Donald Trump and Taxes

[cernjSHU]

Every candidate has released his or hers income tax returns except for Donald Trump. Once he does release his returns, I suspect you will see another Billionaire pay a ridiculously low tax rate. Yet, Trump wants to lower taxes for the rich even more. Remember Romney paying an effective rate of around 14%?

This is not class warfare what I am talking about. I am talking about the discrepancy of effective tax rate of the super wealthy and those of the upper middle class who receive a salary and earn 100k-300k.

 

[HALL85]

Every candidate has released his or hers income tax returns except for Donald Trump. Once he does release his returns, I suspect you will see another Billionaire pay a ridiculously low tax rate. Yet, Trump wants to lower taxes for the rich even more. Remember Romney paying an effective rate of around 14%?

This is not class warfare what I am talking about. I am talking about the discrepancy of effective tax rate of the super wealthy and those of the upper middle class who receive a salary and earn 100k-300k.

I haven't read Trump's tax plan in detail, but didn't he want to simplify it to four brackets with only a mortgage deduction? He's also wanting to tax the hedge fund guys..once again I may have this wrong, but that's what I recall. Will be interesting to see what effective tax rate he's paying though.

 

[Section112]

The Hedge Fund loophole needs to be closed and I think a Trump has said he wants to see that as well in a prior debate.

 

[SnakeTom]

The Hedge Fund loophole needs to be closed and I think a Trump has said he wants to see that as well in a prior debate.

Educate me. What is the hedge fund loophole ?

Tom K

 

[Section112]

Educate me. What is the hedge fund loophole ?

Tom K

The tax code taxes your income and mine by taxing our taxable income (salary, interest etc) at a percentage based on the tax bracket we fall into after deductions (most taxpayers pay between 15% and 39.6% with the majority paying from 25% to 33%). We also can invest our after tax money into investments like stocks and bonds etc. When we sell those stocks for instance, any gains are taxed at the capital gains rate of 15% which is normally lower than the tax rate we pay on our earnings (salary, interest etc).

Hedge fund managers made an argument a long time ago that their earnings are really based on the performance of their hedge fund which is more like a capital gain, and they should be taxed at the capital gains rate. The good hedge fund managers make millions of dollars and get taxed at the capital gains rate which is simply wrong because their primary earnings are from the hedge fund and their job is to run the hedge fund. Here is a good article that explains it from a few years ago. These guys should be paying more taxes and this loophole should be closed and it is extended to hedge fund managers, venture capitalists, money managers and more. It's a terrible loophole that needs to be closed ASAP as there is simply no justification for it.

http://www.businessinsider.com/hedge-fund-tax-loophole-is-outrageous-2012-1

One clarification - Capital Gains taxes for anyone earning over $415k (or $460 married filing jointly) are taxed at 20%.

 

[cernjSHU]

But Trump plays a nice little trick with how he says to close the Hedge fund loophole. He pulls the lord taketh and gives it right back trick. Sure let's close the loophole but then lower the tax rate down to 25% for the highest earners on regular income. That is a huge savings from 39% for the highest earners down to 25% Wow! What a windfall for the wealthy.

So in essence, he closes the Hedge fund loophole by raising their tax rate from 20%(capital gains) to 25%.

Close the loophole and keep the rates where they are.

 

[Section112]

But Trump plays a nice little trick with how he says to close the Hedge fund loophole. He pulls the lord taketh and gives it right back trick. Sure let's close the loophole but then lower the tax rate down to 25% for the highest earners on regular income. That is a huge savings from 39% for the highest earners down to 25% Wow! What a windfall for the wealthy.

So in essence, he closes the Hedge fund loophole by raising their tax rate from 20%(capital gains) to 25%.

Close the loophole and keep the rates where they are.

That works.

The tax code needs to be completely revamped and made to have very few exceptions for anyone. That is the problem. If his tax rate of 25% has no loopholes/deductions (I think he said to keep the mortgage deduction and that is it), you could probably make a case that we will significantly increase taxes collected, paired of course with a lower corporate tax rate that forces corporations to pay taxes without the loopholes too currently allowing them to avoid taxes all together. You really have to look at the big picture of whatever his tax plan is to fully opine. For now though it seems like a no brainer to change it but then all the hedge funds will change their address to somewhere off shore. The whole thing needs to be blown up and started again in a simple, straight forward way.

The more I read though the more I worry because the Trumps and the Clintons hang around with the same crowd. The Oligarchy is coming if its not here already.

 

[SPK145]

The Hedge Fund loophole needs to be closed and I think a Trump has said he wants to see that as well in a prior debate.

It needs to be closed, it's regular income but all income should be taxed lower with no deductions other than a standard deduction for family size, capped at some family size like 5.

 

[Merge]

It needs to be closed, it's regular income but all income should be taxed lower with no deductions other than a standard deduction for family size, capped at some family size like 5.

I'm on board with that.