2018 Taxes

[IcSyU]

I agree, we should never go to a total flat tax system, I favor a progressive tax system with few to no deductions. You earn it, you are taxed on it. Simple for everyone, and every dollar earned is taxed at the same rate on progressive scale. . Get rid of investment income taxed at a lower rate.

Any deduction that is given should apply to everyone or no one, I use my vehicle for driving to work, but I cannot deduct mileage, even though I drive 42 miles each way. My brother bought a new pickup last year, and can deduct it off his business, even though he does not use the truck for his business. Its his go to town truck, just like farmers have. Total BS.

So he's committing tax fraud. There isn't a system that eliminates fraud. Period.

 

[keepngoal]

So he's committing tax fraud. There isn't a system that eliminates fraud. Period.

Only if he doesn’t report the personal use. Nothing wrong with buying a vehicle inside a business. You gotta track the personal mileage, and report it.

We have a small business vehicle, and have kept our personal vehicle for all of our personal use.

 

[kcbob79clone]

Sorry if this is a repeat but I'm not going to read all the 26 pages of this thread but saw where H&R Block did some analysis on the TCJA and based on the customers they did taxes for they have some results. I did see where early on in this thread people were lamenting that refunds were not what you would expect. H&R Block reported taxes paid were down 25% but refunds weren't much since the withholdings weren't calculated to give larger refunds. It was bad math to list only the refund side without considering the withholdings and the actual taxes paid.

 

[isufbcurt]

Kinda, people are not going to give a dollar to save 10-20 cents on taxes. Giving 100 dollars to the local food bank to get that 10 bucks back on taxes is not why someone would donate.

I disagree. I have many clients who do this.

Many business's also buy equipment they don't need just to help lower their taxes.

 

[Sigmapolis]

Sorry if this is a repeat but I'm not going to read all the 26 pages of this thread but saw where H&R Block did some analysis on the TCJA and based on the customers they did taxes for they have some results. I did see where early on in this thread people were lamenting that refunds were not what you would expect. H&R Block reported taxes paid were down 25% but refunds weren't much since the withholdings weren't calculated to give larger refunds. It was bad math to list only the refund side without considering the withholdings and the actual taxes paid.

https://www.hrblock.com/tax-center/newsroom/irs/tax-law-and-policy/tcja-impact/

H&R Block (NYSE:HRB) data through March 31, 2019 shows the size of its clients’ tax refunds is up 1.4 percent under the first year of tax reform and new withholding tables, while overall tax liability is down 24.9 percent. This gap in outcomes has contributed to a confusing tax experience for anyone seeking to understand how the largest change to the tax code in 30 years, the Tax Cuts and Jobs Act (TCJA), impacts them. That’s because while the average tax filer is better off, they’ve received a small amount of that benefit in their tax refund, which many people think of as their “bottom line.” This creates an illusion about the real impact of tax reform, and unless taxpayers act, it will be amplified on the 2019 tax return they file next year.

I disagree. I have many clients who do this.

Many business's also buy equipment they don't need just to help lower their taxes.

What a novel concept -- privileging one type of asset or investment over another in the tax code leads to distorted decision-making. Who would have thought that.

 

[BCClone]

I disagree. I have many clients who do this.

Many business's also buy equipment they don't need just to help lower their taxes.

Yeah, there are some. I still know a few farmers who will trade a tractor or combine that they didn’t plan or need to trade to avoid taxes. There are still some that don’t understand that to save that 20-30% you still spend 70-80% out of your pocket.

Paying no taxes is bad tax planning.

 

[Trice]

Filed my taxes on March 4th, my refund hit my bank account this morning. Great job, Iowa. [rolls eyes]

 

[CascadeClone]

A flat income tax would result in a regressive taxation system on the whole. Terrible idea, both fiscally and morally.

Not if you exempt the first $30-50k of earnings or so. Which every serious flat tax proposal does.

Alternately, you could do a VAT and refund the first $X to everyone. Then the tax would be paid for consumption, so you wouldn't discourage work or investment. And the guy spending $1M gets taxed on $1M, but the guy spending $30k just getting by gets taxed $0. IMHO, this is the best way to tax and pay for gvmt.