There a lot of other provisions expiring beside the few mentioned in this article, e.g. deductions, tax brackets, alternative minimum tax, etc. For individual taxes it pretty much goes back to how it was in 2017, which will result in a tax increase for most taxpayers, middle class and up. I personally agree with the three increases mentioned in the article even though at least one of them (elimination of 20% pass through deduct) will cost me money.
davebarnes2
2 years ago
OMFG!
We are going to die broke in 2026.
Mish will be selling pencils on a street corner in downtown SLC.
Greenmountain
2 years ago
It was the only way Trump could keep the costs of the tax cuts at some reasonable level. Republicans play the same games as the Democrats. And hope when the renewal comes up, there is no option but to renew the tax cut, benefit, etc because they are so popular. And Congress will likely do that, but will be interesting to see how the games play out. (What is the cost? – probably more tax cuts.)
whirlaway
2 years ago
Meaningless discussion. As if the DONORcrats are going to let the tax cuts lapse!
Yes, the way in which the DONORcrats are dumping their own voter base and going with their corporate bosses, I would be very surprised if they manage to hang on to even one of the House, Senate and White House after 2024.
Republicans treat their voter base with fear and respect. DONORcrats treat their voter base with contempt and disdain.
Casual_Observer2020
2 years ago
This is old news from 2017 and was a feature and not a bug. Republicans assumed Trump would win 2 terms and exit the White House in January 2025.
I’d like to see an experiment where the Federal government taxes nothing for a year and allows the Fed and Treasury to monetize the entire Federal budget. I think it would be quite revealing that you don’t need taxes to run a government.
Those wishing to see what happens when taxes are high….AND the currency buys less….AND the government spends like they don’t need taxes to run a government……please stand by.
One does what one has to do…..to preserve what wealth one has……this is not welfare, it’s just aligning one’s own interests with the forces that exist.
When you go swimming in the river, you can swim upstream, but it’s generally a lot easier to swim downstream, with the current.
My view is that people who have no assets have failed to do what they should have done…..what had to be done, to insure their own financial well-being. Many people who have assets are not just passive beneficiaries of intergenerational wealth. They’re people who made sacrifices, lived below their means, and made good financial choices.
I suggest tangible assets, or shares with claims on tangible assets. But that’s just me.
I just read all my weekly reports from my favorite mentors. It looks like we might be entering an interesting period where a falling dollar might suddenly see just about all risk assets move higher together, as the dollar corrects. We might see large nominal gains in stocks, bonds, metals, oil, even the beaten down miners. But it does depend on the USD.
We do what we can do but frankly I spend 0 time managing anything. The Chinese have an old proverb that wealth does not pass 3 generations I figure there will always be someone with more money and stuff than me. My ancestors lived in a hut in India and seemed to survive just fine.
Some people still have good employment and benefit from the corporate system that provides good pay, fair benefits, and some kind of investment vehicle with employer contributed funds. If you’re one of those, and I think you are, then be grateful for your good fortune. Somebody is doing your managing for you. For a price.
My ancestors were immigrant pioneers who subsistence farmed, right here in this country. They lived with very little money, almost none in fact……but I prefer my lifestyle to theirs. I am old enough to have seen what that was like.
I often see this attitude among younger people these days….that even a working individual accumulating wealth is somehow vulgar and exploitative to the poor…this is a logical fallacy and really bad thinking. Your biggest investment is probably your education. You deserve kudos for making that investment, and it is obviously paying dividends now. Only you can decide how much wealth is enough. You generally find that out late in life, and sometimes people do underestimate the need for passive income in their last years.
“One does what one has to do…..to preserve what wealth one has.”
Hence, i financialized dystopias, one lines up dutifully outside the Fed’s welfare office. To be handed one’s allotment. Which The Fed first had to steal. From someone too busy doing productive work, to have the time and resources to spend his days either idle or doing simpletonian makework in front of The Fed.
Can’t really fault people who just wanted a roof over their head, from inadvertently being handed stolen goods, though It’s not like they went out and stole anything themselves. Instead, the ones to blame, are all the morons who still, even now, think there would be as much as single iota of downside, to straight up ending the Fed by tomorrow morning, come what may.
There is simply never, ever, a bad time to stop a thief from stealing more. No matter how used people may have become to having his hands in their pockets or rummaging through their wallets; no matter if people have arranged their lives and businesses around having their stuff stolen at an ever accelerating pace: No longer being robbed, is not a development which somehow have “downsides” as well as upsides.
Not sure who you think is in charge of your own survival, financial and otherwise. Let me let you in on something…..it’s you.
If you’re thriving now, that’s great. If you’re not, let me assure that your life will come and go and unfairness will remain in the system. The Fed is likely to outlive you, and if it goes, some other system, most likely even worse, will replace it.
I’m a fairly productive worker bee. I run a business that supports me and a half dozen other people. I’m fairly certain I pay more in taxes than you do. So I don’t feel like a thief. I feel like a guy who has to make investments that are structured to avoid tax…..and benefit from leverage and careful planning…in order to not be completely ripped off by the government, which has always wanted more and more of my production.
Complaining is fine, but it won’t make anybody’s situation better. I try to help people figure out how to prosper in the real world. Waiting for some “reset” to make everything fair is foolish, imho. You can get pro-active, or you can be a victim.
“My view is that people who have no assets have failed to do what they should have done…..what had to be done, to insure their own financial well-being.”
…
You are nothing more than an Asset Holder rationalizing his greed at the expense of the poor. So many people born waayyy behind the 8 ball they will never have a chance.
You are nothing more than an Asset Holder rationalizing his greed at the expense of the poor. So many people born waayyy behind the 8 ball they will never have a chance.
So…are you dedicating your life to ” living simply so that others might simply live”? Good luck with that. It doesn’t make for a good retirement plan.
I inherited nothing but my DNA and my white fragility. I could be just as broke as any of those deserving poor people you love so much, but I made a plan and worked the plan. Plenty of people who are born poor do that. Ironically, almost everyone who thinks like you…..grew up middle class.
“I think it would be quite revealing that you don’t need taxes to run a government.” Yes. The only valid reasons for taxation is to guarantee compliance with the rule of law and to guide and create sane policies. If we’d adopt a 50% discount/rebate policy at retail sale and a $1000/mo. universal dividend for everyone 18 and older we could eliminate virtually all payroll transfer taxes for welfare, unemployment insurance and for social security, cut all individual and corporate income taxes by more than half and re-industrialize the US in the most technologically efficient and ecologically sane way possible. Change the monopolistic monetary paradigm of Debt Only by integrating the new paradigm of Direct and Reciprocal Monetary Gifting into the debt based system and you can change and save the world.
Tony Bennett
2 years ago
Inflation tax* (Thank You! Jay Powell) already here … oh, wait … you mean those kind of taxes …
*really screws the bottom 60% to 70% who own little to no assets to offset.
It also completely destroys competitiveness. Even basic economic sustainability.
When virtually all outcomes (and incomes) are solely due to how close one happens to be to The Fed, instead of whether one has ever done anything to create any value…., tah-dah, value does not get created. Which is where The West pretty much is already, by now.
Even in bloody Silicon Valley, it is now virtually impossible to start a functioning business. Since you are stuck paying deadweight leeches of every stripe and persuasion so much, that you have no choice but to enter into de facto enforced “partnership” with even deader-weight leeches simply to survive.
And then you’re stuck having to listen to “those guys:” PE monkeys, Welfare queen “investors” etc., etc. Who, having by now been handed stolen funds by the literal trillions (and told they “made money” because they are “smart” to boot…..), are no longer content to simply fork over and shut up. Instead demanding that the adults waste time and effort playing office with them. And noone, literally noone, with any brains; are going to waste their intellect on dunces quite that retarded for long, before either 1)simply giving up and moving back to China or somewhere; or 2)no longer bothering, and instead just mindlessly yadda’ing along, so that themselves too can collect a chunk of stolen welfare payouts and be “asset owners” and “investors.”
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Republicans treat their voter base with fear and respect. DONORcrats treat their voter base with contempt and disdain.
We do what we can do but frankly I spend 0 time managing anything. The Chinese have an old proverb that wealth does not pass 3 generations I figure there will always be someone with more money and stuff than me. My ancestors lived in a hut in India and seemed to survive just fine.