CDZ Tax reform: When Will Decent Tax Planning be Possible?

[william the wie]

The Devil is in the details and the copy President Trump pointed to during the signing ceremony certainly looked like "War and Peace" would be a short story by comparison even before the IRS and the courts turn it into worlds without end regulations.

Then there is the little matter of the infrastructure bill with no means of paying for it. The obvious answer to that is the protection of American jobs bill will be folded into the infrastructure bill such as building the wall and jail cells for illegals. This means using 19th century methods: paying the federal matching funds out of a tariff with a blanket tax rate of 5-10%. In other words tax the guy behind the tree with Mexico and Canada being the main guys behind the tree. That in turn means that many jobs will return to the US. This will be an unpleasant for Mexico and Canada.

Many foreign companies will find it necessary to establish subsidiaries in the US and many US companies bringing factories back to the US but the transmission for doing that means that the new jobs will go to Low SALT states. This could backfire on the Ds no matter what they do.

 

[DarkFury]

SALT States are going to suffer, just all there is to it. Investment wise the two year T bonds look good.
If we hold the house and Senate then the 10 year looks great. If we hold a majority in 2018 we may find ourselves more worried about inflation.

 

[william the wie]

SALT States are going to suffer, just all there is to it. Investment wise the two year T bonds look good.
If we hold the house and Senate then the 10 year looks great. If we hold a majority in 2018 we may find ourselves more worried about inflation.

That's certainly true without merit based immigration. believe it or don't contractors have waiting lists for their wood butcher classes because there aren't enough carpenters to go around and even helpers and day laborers are scarce.

 

[DarkFury]

Blue collar Union workers in SALT States will suffer the most. They are going to literally need hyper inflation and caused by State. Blue States will raise taxes to keep paying pensions that soon may not exist! So you see a state induced hyper inflation. Evidence of that can be found in Portland and Seattle. Many of the homeless in those two cities are living next to the highway in tents!

A state induce hyper inflation via taxes will drive the rest of the blue color out of the cities. SALT taxes mean the fiscal death of most if not many fairly large cities. You can take my argument from another political angle if you will.

Democrats want to make Trump look bad, they will CREATE hyper inflation to do just that!

Fury

 

[william the wie]

True but that will backfire.

 

[task0778]

The Devil is in the details and the copy President Trump pointed to during the signing ceremony certainly looked like "War and Peace" would be a short story by comparison even before the IRS and the courts turn it into worlds without end regulations.

Then there is the little matter of the infrastructure bill with no means of paying for it. The obvious answer to that is the protection of American jobs bill will be folded into the infrastructure bill such as building the wall and jail cells for illegals. This means using 19th century methods: paying the federal matching funds out of a tariff with a blanket tax rate of 5-10%. In other words tax the guy behind the tree with Mexico and Canada being the main guys behind the tree. That in turn means that many jobs will return to the US. This will be an unpleasant for Mexico and Canada.

Many foreign companies will find it necessary to establish subsidiaries in the US and many US companies bringing factories back to the US but the transmission for doing that means that the new jobs will go to Low SALT states. This could backfire on the Ds no matter what they do.

If the US places a blanket rate tariff of 5-10% or whatever then the rest of the world will do the same to us. Which means the price of goods and services will go up and the standard of living goes down. Hello inflation. The world went through this in the 1930s, Smoot-Hawley I think it was called. It wasn't pretty.

 

[william the wie]

The Devil is in the details and the copy President Trump pointed to during the signing ceremony certainly looked like "War and Peace" would be a short story by comparison even before the IRS and the courts turn it into worlds without end regulations.

Then there is the little matter of the infrastructure bill with no means of paying for it. The obvious answer to that is the protection of American jobs bill will be folded into the infrastructure bill such as building the wall and jail cells for illegals. This means using 19th century methods: paying the federal matching funds out of a tariff with a blanket tax rate of 5-10%. In other words tax the guy behind the tree with Mexico and Canada being the main guys behind the tree. That in turn means that many jobs will return to the US. This will be an unpleasant for Mexico and Canada.

Many foreign companies will find it necessary to establish subsidiaries in the US and many US companies bringing factories back to the US but the transmission for doing that means that the new jobs will go to Low SALT states. This could backfire on the Ds no matter what they do.

If the US places a blanket rate tariff of 5-10% or whatever then the rest of the world will do the same to us. Which means the price of goods and services will go up and the standard of living goes down. Hello inflation. The world went through this in the 1930s, Smoot-Hawley I think it was called. It wasn't pretty.

The Devil is in the details and the copy President Trump pointed to during the signing ceremony certainly looked like "War and Peace" would be a short story by comparison even before the IRS and the courts turn it into worlds without end regulations.

Then there is the little matter of the infrastructure bill with no means of paying for it. The obvious answer to that is the protection of American jobs bill will be folded into the infrastructure bill such as building the wall and jail cells for illegals. This means using 19th century methods: paying the federal matching funds out of a tariff with a blanket tax rate of 5-10%. In other words tax the guy behind the tree with Mexico and Canada being the main guys behind the tree. That in turn means that many jobs will return to the US. This will be an unpleasant for Mexico and Canada.

Many foreign companies will find it necessary to establish subsidiaries in the US and many US companies bringing factories back to the US but the transmission for doing that means that the new jobs will go to Low SALT states. This could backfire on the Ds no matter what they do.

If the US places a blanket rate tariff of 5-10% or whatever then the rest of the world will do the same to us. Which means the price of goods and services will go up and the standard of living goes down. Hello inflation. The world went through this in the 1930s, Smoot-Hawley I think it was called. It wasn't pretty.

The Devil is in the details and the copy President Trump pointed to during the signing ceremony certainly looked like "War and Peace" would be a short story by comparison even before the IRS and the courts turn it into worlds without end regulations.

Then there is the little matter of the infrastructure bill with no means of paying for it. The obvious answer to that is the protection of American jobs bill will be folded into the infrastructure bill such as building the wall and jail cells for illegals. This means using 19th century methods: paying the federal matching funds out of a tariff with a blanket tax rate of 5-10%. In other words tax the guy behind the tree with Mexico and Canada being the main guys behind the tree. That in turn means that many jobs will return to the US. This will be an unpleasant for Mexico and Canada.

Many foreign companies will find it necessary to establish subsidiaries in the US and many US companies bringing factories back to the US but the transmission for doing that means that the new jobs will go to Low SALT states. This could backfire on the Ds no matter what they do.

If the US places a blanket rate tariff of 5-10% or whatever then the rest of the world will do the same to us. Which means the price of goods and services will go up and the standard of living goes down. Hello inflation. The world went through this in the 1930s, Smoot-Hawley I think it was called. It wasn't pretty.

It's the other way around this time. Bush and Obama did not retaliate in the trade war as tariffs were brought against us. Also the causality of Smoot-Hawley is highly suspect, it was passed in response to the drought that became the dustbowl. The dustbowl effects account for more than I ever seen attributed to Smoot-Hawley.

 

[DarkFury]

True but that will backfire.

When a liberal city goes bankrupt they turn to the state. States turn to the feds. I honesty think some of those folks are stupid enough to cause a limited crash. The only real fix to this is let banks set rates according to state risks.

 

[william the wie]

The Feds established chapter 3 bankruptcy years ago so that the courts would handle the perp walks, if needed, without it looking like a partisan witch hunt. Assuming the ability to find one's butt with at least one hand two times out of three the only part of the federal government that will touch this mess with a fork on the end of a barge pole will be the judiciary because there are going to be a lot of long perp walks. Fines, jail time and building lots of jail cells will be the story from the WH and congressional rotunda

 

[DarkFury]

The Feds established chapter 3 bankruptcy years ago so that the courts would handle the perp walks, if needed, without it looking like a partisan witch hunt. Assuming the ability to find one's butt with at least one hand two times out of three the only part of the federal government that will touch this mess with a fork on the end of a barge pole will be the judiciary because there are going to be a lot of long perp walks. Fines, jail time and building lots of jail cells will be the story from the WH and congressional rotunda

You do know those same cities unions will be going broke and I'm guessing but I think they way to short on cash flow. Mnight see a couple of them fail and come begging!

 

[task0778]

The Feds established chapter 3 bankruptcy years ago so that the courts would handle the perp walks, if needed, without it looking like a partisan witch hunt. Assuming the ability to find one's butt with at least one hand two times out of three the only part of the federal government that will touch this mess with a fork on the end of a barge pole will be the judiciary because there are going to be a lot of long perp walks. Fines, jail time and building lots of jail cells will be the story from the WH and congressional rotunda

Wasn't that specific to Puerto Rico, which is not a sovereign state? Different situation altogether for a US state, there's no applicable US law that I know of that covers bankruptcy for that.

 

[william the wie]

The Feds established chapter 3 bankruptcy years ago so that the courts would handle the perp walks, if needed, without it looking like a partisan witch hunt. Assuming the ability to find one's butt with at least one hand two times out of three the only part of the federal government that will touch this mess with a fork on the end of a barge pole will be the judiciary because there are going to be a lot of long perp walks. Fines, jail time and building lots of jail cells will be the story from the WH and congressional rotunda

You do know those same cities unions will be going broke and I'm guessing but I think they way to short on cash flow. Mnight see a couple of them fail and come begging!

Not just the cities. IL and CA can go into bankruptcy as early as New Year's. Posters from IL like 2aguy can give you chapter and verse likewise Zander and others for CA. Me, I can give you the comic book classics summary. We could have 12 states in chapter 3 by the mid-terms but 2-5 is much more likely.

 

[william the wie]

The Feds established chapter 3 bankruptcy years ago so that the courts would handle the perp walks, if needed, without it looking like a partisan witch hunt. Assuming the ability to find one's butt with at least one hand two times out of three the only part of the federal government that will touch this mess with a fork on the end of a barge pole will be the judiciary because there are going to be a lot of long perp walks. Fines, jail time and building lots of jail cells will be the story from the WH and congressional rotunda

Wasn't that specific to Puerto Rico, which is not a sovereign state? Different situation altogether for a US state, there's no applicable US law that I know of that covers bankruptcy for that.

Technically a state cannot be forced into bankruptcy however the takings clause can get so brutal that bankruptcy is the lesser evil by a country mile and it will get that brutal. For example all CA government property including the state house and governor's mansion can be forfeit if either default or downgrade triggers a breach of bond covenant.

 

[usmbguest5318]

When Will Decent Tax Planning be Possible?

Decent tax planing is always possible. The tax code is public. The IRS issues publicly statements detailing its position on debatable aspects of the code. The body of tax court rulings too are public. One knows one's own financial situation. Those are the elements required to perform "decent" tax planning.

 

[william the wie]

So far no one has claimed to have read and understood the tax bill in whole and the devil is in the details. But the size of the price jump in unsolicited offers on my house hitting 50% after the bill passing and my mostly Puts account going up nearly double digits/day over the New Year's holiday is somewhat suspicious. That means that the trading computers have analyzed the bill and have also reached conclusions that have not yet leaked.

 

[danielpalos]

The Devil is in the details and the copy President Trump pointed to during the signing ceremony certainly looked like "War and Peace" would be a short story by comparison even before the IRS and the courts turn it into worlds without end regulations.

Then there is the little matter of the infrastructure bill with no means of paying for it. The obvious answer to that is the protection of American jobs bill will be folded into the infrastructure bill such as building the wall and jail cells for illegals. This means using 19th century methods: paying the federal matching funds out of a tariff with a blanket tax rate of 5-10%. In other words tax the guy behind the tree with Mexico and Canada being the main guys behind the tree. That in turn means that many jobs will return to the US. This will be an unpleasant for Mexico and Canada.

Many foreign companies will find it necessary to establish subsidiaries in the US and many US companies bringing factories back to the US but the transmission for doing that means that the new jobs will go to Low SALT states. This could backfire on the Ds no matter what they do.

Right wing, capital planning at its finest?

 

[william the wie]

It works but this is brass knucks politics at its finest

 

[danielpalos]

It works but this is brass knucks politics at its finest

Helping the already rich, get richer by putting it on the Peoples' tab?

 

[william the wie]

only the blue states.

 

[usmbguest5318]

So far no one has claimed to have read and understood the tax bill in whole and the devil is in the details. But the size of the price jump in unsolicited offers on my house hitting 50% after the bill passing and my mostly Puts account going up nearly double digits/day over the New Year's holiday is somewhat suspicious. That means that the trading computers have analyzed the bill and have also reached conclusions that have not yet leaked.

So far no one has claimed to have read and understood the tax bill in whole and the devil is in the details.

Well, then, there is your answer: two weeks.

It'll take as long as it takes tax accountants and tax attorneys to read the bill. Insofar as the bill is literally about 500 not-very-full-of-text pages long, it's safe to presume that they've already finished reading it. That task can be accomplished by tax professionals in a week or less, more often than not, less. After all, insofar as they're tax professionals, it's not as though they were unaware of what the code was before H.R. 1-2018; consequently, all they need to do is perform "delta" analysis, not "get up to speed from scratch" learning and analysis. The "delta analysis" would take them about another week at the most.