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Some "goodies" in the Republican tax bill

Posted: Tue Nov 07, 2017 4:22 pm
by Bob78164
There's been a lot of press about how the Republican tax bill is stripping out the deduction for state and local income taxes. Here's the part that's not getting publicity. As the bill is currently written, those taxes will remain deductible when it's considered an expense of generating income. What does that mean in practice? It means business owners (such as my equity partners) will continue to enjoy the deduction, but employees (such as our staff) will not. As for me, I would probably be able to qualify for the deduction by forming a professional corporation and having the firm hire the corporation to do my work. In short, the rich will be able to keep the deduction. The poor will get screwed.

Here's another one I just learned about. Like most graduate students, when I was in grad school, I got a tuition waiver. Under the new bill, that waiver will suddenly be considered income. The practical impact will be to add thousands of dollars to the tax bills of many, many graduate students. And since a typical stipend for these students is in the low 20s (at most), that means an awful lot of people will find themselves priced out of graduate school entirely.

And all of this is to provide a tax cut for the rich that they don't need, and to blow a $1.2 trillion hole in the deficit. How can anyone think this is good public policy? How can anyone think this is anything but a naked political payoff?

I'm really looking forward to knocking on doors next fall to get out the vote in some presently Republican districts. Because absolutely every Republican Congressman in California voted to make this possible. --Bob

Re: Some "goodies" in the Republican tax bill

Posted: Tue Nov 07, 2017 5:56 pm
by flockofseagulls104
Bob78164 wrote:There's been a lot of press about how the Republican tax bill is stripping out the deduction for state and local income taxes. Here's the part that's not getting publicity. As the bill is currently written, those taxes will remain deductible when it's considered an expense of generating income. What does that mean in practice? It means business owners (such as my equity partners) will continue to enjoy the deduction, but employees (such as our staff) will not. As for me, I would probably be able to qualify for the deduction by forming a professional corporation and having the firm hire the corporation to do my work. In short, the rich will be able to keep the deduction. The poor will get screwed.

Here's another one I just learned about. Like most graduate students, when I was in grad school, I got a tuition waiver. Under the new bill, that waiver will suddenly be considered income. The practical impact will be to add thousands of dollars to the tax bills of many, many graduate students. And since a typical stipend for these students is in the low 20s (at most), that means an awful lot of people will find themselves priced out of graduate school entirely.

And all of this is to provide a tax cut for the rich that they don't need, and to blow a $1.2 trillion hole in the deficit. How can anyone think this is good public policy? How can anyone think this is anything but a naked political payoff?

I'm really looking forward to knocking on doors next fall to get out the vote in some presently Republican districts. Because absolutely every Republican Congressman in California voted to make this possible. --Bob
TAX CUT FOR THE RICH. The dems are taught to say that in their sleep. Maybe it is, but most of us have a hard time believing anything that comes from the mouths of Pelosi, Schumer, et al. That is the big problem with your strategy of resisting everything. It is assumed that you will criticize whatever comes from the other side. So even if one time out of ten you are correct, we assume it's just your strategy and ignore it. Children will be children.

Re: Some "goodies" in the Republican tax bill

Posted: Tue Nov 07, 2017 6:29 pm
by Bob78164
flockofseagulls104 wrote:
Bob78164 wrote:There's been a lot of press about how the Republican tax bill is stripping out the deduction for state and local income taxes. Here's the part that's not getting publicity. As the bill is currently written, those taxes will remain deductible when it's considered an expense of generating income. What does that mean in practice? It means business owners (such as my equity partners) will continue to enjoy the deduction, but employees (such as our staff) will not. As for me, I would probably be able to qualify for the deduction by forming a professional corporation and having the firm hire the corporation to do my work. In short, the rich will be able to keep the deduction. The poor will get screwed.

Here's another one I just learned about. Like most graduate students, when I was in grad school, I got a tuition waiver. Under the new bill, that waiver will suddenly be considered income. The practical impact will be to add thousands of dollars to the tax bills of many, many graduate students. And since a typical stipend for these students is in the low 20s (at most), that means an awful lot of people will find themselves priced out of graduate school entirely.

And all of this is to provide a tax cut for the rich that they don't need, and to blow a $1.2 trillion hole in the deficit. How can anyone think this is good public policy? How can anyone think this is anything but a naked political payoff?

I'm really looking forward to knocking on doors next fall to get out the vote in some presently Republican districts. Because absolutely every Republican Congressman in California voted to make this possible. --Bob
TAX CUT FOR THE RICH. The dems are taught to say that in their sleep. Maybe it is, but most of us have a hard time believing anything that comes from the mouths of Pelosi, Schumer, et al. That is the big problem with your strategy of resisting everything. It is assumed that you will criticize whatever comes from the other side. So even if one time out of ten you are correct, we assume it's just your strategy and ignore it. Children will be children.
Do your own research. I'm relying on economists and tax professionals, not politicians. --Bob

Re: Some "goodies" in the Republican tax bill

Posted: Tue Nov 07, 2017 6:46 pm
by silverscreenselect
flockofseagulls104 wrote: but most of us have a hard time believing anything that comes from the mouths of Pelosi, Schumer, et al. That is the big problem with your strategy of resisting everything.
First, let me thank you and BiT for the really nice things you said about my current problem. The support I've gotten from you and everyone on the Bored is greatly appreciated.

But the "most of us" you're talking about here doesn't seem to be most of the public, which is highly skeptical of the Republican tax bill:

https://www.npr.org/2017/11/02/56142272 ... x-overhaul

Re: Some "goodies" in the Republican tax bill

Posted: Tue Nov 07, 2017 6:59 pm
by Pastor Fireball
flockofseagulls104 wrote:That is the big problem with your strategy of resisting everything. It is assumed that you will criticize whatever comes from the other side.
We're still waiting for you to explain the eight years that you've spent prejudicially criticizing PRESIDENT Obama, thou hypocrite.

Re: Some "goodies" in the Republican tax bill

Posted: Wed Nov 08, 2017 1:00 am
by Bob Juch
The company I contract to is going to make an offer to hire me as an employee. As it's actually my LLC that has the contract, I'd be able to continue to take the tax deduction unless I hired-on. That's something to factor into my negotiations. Thank for mentioning that, Bob.

Re: Some "goodies" in the Republican tax bill

Posted: Wed Nov 08, 2017 3:17 pm
by Bob78164
I almost forgot about this one. The Republicans also want to repeal the deduction for student loan interest. Because, y'know, if your parents aren't rich enough to pay cash for your college education, you prolly don't deserve to go to college anyway.

There are a lot of Congressional districts within easy driving distance of me that bear strong resemblances to the Virginia districts that flipped last night, and each one of their Representatives has voted in lockstep with the Republican agenda. My biggest problem next fall will be choosing among them to spend my time. --Bob

Re: Some "goodies" in the Republican tax bill

Posted: Thu Nov 09, 2017 7:40 am
by gsabc
Bob78164 wrote: There are a lot of Congressional districts within easy driving distance of me that bear strong resemblances to the Virginia districts that flipped last night, and each one of their Representatives has voted in lockstep with the Republican agenda. My biggest problem next fall will be choosing among them to spend my time. --Bob
My problem is that I'm in one of the bluest states in the country. All our reps and both senators have the (D) after their names. The state legislature (excuse me, General Court) is overwhelmingly (D). We have a tradition of electing (R) governors, going back at least into the 1960s and John Volpe through to Romney and our current leader. But they're moderates by necessity, if not inherently so. Even neighboring states are primarily (D). So I donate to the (D)'s as the alternative.

If I do manage to retire next year, I may look into being part of the phone banks making proselytizing calls around the country. Anyone have other suggestions that I haven't thought of and probably don't know about?

P.S. I got screwed in the 1986 tax reforms, and it'll happen again if the (R) plan passes in its current form. I'm okay with taxes in general, but this reverse Robin Hood bit is getting old. There is no economic theory - nay, no theory of any kind - more appropriately named than the Laffer curve.

Re: Some "goodies" in the Republican tax bill

Posted: Thu Nov 09, 2017 8:32 am
by ghostjmf
Please don't be in a phone bank. Or an e-mail bank. The DNC seriously has to get me off their lists. Yes, I know I could supposedly block the e-mail. Rather drastic. For phone & do-not-call list, if you ever gave they're allowed to call you.

I of course support their candidates & causes with my vote whenever I can, but I don't even have loose money right now for charities I used to give to.

I drop money in a bucket if I think it really is going to good cause, but I don't give out my phone # or e-mail or address, but the solicitations just keep on coming.

Door-to-door canvassing does work on me, & you might find you get some discussions going that way on things like national gun control even here in largely-D Mass.

And yes, I could get a landline that lights up better to tell me who a call is from, but I can't not pick up even "no name" calls for fear of missing emergency calls.

Re: Some "goodies" in the Republican tax bill

Posted: Thu Nov 09, 2017 11:45 am
by flockofseagulls104
I can't think of anything that would be more annoying, off-putting, or counter-productive than to have some stranger knocking at my door and trying to persuade me to vote for one candidate or another. (Well, actually I can, but not too many.)

Anywhere you look these days, you get emails, phone calls, Facebook posts, TV, radio all spewing out their talking points that skewer the other side, none of which tell the whole truth. "We're the good guys, they want to murder people in their sleep." "My candidate is a super-hero with a darling little family, the other guy takes lollipops from little kids." Any candidate that allows ads in their name that personally disparages their opponent is automatically put into the 'creep' category for me. Unfortunately, most of the time you only have creeps to choose from. Our last Presidential election was the perfect example. Trump is way up in the creep category, and that was his main campaign strategy. But, luckily for him, he was up against one of the few people who is a bigger creep than he is. I could not vote for either of them. And I didn't.

From my point of view, very few people that run for public office, especially national offices, are very concerned about what's in the long-term best interests of the country. They are concerned with consolidating individual and party power. Who else would willingly put themselves through the process of getting elected? That is all well and good, and it's what we have come to. Just look at some of the people we have put in positions of power who have been exposed for the creeps that they really are. And then think of the possibility of how many others there are that are just as corrupt that have NOT been exposed. I never donate money to either party, because it just encourages them, and I know that will make them start sending me their propaganda. I know that's not going to have much of an effect, because they will always get big money from people who want them to do something specific for them.

The main thing that we can do is to try and elect the candidate that might be the least corrupt and then make sure that they do not consolidate any more power over our rights, our tax money and our lives than they already have. Do not support anyone who wants MORE government control over things. Assume that they will abuse their power.

Just my opinion.....

Re: Some "goodies" in the Republican tax bill

Posted: Thu Nov 09, 2017 11:54 am
by ghostjmf
Gee, I've voted for local candidates for alderperson just because they knocked on my door & discussed local issues with me. None of them dissed the competition. One just won.

Re: Some "goodies" in the Republican tax bill

Posted: Thu Nov 09, 2017 12:05 pm
by flockofseagulls104
ghostjmf wrote:Gee, I've voted for local candidates for alderperson just because they knocked on my door & discussed local issues with me. None of them dissed the competition. One just won.
I would welcome the opportunity to talk with the actual candidate, but not one of their surrogates. But how often would that happen? I would gladly have talked to Hillary if she came to my door. That would be interesting. If bob came to my door, I'd politely tell him to go run along.

Re: Some "goodies" in the Republican tax bill

Posted: Thu Nov 09, 2017 1:06 pm
by Bob78164
ghostjmf wrote:Gee, I've voted for local candidates for alderperson just because they knocked on my door & discussed local issues with me. None of them dissed the competition. One just won.
That's been my experience as well. Herb Wesson first got my attention because someone who described himself as a friend (of Wesson's) knocked on my door and explained why Wesson was getting his support for Assembly. Wesson was elected (I liked what I had heard and voted for him), eventually became Speaker of the Assembly, and currently sits on the City Council.

Before law school, I did door-to-door political fundraising. You might call it community organizing. Some people, like flock, don't want to be bothered and that's fine. But many people value the opportunity to have a political discussion with someone who is both reasonably well informed and may have direct access to the candidate. --Bob

Re: Some "goodies" in the Republican tax bill

Posted: Thu Nov 09, 2017 1:08 pm
by Bob78164
gsabc wrote:
Bob78164 wrote: There are a lot of Congressional districts within easy driving distance of me that bear strong resemblances to the Virginia districts that flipped last night, and each one of their Representatives has voted in lockstep with the Republican agenda. My biggest problem next fall will be choosing among them to spend my time. --Bob
My problem is that I'm in one of the bluest states in the country. All our reps and both senators have the (D) after their names. The state legislature (excuse me, General Court) is overwhelmingly (D). We have a tradition of electing (R) governors, going back at least into the 1960s and John Volpe through to Romney and our current leader. But they're moderates by necessity, if not inherently so. Even neighboring states are primarily (D). So I donate to the (D)'s as the alternative.

If I do manage to retire next year, I may look into being part of the phone banks making proselytizing calls around the country. Anyone have other suggestions that I haven't thought of and probably don't know about?

P.S. I got screwed in the 1986 tax reforms, and it'll happen again if the (R) plan passes in its current form. I'm okay with taxes in general, but this reverse Robin Hood bit is getting old. There is no economic theory - nay, no theory of any kind - more appropriately named than the Laffer curve.
I think that one of New Hampshire's representatives is Republican. Perhaps you could manage a few days up there next fall. --Bob

Re: Some "goodies" in the Republican tax bill

Posted: Thu Nov 09, 2017 1:22 pm
by flockofseagulls104
reasonably well informed and may have direct access to the candidate.
Right..... Reasonably well informed of the approved talking points. Gimmee a break, bob.

Re: Some "goodies" in the Republican tax bill

Posted: Thu Nov 09, 2017 1:28 pm
by Bob78164
flockofseagulls104 wrote:
reasonably well informed and may have direct access to the candidate.
Right..... Reasonably well informed of the approved talking points. Gimmee a break, bob.
How perceptive of you to know what people are going to say even before they've said it. --Bob

Re: Some "goodies" in the Republican tax bill

Posted: Thu Nov 09, 2017 3:41 pm
by Estonut
Bob78164 wrote:Herb Wesson first got my attention because someone who described himself as a friend (of Wesson's) knocked on my door and explained why Wesson was getting his support for Assembly. Wesson was elected (I liked what I had heard and voted for him), eventually became Speaker of the Assembly, and currently sits on the City Council.
This doesn't sound like doing independent research and deciding for yourself...