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Biggest Reform EVER passed thread

1. Become a CPA with a degree from Wake's accounting school
2. Join Big 4 firm
3. Have your soul sucked for a couple years
4. Go work internally with a company
5. Profit

I wasn't referring to accounting, I was referring to the industry I ended up in when I did #4 (architects).
 
Also the 25% flat rate on pass-through business income is a great improvement for small businesses. It puts more onus on the "reasonable salary" component, but the IRS has dealt with that for years anyway.
 
Also the 25% flat rate on pass-through business income is a great improvement for small businesses. It puts more onus on the "reasonable salary" component, but the IRS has dealt with that for years anyway.

Agreed, that really really hurts small businesses, and encourages smart people who work at other companies to start their own business. Either way, the rate (25%) should be the same as the tax rate of the upper-middle class (Currently 28% but about to be revised down to 25%) to avoid loopholes. So that seems smart to me, otherwise if individual rate was much higher I'd just become a contractor at my current company.
 
How does the following not explode the deficit and make borrowing money much harder:

1. Dropping Corporate taxes from 35% to 20%
2. Dropping top tax rate from 39-35%
3. End Estate tax

None of those create a single job and dramatically lower revenues.
 
How does the following not explode the deficit and make borrowing money much harder:

1. Dropping Corporate taxes from 35% to 20%
2. Dropping top tax rate from 39-35%
3. End Estate tax

None of those create a single job and dramatically lower revenues.

You can't eliminate the death tax and lower top tax rate. That's a windfall for the wealthy.
 
How does the following not explode the deficit and make borrowing money much harder:

1. Dropping Corporate taxes from 35% to 20%
2. Dropping top tax rate from 39-35%
3. End Estate tax

None of those create a single job and dramatically lower revenues.

Well your first point is just flat out wrong. I'll admit, I don't get the estate tax bullshit. Its on estates over $5MM, just a stupid thing for a political party to get behind.
 
Dropping corporate taxes won't create a single job. The first reason is corporations are sitting on more cash than at any time in history. If it was about money, they would have already created the jobs. Secondly, no amount of extra money to corporations will create demand. If you have that demand, it will create the money tax rate or no tax rate.
 
Dropping corporate taxes won't create a single job. The first reason is corporations are sitting on more cash than at any time in history. If it was about money, they would have already created the jobs. Secondly, no amount of extra money to corporations will create demand. If you have that demand, it will create the money tax rate or no tax rate.

They're sitting on cash because stocks and bonds are overvalued. The point of dropping corporate taxes is to bring the jobs that are currently being done by foreign companies back to our shores, thus creating jobs for Americans, and taking jobs away from the bad hombres.

Also, corporations are sitting on cash so they can move it to foreign subsidiaries and cut their tax bills. hence lowering the rate at home will stop that practice.
 
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Well your first point is just flat out wrong. I'll admit, I don't get the estate tax bullshit. Its on estates over $5MM, just a stupid thing for a political party to get behind.

Yeah it's 5.5 million if you are single. If you are married, it's estates over $11 million.
 
Those corporate rules mostly make sense.
Unless they provide some sort of step up in basis exemption, the estate tax elimination would hurt most people.
 
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They're sitting on cash because stocks and bonds are overvalued. The point of dropping corporate taxes is to bring the jobs that are currently being done by foreign companies back to our shores, thus creating jobs for Americans, and taking jobs away from the bad hombres.

Also, corporations are sitting on cash so they can move it to foreign subsidiaries and cut their tax bills. hence lowering the rate at home will stop that practice.

Regardless of the tax rate, how can we bring a job back from India that pays $15K/yr that would cost $60K here? Or a job from China that pays $300/month when it would $3000-4000/month in the US?
 
Well your first point is just flat out wrong. I'll admit, I don't get the estate tax bullshit. Its on estates over $5MM, just a stupid thing for a political party to get behind.

The estate tax thing is important because small/mid-size businesses waste obscene amounts of resources trying to justifiably get around it because the tax rate is so high. So the economy as a whole gets the double-whammy of wasting significant resources and not collecting the taxes. If you get rid of it you free up a significant amount of capital for actual production. As I mentioned above, the tax law and financial planning industries will take a hit, but we seem to collectively want to value their roles less than the primary production roles, so I think it is a good trade in the long run.
 
Regardless of the tax rate, how can we bring a job back from India that pays $15K/yr that would cost $60K here? Or a job from China that pays $300/month when it would $3000-4000/month in the US?

Might not get some of them, but can get plenty of them. Cause it costs money to ship things across an Ocean.
 
The estate tax thing is important because small/mid-size businesses waste obscene amounts of resources trying to justifiably get around it because the tax rate is so high. So the economy as a whole gets the double-whammy of wasting significant resources and not collecting the taxes. If you get rid of it you free up a significant amount of capital for actual production. As I mentioned above, the tax law and financial planning industries will take a hit, but we seem to collectively want to value their roles less than the primary production roles, so I think it is a good trade in the long run.

If people with estates over $5-10MM want to waste money on lawyers and accountants to avoid it, so be it. It's such a small subset of people I highly doubt its a drag on society or deployable capital. Our business falls into this category and it doesn't affect our operations one iota.
 
Those corporate rules mostly make sense.
Unless they provide some sort of step up in basis exemption, the estate tax elimination would hurt most people.

I think there would be, though obviously the details aren't out yet. If not, I could see a scenario where the heir gets to utilize the decedent's primary residence gain exclusion for say 2 years following death or something like that, which would cover the majority of issues.
 
If people with estates over $5-10MM want to waste money on lawyers and accountants to avoid it, so be it. It's such a small subset of people I highly doubt its a drag on society or deployable capital. Our business falls into this category and it doesn't affect our operations one iota.

Eh, I think it probably is. Because of the timing requirements, you get people who have like a $500k businesses having to spend the planning resources now in case they hit the $5mm threshold in the future. If you wait until you hit the $5mm then it is usually way too late. So the structure captures a lot more people than the actual tax.
 
Eh, I think it probably is. Because of the timing requirements, you get people who have like a $500k businesses having to spend the planning resources now in case they hit the $5mm threshold in the future. If you wait until you hit the $5mm then it is usually way too late. So the structure captures a lot more people than the actual tax.

Accountants are expensive but not that expensive.
 
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