U.S. Politics

[Tommy]

Here's what's available: http://www.marketwatch.com/story/full-text-of-trump-administration-tax-reform-principles-2017-04-26

So I'll slightly walk back what I said about the only bracket being changed is the top one. Still, it overwhelmingly helps the top more than anyone else.

Okay, so people earning less than $30k pay virtually no taxes under the new plan, and can still claim child care credits and mortgage interest. Also the standard deduction is doubled, so that helps those who earn around $40k or $50k with families. They'll likely end up paying nearly nothing in taxes as well.

The tax rate for the rich goes down to 35%, but the deductions and loopholes they've all been using up until now will be removed. Those are the same deductions that people complain about when spouting the "rich people don't pay taxes" nonsense. So I don't see how you can say that the rich are benefiting from this at a disproportionate level. Right now someone making $1mm a year has a tax rate of 39% but with all the deductions, they can easily get their effective tax rate down to 15%. I don't have all the details, but I can't see any way without those deductions how that would be possible under this new plan.

[Fenwyr]

Basically, create Tommy Spicer LLC, have your paycheck sent there, and you will only pay 15%.  You're welcome.

[Tommy]

Just google it.  I watched financial wonks from across the political spectrum.  Even the trickle down believers think its derriere rape for the middle class.

That's more of an outline. We won't know anything until the actual details are ironed out.

[Tommy]

Basically, create Tommy Spicer LLC, have your paycheck sent there, and you will only pay 15%.  You're welcome.

That doesn't make any sense. If I'm a partner at Kirkland and Ellis and make about $2mm, I can't just have payroll pay into my LLC.

[Fenwyr]

Okay, so people earning less than $30k pay virtually no taxes under the new plan, and can still claim child care credits and mortgage interest. Also the standard deduction is doubled, so that helps those who earn around $40k or $50k with families. They'll likely end up paying nearly nothing in taxes as well.

The tax rate for the rich goes down to 35%, but the deductions and loopholes they've all been using up until now will be removed. Those are the same deductions that people complain about when spouting the "rich people don't pay taxes" nonsense. So I don't see how you can say that the rich are benefiting from this at a disproportionate level. Right now someone making $1mm a year has a tax rate of 39% but with all the deductions, they can easily get their effective tax rate down to 15%. I don't have all the details, but I can't see any way without those deductions how that would be possible under this new plan.

Those making under 30k likely don't own homes.  They will pay 10% over the 24k deduction.

Anyone rich enough can buy a property in Las Vegas (for example), incorporate as an LLC, pay no state taxes, and pay 15% in federal taxes.  And they can write off the mortgage interest to basically pay 0%.

Do you not see the con yet?

[Fenwyr]

That doesn't make any sense. If I'm a partner at Kirkland and Ellis and make about $2mm, I can't just have payroll pay into my LLC.

This is why you are not an accountant.  I'm not either, but it is rediculously easy to move money around to work a rigged system.

[Tommy]

This is why you are not an accountant.  I'm not either, but it is rediculously easy to move money around to work a rigged system.

How? An LLC's earnings are taxed at 15%. That millionaire's payroll is already taxed when he receives the money, then he invests it in his LLC. That pool of money in that shell LLC will only get taxed at 15% on any earnings. If it's a shell company, then they're not generating revenue. I don't understand where you're going with this. I can't just declare myself a corporation and have the company pay me and the government only taxing me at 15%. Is that what you're implying? Because that's the dumbest thing I've ever heard.

[Fenwyr]

How? An LLC's earnings are taxed at 15%. That millionaire's payroll is already taxed when he receives the money, then he invests it in his LLC. That pool of money in that shell LLC will only get taxed at 15% on any earnings. If it's a shell company, then they're not generating revenue. I don't understand where you're going with this. I can't just declare myself a corporation and have the company pay me and the government only taxing me at 15%. Is that what you're implying? Because that's the dumbest thing I've ever heard.

Jesus man.  OK.  I'm a partner in a law firm...  I take just enough salary that I can write off the taxes in my home mortgage.  I take the rest of the money as a contractor to pay my 'people' and to cover business expenses.  That LLC buys a building for my 'people' to work in.  The mortgage intetest write off covers the 15% I should owe in taxes.

I pay 0 in taxes, and never had any 'people'.  Yet I own a home and a building.

You really don't see what Trump is doing here?

[Badger]

Also, the FCC is going to gut Net Neutrality. This nonsense that it will create competition would be laughable if it weren't so awful. All it's going to do is cost jobs when smaller startups can't get an even footing on the carrier pipes while the biggest content producers pay more (and pass the costs to the consumer) to push their traffic.

Everyone against Net Neutrality can be categorized into either stupid or liar. There is no logical defense of their position beyond "We want to exploit consumers for more money" and none of them will admit it.

[Tommy]

Jesus man.  OK.  I'm a partner in a law firm...  I take just enough salary that I can write off the taxes in my home mortgage.  I take the rest of the money as a contractor to pay my 'people' and to cover business expenses.  That LLC buys a building for my 'people' to work in.  The mortgage intetest write off covers the 15% I should owe in taxes.

I pay 0 in taxes, and never had any 'people'.  Yet I own a home and a building.

You really don't see what Trump is doing here?

What the freak is this excrement? Payroll can't split your compensation to accommodate two entirely different entities, especially if one is a corporation. Why don't you try that right now. Ask your HR dept if they can split your paycheck into two: one to yourself, and the other to an LLC. They'll laugh in your face.

[Tommy]

Everyone against Net Neutrality can be categorized into either stupid or liar. There is no logical defense of their position beyond "We want to exploit consumers for more money" and none of them will admit it.

I'm not that familiar with the net neutrality issue, but what are the implications exactly?

[AlioTheFool]

Everyone against Net Neutrality can be categorized into either stupid or liar. There is no logical defense of their position beyond "We want to exploit consumers for more money" and none of them will admit it.

Yup.

Ajit Pai has the most punchable face this side of Ted Cruz. That guy is just a straight up poopchute and every time he opens his mouth I want to reduce the number of teeth he needs to brush.

While I feign anger about a lot of excrement, when I see the telcos speak giddily about this news it makes me actually angry. There isn't one thing about this that serves consumers in any fashion, today or in the future.

[AlioTheFool]

I'm not that familiar with the net neutrality issue, but what are the implications exactly?

The protections in place commonly known as "Net Neutrality" dictate that the owners of the "pipes" that funnel the internet to everyone (the Verizons, AT&Ts, Spectrum, Comcast, etc.) can't dictate different pricing to different content providers (Netflix, Hulu, CNN, FOXNews, Facebook, Twitter, etc.). All data is simply 1s and 0s shooting over the connection and shouldn't be charged differently.

The protections were put in place to prevent, say, Verizon from charging Netflix double what they actually use because Verizon owns Redbox. Verizon can then provide Redbox streaming content again, and at lower cost, while Netflix has to raise prices to cover artificially inflated cost.

[bojanglesman]

I'm not that familiar with the net neutrality issue, but what are the implications exactly?

Yes.

[Tommy]

The protections in place commonly known as "Net Neutrality" dictate that the owners of the "pipes" that funnel the internet to everyone (the Verizons, AT&Ts, Spectrum, Comcast, etc.) can't dictate different pricing to different content providers (Netflix, Hulu, CNN, FOXNews, Facebook, Twitter, etc.). All data is simply 1s and 0s shooting over the connection and shouldn't be charged differently.

The protections were put in place to prevent, say, Verizon from charging Netflix double what they actually use because Verizon owns Redbox. Verizon can then provide Redbox streaming content again, and at lower cost, while Netflix has to raise prices to cover artificially inflated cost.

Thanks!