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Biggest Reform EVER passed thread

To be fair, they didn’t realize Trump was going to sign it yesterday. I’m sure they’ll just call them back and give them their jobs and the $1000 bonus.
 
Oh man, I missed that Sinclair also announced bonuses. So the companies include:

Sinclair (Trump-friendly media company that traded favorable coverage for access during the campaign)
AT&T (has a deal waiting for approval by the administration, lobbied to get net neutrality repealed)
CVS (need approval for acquisition)
Wells Fargo (threatened by Trump as recently as two weeks ago)

And many announcements had the same bonus amount, the same hourly wage.

Finally seeing Trump's negotiating skills in action.
 
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Charles Barkley had just about the same take the other night. Something like: I'm gonna "trickle down" my fatass to the store to buy myself another Rolex.
 
BTW, the reason all those one time bonuses are happening this year rather than next is that it costs the companies less with a 35% tax rate this year vs. 21% next year. They won't be given again next year.
 
BTW, the reason all those one time bonuses are happening this year rather than next is that it costs the companies less with a 35% tax rate this year vs. 21% next year. They won't be given again next year.

This is not correct.
 
It's absolutey correct that companies are rushing out to make bonus and other payment deductible payments before the end of the year to reap tax benefits. The ability to deduct accrued bonuses are very limited if they are paid after the end of the year based on various IRS guidance that has been released in the past several years. Most corporate bonus policies defer deduction until paid. So making bonus payments before the end of the year will get a company a 10% to 13% automatic return on those payments over waiting until after the beginning of the year.

Companies are rushing to make payment deductible cash outlays before 12/31.

http://www.andersentax.com/publicat...-2013/accrued-bonus-deduction-not-just-a-test
 
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It's absolutey correct that companies are rushing out to make bonus and other payment deductible payments before the end of the year to reap tax benefits. The ability to deduct accrued bonuses are very limited if they are paid after the end of the year based on various IRS guidance that has been released in the past several years. Most corporate bonus policies defer deduction until paid. So making bonus payments before the end of the year will get a company a 10% to 13% automatic return on those payments over waiting until after the beginning of the year.

Companies are rushing to make payment deductible cash outlays before 12/31.

http://www.andersentax.com/publicat...-2013/accrued-bonus-deduction-not-just-a-test

But it doesn't incentivize people to make payments they wouldn't otherwise make, was my point, but yes, you'd want to recognize all expenses you could this year if you were a corporate taxpayer.
 
To be honest, looking at my own taxes..... federal income taxes aren't the real problem. Under the new (and probably the existing) tax rules, the effective tax rate isn't that high for most folks. I mean a married couple making $250k is getting taxed at 15%. That's not that high.

An alternative to the social security system looks to be the main place where some reforms could take place. Because that same couple would be way better off just putting money in their own 401k than they would the current SS system.
 
But it doesn't incentivize people to make payments they wouldn't otherwise make, was my point, but yes, you'd want to recognize all expenses you could this year if you were a corporate taxpayer.

Most big companies pretty regularly pay bonuses to their employees.
 
How Sen. Pat Toomey turned the Republican tax bill away from populism

More broadly, Toomey’s influence represents the imprint of the supply-side doctrine in the bill — the notion that the benefit of lower taxes and fewer regulations on businesses and investors, in the words of its critics, “trickle down” to other Americans. That thinking delivered most of the dollar value of the GOP tax cuts to a lower corporate rate and a new break for owners of “pass through” businesses, whose profits are taxed as individual income, while offering relatively meager benefits for wage-earning Americans.

“But for Pat Toomey, it’s not likely we would have seen 50-plus votes in the Senate for that nature of a tax cut,” said David M. McIntosh, president of the Club for Growth, a group Toomey led before entering the Senate.

It was the most expensive Senate race in history, involving $179 million in combined spending, and Toomey pulled out a two-point win with the help of $3.6 million from the Club for Growth’s super PAC, $9.7 million from Koch brothers network groups and $6.1 million from the U.S. Chamber of Commerce — all deeply interested in major tax cuts.
 
Serious question: can I get rid of my health insurance now? I don't want to pay for it, I didn't use it all of 2015-2017, and if I am not going to have to pay the penalty tax, I don't want it. But I don't want to jump the gun on cancelling it if I am going to get hit by the penalty tax later because it's not in effect yet.
 
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