Posted on 12/31/2017 2:27:17 PM PST by spintreebob
My definition of loophole is when people find quitksnin the law that allows them to lower tax liabilities in a way that was not intended by the law.
This was intentional and seeks to stimulate entrepreneurs.
Calling it a loophole is an attempt to demonize and stir class warfare.
I hate income taxes because it documents people’s income. That is the first step to starting class envy.
Are women and minorities hardest hit? It isn’t worth doing if women and minorities aren’t hardest hit!
L A Times proves it does not know what a loophole is.
“in part because it is so complex, will ultimately reward those who can afford the best tax advice.”
Not to worry, TurboTax will be all over this. Wait and see. I ran a Sub-S for 5 years after I retired, and I couldn’t have done it without TurboTax.
Terrible thought turning decision making back to the taxpayer versus the State. God forbid!
The Libs try to frame this as a tax for the rich and just flat out lie. It is a deduction for the small business person, look at the last paragraph below...
FORBES explains the PASS thru tax better then I have seen anyone else....
Separately, the income deduction is not available to what the law calls a “specified service trade or business.” These are defined as investment services, as well those “in the fields of health, law, 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 or owners.” In the final negotiation, architects and engineers managed to get themselves taken off the list of excluded industries. As a lobbyist once told me, it is always the exceptions to the exceptions that make a law interesting.
There is one other major exception to the exceptions. Individuals with taxable income below $157,500 and couples filing jointly with income below $315,000 — that is, anyone in the new 24 percent tax bracket or lower — get a pass on both the limitation based on wages or capital and the restriction on professional services. The limitations phase in over the next $50,000 of taxable income. (So an accountant who files individually, for example, would be unable to take any deduction at all when her taxable income reaches $207,500.) The conference reduced these thresholds from $250,000 and $500,000, stripping the tax break from the wealthiest professionals.
Pure democrat talking points, echoed by a democrat-socialist-communist talking point repeater. Writer has no clue of the subject, but gets a free byline.
Yes, this was intentional to reward the S-Corp shareholders who invest their savings in new businesses which hire employees and grows the economy. This is a reward to the shareholders who are limited on the corporate level from taking certain deductions which the Sch C business owners can deduct currently.
This whole story is the LATimes doing what they do best.....bash the president for a tax plan which rewards business growth.
That isn’t the way that read the article. You pass it thru and get a 20% deduction at the corporate level.
The LA Times BIGLY displays its SOCIALISM and hatred of Private Enterprise!
I am still looking for some analysis on the impact on small business, small landlords, etc.
As the owner of a small LLC company with 10 people working for us, we will be able to use the pass thru tax deduction to hire another person and invest in new capital. And the Pass-thru deduction primarily helps the smallest of the small businesses as once your income reaches a certain dollar amount you don’t benefit.
Under the existing law you get taxed at the corporate level and the personal level... uless you’re taxed as a small business and in that instance this is all irrelevant.
Actually, pass-through income can be taxed at a higher rate, depending on how much of it there is, than corporate income. That’s just as true tomorrow, 1/1/18, as it was yesterday. The 20% exemption helps to make pass-through and corporate tax burdens more comparable to each other.
LOL — This article portrays people who currently (or potentially could) elect to operate and be taxed as Subchapter S corporations as helpless buffoons. The Leftists hate Subchapter S corporations for the same reason they hate franchises—the operators of both do not consider themselves as employees and will tend to view politics from a (to Leftists) not “helpful” perspective.
A second reason the LA Times doesn’t like Subchapter S and other small businesses is that they are vibrant creators of new jobs.
Given the article’s take, every deduction is a loophole.
...a bitter persimmon!
——
If you’ve never experienced an unripe persimmon, you’re in for a real treat. They aren’t bitter. Rather biting into one is like having your mouth instantly filled with cotton absorbing all of its moisture. I’ve never felt anything like it.
Interesting. . .since the corporate tax rate is lower than the personal income tax rate, how exactly is this a loophole?
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