2017 Trump Tax Cuts did not go to the wealthiest 1%

[Toddsterpatriot]

Nice one, but the tax revenues for 2018 contained billions of dollars in one-time payments from multi-national corporations returning overseas profits to the USA and paying 10% tax on the repatriated funds. You'd be better to compare 2019 to 2017 and see what happened there.

Corporations paid 10% instead of 0%?

That's outrageous!!!!

 

[struth]

The tax cuts had to have a sunset cause due to congressional rules

Tax cuts for corporations didn’t sunset in the Trump tax cut. There’s no rule saying they have to sunset.

nope the confessional rules didn’t require it

but that’s not keeping them peremanent

as we see the dembots trying to raise taxes there to...as if inflation under their policies hasn’t been enough...yet another burden to the cost of products and services to the working class

The Republican Congress could have made tax cuts for the middle class permanent, but would have to add sunset provisions to the corporate tax cut. They had to chose who to prioritize and it wasn’t the average joe.

being made permanent doesn’t matter as the next congress can change the laws

the realilty is the dems didn’t support the tax cuts and are now raising taxes

just admit the truth

 

[Winston]

Why can't you invest when taxes go up? You don't pay taxes on money you put back in the business, so what difference does the tax rate make when it comes to making an investment?

Use WACC.......show that it makes no difference.

The WACC is irrelevant in this case. You don't pay taxes on money you reinvest in the business. So why should the tax rate make a difference?

You still haven't figured out your WACC confusion, have you?

I am not confused,

The rate of corporate tax that companies pay in the U.S. plays a major part in determining WACC because as tax rates go up, the WACC falls.

How Does the Corporate Tax Rate Affect WACC? | Bizfluent

A company’s weighted average cost of capital, commonly abbreviated as WACC, is part of the calculation of a required return necessary to make a capital-budgeting project worth undertaking. Corporate taxes impact the WACC calculation because of many factors, including deductions and the tax rate.

yourbusiness.azcentral.com

Cool. So prove your claim that someone is more likely to invest at a 35% corporate rate than at a 21% corporate rate. Assume a pre-tax profit of $1 million.......

Do you really believe that a company would refuse a one million dollar profit because they have to pay taxes? Let's say the tax rate is 50%, what, the company doesn't want to put a half million dollars in the bank at the end of the year?

But you are creating a scenario that has no bearing on the real world. Companies don't know if a capital investment will pay off or not. If you want to know how the WACC factors in, along with the marginal tax rate, I will give it a shot.

Typically companies have an IRR that is required to initiate a capital investment. The anticipated IRR is usually projected using a Monte Carlo stimulation with an optimistic projection, a pessimistic projection, and an average baseline projection. If the results project a higher than required IRR the project will be implemented. We have already established that the WACC is inversely related to the marginal tax rate, so the higher the marginal tax rate the lower the WACC and thereby the higher the generated IRR. Typically, that required IRR is lower when marginal tax rates are higher because the risk of loss is offset by the tax implications of that loss.

We see that playing out today. Companies are sitting on piles of cash, and the investments they are making are usually very low risk, low returning, investments. That is because the lower corporate tax rate has increased the cost of a bad investment, they are risk averse. There is an old saying among old time investment managers. It is not the return on an investment a business is concerned with, it is the return of the investment.

So I will make a prediction. If Biden is able to push through a corporate tax increase, which I doubt he can with the current Senate, business investment will increase more sharply than it did when Trump cut that rate.

 

[Rambunctious]

Bottom line....if elected democrats that whine about low tax rates for the rich really cared about a treasury shortfall they would stop spending and cut back...dig out waste and corruption but they never do so they shouldn't be surprised when half the population are against high tax rates....

for anyone....

Government is too damn big...funding virus manipulation...IN CHINA!!!!! what the fuck folks?....don't give them so damn much money make them stop spending....hold them to account...

Because we are not going to pay off the debt with taxes from a weakened over taxed and regulated economy....it just ain't going to happen...

We do not collect enough tax revenue from a stagnate economy...

We need a robust economy to bring in the kind of revenue we need...not a sleepy Joe economy...a Trump economy....

 

[LAUGHatLEFTISTS]

Xiden’s plan would raise taxes on the working class and do away with trumps tax cuts to the working class...who had the largest cuts

Tramp already did away with his working class tax cuts, where have you been.
Republicans made individual tax cuts temporary so they could meet budget rules that let them pass their tax overhaul with no Democratic votes.

Why wouldn’t the demleftists vote for middle class tax cuts?

 

[frigidweirdo]

In a speech last week introducing his proposed $6 trillion 2022 budget, President Biden claimed that the benefits of the Republican Party’s Tax Cuts and Jobs Act “went to the wealthiest 1% of America.” It’s not the first time he’s made this claim, but it is a LIE.

Let’s start with that supposedly “huge windfall” that went to the “wealthiest 1%” of America. While the TCJA reduced effective income tax rates for all income groups in 2018, the top 1% experienced no windfall. Rather, according to the most recent IRS income tax data, the top 1% of taxpayers paid $616 billion in 2018, roughly the same amount they paid in 2017. But the bottom 99% paid $65 billion less. Some “windfall.” If the TCJA was a tax cut for the rich, it was the weirdest one in the history of tax cuts for the rich.

SOI Tax Stats - Individual Income Tax Rates and Tax Shares | Internal Revenue Service

Access data, articles and tables on individual income tax rates and tax shares.

www.irs.gov

But did those evil 1-percenters pay their fair share? Turns out they did – and certainly a larger share than when tax rates were last at Biden’s proposed 39.6%.

In 2018, while the top 1%’s share of adjusted gross income declined slightly to 20.9% (from 21.0% in 2017), its share of the income tax burden increased to 40.1% from 38.5%. “Fair” is in the eye of the beholder, but consider: The top 1%’s share of taxes paid nearly doubles its share of income. For more “fair share” perspective, consider that in 2018, the top 1% paid more in income taxes than the bottom 90% of taxpayers – combined.

Biden also might be surprised to learn that the top 1% actually paid a higher percentage of income taxes in 2018 under the TCJA than in any year since at least 2001 – when it paid 33.2%. That includes each of the five years from 2013 to 2017 following the Obama tax hikes, when the top rate last stood at 39.6% – the rate Biden is currently proposing.

Biden and the 1 Percent | RealClearPolitics

In a speech last week introducing his proposed $6 trillion 2022 budget, President Biden claimed that the benefits of the Republican Partys Tax Cuts and Jobs...

www.realclearpolitics.com

So, how did that happen? Glad you asked:

.... the TCJA increased taxable income for wealthier Americans by reducing the itemized deductions they could claim. High earners generally benefit more from itemizing deductions. Lower earners generally benefit more from the standard deduction. The TCJA increased the standard deduction and limited itemized deductions.

According to IRS data, following the TCJA, the amount taxpayers claimed for itemized deductions dropped by 55%, from about $1.46 trillion in 2017 to about $650 billion in 2018. That’s over $800 billion that was taxed in 2018 but not in 2017, most of which came from the rich people. (see link above)

Hello SALT deduction, which was a big part of that. Funny how the Dems want to raise taxes on the rich but not THEIR rich, the ones that live in their blue states.

So, when somebody says the Trump tax cuts benefited the rich, you know they are either misinformed or outright lying. Probably they've been watching CNN or MSNBC a little too much.

I love it when people write stuff and cherry pick the statistics to make rich people look not bad.

"the top 1% of taxpayers paid $616 billion in 2018, roughly the same amount they paid in 2017. "

Doesn't mean they weren't paying LESS in tax on what they were making. The US economy was better in 2018 than 2017, they should have been paying MORE in 2018.

 

[LAUGHatLEFTISTS]

Trump's tax cut was across the board every income tax payer under $500,000 per year got one...and undoing it will raise everyone's taxes....

With being almost 30 trillion in debt would be the thing to do.

You do understand taxes can be cut and the resulting economic activity can and has generated more tax revenue for the federal government ? Would you like to see the numbers after Kennedy cut taxes?

Maybe we can discuss what Millard Fillmore did after that. Then we can discuss the national debt at the time of Kennedy and all the massive pumping of the markets we did back then? No?

Sure. Whenever you’re ready. Please admit you understand my post first then we can get on with new discussions. Better yet, rove me wrong. You can’t so you won’t.

What happened 60 years ago is not relevant to what happens now. So we can discuss the ramifications of how people want the markets to continue to be pumped but have no desire the address the correlating debt and what things like this is going to mean?

Russia Cuts Dollar Holdings From $119 Billion Wealth Fund Amid Sanctions

Hahahahaha keep lying to yourself. I destroyed your leftist narrative and you know it. It really is that easy with you clowns.

 

[frigidweirdo]

We now have over 600 billionaires, If its true that most of us struggled to remain in our attained level of living, then how during this on going mess did those at the top manage to increase their wealth by a trillion dollars?

When I was young the Chinese rode bikes to work, now they ride Mercedes. They have more billionaires than the US

List of Chinese by net worth - Wikipedia

en.wikipedia.org

Well, China has a population 4 times the US's. And billionaires are made because if you're successful in the whole of China, you're going to make it rich 4 times more than if you make it in the US. Because you have 4 times the number of internal customers.

And the CCP is taking out your competitors all the time.....

 

[Lesh]

Bloomberg - Are you a robot?

The biggest benefit went to the $250-$450K income group

 

[Lesh]

On the whole, low-income families appear to have received the least savings, while high-income families saved the most. Middle-class families saw mixed results. The biggest winners from Trump's tax cuts were probably businesses. Between 2017 and 2018, corporations paid 22.4% less income tax.

 

[pknopp]

Trump's tax cut was across the board every income tax payer under $500,000 per year got one...and undoing it will raise everyone's taxes....

With being almost 30 trillion in debt would be the thing to do.

You do understand taxes can be cut and the resulting economic activity can and has generated more tax revenue for the federal government ? Would you like to see the numbers after Kennedy cut taxes?

Maybe we can discuss what Millard Fillmore did after that. Then we can discuss the national debt at the time of Kennedy and all the massive pumping of the markets we did back then? No?

Sure. Whenever you’re ready. Please admit you understand my post first then we can get on with new discussions. Better yet, rove me wrong. You can’t so you won’t.

What happened 60 years ago is not relevant to what happens now. So we can discuss the ramifications of how people want the markets to continue to be pumped but have no desire the address the correlating debt and what things like this is going to mean?

Russia Cuts Dollar Holdings From $119 Billion Wealth Fund Amid Sanctions

Hahahahaha keep lying to yourself. I destroyed your leftist narrative and you know it. It really is that easy with you clowns.

Oddly you didn't address anything I said.

 

[task0778]

Doesn't mean they weren't paying LESS in tax on what they were making. The US economy was better in 2018 than 2017, they should have been paying MORE in 2018.

Yes, it was better, that was the whole point of cutting tax rates, to make the economy grow stronger.

 

[colfax_m]

The tax cuts had to have a sunset cause due to congressional rules

Tax cuts for corporations didn’t sunset in the Trump tax cut. There’s no rule saying they have to sunset.

nope the confessional rules didn’t require it

but that’s not keeping them peremanent

as we see the dembots trying to raise taxes there to...as if inflation under their policies hasn’t been enough...yet another burden to the cost of products and services to the working class

The Republican Congress could have made tax cuts for the middle class permanent, but would have to add sunset provisions to the corporate tax cut. They had to chose who to prioritize and it wasn’t the average joe.

being made permanent doesn’t matter as the next congress can change the laws

the realilty is the dems didn’t support the tax cuts and are now raising taxes

just admit the truth

They’ll raise taxes on some, which is exactly what they campaigned on.

Just remember, when Republicans had to make a choice between middle class and corporations, they went for the corporations. Priorities.

 

[colfax_m]

Doesn't mean they weren't paying LESS in tax on what they were making. The US economy was better in 2018 than 2017, they should have been paying MORE in 2018.

Yes, it was better, that was the whole point of cutting tax rates, to make the economy grow stronger.

It was mostly better for the wealthy.

 

[ReinyDays]

Just looked at my 2020 tax returns ... the first $441,450 in capital gains is tax free* ... $0 ... my entire tax liability was 1.3% of my AGI ... thievin' bastards ... thank you all for paying my fair share of the tax load ... seven come eleven baby, Las Vegas wouldn't be the same without y'all's generosity ...

* = Qualified Dividend and Capital Gains Worksheet, Instructions for IRS Form 1040 (2020), page 35, line 13 ...

Just looked at my 2020 tax returns ... the first $441,450 in capital gains is tax free*

You're confused.

Section 1231 property ... look it up ...

 

[Toddsterpatriot]

Why can't you invest when taxes go up? You don't pay taxes on money you put back in the business, so what difference does the tax rate make when it comes to making an investment?

Use WACC.......show that it makes no difference.

The WACC is irrelevant in this case. You don't pay taxes on money you reinvest in the business. So why should the tax rate make a difference?

You still haven't figured out your WACC confusion, have you?

I am not confused,

The rate of corporate tax that companies pay in the U.S. plays a major part in determining WACC because as tax rates go up, the WACC falls.

How Does the Corporate Tax Rate Affect WACC? | Bizfluent

A company’s weighted average cost of capital, commonly abbreviated as WACC, is part of the calculation of a required return necessary to make a capital-budgeting project worth undertaking. Corporate taxes impact the WACC calculation because of many factors, including deductions and the tax rate.

yourbusiness.azcentral.com

Cool. So prove your claim that someone is more likely to invest at a 35% corporate rate than at a 21% corporate rate. Assume a pre-tax profit of $1 million.......

Do you really believe that a company would refuse a one million dollar profit because they have to pay taxes? Let's say the tax rate is 50%, what, the company doesn't want to put a half million dollars in the bank at the end of the year?

But you are creating a scenario that has no bearing on the real world. Companies don't know if a capital investment will pay off or not. If you want to know how the WACC factors in, along with the marginal tax rate, I will give it a shot.

Typically companies have an IRR that is required to initiate a capital investment. The anticipated IRR is usually projected using a Monte Carlo stimulation with an optimistic projection, a pessimistic projection, and an average baseline projection. If the results project a higher than required IRR the project will be implemented. We have already established that the WACC is inversely related to the marginal tax rate, so the higher the marginal tax rate the lower the WACC and thereby the higher the generated IRR. Typically, that required IRR is lower when marginal tax rates are higher because the risk of loss is offset by the tax implications of that loss.

We see that playing out today. Companies are sitting on piles of cash, and the investments they are making are usually very low risk, low returning, investments. That is because the lower corporate tax rate has increased the cost of a bad investment, they are risk averse. There is an old saying among old time investment managers. It is not the return on an investment a business is concerned with, it is the return of the investment.

So I will make a prediction. If Biden is able to push through a corporate tax increase, which I doubt he can with the current Senate, business investment will increase more sharply than it did when Trump cut that rate.

Do you really believe that a company would refuse a one million dollar profit because they have to pay taxes?

Do you really believe investment is higher at 35% than at 21%?

 

[Toddsterpatriot]

Section 1231 property ... look it up ...

If it says anything about 1231 property on "Qualified Dividend and Capital Gains Worksheet, Instructions for IRS Form 1040 (2020), page 35, line 13"

Post a picture of it.

 

[task0778]

Just looked at my 2020 tax returns ... the first $441,450 in capital gains is tax free* ... $0 ... my entire tax liability was 1.3% of my AGI ... thievin' bastards ... thank you all for paying my fair share of the tax load ... seven come eleven baby, Las Vegas wouldn't be the same without y'all's generosity ...

* = Qualified Dividend and Capital Gains Worksheet, Instructions for IRS Form 1040 (2020), page 35, line 13 ...

Just looked at my 2020 tax returns ... the first $441,450 in capital gains is tax free*

You're confused.

Section 1231 property ... look it up ...

"the first $441,450 in capital gains is tax free* ... $0"

Bullshit, that is a lie. The only way you can get out of paying CG tax of that magnitude is if you offset it with CG losses of a equal amount, or you had some other write-off.

 

[struth]

Xiden’s plan would raise taxes on the working class and do away with trumps tax cuts to the working class...who had the largest cuts

Tramp already did away with his working class tax cuts, where have you been.
Republicans made individual tax cuts temporary so they could meet budget rules that let them pass their tax overhaul with no Democratic votes.

Why wouldn’t the demleftists vote for middle class tax cuts?

they don’t want to help the working class

 

[Toddsterpatriot]

Just looked at my 2020 tax returns ... the first $441,450 in capital gains is tax free* ... $0 ... my entire tax liability was 1.3% of my AGI ... thievin' bastards ... thank you all for paying my fair share of the tax load ... seven come eleven baby, Las Vegas wouldn't be the same without y'all's generosity ...

* = Qualified Dividend and Capital Gains Worksheet, Instructions for IRS Form 1040 (2020), page 35, line 13 ...

Just looked at my 2020 tax returns ... the first $441,450 in capital gains is tax free*

You're confused.

Section 1231 property ... look it up ...

"the first $441,450 in capital gains is tax free* ... $0"

Bullshit, that is a lie. The only way you can get out of paying CG tax of that magnitude is if you offset it with CG losses of a equal amount, or you had some other write-off.

Here's the reality.............