Newspapers get a $12,500 credit for hiring journalists? What? If anyone had any doubts newspapers are almost 100% left leaning, this should leave no doubt. Wonder what the response would have been if private episcopal schools got a $12,500 credit for hiring teachers when the pubs ruled.
I guess you missed the part where as part of the EV subsidies (which we already don’t need since EV’s can now compete with ICE cars) there is an extra 4,500 if you buy an EV from a unionized auto maker. Literally direct vote buying!
They’re making it sound like they’re going after the rich, but not really. The super rich make almost all their money from capital gains, which will still be taxed far lower than income. The real reason for this is politicians on both sides of the aisle, routinely insider trade and don’t want to be taxed on their profits. They’ll increase taxes on the upper middle class instead. Like Trump did with the SALT tax. The super rich contribute enough to swing elections. The upper middle class, not so much. So they’re the easy target.
davefromdenver
2 years ago
We just past the Event Horizion, I hope our children will forgive us.
Eddie_T
2 years ago
Pretty good article on rents by the Tyler Durdens.
Probably won’t win any PC points with the well-indoctrinated-and-hysterical iliiterati; but it’s far from entirely uncorrelated that the guys who casually slaps a united West around like ragdolls at will, while kicking back in sandals; are also above wasting resources denigrating women by dragging them into “politics.”
Eddie_T
2 years ago
It turns out to be exactly what I always said it would be….more taxes on high income earners. Very little evidence that any of this will affect hedge fund managers or anybody else who gets most of their money from managing risk assets or from stock options.. No big surprise to those of us who have borne and unfair burden for years, while watching billionaires play nothing, or next to nothing. They did sew up the Peter Thiel Roth IRA scam…..albeit after the horse has long left the barn.
But….the good news is that I don’t need to change anything about my investment strategy. Everything I’ve been doing is still going to work, and I have a few more years to grow my nest egg before I have to tap it for retirement.
I don’t think they totally closed the Thiel scam. You can still put up to 10 million into the Roth before the loophole starts. So putting in some way out of the money stocks/options etc will still be possible as long as it’s less than the 10 million in value. So if you later get a massive surge in value you’ll be OK other than being capped at 10 million. That’s plenty for 99.9% of people.
As I mentioned above, this will hardly generate any tax revenue since so few people earn 400k+ in a year unless you happen to sell a home that has massive appreciation (married you get 500K tax free so we’d be talking about 800+ appreciation) and even then you pay a one time extra tax the year you sell.
My refi’s are about ready to close, finally. Knock on wood. I was looking at the closing docs for my last 4 deals, made from 2015 to 2018.
My best, a house near Austin Samsung that I bought nearly brand new for a mere 170K in the spring of 2015….my investment was about 40K up front…the appraisal just came in at $394K. That’s roughly a ten-bagger in 6 years.
I always planned for inflation. I wasn’t sure I’d get it, but I did, and I fully expect asset inflation to continue.
The other 3 weren’t’ quite that good (mostly because I’ve used less leverage lately) but all of the houses appraised very close to the current Zillow guesstimates, which surprised me, since prices have pulled back a little.
davebarnes2
2 years ago
The vomit inducing oil depletion allowance remains.
Eddie_T
2 years ago
No elimination or reduction of 1031 Exchange I could find. Did I miss it?
ColoradoAccountant
2 years ago
Tax consumption and give a tax relief check to the poor equal to their consumption taxes. This is stupid. Who cares how much Warren Buffet makes if he doesn’t spend it? His heirs will. There is too much administration in an income tax so only rich countries do it. Poor countries tax consumption. On a finite planet its your consumption that matters, not your production.
Taxing “consumption” requires, at least, as invasive an apparatus as taxing income. Running around spying on kids, to make sure they are reporting lemonade sales, isn’t some sort of hands-off undertaking.
Besides, consumption is not finite. There’s an unlimited supply of Microsoft Windows and Stairway to Heaven. And an effectively unlimited supply of most else.
What is finite, is current resources. Land, housing etc. So, as per your reasoning, the granting of exclusive access to those, is what should be taxed. Which does not require any invasiveness at all, since if you omit reporting it, noone will aid you in keeping access exclusive. It’s a tax which does work. Is cheap. Is “fair.” Is efficient etc., etc. Which no other means of raising government revenue, comes even close to.
Casual_Observer2020
2 years ago
This proposal is a “want”. They will get a lot less. I predict something along the lines of what Manchin will agree to. No changes to SALT are a nonstarter even in states like Texas where property taxes have gone up significantly.
anoop
2 years ago
since we’re about to hit hyperinflation, there will be more people earning $400k, so anyone at $200k cheering this proposal is likely to be hit by it in a few years. additionally, it does zero in terms of addressing wealth inequality since there are loopholes the size of jupiter all over the tax code allowing wealthy people to pay nothing.
ed_retired_actuary
2 years ago
Mish
Is $78,935,000,000 for necessary expenses for the IRS…. spread over a number of years? This appears very large for a single year This proposal appears generally consistent with Biden’s campaign promises, and not nearly as extreme as Warren and Sanders wealth tax proposals. Any indication whether the corp. tax proposals are intended to be tailored to the G7 leaders agreement to impose a corporate minimum tax on global earnings?
Presumably a 1 time payment meant to be spent over however many years the IRS wants to use the money.
The problem I mentioned before is that in year 1 the extra audits may generate some cash but in year 2 and beyond they won’t because word will get out fast if the audits are in fact generating a lot more money. So at that point the IRS will have hired a bunch of expensive accountants (6 figure salaries + 6 figure benefits) that cost more than they bring back in.
It’s largely, but not entirely front loaded. It will double the size of the IRS as I understand it.
shamrock
2 years ago
I’ve seen the criticism that these tax increases on businesses are really tax increases on the poor and middle class who will suffer higher prices and lower wages. Funny, I don’t remember lower prices and higher wages after Paul Ryans corporate tax cut 4 years ago. I’m guessing stock buybacks might suffer a bit, but that’s all really.
Yes over 10 years. Of course this is the estimate of the people who wrote the proposal, and not an official scoring from whoever does the official scoring (OMB?). Also, how a tax increase can dynamically score higher is kind of a mystery. Normally tax increases result in fewer people doing the taxed activity.
Given it’s only on incomes over 400K it can’t be that much money because there can’t be that many individuals / corporations making over that amount.
I think the projections I saw many months ago when this was first proposed was no where NEAR 3.5 trillion that Biden said would make it revenue neutral.
What difference does it make? Do you expect Joe Biden will be around over the next 10 years to oversee his monstrosity bills? Nope, just as Joe is nullifying Trump’s legislation, so will the next GOP President do the same. It’s a joke, and the joke’s on us.
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What pisses me off is that she and the ones around her don’t
care if we see their hypocrisy.