Reply to Trump voters getting tax shock and regretting their votes

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]I promised to come back and report how the tax bill affected my taxes. I own a small business which has provided us enough income to place us into the top 10%. In December I was told on my final estimate I didn't have to send in the full 4th quarterly payment but about 1/2 of it. For the first time in years I pushed to get my taxes done early and found out I saved over 10k. So what did I do with that? Hired another part time employee who is over 65 and needed to add some income. I also need to provide furnishings and office equipment for them. I am investing the rest in growing the business and if that proves successful the accountant tells me my 2019 taxes will be back to what I paid in 2017 yet will also provide me more income. I believe that most small businesses in America will do the same.[/quote]
You would be wrong.  Most small businesses will pocket the money.

https://prospect.org/article/lost-opportunity-help-small-business

[quote]
Businesses for Responsible Tax Reform conducted a poll of small-business owners, heavily weighted to Republicans and red states. The poll found thin support for the new tax law. Most believe the tax cut is heavily tilted toward large corporations over small business. The fact that the tax cuts for corporations are permanent and the tax breaks for S corporations are temporary doesn’t encourage the sort of stability that small business needs.[b] Some 69 percent reported that they have no plans to hire new employees as a result of the Tax Act, and 59 percent said they have no plan to increase wages[/b].[/quote][/quote]
Why are you referring to an article written last year before businesses, such as mine, even had a working knowledge of what was going to actually happen? Consider that in what you posted "Most believe the tax cut is heavily tilted toward large corporations over small business." you have an assumption that was used to draw conclusions of what they would in fact do.

FWIW, I didn't vote for Trump nor will I if he runs again. Nor did I support the tax cut as it was written. Should they change the SS tax to unlimited without raising the maximum I will resent the hell out of that. It's bad enough I pay an unlimited 2.9% Medicare tax and pay more for Medicare insurance and see no just reason to add 12.4% more on income .[/quote]
Cry me a river.  I own an LLC and didn't get a tax break for the pass through, so I pay an additional 12% in SE tax AND lost my SALT deduction.

I'm referencing that article because regardless of when it was written, they stated that the wouldn't use the tax savings to hire people or increase wages, just like I had predicted on this form when the tax cuts were being discussed that large corporations would not raise wages or hire more people, but buy back stocks because that's what they usually do. They also indicated in a forum that they wouldn't be hiring more, but Trump and his minions didn't listen.

So no.. most small businesses aren't hiring more people or raising wages.  [/quote]
You didn't pay an additional SE tax (SS) as a result of not qualifying for the deduction. The pass through saved me federal income tax and did nothing to reduce my SE.

"The pass-through deduction is a personal deduction you may take on your Form 1040 whether or not you itemize. ... Moreover, the deduction only reduces income taxes, not Social Security or Medicare taxes."

Had I not gotten the pass through, and since I did itemize, I would have likely paid more in 2018 over what I paid in 2017 given that I do pay state and local income taxes had a qualifying mortgage deduction as well as charitable contributions. Without the SALT it wasn't going to be enough. But before the ruling was handed down as to my business qualifying it wasn't going to be that much more and it certainly didn't affect my SE.[/quote]
Yes I realize the tax cuts weren't meant to address SE.  I have had my LLC for almost 20 years. I'm fully aware of how SE tax works and how the pass through deduction works (applicable to qualified business income and not guaranteed income).

[b]People like  you, the very rich[/b], and big corporations got a huge tax break while many of us, including those making about $150k to $200K got a tax increase due to the loss of SALT (check out the Money and Finance forum).

The tax cuts were for the rich. Full stop.  And again, based on what's been going on those tax cuts did not produce the higher wages or more jobs like the Rs said they would. [/quote]
I am no where near that category. If you have an AGI of around 200k you are in the top 5%. After my business deductions I am below that but well above the 10% mark. Fact is those of us in the top 10% pay right at 70% of the federal income tax collected.  Top 25% moves that percentage to the upper 80's.

As I stated before, without the pass through my tax would have increased but not by much. And your SE didn't change, as you stated, because of the loss of SALT.[/quote]

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