How the Trump administration is making rich people richer and poor people pay more.

[txdot-guy]

Through the use of Tariffs on imports the Trump administration has effectively adopted a new 20% (average) tax on all imported goods. Which effectively raises the cost of goods for consumers across the US.

The OBBBA made permanent the 2017 Trump tax cuts which primarily benefit the wealthy amongst us.

Now his administration is changing rules and regulations to benefit the wealthiest corporations in avoiding the minimum tax rate.

https://archive.ph/9EGs4
How the Trump Administration Is Giving Even More Tax Breaks to the Wealthy

The Treasury Department and Internal Revenue Service are issuing rules that provide hundreds of billions of dollars in tax relief to big companies and the ultrarich.

With little public scrutiny, the Trump administration is handing out hundreds of billions of dollars in tax cuts to some of the country’s most profitable companies and wealthiest investors.

The Treasury Department and Internal Revenue Service, through a series of new notices and proposed regulations, are giving breaks to giant private equity firms, crypto companies, foreign real estate investors, insurance providers and a variety of multinational corporations.

The primary target: The administration is rapidly gutting a 2022 law intended to ensure that a sliver of the country’s most profitable corporations pay at least some federal income tax. The provision, the corporate alternative minimum tax, was passed by Democrats and signed into law by President Joseph R. Biden Jr. It sought to stop corporations like Microsoft, Amazon and Johnson & Johnson from being able to report big profits to shareholders yet low tax liabilities to the federal government. It was projected to raise $222 billion over a decade.

But the succession of notices the Treasury and I.R.S. have issued beginning this summer means the tax could bring in a fraction of that.
…
With its various tax relief provisions, the administration is now effectively adding hundreds of billions of dollars in new breaks for big businesses and investors. The Treasury is empowered to write rules to help the I.R.S. carry out tax laws passed by Congress. But the aggressive actions of the Trump administration raise questions about whether it is exceeding its legal authority.
…
“Treasury has clearly been enacting unlegislated tax cuts,” said Kyle Pomerleau, a tax economist at the American Enterprise Institute, a right-leaning think tank. “Congress determines tax law. Treasury undermines this constitutional principle when it asserts more authority over the structure of the tax code than Congress provides it.”

The alternative minimum tax isn’t the administration’s only effort to roll back taxes on large businesses and wealthy individuals. Last month, the Treasury and I.R.S. granted new tax relief to foreign investors in U.S. real estate. In August, they withdrew regulations to prevent multinationals from avoiding taxes by claiming duplicate losses in multiple countries at once. And, as The New York Times previously reported, the Treasury and I.R.S. have rolled back a crackdown on an aggressive tax shelter used by big companies, including Occidental Petroleum and AT&T. That amounts to another $100 billion in cuts — and likely far more, according to tax advisers.

Changes like these are not widely publicized by the Treasury, but are closely followed by tax planners for the country’s biggest corporations — who are applauding the new guidelines. In notes to clients, advisers at KPMG celebrated the new “array of choices” available for investors seeking to avoid the corporate alternative minimum tax. They noted that the Treasury’s moves provided “significant flexibility” for clients to trim their bills, allowing them to “cherry-pick” the rules that best suit their needs.


Click the link above to read the full article.

[Tiny]

Originally Posted by txdot-guy

How the Trump administration is making rich people richer and poor people pay more.

How the Trump Administration Is Giving Even More Tax Breaks to the Wealthy

This is an excellent example of how New York Times news reporting has shifted from the center to the left. From time to time, All Sides has rated the news section far left, although right now they call it left of center. The NYT is playing the class warfare card with the headline, and the article’s not even about the wealthy. It’s about the corporate alternative minimum tax.

Your and their contention that the Big Beautiful Bill primarily benefited the wealthy is debatable. Certainly it helped a segment of the wealthy whose businesses employ lots of people or which depreciate lots of tangible assets, by extending the QBI tax deduction. But in terms of the % by which it “reduced” income taxes paid by individuals, the poor and middle class came out better than upper income earners. I put “reduced” in quotation rates because the bill didn’t actually cut taxes, it just extended some of the 2017 TCJA tax cuts that were scheduled to expire.

[txdot-guy]

Originally Posted by Tiny

This is an excellent example of how New York Times news reporting has shifted from the center to the left. From time to time, All Sides has rated the news section far left, although right now they call it left of center. The NYT is playing the class warfare card with the headline, and the article’s not even about the wealthy. It’s about the corporate alternative minimum tax.

Your and their contention that the Big Beautiful Bill primarily benefited the wealthy is debatable. Certainly it helped a segment of the wealthy whose businesses employ lots of people or which depreciate lots of tangible assets, by extending the QBI tax deduction. But in terms of the % by which it “reduced” income taxes paid by individuals, the poor and middle class came out better than upper income earners. I put “reduced” in quotation rates because the bill didn’t actually cut taxes, it just extended some of the 2017 TCJA tax cuts that were scheduled to expire.

The corporate alternative minimum tax was passed for very good reasons. It is meant to keep corporations from using tax loopholes. The Trump administration shouldn’t be allowed to just create rules that ignore the law in this manner.

[Ripmany]

Basically trump is extension of Obama

[Precious_b]

Heard an interesting take on how the tax system is rigged for the wealthy/ultra wealthy to accumulate such.

[Tiny]

Originally Posted by Precious_b

Heard an interesting take on how the tax system is rigged for the wealthy/ultra wealthy to accumulate such.

Never trust a woman named Ray. The bitches lie. For example,

On the other hand, when we look at how the wealthiest Americans acquire their wealth - through inheritances and investments - those can avoid taxes altogether because inheritances are specifically written out of the income tax code and because investment income is easily avoided, which our wealthiest citizens do.

Here are the ten wealthiest Americans.

Elon Musk
Larry Ellison
Mark Zuckerberg
Jeff Bezos
Larry Page
Sergey Brin
Steve Ballmer
Jensen Huang
Warren Buffett
Michael Dell

Inheritance and investments my ass, except for Buffett. These Americans made their fortunes by busting their asses.

I'd sure like to know how you can avoid tax on investment income. I pay 40.8% tax on the majority of mine. Yeah, inheritances don't bear income tax. Instead the government takes the death tax -- 40% of everything an individual's worth in excess of $14 million. Which for billionaires is a lot.

And how about this,

So, for example, they take tiny salaries. Warren Buffett, the greatest stock picker of all time, takes a salary of $100,000, and Jeff Bezos takes a salary of $80,000. Meanwhile, Zuckerberg and Larry Ellison only take $1 a year. They take these tiny salaries to avoid taxable income. And instead, what they do is they rely on their growing wealth, and their wealth is growing at an astronomical pace.

The NYT argues in TxDot's article that lower corporate tax rates benefit the wealthy specifically. It of course ignores peoples' pension funds, mutual funds, and 401K's, and employee share plans, all of which benefit from lower corporate income taxes. The corporations' customers and employees also benefit from lower tax rates.

But if that's the way you're going to look at it, then how about multiplying each of these billionaire's percentage ownership of their businesses by the taxes paid by those businesses over the last 12 months. This is what you'll get if you do that.

Warren Bufett's share of Berkshire Hathaway's taxes: $2.2 billion

Jeff Bezos' share of Amazon's taxes: $1.4 billion

Mark Zuckerberg's share of Meta's taxes: $3.5 billion

Larry Ellison's share of Oracle's taxes: $0.8 billion

How much do those guys pull out of the system? Well, I guess Buffett and Ellison get their social security checks. And Medicare. But they're all paying a whole lot more than "their fair share."

[Precious_b]

Originally Posted by Tiny

Never trust a woman named Ray. The bitches lie. ...

Guess that's why you only have 2 reviews LOL!

[Why_Yes_I_Do]

The corporate alternative minimum tax was passed in 2022 and is just now coming in to play. So let's try a simple question:
If corporate taxes take a bigger bite out of corporate coffers, who actually pays for it?

Here's another classic question that I see bandied about way too often:
Why do people yabber on about "tax loopholes" when, in point of fact, they are actually "incentives"?

I view the corporate alternative minimum tax as a poison pill laid out there for the Socialist base, that will do more harm than good. We are just now coming down from hitting record highs in layoffs from the pResident AutoPen years.

Here's a fun and easy site to get your head around the trend.

Net-Net is; Trump is diligently working to get more corporations to invest in this country, to employ Americans, and bring in revenues, not to mention secure some "critical" industries - as opposed to the Socialist tact of throwing more of Other People's Money at the corporate boogeyman.

[Tiny]

Originally Posted by Precious_b

Guess that's why you only have 2 reviews LOL!

E tu Precious_b? A couple of times when Vitaman was losing arguments, he'd drag that out. Never against TxDot or McCain though. You need to put on your big boy pants and come up with a good rebuttal. Before I took a vow of monogamy, I posted a good bit on topics here besides politics, although not much in the form of reviews. Given what LE was up to in my community and later FOSTA and SESTA, posting reviews wasn't wise.

Originally Posted by Why_Yes_I_Do

The corporate alternative minimum tax was passed in 2022 and is just now coming in to play. So let's try a simple question:
If corporate taxes take a bigger bite out of corporate coffers, who actually pays for it?

Here's another classic question that I see bandied about way too often:
Why do people yabber on about "tax loopholes" when, in point of fact, they are actually "incentives"?

I view the corporate alternative minimum tax as a poison pill laid out there for the Socialist base, that will do more harm than good. We are just now coming down from hitting record highs in layoffs from the pResident AutoPen years.

Here's a fun and easy site to get your head around the trend.

Net-Net is; Trump is diligently working to get more corporations to invest in this country, to employ Americans, and bring in revenues, not to mention secure some "critical" industries - as opposed to the Socialist tact of throwing more of Other People's Money at the corporate boogeyman.

Good points WYID. I ran your question about who bears the tax past ChatGPT. She said

Summary — All Groups That Bear the Corporate Tax

Direct bearers:

Shareholders / capital owners
Business owners / founders
Foreign shareholders
Some landowners (via reduced rents)

Indirect bearers:

Employees (lower wages)
Consumers (higher prices)
Suppliers (lower prices or volumes)
Retirement savers (lower returns)
Competing firms (varied effects)
Local communities (reduced economic activity)
Government / taxpayers (secondary revenue loss)

Essentially:

Every factor of production—capital, labor, land, consumers—bears some share of the corporate income tax.

About tax loopholes/incentives, the bozos in Washington should make compliance easier, the rules simpler, and encourage businesses to grow the economy, jobs, investment and productivity. The corporate alternative minimum tax in many instances does the opposite.

Yeah, there are a lot of loopholes out there that corporations take advantage of that are nothing more than crony capitalism. There were some in the Inflation Reduction and CHIPS acts. Unfortunately I don't believe the alternative minimum tax does much directly to close them. It's like Congress passed lots of special tax benefits and pork to businesses and instead of rescinding them, they passed the alternative minimum tax. Our elected representatives and Senators don't have the fortitude to cut off the special tax favors. Why? Mainly because it's not in their personal best interests to do that. It would reduce contributions to their campaigns.

[Precious_b]

Originally Posted by Tiny

E tu Precious_b? ...

Ce n'est pas moi, Mssr Petit.

== joking.

I need to put that in my signature. People can't tell when a bit of humour is being vented here.

Tiny, you are one of the few who conscienciously (sp) post here and I would not detract from your postings.

[Tiny]

Originally Posted by Precious_b

Ce n'est pas moi, Mssr Petit.

== joking.

I need to put that in my signature. People can't tell when a bit of humour is being vented here.

Tiny, you are one of the few who conscienciously (sp) post here and I would not detract from your postings.

No hay ningún problema Precioso. Gracias y disfruto lo que escribes también.

[Precious_b]