Biden Needs To Do Some "Guys I Get It I'm Going To Avoid Major Screw-ups On My Tax Policy" I'm On The Reconsidering Track!

JimofPennsylvan

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Vice-President Biden needs to do some noteworthy "Can't Do It Or Announce It Fast Enough" reconsidering on his tax plan; that being said his overall plan will put America on a better path than it is heading on! His overall plan to increase taxes on the wealthy who can afford it and to increase taxes on corporations who were treated overly generous in the 2017 Tax Cut legislation and steer that money to low and middle income Americans by doing things like more than doubling the child care tax credit to $8,000.00 is terrific and exactly what America needs. His tax changes to penalize business owners that close down businesses and ship the jobs overseas is long long over due policy for America it is about time a major political party in the country supported concrete changes to the system that in "deed" says to American manufacturing workers and their families we care about your middle class incomes and we will fight for that for you!



On this stopping and reversing the hollowing out of manufacturing in America and its accompanying middle class jobs Biden plans include having a 10% offshoring penalty tax, a real good move, the additional tax would apply to the making of goods and services moved off shore and than sold back to America. Another good feature of the Biden plan would force U.S. businesses that off-shore the making of good and services to eat the entire expense of that move such a business would not be able to deduct such expenses from their revenue to reduce their taxable income. Also good the ten percent Made In America Advanceable tax credit; however, Mr. Biden should limit that to the cost to re-shore manufacturing and servicing businesses to America not provide it to any improving and the like manufacturing businesses in America. Such a broad in scope tax credit would be too expensive for America; yet if we're talking about a 2011 stimulus bill to try to fix the economic damage from Covid 19 and the expansive ten percent credit only applies for two to three years then it is a winner policy!

One area where Mr. Biden is making a colossal mistake that will create ongoing harm whose tentacles will extend throughout the nation is his plan to increase the tax rate on foreign earned income for U.S. corporations, he wants to increase the tax rate from ten and a half percent to twenty-one percent. This idea prompts one to say Joe what have you had your head in a hole in the ground for the last twenty-five years do you want to turn back the clock to where workers and communities of U.S. Corporations have to worry about their employers becoming foreign corporations and taking their jobs and plants to a foreign country. Over this long debate it has pretty much arisen as common agreement amongst those informed responsible citizens following it that fairness calls for allowing businesses that operate internationally to just pay the tax rate for the country where the business is conducted and the profit made. The ten and a half percent was a good compromise because if you have a system that allows businesses to just pay the tax rate in the foreign country they operate in they will tend to want to move as much of the business and income as they can to the lower tax rate jurisdictions thus out of America and the ten and a half percent rate says to Executives that think like that it is largely not worth it to act like this because yes you pay the lower foreign tax rate but you will have to pay the ten and a half percent on top of that, and consider all the other challenges of operating in a foreign country it is not worth it! To completely understand this debate one must understand that the 2017 tax reform legislation as one might expect for it has to do with America's tax code made this whole issue extremely complex there is all this terminology they added and there is interim calculations that have to be made. See what the Republicans were trying to do in 2017 is not implement the above territorial system of taxation compromise they were trying to implement a territorial system of taxation but their protections against income shifting to lower tax jurisdictions were only meant to be for show. Ignoring the confusing terminology the Republicans used what they in effect did was reduce the foreign earnings amount subject to the ten and a half percent tax rate by ten percent of the value of the taxpayers foreign assets their logic was that a fair return on investment was ten percent so this ten percent could not be manipulated income plus what the Republicans did was for the tax charge on this income stream, the product of this .105 times this foreign income amount, what the Republicans did was allowed the corporate tax payer to get a credit for eighty percent of the foreign taxes paid by the taxpayer - the protection against income shifting obviously then became a joke because they were so minimal! For Vice-President Biden tax policy he correctly has announced that he wants to do away with the "ten percent of assets" deduction and the credit for foreign taxes paid (fairness can be provided by allowing the foreign income amount to be reduced by the amount of foreign taxes paid) but Joe Biden should not subject these foreign earnings to the U.S. corporate tax rate whether it be twenty-eight or twenty-one percent (specify it at its current ten and a half percent or make it twelve and a half percent that was the compromise range) otherwise he is abandoning the territorial system of taxation and re-inflicting on America the mega problems this framework sought to fix! One aside note if the Biden team is looking to raise tax revenue and I am not a tax accountant here and don't have a firm idea but it seems to me that in this area of deductions against corporate income involving an intellectual property expense when the fee is paid to one of the taxpayers corporate affiliates that there is probably unfairness going on here. Remember the taxpayer owns the affiliate so legally the taxpayer owns the affiliate's intellectual property so why pay to use something you own, the affiliate is not making a part or providing a service for the taxpayer here where the affiliate is incurring a direct cost, it seems like a lot of slight of hand or paperwork games is going on here, it would be nice if the U.S. tax code could ensure that these intellectual property deductions were truly fair and justified!


Vice-President Biden's plan to raise the long-term capital gains tax on individual taxpayers making over one million dollars from twenty percent to thirty-nine and six-tenths percent is a bad idea. Such a move would risk valuable capital investment by this block of investors their thinking would probably be if the Federal government is going to taking this big of chunk out of my investment profits I am not going to take significant risk it isn't worth it so these investors will not send their capital to new businesses and aggressive risk taking businesses so consequently these businesses won't grow as well and there will be a lot of ancillary fall out these business won't hire as much, won't pay as well and will rein in capital investment there very well may be a negative significant cascading effect through the economy from this tax move - President Biden would be rolling the dice with significant good economic activity in America the bet - prudence doesn't make such a bet. If I was Mr. Biden I would just raise the capital gains rate on these high income taxpayers to thirty percent and let future Democrat presidents revisit the issue where they will have economic statistics from a President Biden move where they can study the hell out of the issue and know if they raise it higher they will do no significant harm! This capital investment suppression effect is even more likely if one factors in the 3.8 Net Investment Income Tax rate these taxpayers pay on their capital gain income! Biden's plan to replace the step-up in basis treatment for property when someone dies by taxing the capital appreciation at the time of death is bad policy, it is being overly aggressive in seeking to raise revenue and it is inconsiderate to American families that have lost a loved one and would in many cases be faced with a large tax bill with this policy at this difficult time; however, in light of the fact the country is really in bad financial shape Biden should pursue doing away with step-up basis it would not be that hard to implement; for most states when a person dies the estate has to file paperwork with the state accounting for all the assets in the estate the only thing the Federal government needs to do is require the estates at the time of death to file a form with the IRS providing for the basis for all that property in the estate, on the state paperwork, so whenever the beneficiary sells the property the IRS has a way to check the actual gain on the sale. If the Biden team is looking to raise tax revenue I would look at some of the capital gain tax loop holes in the tax code a lot of it sounds hokey and unfair and unjustifiable; like the opportunity zone deal I get the you don't have to pay taxes on capital gains from that investment that is the help to invest in those communities that need help but I don't get at all you get to defer paying taxes on past capital gains and if you meet certain time requirements you get to exclude fifteen percent of that past profit; or investors in Qualified Small Businesses whose value is under $50 million dollars don't have to pay a capital gains o there is a limit of $10 million dollars on this exclusion "How conscientious of Congress"!


Vice-President Biden plan on a Social Security tax increase on high earners is immoral and unjust. The Social Security tax rate is 12.4 % on income the employer pays 6.2 % and the employee pays 6.2%; currently that rate is applied to income up to $138,000 meaning on income above that threshold the taxpayer pays no tax. Vice-President Biden wants to create a donut hole meaning allow no Social Security tax on income above $137,700 up to $400,000 but then for all income above 400K apply the tax. This is wrong this is abusive and unjust to these American citizens, the individual income tax rate will be 39.6 % during a Biden administration for these high income earners, many states for these high income earners have a tax rate of eight, nine or ten percent and many incomes across America have a local income tax rate and you have the 1.45% Medicare tax and with the 6.2 % Social security tax rate these taxpayers will be paying well over fifty percent of their income in taxes and that is unjust, people have a natural right to enjoy a fair portion of the income they earn and when the collective government takes significantly more than fifty percent it is being unfair. Remember the social security tax is a pension payment the underlying principle behind it is that you pay into the plan during your working years and when you retire you get the money back in the form of pension payments; with this Biden policy change it is no longer a pension system for these affected tax payers it is just an additional income tax and as described an unjust one! Because the country's finances are in such dire straits it would be legitimate for the Federal government to double the maximum pension system payment against these individuals meaning now apply the tax to earnings above 400k but cap the income subject to the tax at $537,700 and put all these new thresholds on the same index as the current threshold!

Vice President Biden plans to raise the corporate income tax rate from twenty-one percent to twenty-eight percent it sure would be better for avoiding division and conflict with the Republicans if he would just raise it to Twenty-five percent because if he goes the twenty-eight percent route Republicans are going to clamor all throughout his administration that the corporate tax rate is not competitive internationally and it is hurting business from locating in America and you know when the Republicans get back in power they will use the uncompetitive rate argument to largely push the legislation through to change it to twenty-five percent the rate centrist Republicans wanted all along and you know they aren't stopping there they will add a whole lot of little provisions special interests like and the American people will end up with a worse tax system. Mr. Biden help get America off this tax ferris-wheel the future seems to be offering by just raising the rate to twenty-five percent. Vice-President Biden during one of the debates you said something like the tax code has an abundance of loopholes and bad tax policy in it that cost the American people a lot of money and that you aim to fix it, you were spot on in your assessment and to date have offered some good tax policy changes but your team could do a much better job get them to keep their nose to the grindstone and really deliver on your offer to America!
 

Chuz Life

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So, you support forcing poor people to pay more for everything.

Why?
 

White 6

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Vice-President Biden needs to do some noteworthy "Can't Do It Or Announce It Fast Enough" reconsidering on his tax plan; that being said his overall plan will put America on a better path than it is heading on! His overall plan to increase taxes on the wealthy who can afford it and to increase taxes on corporations who were treated overly generous in the 2017 Tax Cut legislation and steer that money to low and middle income Americans by doing things like more than doubling the child care tax credit to $8,000.00 is terrific and exactly what America needs. His tax changes to penalize business owners that close down businesses and ship the jobs overseas is long long over due policy for America it is about time a major political party in the country supported concrete changes to the system that in "deed" says to American manufacturing workers and their families we care about your middle class incomes and we will fight for that for you!



On this stopping and reversing the hollowing out of manufacturing in America and its accompanying middle class jobs Biden plans include having a 10% offshoring penalty tax, a real good move, the additional tax would apply to the making of goods and services moved off shore and than sold back to America. Another good feature of the Biden plan would force U.S. businesses that off-shore the making of good and services to eat the entire expense of that move such a business would not be able to deduct such expenses from their revenue to reduce their taxable income. Also good the ten percent Made In America Advanceable tax credit; however, Mr. Biden should limit that to the cost to re-shore manufacturing and servicing businesses to America not provide it to any improving and the like manufacturing businesses in America. Such a broad in scope tax credit would be too expensive for America; yet if we're talking about a 2011 stimulus bill to try to fix the economic damage from Covid 19 and the expansive ten percent credit only applies for two to three years then it is a winner policy!

One area where Mr. Biden is making a colossal mistake that will create ongoing harm whose tentacles will extend throughout the nation is his plan to increase the tax rate on foreign earned income for U.S. corporations, he wants to increase the tax rate from ten and a half percent to twenty-one percent. This idea prompts one to say Joe what have you had your head in a hole in the ground for the last twenty-five years do you want to turn back the clock to where workers and communities of U.S. Corporations have to worry about their employers becoming foreign corporations and taking their jobs and plants to a foreign country. Over this long debate it has pretty much arisen as common agreement amongst those informed responsible citizens following it that fairness calls for allowing businesses that operate internationally to just pay the tax rate for the country where the business is conducted and the profit made. The ten and a half percent was a good compromise because if you have a system that allows businesses to just pay the tax rate in the foreign country they operate in they will tend to want to move as much of the business and income as they can to the lower tax rate jurisdictions thus out of America and the ten and a half percent rate says to Executives that think like that it is largely not worth it to act like this because yes you pay the lower foreign tax rate but you will have to pay the ten and a half percent on top of that, and consider all the other challenges of operating in a foreign country it is not worth it! To completely understand this debate one must understand that the 2017 tax reform legislation as one might expect for it has to do with America's tax code made this whole issue extremely complex there is all this terminology they added and there is interim calculations that have to be made. See what the Republicans were trying to do in 2017 is not implement the above territorial system of taxation compromise they were trying to implement a territorial system of taxation but their protections against income shifting to lower tax jurisdictions were only meant to be for show. Ignoring the confusing terminology the Republicans used what they in effect did was reduce the foreign earnings amount subject to the ten and a half percent tax rate by ten percent of the value of the taxpayers foreign assets their logic was that a fair return on investment was ten percent so this ten percent could not be manipulated income plus what the Republicans did was for the tax charge on this income stream, the product of this .105 times this foreign income amount, what the Republicans did was allowed the corporate tax payer to get a credit for eighty percent of the foreign taxes paid by the taxpayer - the protection against income shifting obviously then became a joke because they were so minimal! For Vice-President Biden tax policy he correctly has announced that he wants to do away with the "ten percent of assets" deduction and the credit for foreign taxes paid (fairness can be provided by allowing the foreign income amount to be reduced by the amount of foreign taxes paid) but Joe Biden should not subject these foreign earnings to the U.S. corporate tax rate whether it be twenty-eight or twenty-one percent (specify it at its current ten and a half percent or make it twelve and a half percent that was the compromise range) otherwise he is abandoning the territorial system of taxation and re-inflicting on America the mega problems this framework sought to fix! One aside note if the Biden team is looking to raise tax revenue and I am not a tax accountant here and don't have a firm idea but it seems to me that in this area of deductions against corporate income involving an intellectual property expense when the fee is paid to one of the taxpayers corporate affiliates that there is probably unfairness going on here. Remember the taxpayer owns the affiliate so legally the taxpayer owns the affiliate's intellectual property so why pay to use something you own, the affiliate is not making a part or providing a service for the taxpayer here where the affiliate is incurring a direct cost, it seems like a lot of slight of hand or paperwork games is going on here, it would be nice if the U.S. tax code could ensure that these intellectual property deductions were truly fair and justified!


Vice-President Biden's plan to raise the long-term capital gains tax on individual taxpayers making over one million dollars from twenty percent to thirty-nine and six-tenths percent is a bad idea. Such a move would risk valuable capital investment by this block of investors their thinking would probably be if the Federal government is going to taking this big of chunk out of my investment profits I am not going to take significant risk it isn't worth it so these investors will not send their capital to new businesses and aggressive risk taking businesses so consequently these businesses won't grow as well and there will be a lot of ancillary fall out these business won't hire as much, won't pay as well and will rein in capital investment there very well may be a negative significant cascading effect through the economy from this tax move - President Biden would be rolling the dice with significant good economic activity in America the bet - prudence doesn't make such a bet. If I was Mr. Biden I would just raise the capital gains rate on these high income taxpayers to thirty percent and let future Democrat presidents revisit the issue where they will have economic statistics from a President Biden move where they can study the hell out of the issue and know if they raise it higher they will do no significant harm! This capital investment suppression effect is even more likely if one factors in the 3.8 Net Investment Income Tax rate these taxpayers pay on their capital gain income! Biden's plan to replace the step-up in basis treatment for property when someone dies by taxing the capital appreciation at the time of death is bad policy, it is being overly aggressive in seeking to raise revenue and it is inconsiderate to American families that have lost a loved one and would in many cases be faced with a large tax bill with this policy at this difficult time; however, in light of the fact the country is really in bad financial shape Biden should pursue doing away with step-up basis it would not be that hard to implement; for most states when a person dies the estate has to file paperwork with the state accounting for all the assets in the estate the only thing the Federal government needs to do is require the estates at the time of death to file a form with the IRS providing for the basis for all that property in the estate, on the state paperwork, so whenever the beneficiary sells the property the IRS has a way to check the actual gain on the sale. If the Biden team is looking to raise tax revenue I would look at some of the capital gain tax loop holes in the tax code a lot of it sounds hokey and unfair and unjustifiable; like the opportunity zone deal I get the you don't have to pay taxes on capital gains from that investment that is the help to invest in those communities that need help but I don't get at all you get to defer paying taxes on past capital gains and if you meet certain time requirements you get to exclude fifteen percent of that past profit; or investors in Qualified Small Businesses whose value is under $50 million dollars don't have to pay a capital gains o there is a limit of $10 million dollars on this exclusion "How conscientious of Congress"!


Vice-President Biden plan on a Social Security tax increase on high earners is immoral and unjust. The Social Security tax rate is 12.4 % on income the employer pays 6.2 % and the employee pays 6.2%; currently that rate is applied to income up to $138,000 meaning on income above that threshold the taxpayer pays no tax. Vice-President Biden wants to create a donut hole meaning allow no Social Security tax on income above $137,700 up to $400,000 but then for all income above 400K apply the tax. This is wrong this is abusive and unjust to these American citizens, the individual income tax rate will be 39.6 % during a Biden administration for these high income earners, many states for these high income earners have a tax rate of eight, nine or ten percent and many incomes across America have a local income tax rate and you have the 1.45% Medicare tax and with the 6.2 % Social security tax rate these taxpayers will be paying well over fifty percent of their income in taxes and that is unjust, people have a natural right to enjoy a fair portion of the income they earn and when the collective government takes significantly more than fifty percent it is being unfair. Remember the social security tax is a pension payment the underlying principle behind it is that you pay into the plan during your working years and when you retire you get the money back in the form of pension payments; with this Biden policy change it is no longer a pension system for these affected tax payers it is just an additional income tax and as described an unjust one! Because the country's finances are in such dire straits it would be legitimate for the Federal government to double the maximum pension system payment against these individuals meaning now apply the tax to earnings above 400k but cap the income subject to the tax at $537,700 and put all these new thresholds on the same index as the current threshold!

Vice President Biden plans to raise the corporate income tax rate from twenty-one percent to twenty-eight percent it sure would be better for avoiding division and conflict with the Republicans if he would just raise it to Twenty-five percent because if he goes the twenty-eight percent route Republicans are going to clamor all throughout his administration that the corporate tax rate is not competitive internationally and it is hurting business from locating in America and you know when the Republicans get back in power they will use the uncompetitive rate argument to largely push the legislation through to change it to twenty-five percent the rate centrist Republicans wanted all along and you know they aren't stopping there they will add a whole lot of little provisions special interests like and the American people will end up with a worse tax system. Mr. Biden help get America off this tax ferris-wheel the future seems to be offering by just raising the rate to twenty-five percent. Vice-President Biden during one of the debates you said something like the tax code has an abundance of loopholes and bad tax policy in it that cost the American people a lot of money and that you aim to fix it, you were spot on in your assessment and to date have offered some good tax policy changes but your team could do a much better job get them to keep their nose to the grindstone and really deliver on your offer to America!
Really nice, point to point analysis, and stated plainly and logically enough, a non player such as myself could follow and understand. Thanks for the time it took you. It was well spent.
 

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