taxes

[catalinajack]

As if often the case, I see a lot of comments about the root of problems related to poverty by folks who don’t have any contact with the class of people that are talking about. There seem to be a lot of assumptions made about the poor in the US that aren’t necessarily true.

I am fortunate in that I have moved up out of the “middle-class” about 10 years ago. However, unlike most folks in the upper quintile income levels, I actually deal with folks who are in the other 4 income quintiles on a daily basis. I talk to them, discuss their health and life and attempt to keep them from going blind without going bankrupt. Because of this intimate interaction, I can tell you that the landscape of welfare and Medicaid has changed drastically in the last 30 years.

Simply put, some of the stereotypes I hear put forth about the poor and the folks that receive welfare benefits are completely out of touch with reality and are based more on personal bias and ignorance than actual information.

I certainly don’t have any perfect solutions for income disparity, the shrinking of the middle class, poverty, hunger, or the stifling affect that taxes have on business growth. I do know that most of the knee jerk dogmatic tropes that I hear are simply not true (from both the left and the right).

Ted (I think it was Ted?) mentioned in one post that there were two primary issues that are causing our economy troubles, health care and education. I couldn’t agree more. As someone who actually provides health care, I can tell you how broken our current system is. I also spend some years accrediting institutions of higher education and residency programs, so I am familiar with some of the problems in education as well.

Since most of my income is from pass through businesses and my income is below the $315,000 cap, I get a 20% income deduction from most of my income. That means that I’ll pay roughly $15,000 less in tax this year than last year. I really like that extra $15k and it will go directly to my retirement savings, since I don’t have enough. However, that tax break for me isn’t doing a think to help the economy. It would have been better spent giving it to the folks in the middle income quintile who would actually spend it to boost the economy. Even so, I’ll save my tax break while it last.

Good for you on that tax break for pass-thru income while the simple wage earners, who work just as hard as you do, will be paying the higher rate.

 

[BandB]

Good for you on that tax break for pass-thru income while the simple wage earners, who work just as hard as you do, will be paying the higher rate.

Don't overlook either that the top bracket dropped from 39.6% to 37% too. So, for someone having income over $500k and having a million dollars income taxed at the maximum, qualifying for the 20% deduction, their tax on that million would drop from $396k to $296k on that portion. Tax reduction on top of tax reduction for the wealthy. Oh and real estate investors now get a 100% first year bonus depreciation.

 

[catalinajack]

Don't overlook either that the top bracket dropped from 39.6% to 37% too. So, for someone having income over $500k and having a million dollars income taxed at the maximum, qualifying for the 20% deduction, their tax on that million would drop from $396k to $296k on that portion. Tax reduction on top of tax reduction for the wealthy. Oh and real estate investors now get a 100% first year bonus depreciation.

BandB - You may be in for a bitter surprise when you consult with your tax professional come income tax time. To the extent that your pass-thru income is derived from the provision of medical services or other "specified services" you will not be entitled to the 20% deduction provided by new Internal Revenue Code Section 199A. The following is quoted from a Forbes article.

Section 199A(d)(2) defines a specified service business in reference to Section 1202(e)(3)(A),*which includes among the businesses ineligible for the benefits of that section:

…any trade or business involving the performance of services in the fields of health, law, engineering, architecture, accounting, actuarial science, performing arts, consulting, athletics, financial services, brokerage services, or any trade or business where the principal asset of such trade or business is the reputation or skill of one or more of its employees.
Section 199A modifies this definition in two ways: first, by removing engineering and architecture from the list of prohibited specified services businesses,*before then amended the final sentence to reference the reputation or skill of one or more of its “employees or owners” rather than merely its “employees.”

Section 199A(d)(2)(B) then adds to the list of specified service businesses any business which involves the performance of services that consist of investing and investing management, trading, or dealing in securities, partnership interests, or commodities.

 

[BandB]

BandB - You may be in for a bitter surprise when you consult with your tax professional come income tax time. To the extent that your pass-thru income is derived from the provision of medical services or other "specified services" you will not be entitled to the 20% deduction provided by new Internal Revenue Code Section 199A. The following is quoted from a Forbes article.

.

But see, I don't like surprises, so protect against them. Met with CPA firm long ago and very little of my income is tied to any services. 1/10th of 1% approximately. All from businesses that sell products.

 

[Panacea123]

Hello!!
I thought this was a forum about boats!
Go to Face Book or other bullshit forums about politics!

 

[FF]

"I thought this was a forum about boats!
Go to Face Book or other bullshit forums about politics!"


Our incomes or savings are what is used to mess around in boats."

TAXES are the major income & savings destroyer , so what we will be permitted to keep IS of interest to many boat folks.