There’s already been a huge backlash against the Trump administration’s 2020 budget proposal since it was released on Monday, and for good reason. The plan is disastrous for a myriad of reasons, but so far, there hasn’t been much discussion about the way it conceals – and even worsens – the consequences of the 2017 Tax Cuts and Jobs Act. Those initial tax cuts are … Continue reading The Big Tax Problem in Trump’s Budget
The manner in which taxes are computed vastly favors the wealthy. Workers pay higher taxes on wages than those living on investment income — and workers also have to pay Social Security and Medicare taxes on their wages but investment income recipients do not. A comparison of taxes due for 2018 for two married couples illustrates the gross inequities: Couple No. 1: Trust Fund Babies. … Continue reading Workers Pay While Trust Fund Babies Play
Often times, as I look back over the past 40 or so years of my life and what has happened to tax policies across our large and wonderful country, I’m struck by the similarities between taxes for adults and homework for kids. I know, it’s a leap, but then the more you noodle on it the more the likeness becomes clear. From the first day … Continue reading Homework Is A Lot Like Taxes
This tax season, millions of Americans will be receiving smaller refunds from the IRS, or worse, a bill. At the same time, two of the most profitable companies in the country are not only avoiding paying taxes altogether, but one is receiving a federal rebate check of hundreds of millions of dollars. Both corporations and individuals are subject to federal income taxes. For those individuals … Continue reading Why Are You Paying More Tax Than Amazon and Netflix?
Recently, conservative groups sent a letter to Trump asking him to again consider using his executive powers to index capital gains to inflation. Not only would this ridiculous proposal hand billions more in tax cuts to the wealthiest Americans, but it’s not even constitutional. The letter argues that individual income tax brackets are adjusted for inflation, so capital gains, which are the profits from an … Continue reading Indexing Capital Gains to Inflation Just Another Tax Cut for the Wealthy
February 13th is an important day. It’s a symbol of our country’s skewed priorities when it comes to taxes, because today is the day that someone earning one million dollars per year will be done paying into Social Security tax, or FICA, for the rest of the year. The same cannot be said for 90% of Americans whose income will be subject to the tax … Continue reading It’s Scrap the Cap Day
Last week, Democratic presidential hopeful Senator Elizabeth Warren proposed an “ultra-millionaires tax” as part of her 2020 platform. As someone closer than the average American to being affected by the tax should it become a law, I’m eager to see it succeed, and wish it had been presented sooner– for our country’s sake. In Sen. Warren’s plan, net worths over $50 million would be taxed … Continue reading Senator Warren is Right: America Needs a Wealth Tax
Representative Alexandria Ocasio-Cortez believes that in order to pay for her Green New Deal, the US government should raise the tax rate on income over $10 million to up to 70 percent. Despite rabid opposition and cries of “socialism!” from conservative pundits and politicians, polls show the American people agree. People are tired of the growing concentration of wealth into the hands of a small … Continue reading Raising the Top Marginal Tax Rate Isn’t the Answer to Wealth Inequality (We Need to Think Bigger)
On Sunday’s 60 Minutes interview of Rep. Alexandria Ocasio-Cortez (D-NY), she discussed returning to a top marginal income tax rate of 70%. Many who heard this, including those who would never have incomes reach anywhere near the proposed 70% threshold, were enraged. As a high earner who might see his tax bill go up should anything similar to Rep. Ocasio-Cortez’s proposal become a reality, I say “go … Continue reading Raise Taxes on Millionaires like Me
Thousands of the Internal Revenue Service’s “essential” workers will be required to work without pay during the ongoing government shutdown. With the IRS already underfunded under normal circumstances, these workers that have been called back in an effort to keep the tax refund season running smoothly will likely be even more overwhelmed. For millionaires and billionaires, this is great news. While most Americans don’t have … Continue reading Underfunding IRS Helps Wealthy Avoid Paying Taxes
Sunday, Rep. Alexandria Ocasio-Cortez (D-NY) was interviewed for 60 Minutes. When her views on our tax code and federal spending were brought up, she suggested we return to a 70% top marginal income tax rate. So-called fiscal conservatives, including supporters of 2017’s $2 trillion tax bill, immediately went on the defensive and put their foot in their mouths. Being disingenuous on Twitter might get conservative … Continue reading The Difference Between Marginal and Effective Tax Rates
A year ago yesterday, Republicans in Congress cut taxes for the wealthiest Americans. Corporations and millionaires benefited greatly from the Tax Cuts and Jobs Act, while the middle class were the losers.. What most Americans don’t know, however, is the identity of one group who received a particularly massive windfall from this legislation– the Republican who wrote it. Through manipulation of the “pass-through” filing status, … Continue reading Tax Cuts Enrich Members of Congress Who Wrote Them
The Tax Cuts and Jobs Act (TCJA) was marketed as a middle class tax cut that would promote higher wages. Exactly one year after its passage, stock buybacks have soared while wage growth has remained stagnant. During the first half of this year, a whopping $384 billion was spent on stock buybacks. Stock buybacks, which happen when a company repurchases its own shares from the … Continue reading Stock Buybacks, not Wages, Surge One Year After Tax Cuts
A year ago this week, Republicans passed the Tax Cuts and Jobs Act. Among other things, they promised their legislation would generate jobs and increase wages. Neither has happened. Data suggests that, despite Republicans positioning their tax cuts as a boon for the middle class, the results have been more beneficial to shareholders than people who actually work for a living. Out of 152 corporations … Continue reading Still No Wage Growth One Year After Tax Cuts
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