On Monday, General Motors (GM) announced it will be shutting down five factories and cutting almost 14,000 jobs in North America. With this announcement just weeks before the holidays, thousands of American families, along with the communities in Maryland, Michigan, and Ohio that they live in, now face an existential financial crisis. GM’s executives and investors, will have no such problems, however, in large part … Continue reading GM Layoffs Result of Trump Tax Plan
Tuesday, North Carolinians will be able to vote on a ballot initiative that would change the economic trajectory of our state for generations to come. I’m talking about the amendment to lower the maximum tax rate on incomes from 10% to 7%. If approved, this change would severely hurt our state’s ability to govern effectively, as well as compromise the integrity of our education system. … Continue reading North Carolina Tax Amendment Jeopardizes Students’ Futures
Last week, in a last ditch effort to persuade voters before Election Day, President Trump made one of his most baffling false claims yet. At a rally in Nevada, Trump announced a new 10% tax cut for the middle class that would be passed by Congress and come into effect before the midterms. This came as news to, well, everyone. Congressional leaders had no idea … Continue reading Vote As I Say, Not As I Do
By now, you’ve read all about the rich people who are now far richer since Republicans passed their tax bill. You might have even come across articles highlighting members of Congress who bought new yachts and properties with their tax savings. For just a moment, though, let’s reflect on the people on the other side of the inequality gap. Members of Congress feign ignorance, … Continue reading Winners and Losers from the Tax Bill
On Monday, Trump floated the idea of passing a 10% tax cut on middle-income taxpayers. He gave his administration two weeks to provide a resolution making it happen. This, of course, is nonsense. It’s not going to happen. Trump and his allies in Congress have already shown their tax priorities. They already passed a massive tax bill, and lowering the burden on the middle class … Continue reading Trump’s 10% Tax Cut for the Middle Class Isn’t Going to Happen
Normally, the basic idea of our tax system is that you figure out how much you profit on a transaction, then pay tax as a percentage of that profit. Unfortunately, our tax code is broken, and people like Jared Kushner have taken advantage of that. The simplest explanation for this is that the tax code is very complicated, and it isn’t the responsibility of taxpayers … Continue reading Our Tax Code is Broken When it Comes to Real Estate
Capitalism, for better or worse, is a race to the top where the starting gun only goes off once. As much as we may like to think that our economic circumstances are determined by our talent and hard work alone, there are hundreds of years of history that play a role in influencing the path our professional lives take. There’s a reason white guys like … Continue reading Becoming a Millionaire Just Got a Million Times Harder
Last year, Republicans unilaterally passed tax cuts that disproportionately benefited the wealthy and corporations. By giving tax cuts to wealthy Americans, particularly investors, Republicans claimed their tax bill would lead to substantial job and wage growth. Unsurprisingly, this has not happened. As an investor myself, I can tell you why: it’s because I’m not a job creator. For decades, conservatives have credited the investor class … Continue reading I’m Not a Job Creator
In Trump’s latest efforts to enrich wealthy people like himself, his administration recently proposed indexing the capital gains tax rate to inflation. This change would give billions of dollars in tax cuts to wealthy investors, while giving no relief at all to the working class. Right now, the capital gains tax is one of the only safeguards against the upper class’s unprecedented accumulation of wealth, … Continue reading How Many Tax Cuts Do Millionaires Need?
In order to ensure the passage of the Tax Cuts and Jobs Act of December 2017 (TCJA), the GOP expanded a loophole to particularly benefit those who would vote on it: themselves. This includes deficit-hawk Senator Corker (TN), who had been undecided on breaking his promise to not add to the deficit. Now, the GOP are trying to make that loophole a permanent tax deduction. … Continue reading Pass on Tax Cuts
Congressional Republicans sure have a hard time with math. In the most recent House budget, they included massive cuts to the Pell Grant program, which allows millions of students each year to better afford a college education, all in the name of fiscal responsibility. We can’t afford it, they say. It’s a sign of how quickly things change, I guess, that we suddenly can’t afford … Continue reading Bye Bye Pell Grants, Hello Even More Student Loan Debt
Since our country’s founding, dynastic wealth has threatened to upend the democratic principles promoted in the constitution. The influence of money in politics was first seen in the three-fifths compromise, and its pervasive nature has not been fully challenged since. Tax Day provides us with a moment to reflect on how our democracy is funded, and with the ruling in Citizens United v. FEC, the … Continue reading Tackling Dynastic Wealth will be the Challenge of Our Generation
Last year, when the GOP passed their $1.5 trillion tax bill, they announced it would put $4,000 back in the average American’s paycheck. If this were true, this Tax Day, which is 15 weeks into the year, the average American should have an extra $1,153.85 of the $4,000. Do you? If your answer is an emphatic no, you’re not alone. Across the country, there has … Continue reading Are You Still Waiting on that $4,000 raise?
The 16th Amendment, which was ratified in 1913, granted Congress the power to collect income taxes. About a year later, Congress named March 1st “Tax Day.” This became the deadline to file and pay personal income taxes, as well as make any IRA contributions to be attributed to the following year. By 1918, Tax Day was moved to March 15th, then eventually April 15th in … Continue reading What is Tax Day?
With Tax Day approaching, now is as good a time as any to examine what the results of the GOP tax cuts have been. Thus far, the economic boom supposed to be felt across the country has been delayed, perhaps indefinitely. Here’s the proof: Job growth is achieving the same three-month average the country has been seeing since January 2015. As predicted by the Center … Continue reading Where’s the Economic Boom We Were Promised?
In his feud with yet another country, Trump has jeopardized the quality of life of millions of Americans already living paycheck to paycheck. His trade war with China will not end well, and it doesn’t appear to be wrapping up anytime soon. In the meantime, the working and middle class will suffer. For those who know little about trading and tariffs, Trump’s boisterous approach to … Continue reading Tariffs are a Tax on the Middle and Working Classes
Many Americans’ first time hearing of the Alternative Minimum Tax (AMT) may have been last March, when a partial tax return showed that it was chiefly responsible for the taxes Trump owed in 2005. Now, only 200,000 filers will be required to pay the tax, which is significantly fewer than the over 5 million who qualified before the Republican tax scam passed in December. So … Continue reading The Alternative Minimum Tax is No Longer as Effective as It was
Last December, when Republicans passed their tax bill full of perks for their donors and corporations, another loophole dodged scrutiny and remained in the tax code. The stepped-up loophole, sometimes called the stepped-up basis loophole, is a huge advantage for families not quite rich enough to qualify for the estate tax (which has been raised to $10 million for an individual). Even estates which are … Continue reading How the Stepped-up Loophole Creates an Escalator to Riches–For Those Who are Already Wealthy
In December, when Congress passed the GOP tax bill, they didn’t close the carried interest loophole like Trump promised. In fact, they took the grey area that the loophole thrived in and made it black and white. Rather than manipulate the tax code, hedge fund managers can now point to specific language in the tax bill that allows them to pay a lower tax rate … Continue reading How the GOP Tax Bill Gave Us Double the Carried Interest Loopholes
This time last year, Gov. Dannel Malloy of Connecticut advised deferring to Trump on the elimination of the egregious carried interest loophole. A year later, it appears the Democratic governor is going to have to take a firm stance on how he will either defend or upend the loophole that benefits hedge fund managers as if they themselves were the investors. The carried interest loophole … Continue reading Why Connecticut Should Get Onboard with Closing the Carried Interest Loophole