mh67511

I see all the ad's on TV now saying they will "repeal the Bush tax cuts."

How do you do that, just higher the taxes, or what? And what about all those parents that got checks already this past summer? Do you send them a bill or what? Or not let them claim the child tax credit next year, or how?

I just don't get how you can repeal a tax cut. Isn't that the same as basically raising taxes?

Enigma, I.C.

You stop implementing them and return to the previous rates during the next fiscal year.

mh67511

Wow, didn't think it was that simple.

n e r b l e

otherwise known as raising taxes.

mh67511

That's what I was thinking.

But who wants to ever admit that they want to take more of our money from us!

*Lauren

From my understanding, and this seems to be the general view (wheter its right or not is moot) that the tax cuts were for the higher income earners. So by repeling those tax cuts, then its easier to give tax cuts to the people who really need them.

mh67511

Everyone continues to fail to recognize that the tax cuts not only got rid of the marriage penalty, but they increased the child income credit. Anyone that has children 17 or under can get that. I know of a hell of a lot of families with children under 17.

If they want to repeal SOME of the tax cuts, ok, but not the child tax credit increase. That was a good one! It's about time someone recognized that kids are worth more than $500 bucks!

n e r b l e

well apparently i fall into a higher income earner even though i make about 20K/year. gee, didn't know i was rich.

Headhunter

The tax cuts don't affect the rich significantly; most wealthy individuals cover their assets (income generating or otherwise) within shell corporations.

Individuals are taxed on income before expenses; corporations are taxed after expenses. Spend more, save more on taxes.

Anyone loaded who knew what they were doing is pretty much not paying taxes to begin with.

n e r b l e

um, no. if so then why are businesses doing so much better and commercial growth so much higher after the tax cut?

Headhunter

Commercial growth is influenced mostly by employees looking to spend, as any good capitalist society is inclined to do.

Tax cuts help businesses through this increased consumerism, but not a lot in terms of the business itself cutting taxation on the corporate entity itself.

n e r b l e

"a lot in terms of the business itself cutting taxation on the corporate entity itself."

this confused me. are you saying that cutting taxes for people is better than for businesses? could you try explaining it again in a different way?

Headhunter

Sorry, my wording was pretty bad. [img]smilies/sigh.gif[/img]

What I meant, was that big business (corporations) are so adept at legally sheltering their money that tax cuts/raises have little effect either way.

Companies that provide a saleable product benefit from tax cuts in large part because customers have more money to spend on their goods. The company itself doesn't benefit much in terms of lower taxation on their income.

Of course, this is only when other mitigating circumstances (inflation, etc) are ignored. When it's all factored in, the analysis tends to become a lot more complex. Big reason why I'm not a corporate financial strategist. [img]smilies/smile.gif[/img]

n e r b l e

so what you're saying is the taxes are passed onto the comsumer through price raises and everything. so then tax cuts would be good anyway cause then prices would go down right?