That where I have doubts about the overall gains and who will see what from the present proposals. As of now the plans are looking like they will be marginal and limited improvements that likely won't help as many as they are implied that they will. I think the concepts are a step in a more favorable direction but there's still a long road ahead to walk before we get things fixed to where the work properly.

Until the vast and wasteful government spending and budgets are brought under control and substantially reduced nothing is going to be a real true improvement or savings.

A lot of that wasteful government spending is because special interest groups give big $$$ to congress and the legislative branches of state and local governments.

I used to work for our transit agency here in S.F. which has a budget over $800 Million per year from the city budget plus more funding from state and federal agencies. Despite all that money, the public rates the quality of bus and train service as poor to terrible. So where does all the money go? The agency hires numerous consultants to do useless "studies", lease expensive office space for the agency's top heavy administration, and to provide media advertising about the virtues of using mass transit. I also know all the recipients of this wasteful are big contributors to the mayor and the Board Of Supervisors and a plethora of special interests who also contribute to the politicos.

However, the government/corporate mouthpiece media always claims that runaway government spending and the deficit is the result of "Politicians handing out goodies to get re-elected". However, the middle and low income class has very little to show for all that spending.

 

That where I have doubts about the overall gains and who will see what from the present proposals. As of now the plans are looking like they will be marginal and limited improvements that likely won't help as many as they are implied that they will. I think the concepts are a step in a more favorable direction but there's still a long road ahead to walk before we get things fixed to where the work properly.

It is a little like rearranging the deck chairs. Shifting the burden around doesn't really lift the burden. But I'm optimistic that the new plans will result in simpler filing for most taxpayers. Adding 1% to GDP is huge and simplifying filing could easily do that, for no other reason than people will be wasting less time to prepare their taxes. Our current system imposes a senseless friction of millions of wasted man hours while people sweat over their kitchen tables trying to understand IRS-speak.

 

It is a little like rearranging the deck chairs. Shifting the burden around doesn't really lift the burden. But I'm optimistic that the new plans will result in simpler filing for most taxpayers. Adding 1% to GDP is huge and simplifying filing could easily do that, for no other reason than people will be wasting less time to prepare their taxes. Our current system imposes a senseless friction of millions of wasted man hours while people sweat over their kitchen tables trying to understand IRS-speak.

That's where I am hoping they put the most work. Just simplifying the process and method used to determine who pays what and why.

From what likely valid info I have been able to read up on it looks like most people will see a slight decrease or no change and it's mostly those who are in the high annual income (~$200K+) but not business owner employment area that will be getting increases. (Executives, news/media talking heads, celebrities, higher level stock traders and such.)


I also see there are proposals on improving the inheritance and estate taxes and to when and where they take effect as well which is a good thing in my views. As is the land I and my brother would inherit if my Dad died suddenly might hit us so hard on an inheritance tax that we couldn't afford to keep a lot of it if his paperwork now was not in perfect order which we have some doubts to.

Any tax breaks on the average and lower income persons or any small or medium sized business helps the economy all the way around. Same with inheritance tax adjustment that keep more of the family assets in play inside the family for those who get either a primary or residual income from work done on and with the land like farming and ranching related family employment work provides.

 

Any tax breaks on the average and lower income persons...

How do you give a tax "break" to someone who pays little or no taxes?

Tax credits (i.e. transfer payments from the rich to the poor) are a major defect in our current system of taxation, IMHO -- and completely unconstitutional (again, IMHO). You want more?

 

I also see there are proposals on improving the inheritance and estate taxes and to when and where they take effect as well which is a good thing in my views. As is the land I and my brother would inherit if my Dad died suddenly might hit us so hard on an inheritance tax that we couldn't afford to keep a lot of it if his paperwork now was not in perfect order which we have some doubts to.

According to this, ND doesn't even have an 'inheritance tax? https://www.thebalance.com/state-estate-tax-and-exemption-chart-3505462

"In general, an inheritance in and of itself is not considered income, so you won't have to report your inheritance on your state or federal income tax return" And there is no federal tax under this amount, [URL='https://www.thebalance.com/estate-tax-laws-overview-3504857']"2015 estate tax exemption is $5,430,000. Thus, if the decedent's estate you are inheriting from is valued at less than the applicable exemption amount for the year of death, then you won't owe any federal estate taxes." From, https://www.thebalance.com/will-you-have-to-pay-taxes-on-your-inheritance-3505056[/URL]

 

According to this, ND doesn't even have an 'inheritance tax? https://www.thebalance.com/state-estate-tax-and-exemption-chart-3505462

"In general, an inheritance in and of itself is not considered income, so you won't have to report your inheritance on your state or federal income tax return" And there is no federal tax under this amount, "2015 estate tax exemption is $5,430,000. Thus, if the decedent's estate you are inheriting from is valued at less than the applicable exemption amount for the year of death, then you won't owe any federal estate taxes." From, https://www.thebalance.com/will-you-have-to-pay-taxes-on-your-inheritance-3505056

If that's true that good to know but so far I don't know anyone here who has inherited anything that didn't get a surprise tax hit of some kind for it.

When my Mom died we got hit on what we inherited from her despite the legal people who handled the transfer saying it wouldn't be a problem (they had no explanation afterward beyond 'Oh, that sucks.') and I know several others now who have had the same issue pop up when they got money or property from a family member dying.

Hence my general disbelief when people tell us it's not going to be an issue. Especially given present land and general property values place things collectively in the ~$2 - $3 million range now and likely well beyond the present $5+ million cutoff in the next 20 years at the rate things have been going with surrounding property values being we are now bordered by established residential development property on 3 of 4 sides that's pushing $10K an acre and more as of the last pieces that sold.
As is the undevelopable and unusable for anything junk land we sold to the state for their country road improvement project netted some $6K an acre.

I don't know where it will be in the future 20 - 25 years from now when Dad likely will die but when the taxman says he won't take anything I have good reason to doubt that. He's done it to us once already.

 

How do you give a tax "break" to someone who pays little or no taxes?

Depends on where they define the pay in Vs not pay in break points to which it should be obvious that tax breaks don't apply to those who don't pay in or even gets kickbacks from them for being below that cut off critereia.

I know people who make over $150K a year who whine like and think they are poverty stricken and others who are well within definable poverty level who don't spend half the money they do make simply because most of their life needs and wants are not monetary based which pretty much says personal view of who is what by their own measure is irrelevant.

From those two examples I am pretty sure tax breaks will be a applicable concern of the first persons but not second. Whereas any new kickbacks for low income will be of interest to the second and and a new whining point of why they don't qualify for the first.

 

I know people who make over $150K a year who whine...

I don't whine. I just get angry that the passthrough taxes from my S corp are high enough that it prevents me from hiring the two additional workers I need.

What would be better: my money wasted by Uncle Sam or used to create two new jobs?

 

Said the guy who lives in the land of lowest tax for companies.

What is done with our tax money is what we all bicker on yet are somewhat unison.

The problem as I can see is that people in power distribute the tax income among themselves. Or as they see fit.

This is the same problem here in a small country and by educated guesses have a hunch that it happens elsewhere.

 

When my Mom died we got hit on what we inherited from her despite the legal people who handled the transfer saying it wouldn't be a problem (they had no explanation afterward beyond 'Oh, that sucks.') and I know several others now who have had the same issue pop up when they got money or property from a family member dying.

At the federal level there should be no tax issue for inheritance less than the ~$5.5M limit. That limit used to be just $1M back in 2003, though. The IRS doesn't know anything about what you get if it's less than that, because the executor of the estate doesn't have to tell them.

There are tax-deferred annuities, and perhaps other tax-deferred investments, that require taxes to be paid by the estate when they are terminated. In other words, you can't escape those particular taxes merely by dying.

 

Sorry if I offended you Joey. It's an old video but if you haven't seen it...(I saw it about 1.1/2 years ago so I can't say ****)

 

Here in the "Big Government" state of California, I'm paying at least 52% of my income to the city, state, and federal government. That's almost as much as my total living expenses, however I'm not getting the same return on my money from the government.

And the city and state government always has it's hand out begging for even more taxes, fees, and other revenue. It's the economic equivalent of a black hole and no amount of $$$ can satisfy the government's appetite.