‘Damn it … I’m sick and tired of ordinary people being fleeced’: Biden defends corporate tax hike

Especially since a mileage tax hurts the middle and lower class the absolute worse.

 

Cutting loopholes would have been useless? How so when combined with increasing corporate tax rates?

 

Idiots like China Joe and those that believe him think a corporate tax increase won't:

(1) Cause prices to go up
(2) Reduce jobs
(3) Get Corporations to move out of the U.S.

The only people who will really play are the American people. The problem is too much spending, not too much revenue.

 

the commander in chief knows best for the American people.

higher taxes on corporations provides more welfare

 

So you find nothing wrong with the fact that these big corporations like Amazon pay almost no corporate taxes yet you and I pay a big chunk in taxes?

 

How is anyone against improving infrastructure? Even Trump wanted a 2 trillion dollar infrastructure plan and it was part of his 2016 platform. At least Biden wants to actually pay for it rather than just throwing it on the national debt.
https://www.cnbc.com/2020/03/31/cor...calls-for-2-trillion-infrastructure-plan.html

 

More welfare recipients. Just raising taxes on corporations won't do anything until the tax loopholes are closed.

 

That has nothing to do with the tax rate and everything to do with tax code & tax shelters for multi national corporations. Fix the tax code and lower the rate. Will benefit smaller corporations and put more burden on the large multinational corporations. Problem solved! Merely raising the rate, those same multinational corps will pay what they did under the prior rate (nothing), while smaller domestic corporations will hurt and not be able to compete internationally.

However the tax code is what make liberals insanely wealthy.

 

Making corporations pay for infrastructure overhaul will be like making Mexico pay for the wall. Good luck with that.

 

I'm fairly sure the lobbyist helped draft the new corporate tax code.

 

Are you saying they won't pay corporate taxes?

 

So how are "ordinary people getting fleeced"? What exactly is the objection to the Trump tax rate cuts?

The data shows that the U.S. individual income tax continued to be progressive, borne primarily by the highest income earners.

• In 2018, 144.3 million taxpayers reported earning $11.6 trillion in adjusted gross income (AGI) and paid $1.5 trillion in individual income taxes.
• Tax year 2018 was the first under the Tax Cuts and Jobs Act (TCJA). The number of returns filed and the amount of income reported grew in 2018 yet average tax rates fell across every income group and total income taxes paid decreased by $65 billion.
• The share of reported income earned by the top 1 percent of taxpayers fell slightly, to 20.9 percent in 2018 from 21 percent in 2017. Their share of federal individual income taxes rose by 1.6 percentage points to 40.1 percent.
• Since 2001, the share of federal income taxes paid by the top 1 percent increased from 33.2 percent to a new high of 40.1 percent in 2018.
• In 2018, the top 50 percent of all taxpayers paid 97.1 percent of all individual income taxes, while the bottom 50 percent paid the remaining 2.9 percent.
• The top 1 percent paid a greater share of individual income taxes (40.1 percent) than the bottom 90 percent combined (28.6 percent).
• The top 1 percent of taxpayers paid a 25.4 percent average individual income tax rate, which is more than seven times higher than taxpayers in the bottom 50 percent (3.4 percent).

https://taxfoundation.org/publications/latest-federal-income-tax-data/

If this is not progressive enough then what would be? If the highest earners aren't paying their "fair share" of income taxes what would be and what is the fair share of the bottom 50%?

 

Let me explain it.

Liberals don't believe corporations make money by producing goods services that people need and want. Rather, liberals believe that corporation make money by exploiting and ripping off the people.

Now Biden knows that the tax cost to corporation will be passed on to the consumer. But many of the idiots and uneducated that vote for him do not know this.

 

The maximum corporate tax rate is only paid by the largest corporations, and there are so many tax deductions used that their effective rate is much much lower. I'm fine with removing these tax deductions rather than raising the rate. Its a tax increase either way, I don't really care. Biden also includes a global minimum tax which puts more of the burden on these multinational corporations.

 

And where exactly are we then?

 

raising taxes on corporations creates more voters for democrats

 

The rate is applied to their net income. Do you believe deducting the cost of say gasoline used by your trucks is just a loop hole? How about deducting the cost of the labor you pay for? Is that just a loophole? At what point should a businesses income be taxed? When should it become subject to tax and what is the reasoning to that point?

 

I'm not against the concept of tax loopholes. But when big corporations can go virtually go tax free, then we got too many of them!

 

all deductions for business expenses are loopholes.

job creators should not receive handouts

 

Yes, "government," which is entirely funded by tax-payers, is supposed to, "take care," of infrastructure maintenance & improvement. But it hasn't, largely because of the substantial investment required, & slow return on voter appreciation. Instead, legislators have preferred to give tax breaks to corporations, who make up a substantial part of their contribution infrastructure. So we have crumbling bridges, lead pipes, unreliability in our power grid (for which we depend on other countries' transformers), spotty public transportation, and less than comprehensive, broadband coverage. And the reason, in large part, is that many large corporations-- who would benefit from these things, as well-- do not pay their fair share of the tax burden; it is regularly reported that huge companies, with breath-taking profits, somehow manage to pay little or no income tax.

It cannot go w/o note, that Biden's proposed 28% rate is the same as it was before Trump's corporate tax cut. That move was sold as a way to INCREASE govt. income, by stimulating business, thereby also benefitting citizens. This did not pan out, remotely, close to its billing. So it seems only sensible to use that tax revenue, instead, for improvements that have been touted by more than just the Administration proposing them, but by private financial analysts, like Moody's, as spurring on economic growth, not only in the present, but laying a foundation for the future. All this, while providing tangible benefits to the community (unlike a corporate tax cuts). And 28% would still be the lowest corporate tax rate since before WW2.

Since the government should be doing these things, anyway, as you mention, President Biden's point is that to allow corporations to reap the benefits of infrastructure improvements, without ponying up their fair share of the cost, would be a fleecing of the people, for a corporate free ride.

 

If they go back to a graduate tax structure, similar to what was there during Obama's administration, then the highest corporate earners paid substantially lower (still greater than Trumps 21% flat rate) than those corporations earning $100,000 - $335,000. Loopholes need to be addressed, not the tax rate. Kick the lobbyist out and you might get some sound tax policy.

https://www.taxpolicycenter.org/file/183366/download?token=djnum60M

Keep in mind, these are on top of the state corporate tax rates which can be as much as 12% on top of the federal rate. And now we are asking to add another tax on top, dictated by other nations.. Swell idea!

 

So are you claiming that Trump raised taxes on the largest corporations?

 

Got any examples of those “exemptions and loopholes” the rich lobbied for? Just wondering.

 

1. Yacht Deduction
A yacht deduction certainly seems like one of those tax loopholes for the rich, but it’s actually a creative use of the mortgage interest deduction anyone can take. In 2018, you can deduct the interest you pay on up to $750,000 in mortgage debt. In order to be eligible, a “home” has to have sleeping, cooking and toilet facilities, which can be a mobile home, trailer or boat. If your primary home is paid off, you could deduct the mortgage interest on that yacht instead.

2. 15 Days of Free Rental Income
The IRS allows you to rent out your home for up to 15 days without having to pay taxes on the income you earn from that rental. This might not sound like much for the average house, but some homes that are located near annual events, like the Masters Golf Tournament or big college football games, can earn a big chunk of change during those big weeks. It doesn’t matter how much you charge to rent your home — you won’t pay taxes on that money, as long as it’s for 15 days or fewer.

3. HSA Pays Medical Bills Past, Present and Future
For the 2018 tax year, your medical expenses need to exceed 7.5 percent of your income to be deductible. But, thanks to the Health Savings Account, you can effectively deduct your medical expenses from the first dollar, whether you incurred them this year, in years past or will even deduct them in the future, as long as you have a high-deductible insurance plan.

An HSA works like an IRA: You don’t have to pay taxes on the money you save and invest to pay for your future medical expenses. But funds in your HSA can be used to pay for any medical expenses that occur after you open the account, regardless of when contributions were made. In 2018, you can save up to $6,900 for a family or $3,450 for a single person. People over age 50 can add a catch-up contribution of $1,000.

4. Breast Augmentation Equals Tax Reduction
The IRS has indicated that breast implants are considered cosmetic surgery and, as such, do not qualify as a medical expense for tax purposes. But Chesty Love, a stripper and exotic dancer, argued that her size 56N breast implants were required for her employment and “unsuitable for everyday use,” which qualified them for a tax deduction.

5. Cat Food Deduction
The cost of food for the family pet is not tax deductible, but if pet food is a business expense, it could be. If a junkyard owner put out cat food to attract feral cats to their property so they would hunt the rats and snakes the business attracted, the expense would be deductible because the cats would be there exclusively for the benefit of the business.

6. Viva Las Vegas Tax Deduction
If you win money on a gambling trip, you can deduct any losses from the same trip before you calculate the taxes on your winnings. You can only deduct losses up to the amount of your winnings, and you will have to itemize. You’ll have to keep records of how much you won and lost and where your gambling took place.

On your 2018 return, you can also deduct reasonable expenses that you incurred in order to get that big win at the craps table. Reasonable expenses can include things like travel to the casino or racetrack. This deduction had previously been available to professional gamblers only but was expanded in the Tax Cuts and Jobs Act to include amateurs as well.

7. Deductions for Deadbeats
If you loaned someone money and they never paid it back, you might be able to deduct it from your taxes. The deduction was intended for businesses, but the loophole allows anyone to deduct a bad debt, even if the loan was made to a friend or family member.

The loan must be considered 100 percent worthless, and it must be a debt, not a gift. This means that you must have come to an understanding, preferably in writing, that the money would be paid back. It also means that there has to be no chance that you’ll ever get the money back. Often, this means the person that borrowed the money has declared bankruptcy, or that you have called, sent letters and made demands for repayment.

8. The Life Insurance Loophole
If you have a whole life insurance policy that has cash value, you can borrow against the cash value in the policy. It works a bit like an IRA because the money in your policy that doesn’t cover insurance costs grows tax-deferred. Over time, you build up cash value in the policy above and beyond the death benefit. If you die, your beneficiaries get the death benefit, which is paid to them free of federal income taxes. If your estate is large enough, they might have to pay estate tax on the proceeds.

But you can also take a loan out on your policy while you’re still alive, and this loan will also be free of income tax. You will have to pay the loan back, however, with interest. If you don’t, the life insurance company will make the payments with the cash value in the policy. At some point, the payments could exceed the cash value of the policy and lead to a lapse. At that point, you would owe taxes on the amount of the loan that’s more than the premiums you paid into the policy. If you die with a loan outstanding, the amount of the loan is subtracted from the proceeds paid to your beneficiaries.

9. The Home Office Deduction
If you use part of your home as a home office, you can deduct a percentage of your home improvements equal to the percentage of your home’s square footage the office takes up. For example, if your home office represents five percent of your home, you can deduct five percent of the cost of installing central air conditioning. If clients come to your home office and the presentation of your home is important to your business image, the IRS will even let you deduct costs like landscaping.

10. Qualify By Having a Kidnapped Child
This is a tax loophole no one wants to take, but it is there nonetheless. The IRS says that if your child has been kidnapped, and the police presume the child was not taken by a family member, they can still be named as a dependent child and are eligible for the deductions associated with that.

11. The 529 Plan Double Dip Loophole
When you use a 529 plan to pay for college expenses, you don’t have to pay taxes on the amount you earned on the money you invested. In some states, you also get a state income tax deduction for your contributions.

If you qualify based on income limits, you can also take advantage of the American Opportunity Tax Credit or the Lifetime Learning Credit. So you save by letting your college savings grow tax free and getting the credit on top.

12. The Lifetime Learning Loophole
The Lifetime Learning credit is a tax credit — not a deduction — for people who are paying tuition and related expenses for an eligible student. That person could be the taxpayer or a dependent. To be eligible for the full credit, your modified adjusted gross income must be below $56,000 if you’re a single filer, or below $112,000 if you are married and filing jointly.

13. New Mexico’s Centenarian Deduction
This is a tax loophole for the poor or the rich. When you are about to turn 100 years old, you might want to move to New Mexico. Those who have reached the century mark do not have to pay personal income taxes in the Land of Enchantment. You’ll still need to be pretty self-sufficient, though — you can’t claim the break if you are a dependent on someone else’s tax return.

14. The Backdoor Roth IRA Loophole
Some income restrictions apply for people who contribute to a Roth IRA, which allows you to set aside after-tax money for retirement and withdraw it, including gains, income tax-free in retirement. But there’s a way around those restrictions.

If you earn more than $120,000 for a single taxpayer or $186,000 as a couple, you make too much to contribute directly to a Roth IRA. But you can contribute to a traditional IRA that’s not deductible, meaning you can’t take a tax deduction on your contribution. You can then convert the regular IRA into a Roth IRA. When you retire, you can withdraw from your Roth IRA without paying income taxes on the money you take out. There are also no mandatory distributions at age 70.5 as there are with a traditional IRA.

15. Personal Pool Deduction
Install a pool for medical reasons and you could take a big tax break. A taxpayer who suffered from emphysema and bronchitis was prescribed a swimming regimen by his doctor a part of his treatment. He built a pool and was able to write off the cost, less the amount that his home increased in value due to the pool. He could also write off the costs of pool upkeep.

16. Pass-Through Business Deduction
Taxpayers who have a pass-through business can deduct 20 percent of the income from the business from their taxable income. A pass-through business is one where the business itself does not pay taxes, such as a sole proprietorship, partnership or S-corp. Income limits apply to this deduction, as well as different rules for different kinds of businesses. If you are a single taxpayer earning less than $157,500 or a couple earning less than $315,000, you can take the deduction. If you earn more than that, you’ll have to take into account the wages you pay employees and your investments like real estate.

 

There should be no tax exemptions or loopholes or deductions.

It should be as simple as "This is your income, this is your tax due".

If two people working the same job in the same city make the exact same amount of money, they should pay the exact same in taxes. One should not pay less because they have kids or a mortgage or college expenses.