Trump administration considers tax cut for the wealthy

[Belsnickel]

https://www.washingtonpost.com/business/economy/trump-administration-considers-tax-cut-for-the-wealthy/2018/07/30/1dbaafbc-9442-11e8-810c-5fa705927d54_story.html?utm_term=.6a7d3771ff7d

Quote:The Treasury Department is considering a tax cut for the wealthiest Americans through a change that would not need approval from Congress, officials said, a move that would follow a package of tax cuts last year that also benefited the super-rich.

The agency is studying whether to allow investment income, known as capital gains, to be adjusted for inflation in a way that shields more of it from taxation. Most capital gains are paid by wealthier Americans, who disproportionately hold large portfolios of investments.

But the use of executive power on such a significant change to the tax law would be highly unusual and could be vulnerable to a legal challenge. Senior administration officials have discussed whether to proceed but have not concluded they have legal authority to do so. The move was rejected during the George H.W. Bush administration because it was seen as outside the scope of Treasury’s authority and only attainable via an act of Congress.

More at the link.

Seems like an overreach of executive power, to me.

[GMDino]

(07-31-2018, 12:21 PM)Belsnickel Wrote: https://www.washingtonpost.com/business/economy/trump-administration-considers-tax-cut-for-the-wealthy/2018/07/30/1dbaafbc-9442-11e8-810c-5fa705927d54_story.html?utm_term=.6a7d3771ff7d


More at the link.

Seems like an overreach of executive power, to me.

Hyperbole!

He only "said" it.  We can only care about things he actually does! 


All seriousness aside how dumb are these guys to even talk about such things?  I mean I understand that Trump defenders/supporters don't care what he says or does even if it hurts them, but really, how dumb are they?

[Benton]

(07-31-2018, 12:21 PM)Belsnickel Wrote: https://www.washingtonpost.com/business/economy/trump-administration-considers-tax-cut-for-the-wealthy/2018/07/30/1dbaafbc-9442-11e8-810c-5fa705927d54_story.html?utm_term=.6a7d3771ff7d


More at the link.

Seems like an overreach of executive power, to me.

Wait... what's that on the horizon?

Is that SCOTUS nominee Kavanaugh riding in on a white horse to save the day?

Why, I do believe it is.

[hollodero]

Really? More tax cuts for the wealthy? After the last one will give 99% of its benefits to the wealthiest 5% anyway?
How many breaks do these poor american rich people need?

I mean, I do get that the US loves capitalism unconditionally, but this is starting to become an open plutocrazy. I know I spelled that wrong.

[GMDino]

I guess we have no one to blame except the Democrats for this.

If they had not voted for Clinton then no decent republican would have voted for Trump.  

If only the good, conservative, decent GOP members could have KNOWN what kind of "man" Trump is...

[Vas Deferens]

thank god.

[jj22]

Trump won't be done until his family won't have to pay any taxes. That's probably his overall goal.

[*michaelsean*]

(07-31-2018, 12:21 PM)Belsnickel Wrote: https://www.washingtonpost.com/business/economy/trump-administration-considers-tax-cut-for-the-wealthy/2018/07/30/1dbaafbc-9442-11e8-810c-5fa705927d54_story.html?utm_term=.6a7d3771ff7d


More at the link.

Seems like an overreach of executive power, to me.

Yeah they shouldn’t be able to do that and if something allows it then it should be changed b

[Millhouse]

A capital gains tax adjustment should come from Congress then signed by the President.

And if that was to happen, I really don't mind this kind of tax adjustment for capital gains, regardless who it effects the most.

But similar to what I read in another thread, some will just read the headlines and be against it because it's 'for the wealthy'.

[*PhilHos*]

(07-31-2018, 12:43 PM)hollodero Wrote: Really? More tax cuts for the wealthy? After the last one will give 99% of its benefits to the wealthiest 5% anyway?
How many breaks do these poor american rich people need?

I mean, I do get that the US loves capitalism unconditionally, but this is starting to become an open plutocrazy. I know I spelled that wrong.

You do realize that the wealthiest Americans are responsible for most of the tax revenue, right? I think it's something like the top 20% pay like 80% of the taxes.

Also, would YOU be okay with more than half of your paycheck being taken out due to taxes?

That said, I'm not necessarily in favor of this move and certainly not in favor of it being a move not made by Congress.

[Benton]

(07-31-2018, 02:12 PM)PhilHos Wrote:  

Also, would YOU be okay with more than half of your paycheck being taken out due to taxes?

 

In this instance, it's 20%. About half of the top bracket for income tax.

[hollodero]

(07-31-2018, 02:12 PM)PhilHos Wrote: You do realize that the wealthiest Americans are responsible for most of the tax revenue, right? I think it's something like the top 20% pay like 80% of the taxes.

Also, would YOU be okay with more than half of your paycheck being taken out due to taxes?

No, I would have to make some serious cutbacks if that were so. But then again, I am anything but super-wealthy.
The fact that the wealthy pay 80% of the taxes (I unequivocally believe you there) can also be interpreted as a sign how big their "paychecks" actually are. This argument can go both ways, as in it can also show how unequal society has become.

Besides, I do not really believe that half their income is taken away. The US has specifically large loopholes to avoid taxation for capital transfers and other sources of their income, the latest tax cuts providing some examples for that. Also, maybe that's my socialistic upbringing, I think it's perfectly ok that those lucky enough to live in big wealth make some more contributions to the society that created the conditions for them to do so. I'm not disputing inequality per se, I understand and believe in the concept, but at some point it's getting too extreme. I'd say you can't create a larger middle class by constantly relieving the very top of the income pyramid. I don't think saying all that makes me a mindless class warrior.

Let me ask you though, do you think it's just to spend trillions for a tax cut that will almost exclusively (99%) benefit the top 5%. E.g. do you think the most pressing problem of the US was too high taxation for the super-rich? I wouldn't think so. Yet that's obviously where the most spending is done these days, to correct that injustice. Is what I see. I of course attribute it to blatantly fulfilling big donor's interests, but I'm a cynic in these regards.

[Belsnickel]

(07-31-2018, 02:12 PM)PhilHos Wrote: You do realize that the wealthiest Americans are responsible for most of the tax revenue, right? I think it's something like the top 20% pay like 80% of the taxes.

Considering the wealthiest 8 people in this country have more than nearly half of our population, my response to that is: "that's it?"

(07-31-2018, 02:12 PM)PhilHos Wrote: Also, would YOU be okay with more than half of your paycheck being taken out due to taxes?

If those funds were being used to promote the general welfare of the population, yes.

[BmorePat87]

(07-31-2018, 02:12 PM)PhilHos Wrote: Also, would YOU be okay with more than half of your paycheck being taken out due to taxes?

I probably wouldn't realize if most of my earnings weren't from a paycheck. 

[*bfine32*]

(07-31-2018, 02:12 PM)PhilHos Wrote: You do realize that the wealthiest Americans are responsible for most of the tax revenue, right? I think it's something like the top 20% pay like 80% of the taxes.

Also, would YOU be okay with more than half of your paycheck being taken out due to taxes?

That said, I'm not necessarily in favor of this move and certainly not in favor of it being a move not made by Congress.

This is where I'm at when folks complain about the wealthy getting a tax cut. You know what would be the biggest tax cut for the wealthy ever?

A flat tax. 

I cannot grasp the rational behind, You make more money so you must give up a larger percentage of your earnings.

[Yojimbo]

Nice report and breakdown on who and where taxes come from:

https://www.mercatus.org/publication/breakdown-federal-personal-income-taxes

[Benton]

(07-31-2018, 06:21 PM)bfine32 Wrote: This is where I'm at when folks complain about the wealthy getting a tax cut. You know what would be the biggest tax cut for the wealthy ever?

A flat tax. 

I cannot grasp the rational behind, You make more money so you must give up a larger percentage of your earnings.

Cutting taxes is great, but when do we start cutting spending?

People talk about how the wealthy deserve a tax cut because 20% of the population pays 80% of the taxes... or something to that effect. But the end of the day, that 20% has to because 45% of the population no longer makes enough to sustain themselves. They're the folks making less than $14 an hour, who already pay a good chunk of that in sales taxes, property taxes, etc., where half the country finds themselves because of a lingering bad economy and bad business handling.

[*Nately120*]

(07-31-2018, 02:12 PM)PhilHos Wrote: Also, would YOU be okay with more than half of your paycheck being taken out due to taxes?

People say they want less taxes, but while running in 2012 Ron Paul says the ideal income tax rate in this country would be 0% and people are all like "Nahh....Romney is our man."  It's not how you raise the money, it's how you allocate it.  But hey, 2016 rolls around and people who scream for lower taxes are also clamoring for more military spending and a giant wall and blah blah blah.

So to answer your question, no, I'd rather not have 50%+ taken out of my paycheck, but I didn't vote for Trump or Clinton so I'm one of those fringe nuts who doesn't want a giant government and lower taxes at the same time.  Now if you'll excuse me, I'm going to quit my job and buy a Rolls Royce.

(07-31-2018, 06:46 PM)Benton Wrote: Cutting taxes is great, but when do we start cutting spending?

Seeing as we are looking at Trump and Sanders being the most popular candidates to square off in 2020 I'd say not in my lifetime.  It's all good, the government (unlike a private citizen) can just print more money to pay the bills.  No harm done there.  Zilch.

[fredtoast]

(07-31-2018, 06:21 PM)bfine32 Wrote: I cannot grasp the rational behind, You make more money so you must give up a larger percentage of your earnings.

Everyone else on the planet gets it.  Every income tax in every counbtry is progressive.

So either everyperson on the planet is wrong or you need to educate yourself on the issue a little more.

[Benton]

(07-31-2018, 06:21 PM)bfine32 Wrote: I cannot grasp the rational behind, You make more money so you must give up a larger percentage of your earnings.

On a basic level, they pay more because they get more. Last summer we took a trip to Chicago. Our lift driver got lost and took us through the nice part of town. I knew it was the nice part when I saw a fire hydrant every half block. We also passed a couple officers in a small radius (half a mile). Medians were mowed, trees on public right of ways were trimmed. It was like a totally different town compared to the west side.