Thoughts on Republican "Tax Reform"

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  • bisleybisley Senior Member Posts: 10,731 Senior Member
    horselips wrote: »
    Neither the bill passed by the House or the bill in the Senate is the law that will be finally enacted and signed by the President. Every provision of both bills is on the table when the House and Senate attempt a reconciliation.

    True, and a good reason not to celebrate until the cow is in the barn and the door is latched behind it.
  • BuffcoBuffco Senior Member Posts: 6,244 Senior Member
    All I know is, my IRAs are rocketing upwards.
  • Diver43Diver43 Senior Member Posts: 8,750 Senior Member
    I think most agree, the current tax laws suck.
    Forget corporations, why does my neighbor, who makes the same income as me receive a 5 K return, while I pay say 3K more than has already been deducted? Because he has 5 kids and I have none.
    How is that fair? People don't like it, but a flat % tax paid by everyone is the only fair tax.
    Logistics cannot win a war, but its absence or inadequacy can cause defeat. FM100-5
  • alphasigmookiealphasigmookie Senior Member Posts: 8,788 Senior Member
    Diver43 wrote: »
    I think most agree, the current tax laws suck.
    Forget corporations, why does my neighbor, who makes the same income as me receive a 5 K return, while I pay say 3K more than has already been deducted? Because he has 5 kids and I have none.
    How is that fair? People don't like it, but a flat % tax paid by everyone is the only fair tax.

    Well Senate passed it so only hurdle left is to hammer out the details between the two plans. Either way your neighbor is getting an even bigger return because they doubled the child tax credit to $2k so your neighbor with 5 kids will now get a $10k return assuming he pays that much in taxes. Yours my go up 2-3%
    "Finding out that you have run out of toilet paper is a good example of lack of preparation, buying 10 years worth is silly"
    -DoctorWho
  • alphasigmookiealphasigmookie Senior Member Posts: 8,788 Senior Member
    Buffco wrote: »
    All I know is, my IRAs are rocketing upwards.
    Well the one thing this bill is good for it's your stock portfolio. Unfortunately I would venture to guess that most of the gains have already been made in anticipation of the tax cuts. We'll probably get another 5-10% rally once it passes and then what depends on the economy. Very few corporations have said they're going to use their extra profits to expand. Most of the money will flow into stock buybacks. That's good for stock prices, neutral for the economy. The wildcard will be how it affects small business, which I haven't really seen much about, probably because most aren't big enough to be big donors.
    "Finding out that you have run out of toilet paper is a good example of lack of preparation, buying 10 years worth is silly"
    -DoctorWho
  • Diver43Diver43 Senior Member Posts: 8,750 Senior Member
    Well Senate passed it so only hurdle left is to hammer out the details between the two plans. Either way your neighbor is getting an even bigger return because they doubled the child tax credit to $2k so your neighbor with 5 kids will now get a $10k return assuming he pays that much in taxes. Yours my go up 2-3%

    I know why, my point is that tax laws SUCK.
    It is not popular, especially to the low/no income groups, but flat % tax is the only fair tax. Make 1K pay 100, make 100K pay 10K or whatever but all pay equal of their earnings. Just because someone is smarter, works harder, luckier, was in the right place at the right time and makes more, doesnt mean they should pay 40% of earnings in taxes, while someone not as smart, doesnt work as hard or just unlucky pays none.
    Logistics cannot win a war, but its absence or inadequacy can cause defeat. FM100-5
  • bisleybisley Senior Member Posts: 10,731 Senior Member
    We will never get a really good tax bill as long as 2/3 of the Congress is demagoguing the issue for political gain. With only 52% of the Senate even participating in the debate, any small improvement is a bonus. This Senate bill will give a decent tax cut to most of the middle class and removes the Obamacare penalty from the poor, so that's minor progress. It may actually hurt me because my health insurance premium will go up, since they failed to repeal the rest of Obamacare, but I'm still for it because it will help families like my children have and because it will further stimulate the economy and hopefully create more and better jobs.

    The Democrats are completely clueless about anything resembling the economy, so all they can do is double down on their Alinski-ite nastiness, and hope that they can register enough illegal aliens to save some of their seats in Congress.
  • tennmiketennmike Senior Member Posts: 26,188 Senior Member
    The 'Tax Reform Bill' is being loaded with enough pork from both sides of the aisle to give the whole population of the U.S. a deadly bad cholesterol level.
    If the U.S. Congress was put in charge of the Sahara Desert, there would be a shortage of sand in under six months.



  • bisleybisley Senior Member Posts: 10,731 Senior Member
    Well the one thing this bill is good for it's your stock portfolio. Unfortunately I would venture to guess that most of the gains have already been made in anticipation of the tax cuts. We'll probably get another 5-10% rally once it passes and then what depends on the economy.

    I think it is possible that this is partly true. But it doesn't really matter, since failure to pass a tax cut would cause these gains to be lost, meaning that the gains will be real and lasting, if the tax cut passes in something close to it's current form. The likelihood that the economy will continue to improve is high - how much remains to be seen, but having been a wage earner during the Reagan years, I am very optimistic.
    Very few corporations have said they're going to use their extra profits to expand. Most of the money will flow into stock buybacks. That's good for stock prices, neutral for the economy. The wildcard will be how it affects small business, which I haven't really seen much about, probably because most aren't big enough to be big donors.

    Corporations won't believe it till they see it. But if the promise of a 15%~ reduction in corporate rates turns out to be good, they will be listening to this president when he urges them to invest locally. They love to brag in their commercials about their contributions to the public, so when a few jump in, their competitors will follow. If they don't, Trump will probably rip them, big time.

    Face it, Alf - love him, hate him, or don't care - this President is obsessed with keeping campaign promises, or some semblance of it. If he can keep his cheese on the cracker for a few more years, all of the efforts of the Alinski-ites to stagnate and diminish the economy will be set back 20 years, if we don't have to attack North Korea.
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