Author Topic: Future US tax policy  (Read 23902 times)

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Re: Future US tax policy
« Reply #140 on: October 25, 2019, 02:45:12 PM »
You saw the numbers for most americans?
Look at how much withholding went down. Then look at how much their tax rate went down. It is simple math. All other things being equal. You will have to do some comparison for this.  :)
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Re: Future US tax policy
« Reply #141 on: October 25, 2019, 02:46:04 PM »
Feelings don't care about your facts

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Re: Future US tax policy
« Reply #142 on: October 25, 2019, 02:47:15 PM »
is right
Good we are in agreement.
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Re: Future US tax policy
« Reply #143 on: October 25, 2019, 02:47:41 PM »
Look at how much withholding went down. Then look at how much their tax rate went down. It is simple math.
okay so then you really are saying that most people really did benefit and just don't know it. Maybe.
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Re: Future US tax policy
« Reply #144 on: October 25, 2019, 03:04:51 PM »
okay so then you really are saying that most people really did benefit and just don't know it. Maybe.
I am giving you the reality of the way the average American looks at it. Why do you think so many like to see that 1k+ check at the end of the year? We all know that is dumb but that is what they do.

With that said in the short run they did/will see a benefit but it the long run they will pay more and the rich/big corporations will pay less compared to the way it was. Simple math!!!
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Re: Future US tax policy
« Reply #146 on: October 15, 2020, 08:57:51 PM »
Reviving this thread with less than 3 weeks to the election, which will come after the biggest government deficit of our lifetime.

The bill will come due, and it is likely to be in the form of new taxes as well as closed loopholes and tax breaks.

I personally think there will be a VAT of some form introduced within the next 4-6 years.

I think basis step-up at death will go away.

1031 exchanges might go away.

And some other method to extract more taxes out of retirement plans will come (on top of the end of the stretch IRA that we got with the last overhaul).

What do you think we might see? What kind of government (POTUS/SENATE/HOUSE) do you think might be most favorable?

An interesting article showing that the current burden might be very high on low income rings very true: https://www.bloomberg.com/news/articles/2020-10-15/tax-burden-equal-to-70-rate-crushes-americans-unable-to-pay-it?srnd=premium  how would you address these issues?
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Re: Future US tax policy
« Reply #147 on: October 15, 2020, 09:02:20 PM »
The government is trying to inflate itsway out of it. The ECB is targeting 8% inflation in 2021, not that it'll work.

There is no need to pay the bill until interest rates start going up, which they don't until inflation gets out of control.
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Re: Future US tax policy
« Reply #148 on: October 15, 2020, 09:29:20 PM »
The government is trying to inflate itsway out of it. The ECB is targeting 8% inflation in 2021, not that it'll work.

There is no need to pay the bill until interest rates start going up, which they don't until inflation gets out of control.

Just ask the Japanese about how easy it is to create inflation. Ain't happening any time soon. The deflationary forces are just too strong.
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Re: Future US tax policy
« Reply #150 on: October 17, 2020, 11:16:46 PM »

I think basis step-up at death will go away.


The big issue with step-up going away will be the need to find the decedent's paperwork which isn't always so easy for the estate to access. I can tell you from experience that there is no way I would have possibly figured out basis for many assets from my parents or my aunt.
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Re: Future US tax policy
« Reply #151 on: October 17, 2020, 11:44:14 PM »
The big issue with step-up going away will be the need to find the decedent's paperwork which isn't always so easy for the estate to access. I can tell you from experience that there is no way I would have possibly figured out basis for many assets from my parents or my aunt.

Granted. But that is often the case with a sale during lifetime of property held for a long period (think personal residence).

Interestingly, in Israel they seem to use an inflation adjustment to calculate (offset) gains, so one doesn't pay a tax on a nominal "gain" that is attributable to inflation.

BTW, in 2010, the year when there was no estate tax, basis step-up was limited to 1.3MM IIRC.
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Re: Future US tax policy
« Reply #152 on: October 17, 2020, 11:50:54 PM »
The way US politics work, it's hard to see too many loopholes being removed. What's more likely to happen is raising the top line rates while creating ever new workarounds for the senators and their friends. In any case, taxes aren't going up until inflation hits us, and then we have bigger problems than tax.
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Re: Future US tax policy
« Reply #153 on: October 18, 2020, 12:19:17 AM »
The way US politics work, it's hard to see too many loopholes being removed. What's more likely to happen is raising the top line rates while creating ever new workarounds for the senators and their friends. In any case, taxes aren't going up until inflation hits us, and then we have bigger problems than tax.

I beg to differ. We are much more likely to see higher taxes than inflation.
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Re: Future US tax policy
« Reply #154 on: October 18, 2020, 12:28:43 AM »
I beg to differ. We are much more likely to see higher taxes than inflation.
The government doesn't need to raise taxes when they can fund themselves by printing money which they've been doing painlessly. It's called selling debt to the fed. The government won't slow down the printing until they have to. The only force causing them to stop is inflation or the threat thereof.
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Re: Future US tax policy
« Reply #155 on: October 18, 2020, 12:48:24 AM »
The government doesn't need to raise taxes when they can fund themselves by printing money which they've been doing painlessly. It's called selling debt to the fed. The government won't slow down the printing until they have to. The only force causing them to stop is inflation or the threat thereof.

Tell us about how this has worked in Japan over the last couple of decades.

Did you read the quotes from Lacy Hunt in the article I posted?

Unless what you are calling inflation is some kind of deliberate great reset (just like Nixon did), it's not just about "printing money".
« Last Edit: October 18, 2020, 12:51:31 AM by ExGingi »
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Re: Future US tax policy
« Reply #156 on: October 18, 2020, 01:04:17 AM »
Granted. But that is often the case with a sale during lifetime of property held for a long period (think personal residence).

Interestingly, in Israel they seem to use an inflation adjustment to calculate (offset) gains, so one doesn't pay a tax on a nominal "gain" that is attributable to inflation.

BTW, in 2010, the year when there was no estate tax, basis step-up was limited to 1.3MM IIRC.

Finding the cost of real estate is child play compared to a mutual fund wit reinvested dividends which moved from brokerage to brokerage to brokerage.
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Re: Future US tax policy
« Reply #157 on: October 18, 2020, 01:07:04 AM »
Tell us about how this has worked in Japan over the last couple of decades.
When was the last time Japan raised taxes?
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Re: Future US tax policy
« Reply #158 on: October 18, 2020, 01:16:21 AM »
When was the last time Japan raised taxes?

Not that I follow them that closely to be aware of every tax move, but I recall a few years ago there was something about the VAT IINM.
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