Home Forums Hunting & Shooting Hunter's Campfire So, the Repub Tax Plan will only cut business taxes

Denton, Thanks for a good perspective and analysis. It’ll probably look nothing like proposed by the time it gets around.

Tell that to people who are running small businesses and sucking air and living on pintos trying to survive. Yeah, their costs are passed on, if they survive. Try running a small oil service co when the big boys like Halliburton will get the tax cuts and you will pay more taxes due to the loss of write offs.

You run $500,000,000 in business a year and get to live on a profit of $60,000. Yeah, its the great American dreambo.

Half a billion a year in business with 60K in profits? You need a new sales manager ... or an entirely new business model.

S-Corps are pass thru so the various simplified brackets apply. Where is the “hit” to small business exactly?

Sorry, my mistake., make that 50,000,000.

One day, history WILL repeat itself.

To my understanding flow through income derived from an S Corp will be taxed at the same rate on your personal taxes as the proposed rate for C Corp as the bill is currently written.

Personally I will be surprised if that part passes as written.

It probably will in the short term until a meaningful economic upturn kicks in as a result of it.

Denton summed it up pretty well. I would expand that to say businesses don't pay taxes. Taxes are a cost of doing business and are passed on to the end consumer. That being said, jaguartx is also correct in that when the end consumer cannot afford the goods or services that business provides, the business fails.

If I had complete authority to reform the tax code, I would eliminate taxes on business. Individuals would pay a percentage of their income or profit, whatever the case may be. A post card asking how much you made. Send in X%. No deductions for any personal expenses.

However, the government did not have authority to tax income until the XVI Ammendment was passed in 1913. Perhaps my tax plan would be to repeal the XVI Ammendment. Let the government operate within their means. Require a balanced budget every year. Could only borrow money in an emergency situation approved by 3/4 vote of both houses and signed by the president.

See how difficult it is to come up with a good tax plan. I can't even agree with myself.

I'm still waiting for "trickle down" economics to work.....

I've been waiting since Reagan. Just because the concept does not work does not mean we should not try again. After all, we are talking ideology ... ya gotta believe, facts be damned.

No, we should not try again,,,the rich have no plans to pass down their "hard earned" money to you. Yesterday I saw Apple has 252 billion resting off the shore of Jersey, moved it out of Ireland after tax laws changed.

BTW: The Jersey island is in the Channel off the coast of France..

Human nature is to do what you consider to be in your own best interest, whether financially, politically or in any other area of your life. Wealthy people try to become wealthier by investing their money. Those investments often create new businesses which employ people and create job opportunities. Wealthy people write checks. Poor people cash checks. An economic fact!

Look at the jobs created by companies like Amazon, Apple, Home Depot, Lowe's, etc. Those opportunities didn't exist until someone created those companies. Tax laws encourage those companies to keep money offshore for the reason stated in the first sentence.

People spending money creates more jobs.. Wealthy people investing creates fewer jobs!


Velocity of money makes the economy go round.

face it. There ain't a swinging dick in DC that really wants to cut taxes. In either party. Ever. Including the women up there.. It ain't gonna happen

Denton's approach to corporate taxation has merit - it's all interconnected. So what's done with the tax savings (any tax savings)? Stuff mattresses? Of course not. It returns to the economy either via consumer goods purchasing or capital investment. Always - cash looses value if it just sits (see inflation).

One thing to remember when "fairness" comes up. Individuals and corporations are taxed under two different systems, individuals by income and corporations by profit. Apples and oranges. Also acknowledge the doubling of the standard deduction. The TV said only 30% itemize (which seems high but reasonable).

As to deficit look up the term "leverage" in the financial sense. It can be good. In fact financial theory holds that under-leveraged businesses are poorly run. If borrowing generates a rate of return over time that exceeds the rate of borrowing, that's a good thing. Not that I have confidence that politicians will manage properly to get that result but you never know.

Anyway, it'll be a relatively long time before anything like a final proposal comes out. I've watched some of the House markup and to my surprise Democratic members, some anyway, offered rational amendments sincerely believing they were good for the country. But throughout the dem proposals were aimed at social engineering. I have a big problem with that.

Proposal is S Corp pass through income will be taxed at 25% like the C Corp, except for personal service firms, including attorneys, engineers, architects, accountants, doctors, health care, etc.... those firms are excluded from the proposed tax cut and will continue to pay income tax on pass through income as personal rate. And as a kick in the face, the proposed tax cut package would now require them to treat the pass through as self-employment income, subjecting them to an ADDITIONAL 3-4% in income tax..
Plus they cut the brackets but the 25% bracket would kick in around $260k as opposed to the current higher level.

S corp owners should just ask our congressmen and women to leave us alone....

the tax system, the tax code, etc. has been an essential part of the social engineering aspects of federal gov't leadership. for better or for worse. it's a collective exercise "for the good of the people."

we could assume a 0 percent tax system, and also a 100 percent tax rate system, and a multitude of points along the continuum. likely, life would go on, with any choice chosen. of course the winners & losers would vary from point to point in the continuum.

we commoners almost always believe that lower taxes is good. the socialists believe we mis-allocate our private allocations of income.

there's a few in the minority that believes most humans don't have sense enough to make decisions relative to their incomes.

at the root: taxes, who invented them, and for what purpose?

I know what Hoppes smells like........little puzzled about the rest of it.

Can't say I can remember a time where I've ever paid less in taxes. Except that I prefer buying used schit...