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Business, Economics & Tax Policy 6.0: Nope, it only found woven strands

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Re: Business, Economics & Tax Policy 6.0: Nope, it only found woven strands

FreshFish said:
To me, the more interesting question is, "how did state income taxes ever become deductible against the federal income tax in the first place?" Something about that setup just doesn't sit right with me (and I live in a higher-tax rate state). I just don't see any decent economic justification for it.

As far as I can tell, it was simply because there were more representatives from states that had state income taxes than there were from states that did not have state income taxes.
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Because there's clearly a correlation with efficient cities that attract talented people/businesses who pay the majority of federal taxes, and higher tax rates to fund education, infrastructure, and public transit among other things. If you're already paying high taxes and creating the majority of the GDP for this country and your locale pays more in taxes than it takes back in federal subsidies, why exactly shouldn't they get some kind of discount?

The biggest problem with this is they're gonna pressure these cities/states to lower their taxes. We all have seen how well that's worked for Kansas and even WI.
FreshFish said:
um....don't you actually have to pay income tax in the first place before you can have a tax "cut"??
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We both know what he meant. We would've been better off in terms of improving our economy by blowing a 1.5 trillion hole in the deficit and literally just handing lower/middle class people free money. Or investing it in infrastructure, healthcare/CHIP, or any number of federal programs that could've been funded 20x over.
 
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FreshFish said:
um....don't you actually have to pay income tax in the first place before you can have a tax "cut"??
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Do you not understand that if you lower the bottom 6 tax brackets, rich people will still see their taxes cut, too?

Or do you not understand how marginal income brackets work?

Put another way, the rationale for lowering the highest tax bracket is grade A malarkey.
 
Re: Business, Economics & Tax Policy 6.0: Nope, it only found woven strands

unofan said:
Do you not understand that if you lower the bottom 6 tax brackets, rich people will still see their taxes cut, too?

Or do you not understand how marginal income brackets work?

Put another way, the rationale for lowering the highest tax bracket is grade A malarkey.
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It is interesting how we can tax the first 120,000 (FICA) dollars of everyone's income and it's free after that but we can't say that everyone's first 40,000 of income is free from income tax. Boggles the mind.
 
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Re: Business, Economics & Tax Policy 6.0: Nope, it only found woven strands

FreshFish said:
To me, the more interesting question is, "how did state income taxes ever become deductible against the federal income tax in the first place?" Something about that setup just doesn't sit right with me (and I live in a higher-tax rate state). I just don't see any decent economic justification for it.

As far as I can tell, it was simply because there were more representatives from states that had state income taxes than there were from states that did not have state income taxes.
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Because you can’t tax what you don’t have. If a state decides to tax you 100% of your income, you can’t owe anything to the feds because you have no money. It doesn’t make sense to tax income you don’t actually have.
 
Re: Business, Economics & Tax Policy 6.0: Nope, it only found woven strands

dxmnkd316 said:
So I was talking to my dad and he mentioned that the new tax law has provisions where you will be “required” to sell your stock shares first in, first out.... Might have been changed in the final bill...
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Yes it was changed, that provision was not enacted.
 
Re: Business, Economics & Tax Policy 6.0: Nope, it only found woven strands

dxmnkd316 said:
Because you can’t tax what you don’t have.
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That's not how the current law works in other areas, though: you cannot deduct FICA taxes from federal income taxes.

In NY State, you cannot deduct NY City income tax on the NY State income tax return (droll, isn't it? the state complains when the feds do to it what it already does to NYC residents!).
 
Re: Business, Economics & Tax Policy 6.0: Nope, it only found woven strands

ScoobyDoo said:
It is interesting how we can tax the first 120,000 (FICA) dollars of everyone's income and it's free after that but we can't say that everyone's first 40,000 of income is free from income tax. Boggles the mind.
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*crickets*
 
FreshFish said:
That's not how the current law works in other areas, though: you cannot deduct FICA taxes from federal income taxes.

In NY State, you cannot deduct NY City income tax on the NY State income tax return (droll, isn't it? the state complains when the feds do to it what it already does to NYC residents!).
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FICA is a federal tax, why would you then deduct it from another federal tax that presumably takes FICA into account when setting the income tax rates? So are going to rob Peter to pay...Peter?

Likewise, cities and other local governments are inherently creatures of the state. Deducting a local tax on a state return would also essentially be robbing Peter to pay Peter.
 
Re: Business, Economics & Tax Policy 6.0: Nope, it only found woven strands

FreshFish said:
That's not how the current law works in other areas, though: you cannot deduct FICA taxes from federal income taxes.

In NY State, you cannot deduct NY City income tax on the NY State income tax return (droll, isn't it? the state complains when the feds do to it what it already does to NYC residents!).
Click to expand...

Please see uno's response and for the love of god stop embarrassing yourself.

Honestly, I used to think it was just different perspectives, different life experiences, different priorities. But no, the more I read what these guys say from their own fingertips the more it looks like it really is just stupidity. Not as in you must be stupid to be a conservative, but that people who are apparently incapable of even rudimentary critical thinking also, purely by accident, also turn out to be the most vocal conservatives. Dunning-Kruger is a harsh mistress.
 
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Re: Business, Economics & Tax Policy 6.0: Nope, it only found woven strands

unofan said:
FICA is a federal tax, why would you then deduct it from another federal tax that presumably takes FICA into account when setting the income tax rates? So are going to rob Peter to pay...Peter?

Likewise, cities and other local governments are inherently creatures of the state. Deducting a local tax on a state return would also essentially be robbing Peter to pay Peter.
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That and masturbating to Ayn Rand is the ****.
 
Re: Business, Economics & Tax Policy 6.0: Nope, it only found woven strands

The Sicatoka said:
How will the revenue be made up or the spending be cut to balance it?
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How will what? How we going to make it up now? We aren't. All that need be done to simplify the tax code is these simple things.

1. Give everyone their first 40,000 income tax free (number is negotiable). After that everyone's next tier is the same, then the next, then the next, until you're done creating the tiers. This way everyone pays exactly the same rate.
2. Tax All Income The Same. This BS that labor is less important to the economy than Capital is ridiculous.
3. Eliminate FICA Tax. Roll what is needed into the main tax structure.
 
ScoobyDoo said:
How will what? How we going to make it up now? We aren't. All that need be done to simplify the tax code is these simple things.

1. Give everyone their first 40,000 income tax free (number is negotiable). After that everyone's next tier is the same, then the next, then the next, until you're done creating the tiers. This way everyone pays exactly the same rate.
2. Tax All Income The Same. This BS that labor is less important to the economy than Capital is ridiculous.
3. Eliminate FICA Tax. Roll what is needed into the main tax structure.
Click to expand...

Another supporter of the Red/Green tax plan!!
 
Re: Business, Economics & Tax Policy 6.0: Nope, it only found woven strands

The Sicatoka said:
How will the revenue be made up or the spending be cut to balance it?
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They're going to try and cut social security and medicaid. So that they can give 83% of the benefits of a 1.5 trillion $ tax cut to 1% of the population.
 
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