GOP introduces their own health care bill---with other stuff in it too

[viper37]

Elimination of most deductions.  The plan would actually be revenue-neutral.

No tax on inheritance, wich means you still lose a few billions there, and do not promote equal opportunities at birth, but rather encourage dynasties.

No capital gains tax.  Wich means, a CEO' yearly wage will now be 49 900$.  And 10 million$ worth of stock options.

No tax on interests.  So, I loan my company some money, they pay me 49,5% yearly interests.  Nice.

No tax on dividends.  Nice, again.  I get paid in stock options, I convert them to actions, no tax on the capital gain, then with these preferred stocks, I get a big quaterly dividend wich won't we be taxed.

No corporate income tax but a tax on business consumption of 8.5%?  What is that?  Every company that buys something pays 8,5%?
That's gonna drive the prices through the roof.

I see it as wishful thinking, and it's a way to reward people who are already rich, without giving more chances to middle class people to become richer.  And it's far from revenue neutral.  In fact, you're losing a ton of money with that.  The potential for abuse is large.

On the positive side though, it makes the US the next best thing to a fiscal paradise.  I would suggest they also institude bank secrecy, after all, the Ev!l government doesn't need to know what you're doing with your money.  And US banks would make a fortune by having the bank accounts of every drug kingpin in the US, instead of seeing that money going to Canadian Banks in the Bahamas.

[viper37]

Cutting waste and reckless spending.

too bad the GOP isn't good at that.  They're only good at creating more government bureaucracy&regulations everywhere.

[MadImmortalMan]

No tax on inheritance, wich means you still lose a few billions there, and do not promote equal opportunities at birth, but rather encourage dynasties.

There is a difference between encouraging dynasties and not discouraging them. There may be some things that do encourage dynasties, but elimination of the inheritance tax wouldn't be one of them. The biggest problem with the tax is the bad PR it gets, frankly. It makes people mad when they can't leave their shit to their kids. It also isn't a very big percentage of government revenue. It's kinda insignificant.

[MadImmortalMan]

So where's all the money going to come from if they slash taxes like that?

Elimination of most deductions.  The plan would actually be revenue-neutral.

According to who?

I'll wait to see what the CBO says about it.   

[Faeelin]

If you eliminate deductions, how will there really be any savings for the average person?

If it's revenue neutral then by definition the average person will break even.

So if the average American won't really save money, how is this "reform"?

[Admiral Yi]

So if the average American won't really save money, how is this "reform"?

What an odd question.

[DGuller]

What is it with Republicans' hard-on for no corporate tax, and no capital gains or interest tax?  It's even funnier when they talk about it right after saying that the tax system shouldn't discourage working. 

Don't they realize that this results in a highly regressive taxation that rewards investment and discourages work?  Why shouldn't dividends and capital gains be taxed the same as any other income, especially if there is no corporate tax?

[viper37]

Faeelin, you're a stupid liberal. Intelligent conservative economists have proven beyond a shadow of a doubt that as you decrease tax rates, you increase tax revenues. Indeed, as the limit of the tax rate function approaches zero, tax revenues approach infinity. Reaganomics 101 dude.

actually, it looks more like a bell curve than anything else.  As you increase it, the marginal gains are less.

[viper37]

Hans probably believes people like me who live on our income tax refunds are a myth perpetrated by the leftist conspiracy.

Not that I approve of the plan, but if you live on your income tax refund, then it means that with this plan, you will simply have an higher revenue during the year, hence more money in your pocket year long.

The problem is, everything will probably be more expansive, so you'll be revenue-neutral.  Maybe that's what he means

[viper37]

There is a difference between encouraging dynasties and not discouraging them. There may be some things that do encourage dynasties, but elimination of the inheritance tax wouldn't be one of them. The biggest problem with the tax is the bad PR it gets, frankly. It makes people mad when they can't leave their shit to their kids. It also isn't a very big percentage of government revenue. It's kinda insignificant.

If you decide to sell all your properties&funds right now, you would pay taxes on the net product.
I don't see why it should be different once you die.

Without a tax on inheritance, you actually let rich people go richer.  Poor people gets next to nothing, so it's not an issue.  And people buy large insurance policies to counteract the taxes.  So, that's really not an issue for 99% of the population.

And afaik, the tax rate was never 100%, so you do live 'shit' to your family.

And I suppose, that just like here, the main residence is excluded from the calculations? If not, it could be.

[Habbaku]

Without a tax on inheritance, you actually let rich people go richer.

How tragic.

[derspiess]

Hans probably believes people like me who live on our income tax refunds are a myth perpetrated by the leftist conspiracy.

How do you live on an income tax refund? 

[viper37]

Don't they realize that this results in a highly regressive taxation that rewards investment and discourages work?  Why shouldn't dividends and capital gains be taxed the same as any other income, especially if there is no corporate tax?

Dividends should be taxed like all other income.  Dividends from foreing companies should be taxed higher.  That limits the damages from fiscal paradise.

Capital gains taxes is more complicated.  First, there should be a big exemption from selling your own company (here in Canada, I believe the limit is 500 000$, 1 000 000$ for farms).  The rest should be taxed at 50% to encourage people to invest, with one caveat.

Gains on stocks, or stock options given to an employee by its firm, as part of its remuneration package should not have this reduction and should be considered like any other wage income.  After all, if my company gives me an insurance policy, I have to tax myself on it at 100% of the advantage.  Why shouldn't it be different for other types of advantages?

[viper37]

Without a tax on inheritance, you actually let rich people go richer.

How tragic.

it's not tragic, it's simply the only effect of what's happening.  It has zero impact on the middle class, zero impact on the poor, a small impact on the rich, and a moderate impact on the very rich.

[The Minsky Moment]

What is it with Republicans' hard-on for no corporate tax, and no capital gains or interest tax?  It's even funnier when they talk about it right after saying that the tax system shouldn't discourage working. 

Don't they realize that this results in a highly regressive taxation that rewards creative tax planners who spend their time figuring out all the ways you can convert ordinary income into divididend/interest/cap gains and discourages work?  Why shouldn't dividends and capital gains be taxed the same as any other income, especially if there is no corporate tax?

Fixed.
I love the plan.  Should double corporate law firm income overnight.