increase their wealth by a trillion dollars?

When I was young the Chinese rode bikes to work, now they ride Mercedes. They have more billionaires than the US

List of Chinese by net worth - Wikipedia

en.wikipedia.org

Wikipedia is not a reliable source. There are NOT more billionaires in China than the US. But considering that their workers are paid almost nothing, it's not taking them long to catch up. That's what happens when the all the money goes to the business owners. The rich get richer.

The 10 Richest Chinese Billionaires In 2021

From the man behind TikTok to a bottled water mogul, China’s billionaires have had a bounce back year, as its 10 richest roughly doubled their fortunes compared to a year ago.

www.forbes.com

The ONLY way reason the USA has more billionaires is that your workers are paid so much less than the first world. In other first world countries, workers get a much larger piece of the pie, plus health insurance is included in taxes.

Another fantasy from the old Canadien hag.

 

[pknopp]

Trump's tax cut was across the board every income tax payer under $500,000 per year got one...and undoing it will raise everyone's taxes....

With being almost 30 trillion in debt would be the thing to do.

You do understand taxes can be cut and the resulting economic activity can and has generated more tax revenue for the federal government ? Would you like to see the numbers after Kennedy cut taxes?

Yes, it worked with Kennedy, because marginal tax rates for those in the highest income classes were close to 90%. But it does not always work. It did not work with Reagan, nor Bush, nor Trump. It will not work when marginal tax rates are less than fifty percent, probably not work when they are less than sixty percent. The whole concept of cutting taxes to increase revenue is based on the Laffer curve, and the key word there is curve. Tax cuts result in more revenue at the high end of the curve, less revenue at the low end of the curve.

Yes, in leftist land tax cuts only work when a democrat is president hahahaha.
Sorry, they worked under Reagan Bush and Trump. The numbers agree.

If you consider massive debt working.

 

[Nostra]

Trump's tax cut was across the board every income tax payer under $500,000 per year got one...and undoing it will raise everyone's taxes....

Except the meager tax cut to the poor was temporary, declining every year to 0, the tax cuts to the wealthy and businesses were permanent!

What is considered “poor”? What earned income tax do the poor pay after credits and exemptions? The people that get hit hardest with taxes are The Middle Class. Democrats will never admit this nor will they admit that the wealthy minimize their earned income so they don’t get hit either.

Whatever tax cut to wage earners that they get, it is still TEMPORARY, unlike the wealthy whose tax cuts are permanent. I noticed you avoided that FACT

Trump doubled the standard deduction which the vast majority of middle class workers use. That hasn't changed.

 

[Nostra]

Xiden’s plan would raise taxes on the working class and do away with trumps tax cuts to the working class...who had the largest cuts

Tramp already did away with his working class tax cuts, where have you been.
Republicans made individual tax cuts temporary so they could meet budget rules that let them pass their tax overhaul with no Democratic votes.

No he didn't...the cuts are still there.

The tax increase is written right in Tramp's tax law, the cuts for wage earners are completely gone by 2025, so it is Tramp raising taxes on the middle class, NOT Biden.

Why hasn't Veggie Joe, Nazi Pelousy, and Cryin' Chucky made them permanent? They control everything.

Can't blame Trump for them ignoring the middle class.

 

[Nostra]

The whole “tax cuts spur growth” talk needs to answer why GDP growth in 2018 was 2.9%

What was GDP growth in 2017? In 2016?

2017 was 2.37%. 2016 was 1.7%. 2015 was 3.1% FWIW.

So Barry handed Trump an economy with a declining GDP growth rate.