Trump and Single Moms

[PistolPeteParticipant 27143]

narwhal wrote:

The pundits on the conservative side seemed somewhat divided, though mostly in support. It really seemed to be based on whether they viewed their audience as being more concerned about policy or character.

Point well taken!

[Truthseeker82Participant 6406]

Want to fix this disaster? Stop rewarding these promiscuous Chad/Badboy chasing carousel riding t~~~s. No welfare payable to the mother -zero. If the mother is able to and refuses to work – take the kid for adoption and kick the skanks ass out on the street. Or if you can find the father and she still won’t work – – – give the welfare check and kid to him. Sound harsh? So is an impoverished homeless man destroyed by the family courts. China had a one child policy at one time to discourage breeding for $$. Maybe a good idea here.

[MarketWatcherParticipant]

So Tax Guy. I am single no kids. AGI for 2016 $21,000.00. In you opinion will I be better off after this tax reform. I think I will because I only take the Standard Deduction. Thoughts?

Great post BTW.

[TaxGuyParticipant]

According the press release, if you are single and make less than $25k you will pay no tax. So it sounds like you at least won’t be a loser under the new plan.

Order the good wine

[MarketWatcherParticipant]

TaxGuy wrote:

According the press release, if you are single and make less than $25k you will pay no tax. So it sounds like you at least won’t be a loser under the new plan.

That was my interpretation as well. Thanks for the confirmation. I will try to keep AGI low to avoid tax.

Appreciate the help from a pro!

[TaxGuyParticipant]

MarketWatcher wrote:

I will try to keep AGI low to avoid tax.

Funny, I want to pay $1 million a year in tax, because that means I’m making about $3 million!!

And happy to help.

Order the good wine

[MarketWatcherParticipant]

TaxGuy wrote:

Funny, I want to pay $1 million a year in tax, because that means I’m making about $3 million!!

Good point. I get sick of hearing wealthy people bitch about having to pay tax. I’m like hey asshole, you just made 300k. LOL

[Pedal, run, rowParticipant]

MarketWatcher wrote:

TaxGuy wrote:

Funny, I want to pay $1 million a year in tax, because that means I’m making about $3 million!!

Good point. I get sick of hearing wealthy people bitch about having to pay tax. I’m like hey asshole, you just made 300k. LOL

Here, here.

I remember after my divorce, living in a 22 ft. camper out in the desert. Came into civilization for a short period and stayed in an RV park for a week to get some stuff together before heading out to boondock again, and these f~~~s with their 600K monster motor home, with his and her’s top of the line Harleys in their trailer, complaining to me and the other men (broken, divorced destroyed, forgotten, cast out etc…) who were just trying to live simply in our humble setups, about how the Democrats were killing them with taxes… “Yeah we can f~~~ing tell”, as we cast a wary eye at their million dollars worth of RV and toys. I can’t stand the Dems either, but for f~~~’s sakes!

[TaxGuyParticipant]

Pedal, run, row wrote:

I remember after my divorce, living in a 22 ft. camper out in the desert. Came into civilization for a short period and stayed in an RV park for a week to get some stuff together before heading out to boondock again, and these f~~~s with their 600K monster motor home, with his and her’s top of the line Harleys in their trailer, complaining to me and the other men who were just trying to live simply in our humble setups, about how the Democrats were killing them with taxes… “Yeah we can f~~~ing tell”, as we cast a wary eye at their million dollars worth of RV and toys. I can’t stand the Dems either, but for f~~~’s sakes!

Reminds me of seeing a Mercedes years ago in a very wealthy neighborhood with a bumper sticker that said “Don’t blame me, I voted for Bush” (41, in 92 when Clinton beat him). Yeah, poor f~~~er in your $100k car. Thanks for your concern.

Order the good wine

[Can’t Stump TrumpParticipant]

I’d like to see him address the issue of welfare bitches extorting money from hard-working men. Forget child support and alimony: if you can’t support the kid on your own, you shouldn’t be allowed to keep it.

Women are better at multitasking? Fucking up several things at once is not multitasking.

[BeerParticipant 11832]

I crunched the numbers for Trump’s plan a couple months ago…not sure if it has changed since then…but for a 130k income for a single person taking the standard deduction, it would save me about 2k a year. Here is what it was at the time…

At a glance…my top end income ends up in a higher bracket, but the fact that the 28% bracket is gone means I’ll also have some of my middle income be taxed at 25% instead of 28%, which is a savings.

TaxGuy wrote:

So I would guess that taking away those deductions and replacing it with a 5% tax break is going to lead to cupcake paying more taxes in most cases. And cupcake paying more taxes means the ex husbank paying more taxes.

After you factor in the increased standard deduction this assumption may very well not be true. When I take the standard deduction and personal exemption right now, its a 10,350 dollar reduction in taxable income. Under Trump’s proposal the personal exemption would be gone but the standard deduction increase to 15,000. That is a total win for me, which I’m totally fine with because under the current system I’m basically punished by the tax code because I don’t have piles of mortgage and student debt and/or kids to write off. All said and done I’d go from 20,561 dollars in taxes down to 18,538 if Trumps plan was passed right now.

The groups that benefit less from Trump’s proposal are people claiming HOH and people who itemize. I’m not even sure they’d end up paying more, its just going from HOH to the bigger standard single deduction isn’t as big as going single to the new single standard deduction, and if you itemize you won’t benefit from it at all. So pretty much single parent’s and people with retarded amounts of debt don’t even really get hurt at all here…they just don’t win as much as the rest of us.

The other thing he was talking about at the time, which I’m not sure is still there, was capping deductions at 100k/200k for single/married people. This pretty much has no application at all to middle class and is aimed entirely at the wealthy.

TaxGuy wrote:

Funny, I want to pay $1 million a year in tax, because that means I’m making about $3 million!!

It doesn’t work that way though. If you paid a million in taxes you probably made about 5 million and paid mostly capital gains rates that are much lower than income tax rates. Most rich people aren’t making their income off pay roll…its off investments, which is why Warren Buffet a few years back was complaining about how ass backwards it is he’s paying an effective tax rate around 17% while his secretary who makes a fraction of what he makes is paying closer to 30%.

MarketWatcher wrote:

That was my interpretation as well. Thanks for the confirmation. I will try to keep AGI low to avoid tax.

This is my long term plan but to pull it off well you have to get f~~~ed in a high income tax bracket for a while.

So basically my plan is I could pull enough out of my 401k(goes in tax free, comes out at income tax rates) each year to equal the standard deduction/personal exemption, which is roughly 10k with today’s tax laws. I’ll also have dividends being paid into a post tax account. By doing this I’d be able to get pretty close to 50k income and pay an effective tax rate of 0%. If I double my income from there off of more post tax dividends that money would be taxed at 15%, which would give me an effective tax rate of 7.5% on almost a 100k a year income. Again if we get Trump’s plan with the bigger standard deduction, it simply means I can pull more out of my pre-tax investments tax free.

When you think about it though…50k a year at a 0% tax rate is pretty much the equivalent of working a job for a 70k a year salary and paying payroll taxes, and if you are making around 100k a year your effective tax rate would be around 25% so paying 7.5% is a f~~~ing steal.

The only downside is to get to this point I live a very frugal lifestyle right now and work a s~~~ load of overtime so I have more money to invest, which means I’m getting slammed in income taxes right now…but ultimately the quicker I can get my passive income streams sufficiently set up the more years of my life I’ll have to benefit from super low effective tax rates. I think its bulls~~~ our system works this way and 50k income isn’t 50k income regardless of if its dividends or payroll the same 3 million shouldn’t be treated differently if its dividends or payroll…but I’m not the one that wrote the rules, I’m just one that wants to play within the rules to benefit myself as much as possible.

[TaxGuyParticipant]

Beer wrote:

I crunched the numbers for Trump’s plan a couple months ago…not sure if it has changed since then

I’m not sure if it changed because what he put out last week didn’t have the cut off for when you changed tax brackets, so it’s hard to tell. But you are all over it!!

My original point was that there won’t be a Head of Household anymore, so the single mom will be pushed into the Single taxpayer, and that’s not going to be good for her. It may even out, it may not. I just thought it was interesting that as a policy they will no longer have a special tax bracket for single moms (and a few single dads).

And making $3 million a year and paying a $1 million was only to make the point that I would love to make a s~~~ load of money. I’ll take $3 million or $5 million a year, whichever gets me to paying $1 million in tax.

Again, I like your plan. You have obviously put a lot of thought into it and are way ahead of most people.

Order the good wine

[MarketWatcherParticipant]

Beer wrote:

I’m just one that wants to play within the rules to benefit myself as much as possible

Exactly, tax avoidance is not a crime, Tax evasion is. Big difference. Great post.

[TaxGuyParticipant]

MarketWatcher wrote:

Exactly, tax avoidance is not a crime, Tax evasion is. Big difference. Great post.

There is nothing sinister about arranging one’s affairs in such a way as to pay the least amount of tax possible. Indeed, there is not even a patriotic reason to do so.
Justice Learned Hand, Commission vs. Helvering.
F You IRS.

Order the good wine

[Author]

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