AuthorTopic: Why I Don't Like Jeb's Tax Cut  (Read 450 times)

Offline Eddie

  • Global Moderator
  • Master Chef
  • *****
  • Posts: 17502
    • View Profile
Why I Don't Like Jeb's Tax Cut
« on: September 10, 2015, 08:55:53 AM »
And it isn't because I'm worried about the government losing revenue, which is, of course, what all the liberal media sources are screaming about.

It's true that it's a sweet deal for the ultra-rich, and for corporations. Big cut in corporate rates. Big cut in upper marginal rates. Cut in capital gains. The usual perks for people who make 10M a year and up.

For professionals with incomes in the 100K to 1M income range, it's much more difficult to parse out, despite what the articles say. The proposed plan caps personal deductions at 2% of gross income, so it'll eat into the home mortgage deduction for most upper middle class Americans, which is the biggest single line on Schedule A for many. All deductions are capped, so it's a teaser...maybe a lower bill at first, but then it would be very easy to adjust marginal rates back up the next year, with deductions already eliminated forever...pardon me, but it looks like bait and switch.

For the small business pro, the part I don't like is the accelerated depreciation. The liberal press thinks of it as a double dip tax break, one for the big lump sum depreciation, and then a second deduction for the interest on the loan. I actually read that this morning. The press pundits fail to understand that carrying debt is an actual cost to businesses, something that takes away from the bottom line.

What they don't get is that in order to get the bonus...you have to take on more DEBT. In fact, the entire proposal, business-wise, is a trap to try to get businesses to take on MORE DEBT, when anyone with a brain knows that debt capital is giving businesses less and less (if any) positive long term bang for the buck.

It's a sop to the banksters, under the guise of a tax break. I'm not buying it. If you are a doctor or a lawyer, you're going to continue to get squeezed, even as the real elites get another million or two shaved off their bills. Because doctors and lawyers can't use the C corporation dodge that applies to most businesses.


http://www.nytimes.com/2015/09/10/upshot/jeb-bushs-tax-plan-is-a-large-tax-cut-for-the-wealthiest.html?_r=0
« Last Edit: September 10, 2015, 09:09:03 AM by Eddie »
What makes the desert beautiful is that somewhere it hides a well.

 

Related Topics

  Subject / Started by Replies Last post
0 Replies
942 Views
Last post February 22, 2018, 04:56:47 PM
by RE
0 Replies
109 Views
Last post December 10, 2018, 01:50:32 PM
by azozeo
17 Replies
5470 Views
Last post November 15, 2019, 06:31:49 PM
by K-Dog