It's not a tax cut. A tax cut would be paying less taxes. This is a check that people receive from the government, funded by the taxes that have been collected.
Why is it either or? Both are bad and not how government should work.
Probably better is the poor guy with 2 kids, making a $1B paying about 1%. How is a guy like that going to make it? Obviously he needs a bail-out.
Trump rate cut was meaningless when combined with the change in taxable base (loopholes) for people like me... Those loopholes: mileage, supporting an elderly parent, loss of SALT deduction (compounded by paying taxes for elderly parent). Now the rate cut would have been meaningful if I could have either been lower income where the increased standard deduction is greater than actual deductions or a multimillionaire with the 'right' deductions.
The abject stupidity of this often repeated argument really can’t be overstated. Income and wealth are not the same thing. Nobody is getting a W-2 with $1B on it. Mind blowing how hard it is for some of y’all to grasp this.
No. Sad that throwing labels and stereotypes passes for debate or disagreement..
Agreed- the problem is that the gifts are occurring at both ends of the income range. The poor get off with artificially high standard deductions (how can anyone's deductions be greater than their income?) and at the high end due to the different rates assigned income from capital vs income from labor, combined with very generous exemptions and write-offs.
I’m open about this on the RT because of the limited viewership, but I’m in the top 1%. I pay a 25%+ effective tax rate. Am I paying my fair share?
If you think this is going to cut child poverty in half, you have to be one of the dumbest people alive. It is amazing how stupid some people are. What percentage of this $$$ do you think will actually be spent on children?
If in the 1% paying effective 25%, you are likely in the very small percentage of your peers—- truly the 1%. Just as with the extreme examples I provided, an equally small counter example (you) is just an illustration. The tax code needs revision - as I have advocated make it a consumption tax. There are way more benefits and equity-stop penalizing savers, reduce discard/planned obsolescence, etc.
Or not recognizing that was used as a device to make a point. Part of what I do is limiting tax liability for clients. So, while not a cpa, i have a reasonably good grasp on taxation of specialized comp and investments and how to structure and manage them to mitigate tax liability.
Yeah. I’m 34. Wife is a couple years older. Our effective tax rate was 24.8%. Didn’t see stimulus money. Which is fine. But, don’t think it’s reasonable to bitch about a lack of equity to people in similar tax situations as put them in the same bucket as sucker berg, benzodiazepines, etc. On another note, I know people with net worths north of $100MM who received stimulus money. And, I don’t take issue with them. Probably not an ideal distribution or qualification system when that is the case, though.
Likely not very many million otherwise it wouldn't be the 1%. Most people that I know in that range have more investment income or have ownership and 20% effective would be grounds to fire the FP and CPA.
| Table 3.4. All Returns: Tax Classified by Both the Marginal Rate and Each Rate at Which Tax Was Computed, by Marital Status, Tax Year 2018 (Filing Year 2019) | ||||
| Number of returns | % of Returns | Tax rate % of AGI | Tax rate % of MAGI | |
| All returns | ||||
| All tax rates | 153,774,296 | 13.0 | 16.9 | |
| 0 percent | 32,865,214 | 21.4% | 0.3 | [2] |
| 0 percent (capital gains) | 998,594 | 0.6% | 0.07 | 0.20 |
| 10 percent | 25,370,498 | 16.5% | 1.25 | 4.50 |
| 10 percent (Form 8814) | 10,119 | 0.0% | (0.10) | 6.89 |
| 12 percent | 51,008,941 | 33.2% | 5.18 | 8.08 |
| 15 percent (capital gains) | 1,721,597 | 1.1% | 7.65 | 9.77 |
| 20 percent (capital gains) | 64,988 | 0.0% | 15.50 | 18.64 |
| 22 percent | 29,004,349 | 18.9% | 10.72 | 13.31 |
| 24 percent | 9,005,926 | 5.9% | 15.37 | 17.67 |
| 25 percent (capital gains) | 34,787 | 0.0% | 18.65 | 20.09 |
| 28 percent (capital gains) | 2,200 | 0.0% | 20.75 | 23.15 |
| 32 percent | 1,199,168 | 0.8% | 18.49 | 20.53 |
| 35 percent | 1,357,835 | 0.9% | 22.00 | 24.10 |
| 37 percent | 841,679 | 0.5% | 26.93 | 29.58 |
| Form 8615 | 288,400 | 0.2% | 14.74 | 19.04 |
Yep you are right. I misunderstood. He says that since the wife and I usually break about even come tax time (pay the fed a little and get a little refund from the state) we’d be wise to opt out and use the normal kid deduction in 2022.
Sorry to be replying back so late. I was informed that this money is an advance on tax credits. Either I get the money now in monthly installments or I can get a lump sum when I file taxes next year. Is that not essentially correct? There maybe some details I’m missing though.
