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November 3, 2017 at 4:49 AM #808369November 3, 2017 at 4:49 AM #808368CoronitaParticipant
[quote=scaredyclassic]you know, maybe its a message to cut back. at almost 50 state and fed tax over 260k, screw it, is it really worth working ones ass off.
maybe budgets need to set limits for when theceffort isnt worth it anymore. just say no to more[/quote]
Well, I am happy that a lot of people now understand what I have said all along.
W2 salaried upper income middle class always get screwed when it comes to any sort of tax reform…. For whatever reasons, politicians always like to think upper income salaried slaves are rich, meanwhile leaving corporations and the really rich alone.
Some folks keep saying how great Europe is… a lot of my colleagues are from Spain…they are here in the US because they complain how screwed up it is there. The poor or entitled crowd get a lot of free things. The rich pay less taxes. The middle class bears the majority of the tax burden. Meanwhile most of them can’t afford housing. Home ownership concentrated among the wealthy. Well, it looks like we are turning into that system. Lol.
I don’t have a problem paying more taxes if I earn a heck of a lot more money while doing a heck of a lot easier work….thankfully, that is the case i am currently in. And I also have to thank a few number of piggs, some of which are responsible for allowing me to build 1/3 of my net worth with much less effort than actually slaving away at a job. Thank you AN and sdrealtor. And then there are a few piggs that I have to thank for convincing me the path to earlier retirement is paying off a mortgage on a house that earns no money…thank you ucgal, wherever you may be.
This is pretty entertaining how foobared this is, and how messed up it’s going to be for a lot of people inclusive. But hey, look on the bright side… Estate taxes are being eliminated, so now you can inherit a lot of new property and pass on a lot of property , and build generation of generation of property owners…think of feudal times when you have Lords and serfs, lol.
November 3, 2017 at 4:58 AM #808370CoronitaParticipantMeh..don’t worry folks…spend happy…better enjoy it yourself instead of handing it over to others… I love my latest Miata with the additional $10k in upgrades… i always wanted to do things that made no financial sense and borderline reckless. Now, I don’t feel so guilty for it as it matters a lot less… Lol…..life is too short to get all bent out of shape.
November 3, 2017 at 5:00 AM #808371SK in CVParticipant[quote=flu]
Well, I am happy that a lot of people now understand what I have said all along.
W2 salaried upper income middle class always get screwed when it comes to any sort of tax reform…. For whatever reasons, politicians always like to think upper income salaried slaves are rich, meanwhile leaving corporations and the really rich alone. [/quote]
It is that way if we elect Republicans. I understand your logic in not wanting all the power in the hands of one party. But historically, tax cuts for capital is always a target aimed for by republicans. Tax cuts for labor comes from Democrats.
Cuts to taxes on income generated by capital increases inequality, and makes it more difficult, no matter how much you earn from work, from getting rich. They are designed to make rich richer.
Tax preferences for labor, during my lifetime, have only and always come from Democrats. Those are the tax cuts that create jobs. Those are the tax cuts that decrease income inequality.
November 3, 2017 at 6:31 AM #808372henrysdParticipantI think there is 70/30 rule on small business to prevent people to abuse the pass-through. 70% income must be paid by his normal tax bracket and only the remaining 30% at low 25% pass-through rate.
When we but Energy MLP, then the pass-through distribution is at 25% delayed tax until we sell it many years later.
November 3, 2017 at 7:17 AM #808373svelteParticipant[quote=flu]
Well, I am happy that a lot of people now understand what I have said all along.
W2 salaried upper income middle class always get screwed when it comes to any sort of tax reform…. For whatever reasons, politicians always like to think upper income salaried slaves are rich… [/quote]
It does appear that way.
I wonder if it is because they can get the most bang for their buck that way – lots of $$ in upper middle class, not many voters there (as opposed to lots in middle and lower class), and not much clout with politicians (as opposed to the truly wealthy).
Easy pickins for the tax base.
November 3, 2017 at 7:36 AM #808374CoronitaParticipant[quote=svelte][quote=flu]
Well, I am happy that a lot of people now understand what I have said all along.
W2 salaried upper income middle class always get screwed when it comes to any sort of tax reform…. For whatever reasons, politicians always like to think upper income salaried slaves are rich… [/quote]
It does appear that way.
I wonder if it is because they can get the most bang for their buck that way – lots of $$ in upper middle class, not many voters there (as opposed to lots in middle and lower class), and not much clout with politicians (as opposed to the truly wealthy).
Easy pickins for the tax base.[/quote]
It’s this way because the percentage of upper income well educated people in this country are relatively small compared to the majority dipshits, lazy, and Uber wealthy in this country….and because we have this pesky thing called democracy where every vote is the same..and that w2 slaves have very little wiggle room in terms of tax shelters.. So course they will end up bearing the majority of the burden any time any politician talks about tax reform or increasing taxes. I am not suggesting we change our democratic system. It’s just how it is.
This isn’t tax reform. This is abusing and exploiting what’s fvcked up about our tax system even further lol.Morale of the story… Invest more work less….and tax advantage of the more favorable tax rates for cap gains and dividends and investment income. Learned that one a long long time ago.
November 3, 2017 at 7:38 AM #808375AnonymousGuest[quote=SK in CV]
Nope. Doesn’t work that way. First, that GC literally CAN’T pay himself on a W-2. Against current rules. All goes on schedule C if it’s a single member LLC. Under proposed law, substantially all his income would be taxed as if it is all W-2 income. Only passive income is taxed at the preferred rate. Schedule C income, for a business the owner works in, (or a similar LLC, with more than 1 partner, filing a partnership tax return) is, as a matter of law, not passive income, ergo, no tax preference under proposed law. [/quote]Still not following. It’s a standard practice to have a single member LLC and pay yourself on a W2, pay the rest as K-1 pass-through. There are payroll companies that specialize in that arrangement, as well as 401K providers, etc. I know many people that do it. I do it.
Looks like the new plan is going to limit the 25% rate on pass-through to 30% of income, so it’s not as huge a win for the little guy. And the benefits for my example of executives becoming consultants is probably overstated.
[quote]There probably WILL be ways around that problem, designs that make the tax preferences for that GC possible. That’s the shit I’ve been paid to find. But the law is designed, only non-working interests get the lower rate. It’s for investors. Not for taxpayers who start and grow small business.
And it’s clearly and unequivocally NOT a tax simplification.[/quote]Of course it is simpler … there are fewer brackets!
I do agree that this plan is basically a con job that that’s trying to hide a big handout to the wealthy. Most small business owners are savvy enough to see that. That’s why Fox News is already telling them to stop whining:
November 3, 2017 at 8:20 AM #808377SK in CVParticipant[quote=harvey]
Still not following. It’s a standard practice to have a single member LLC and pay yourself on a W2, pay the rest as K-1 pass-through. There are payroll companies that specialize in that arrangement, as well as 401K providers, etc. I know many people that do it. I do it.Looks like the new plan is going to limit the 25% rate on pass-through to 30% of income, so it’s not as huge a win for the little guy. And the benefits for my example of executives becoming consultants is probably overstated.
[/quote]
I know there are companies that do it. I’m telling you, paying a LLC member on a W-2 is both flat out wrong and not common. I have never seen it for a single member LLC, unless the LLC has elected to be taxed as an S-Corp, where it’s mandatory and the only way to pay shareholder employees. The default for single member LLCs is that they are disregarded entities for tax purposes, unless an affirmative check-the-box election is filed. The law is that LLC members cannot be paid as employees (As a practical matter, there are only minimal adverse consequences of doing it wrong, but potentially, it could be pretty expensive if the IRS so chooses). Beyond that, there is zero advantage to doing it other than paying tax through withholding rather than estimated taxes. 401K rules are the same, irrespective of whether LLC members are paid incorrectly as W-2 employees or receive non-W-2 salaries (technically “guaranteed payments”)
The 70/30 rule is there, but unless i’m reading it wrong, unless income from an active business is over about $400 to 500K, it won’t save anything. The 30% will already be in a lower bracket anyway.
November 3, 2017 at 8:52 AM #808378scaredyclassicParticipantsaw a 79 year old jazz pianist still touring w a trio last night. dude was really good. not sure what he makes but he seemed much richer and more successful in life than rich guys i run into.
November 3, 2017 at 9:29 AM #808379plmParticipant[quote=flu][quote=svelte][quote=flu]
Morale of the story… Invest more work less….and tax advantage of the more favorable tax rates for cap gains and dividends and investment income. Learned that one a long long time ago.[/quote]
I am investing in the market more making nice returns but I don’t think tax rates are more favorable for investments. Short term is worse, taxed 3.8 percent higher because of obamacare. Long term isn’t much better, taxed at 18.8 or more likely 23.8.
If the trump tax passes, it stays the same and doesn’t get any better.
November 3, 2017 at 11:03 AM #808380The-ShovelerParticipantIMO if the goal was to stimulate the economy you would give tax breaks to both the little guy (UMC) and the corporations.
The little guy will definitely spend more locally than the top 1% or .01%.
IMO the goal is not to stimulate the economy, the goal seems to be keep the UMC workers in slave mode.
Europe IMO is a lot like that, keep all the working class more or less at the same level.
IMO No one is really concerned about the Gov Debt, it is just a way to keep order.
anyway IMO.
November 3, 2017 at 11:46 AM #808381moneymakerParticipantEvidently the 500k would only be applicable to new loans, not existing.
November 3, 2017 at 12:02 PM #808382henrysdParticipant$500K home sale capital gain exclusion rule is tightened. It used to be 2 out of last 5 years, now it is 5 out of last 8 years for tax-free gain on primary home. The amount is the same $250K for single and $500K for couple.
November 3, 2017 at 12:23 PM #808383scaredyclassicParticipantwhat about setting up a side hustle sched c business and deducting expenses.
is that still avail to w2 slaves?
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