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  1. #2501
    THE quintessential dwarf palmab03's Avatar
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    Also, since the deduction is limited if you don't have W2 wages, I'm not sure how much being a partnership will help.
    just drivin' round in John Voight's car

  2. #2502
    Scott "Rufio" Feather
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    Federal Deficit Jumps 17 Percent As Tax Cuts Eat Into Government Revenue


    Shocking.

    Who could’ve known this would happen?


    The deficit typically grows during recessions — when tax receipts shrink and demand for food stamps and other government assistance rises — then falls during good times

    The current spike in the deficit at a time of strong economic growth and low unemployment represents a break with that historical pattern.

    The last time unemployment was this low — in 1969 — federal government ran a small surplus.

    After peaking at nearly 10 percent of GDP in 2009, the deficit declined as share of the economy through 2015. It's been rising since, hitting 3.9 percent of GDP in the fiscal year just ended.
    Just...vote for the Democrat.

  3. #2503
    PM a mod to cement your internet status forever RJKarl's Avatar
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    Quote Originally Posted by ConnorEl View Post
    Federal Deficit Jumps 17 Percent As Tax Cuts Eat Into Government Revenue


    Shocking.

    Who could’ve known this would happen?
    What makes a surplus in 1969 even more amazing is we had about 550,000 troops in Viet Nam. That costs a ton of money.

  4. #2504
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    Quote Originally Posted by ConnorEl View Post
    Federal Deficit Jumps 17 Percent As Tax Cuts Eat Into Government Revenue


    Shocking.

    Who could’ve known this would happen?
    Who knew that running government like a business meant cutting prices for your richest clients?

  5. #2505
    Quote Originally Posted by palmab03 View Post
    Also, since the deduction is limited if you don't have W2 wages, I'm not sure how much being a partnership will help.
    The deduction is limited on wages only to excess income which is moot for a professional service provider anyway.

  6. #2506
    Quote Originally Posted by palmab03 View Post
    the company I work for is an S-Corp, so if I'm reading your response correctly then I am subject to the anti-avoidance rules.

    For my own knowledge, can a partnership be a single member (I.e. if I became a consultant?)
    Yes. A single member llc is default disregarded schedule c which qualifies for the credit too.

  7. #2507
    THE quintessential dwarf palmab03's Avatar
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    Quote Originally Posted by ChrisL68 View Post
    Yes. A single member llc is default disregarded schedule c which qualifies for the credit too.
    Ok, let's put it simply. Say I'm married with $400k in wages (One can dream). Using $55k in 401k deferrals and $24k in standard deduction, you get under the $315k cap for professional service providers. What entity structure and W2 wages would I set to maximize the deduction and minimize FICA? Am a sole proprietor, but could easily find a partner in the same line of work.
    just drivin' round in John Voight's car

  8. #2508
    I seem to remember, at the beginning of the year, that Republicans were bragging that the tax cuts would prove to be so popular that they would be a real asset to Republican candidates running the fall. Somehow, that doesn't seem to be the case, as Republicans have barely mentioned it thus far. Instead, it's all about cultural and social war issues, as usual.

  9. #2509
    NANCY PELOSI!

  10. #2510
    Quote Originally Posted by palmab03 View Post
    Ok, let's put it simply. Say I'm married with $400k in wages (One can dream). Using $55k in 401k deferrals and $24k in standard deduction, you get under the $315k cap for professional service providers. What entity structure and W2 wages would I set to maximize the deduction and minimize FICA? Am a sole proprietor, but could easily find a partner in the same line of work.
    In that case I don't think it matters you would not have any W-2 wages under either of those setups and either one could maximize your deduction. All of your income from a partnership of schedule C would be self-employment income. The caveat is that you couldn't structure any of your payments out of a partnership as a guaranteed payment since those would be considered wages.
    Last edited by ChrisL68; 10-17-2018 at 03:33 PM.

  11. #2511

  12. #2512
    yeah...let's pay for these tax cuts by gutting the SS. Rubes won't care.

    who could have guessed that this will happen? btw, when does the trickle down begin? we already had the largest corporate buyback in history, so the trickle should come at any time...right rubes?

  13. #2513
    Just wait! It's coming!

  14. #2514
    THE quintessential dwarf palmab03's Avatar
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    Quote Originally Posted by ChrisL68 View Post
    In that case I don't think it matters you would not have any W-2 wages under either of those setups and either one could maximize your deduction. All of your income from a partnership of schedule C would be self-employment income. The caveat is that you couldn't structure any of your payments out of a partnership as a guaranteed payment since those would be considered wages.
    You're correct, and this was very helpful. I'd only worked for LLC's or SCorp's with 2 50/50 owners. Completely didn't realize that self employment is different. Yeah, I think I'm gonna be a consultant, it's just free money thanks to the new tax law if you have a relationship with your company that makes that possible.
    just drivin' round in John Voight's car

  15. #2515
    Scott "Rufio" Feather
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    Could put this in the midterm thread, but I’ll put it here.

    The Trump Tax Scam, Phase II: Deficits are up? Cut Medicare and Social Security!

    Best read on site for embedded links.

    When the Trump tax cut was on the verge of being enacted, I called it “the biggest tax scam in history,” and made a prediction: deficits would soar, and when they did, Republicans would once again pretend to care about debt and demand cuts in Medicare, Medicaid and Social Security.

    Sure enough, the deficit is soaring. And this week Mitch McConnell, the Senate majority leader, after declaring the surge in red ink “very disturbing,” called for, you guessed it, cuts in “Medicare, Social Security and Medicaid.” He also suggested that Republicans might repeal the Affordable Care Act — taking away health care from tens of millions — if they do well in the midterm elections.

    Any political analyst who didn’t see this coming should find a different profession. After all, “starve the beast” — cut taxes on the rich, then use the resulting deficits as an excuse to hack away at the safety net — has been G.O.P. strategy for decades.

    Oh, and anyone asking why Republicans believed claims that the tax cut would pay for itself is being naïve. Whatever they may have said, they never actually believed that the tax cut would be deficit-neutral; they pushed for a tax cut because it was what wealthy donors wanted, and because their posturing as deficit hawks was always fraudulent. They didn’t really buy into economic nonsense; it would be more accurate to say that economic nonsense bought them.

    That said, even I have been surprised by a couple of things about the G.O.P.’s budget bait-and-switch. One is the timing: I would have expected McConnell to hold his tongue until after the midterms. The other is the lying: I knew Donald Trump and his allies would be dishonest, but I didn’t expect the lies to be as baldfaced as they are.

    What are they lying about? For starters, about the causes of a sharply higher deficit, which they claim is the result of higher spending, not lost revenue. Mick Mulvaney, Trump’s budget director, even tried to claim that the deficit is up because of the costs of hurricane relief.

    The flimsy justification for such claims is that in dollar terms, federal revenue over the past year is slightly up from the previous year, while spending is about 3 percent higher.

    But that’s a junk argument, and everyone knows it. Both revenue and spending normally grow every year thanks to inflation, population growth and other factors. Revenue during Barack Obama’s second term grew more than 7 percent a year. The sources of the deficit surge are measured by how much we’ve deviated from that normal growth, and the answer is that it’s all about the tax cut.

    Dishonesty about the sources of the deficit is, however, more or less a standard Republican tactic. What’s new is the double talk that pervades G.O.P. positioning on the budget and, to be fair, just about every major policy issue.

    What do I mean by double talk? Well, consider the fact that even as McConnell blames “entitlements” (that is, Medicare and Social Security) for deficits, and declares (falsely) that Medicare in particular is “unsustainable,” Paul Ryan’s super PAC has been running ads accusing Democrats of wanting to cut Medicare. The cynicism is breathtaking.

    But then, it’s no more cynical than the behavior of Republicans like Dean Heller, Josh Hawley and even Ted Cruz who voted to repeal the Affordable Care Act, which protects Americans with pre-existing medical conditions, or supported a lawsuit trying to strip that protection out of the act, and are now running on the claim that they want to … protect people with pre-existing conditions.

    The point is that we’re now in a political campaign where one side’s claimed position on every major policy issue is the opposite of its true position. Republicans have concluded that they can’t win an argument on the issues, but rather than changing their policies, they’re squirting out clouds of ink and hoping voters won’t figure out where they really stand.

    Why do they think they can get away with this? The main answer is obviously contempt for their own supporters, many of whom get their news from Fox and other propaganda outlets that slavishly follow the party line. And even in appeals to those supporters who rely on other sources, Republicans believe that they can neutralize the deep unpopularity of their actual policies by misrepresenting their positions, and win by playing to racism and fear.

    But let’s be clear: G.O.P. cynicism also involves a lot of contempt for the mainstream news media. Historically, media organizations have been remarkably unwilling to call out lies; the urge to play it safe with he-said-she-said reporting has very much worked to Republicans’ advantage, given the reality that the modern G.O.P. lies a lot more than Democrats do. Even the most blatant falsehood tends to be reported with headlines about how “Democrats say” it’s false, not that it’s actually false.

    Anyway, at this point Republicans are proclaiming that war is peace, freedom is slavery, ignorance is strength and the party that keeps trying to kill Medicare is actually the program’s greatest defender.

    Can a campaign this dishonest actually win? We’ll find out in less than three weeks.
    Just...vote for the Democrat.

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