Author Topic: Tax Cuts and Jobs Act question.  (Read 317 times)

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Offline Id82

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Tax Cuts and Jobs Act question.
« on: February 08, 2019, 05:10:43 pm »
I was reading the Wiki article about the Tax cuts and Jobs act of 2017 and came across this line of information:

In 2027, if the tax cuts are paid for by spending cuts borne evenly by all families, after-tax income would be 3.0% higher for the top 0.1%, 1.5% higher for the top 10%, -0.6% for the middle 40% (30th to 70th percentile) and -2.0% for the bottom 50%

Does that mean that the lowest income workers will be owing more in taxes by 2027 than the highest income workers who will receive a three percent hike in their income?

I've been trying to understand the Tax Cuts and Jobs act effect on the economy after a conservative friend on facebook said that these tax increase stories that people have been tweeting are fake news since he earned a lot back in taxes this year. (I know he sounds like an idiot because of course since it's not happening to him that means it's not happening to everyone else.)
Can someone summarize the goods and bads of this act so far to an idiot like me and explain where it's going?

Offline dpareja

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Re: Tax Cuts and Jobs Act question.
« Reply #1 on: February 08, 2019, 06:36:49 pm »
It was a huge tax cut for rich people and corporations. Everyone else gets fucked.

Not only that, but instead of reinvesting in their companies to create jobs, said rich people and (especially) corporations used the money on stock buybacks to inflate stock prices (which used to be illegal until Reagan, since it's a form of market manipulation which has no bearing on how the company's actually doing), which in turn inflates CEO compensation, since that's often linked to stock prices.

As I've heard it put, this wasn't a tax reform bill, it was reparations to the rich for the crime of the New Deal.

As for the tax increase stories, probably part of it is an attempt to correct overwithholding, leading to people getting more on their paycheques but less on their refund (if anything).

But in a few years federal taxes will go up for most people, and the rich will continue to tell the middle class to blame the working class (especially undocumented immigrants) for their problems, and said rich will run out the door with all the money.

The bill is class warfare, plain and simple: class warfare waged by the rich on everyone else.
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Offline ironbite

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Re: Tax Cuts and Jobs Act question.
« Reply #2 on: February 11, 2019, 05:06:05 pm »
AIN'T IT GREAT!

Ironbite-the MAGAtards are just now figuring this out btw.

Offline DarkPhoenix

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Re: Tax Cuts and Jobs Act question.
« Reply #3 on: February 12, 2019, 07:12:04 pm »
In 2027, if the tax cuts are paid for by spending cuts borne evenly by all families, after-tax income would be 3.0% higher for the top 0.1%, 1.5% higher for the top 10%, -0.6% for the middle 40% (30th to 70th percentile) and -2.0% for the bottom 50%

Does that mean that the lowest income workers will be owing more in taxes by 2027 than the highest income workers who will receive a three percent hike in their income?

Yep.  This was the Republican plan all along; it slightly drops tax rates for everyone for a short time (but as you're seeing from the screaming people, thanks to erasing certain deductions and capping others, that may not be the case for everyone), but after 2021 the tax rates start INCREASING on the poor and middle class, maxing out in 2027.  And don't think that 2021 date is a coincidence; they picked that date SPECIFICALLY so that if there's a Democratic President, they can start accusing him/her of raising taxes - despite it being THEIR tax bill doing it!

Offline dpareja

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Re: Tax Cuts and Jobs Act question.
« Reply #4 on: February 12, 2019, 07:16:02 pm »
In 2027, if the tax cuts are paid for by spending cuts borne evenly by all families, after-tax income would be 3.0% higher for the top 0.1%, 1.5% higher for the top 10%, -0.6% for the middle 40% (30th to 70th percentile) and -2.0% for the bottom 50%

Does that mean that the lowest income workers will be owing more in taxes by 2027 than the highest income workers who will receive a three percent hike in their income?

Yep.  This was the Republican plan all along; it slightly drops tax rates for everyone for a short time (but as you're seeing from the screaming people, thanks to erasing certain deductions and capping others, that may not be the case for everyone), but after 2021 the tax rates start INCREASING on the poor and middle class, maxing out in 2027.  And don't think that 2021 date is a coincidence; they picked that date SPECIFICALLY so that if there's a Democratic President, they can start accusing him/her of raising taxes - despite it being THEIR tax bill doing it!

The one bit of good news is that if the Dems can take the Presidency, hold the House, and somehow retake the Senate (and I think there are quite a few good targets), they can ram a reversal through with reconciliation.
Quote from: Jordan Duram
It doesn't concern you, Sister, that kind of absolutist view of the universe? Right and wrong determined solely by a single all-knowing, all powerful being whose judgment cannot be questioned and in whose name the most horrendous acts can be sanctioned without appeal?

Quote from: Supreme Court of Canada
Being required by someone else’s religious beliefs to behave contrary to one’s sexual identity is degrading and disrespectful.

Offline Askold

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Re: Tax Cuts and Jobs Act question.
« Reply #5 on: February 13, 2019, 12:35:18 am »
Hah! If the Democrats make ANY changes to taxation the Republicans are going to scream that they are to blame for the tax hike. And since the only way to fix this is to increase the taxes on the rich, it'll be something that the average Republican voter is willing to oppose tooth and nail (without realizing that it will not affect him at all.)

Sucks to be you guys. This is going to take a lot of effort to fix and without dismantling the Republican party it will be impossible.
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Offline DarkPhoenix

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Re: Tax Cuts and Jobs Act question.
« Reply #6 on: February 14, 2019, 06:58:05 pm »
In 2027, if the tax cuts are paid for by spending cuts borne evenly by all families, after-tax income would be 3.0% higher for the top 0.1%, 1.5% higher for the top 10%, -0.6% for the middle 40% (30th to 70th percentile) and -2.0% for the bottom 50%

Does that mean that the lowest income workers will be owing more in taxes by 2027 than the highest income workers who will receive a three percent hike in their income?

Yep.  This was the Republican plan all along; it slightly drops tax rates for everyone for a short time (but as you're seeing from the screaming people, thanks to erasing certain deductions and capping others, that may not be the case for everyone), but after 2021 the tax rates start INCREASING on the poor and middle class, maxing out in 2027.  And don't think that 2021 date is a coincidence; they picked that date SPECIFICALLY so that if there's a Democratic President, they can start accusing him/her of raising taxes - despite it being THEIR tax bill doing it!

The one bit of good news is that if the Dems can take the Presidency, hold the House, and somehow retake the Senate (and I think there are quite a few good targets), they can ram a reversal through with reconciliation.

I think the Republicans are banking on being able to hold at least one of the three, so they can prevent any possible fixes.  Then they can run on it in 2022.

Offline dpareja

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Re: Tax Cuts and Jobs Act question.
« Reply #7 on: February 14, 2019, 07:13:52 pm »
2021 is when taxes start to go up on normal people, even in low-tax states. (A lot of the increases right now are in high-tax states, thanks to the removal of and/or cap on the SALT deduction--can't recall if it was removed or just capped.)

The Senate is definitely the one they'll be trying to hold, though. I wouldn't be surprised if a good number of them are secretly hoping the Democrats nominate someone who can beat Trump, but who won't manage to pull along Senate challengers.
Quote from: Jordan Duram
It doesn't concern you, Sister, that kind of absolutist view of the universe? Right and wrong determined solely by a single all-knowing, all powerful being whose judgment cannot be questioned and in whose name the most horrendous acts can be sanctioned without appeal?

Quote from: Supreme Court of Canada
Being required by someone else’s religious beliefs to behave contrary to one’s sexual identity is degrading and disrespectful.

Offline Kanzenkankaku

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Re: Tax Cuts and Jobs Act question.
« Reply #8 on: February 16, 2019, 11:41:02 pm »
Risky strategy. Might work if democrats fall for the trap and do the democrat thing where they alienate the left and non-elitists.

It's also just a plain dick move. GOP assholes.