HB 24-01: Small Business Tax Cut Act (Failed)
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  HB 24-01: Small Business Tax Cut Act (Failed)
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Author Topic: HB 24-01: Small Business Tax Cut Act (Failed)  (Read 1656 times)
thumb21
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« on: May 06, 2020, 08:18:08 AM »
« edited: May 24, 2020, 06:58:41 AM by Speaker Thumb21 »

Quote
A HOUSE BILL
To reduce Taxation on Small Buisnesses
Be it enacted in both Houses


Quote
Section I: Title

- This bill shall be called the Small Business Tax Cut Act

Section II: Tax Cut

- Small Businesses who currently pay taxes at the income level will pay taxes at these new rates

0-50k: 10%
50k-125k : 15%
125k-250k : 20%
250k-500k : 25%
500k+ : 32.5%

- Small Businesses who currently pay taxes at the corporate level will continue to pay taxes at the corporate level

Section III: Removal of Deductions and Loopholes

- The Carried Interest Loophole will be eliminated
- The State and Local Tax Deduction will be capped at $30,000
- The New Mortgage Deduction cap will be $750,000

Sponsor: Old School Republican
House Designation: HB 24-01

72 hours to debate.
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thumb21
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« Reply #1 on: May 06, 2020, 08:33:50 AM »

I think its worth comparing the current income tax rates and the proposed tax rate. This would actually increase taxes on small businesses in the first and much of the second bracket - while giving a massive tax cut to the higher brackets who don't need it.

0-13K      7%
13K-50k    12%
50K-130K   23%
130K-210K  29%
210K-413K  34%
413K-441K  36%
441K+      40.6%

0-50k: 10%
50k-125k : 15%
125k-250k : 20%
250k-500k : 25%
500k+ : 32.5%
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RC (a la Frémont)
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« Reply #2 on: May 06, 2020, 02:23:05 PM »

I think its worth comparing the current income tax rates and the proposed tax rate. This would actually increase taxes on small businesses in the first and much of the second bracket - while giving a massive tax cut to the higher brackets who don't need it.

0-13K      7%
13K-50k    12%
50K-130K   23%
130K-210K  29%
210K-413K  34%
413K-441K  36%
441K+      40.6%

0-50k: 10%
50k-125k : 15%
125k-250k : 20%
250k-500k : 25%
500k+ : 32.5%

It's a good point. While it may be negotiable for the middle tax brackets, I'd like to keep low-income taxpayers' rates low and keep that highest bracket where it is. I'm not saying there's no room for improvement in the tax code, but we need to rethink these numbers.
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Fmr. Representative Encke
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« Reply #3 on: May 06, 2020, 02:36:22 PM »

It's probable that OSR took the tax brackets from RL as a guide (where the bottom rate is 10%), and agree that this should probably be amended to better reflect the current situation in Atlasia. Will wait for the sponsor to advocate first.
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cinyc
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« Reply #4 on: May 06, 2020, 05:06:33 PM »

Yeah, we shouldn't be passing tax hikes in bills that are supposed to be tax cuts.
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Pericles
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« Reply #5 on: May 06, 2020, 05:10:03 PM »

Thank you to thumb for raising these issues. I definitely won't be signing this bill as is. I think we've made good progress on tax cuts for small businesses, but if we can get a targeted cut for the smallest businesses then I'm not ruling out signing that.
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OSR stands with Israel
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« Reply #6 on: May 06, 2020, 06:21:02 PM »

It's probable that OSR took the tax brackets from RL as a guide (where the bottom rate is 10%), and agree that this should probably be amended to better reflect the current situation in Atlasia. Will wait for the sponsor to advocate first.

Yes i did let me make an amendment to this bill then
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Fmr. Representative Encke
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« Reply #7 on: May 06, 2020, 06:27:30 PM »

Another thing: obviously the carried interest loophole is not referred to in legislation as 'the carried interest loophole,' so an amendment is needed to make clear what specific changes are occuring in the tax code to eliminate said loophole.
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OSR stands with Israel
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« Reply #8 on: May 06, 2020, 06:43:02 PM »

Ok here is my amended bill

Quote
A HOUSE BILL
To reduce Taxation on Small Buisnesses
Be it enacted in both Houses


Quote
Section I: Title

- This bill shall be called the Small Business Tax Cut Act

Section II: Tax Cut

- Small Businesses who currently pay taxes at the income level will pay taxes at these new rates

0-13k: 5%
013k-50k: 10% 7%
50k-125k : 15%
125k-250k : 20%
250k-500k : 25%
500k-1mil : 32.5% 34%
1mil + :  39%

- Small Businesses who currently pay taxes at the corporate level will continue to pay taxes at the corporate level

Section III: Removal of Deductions and Loopholes

- The Carried Interest Loophole will be eliminated by taxing carried interest as ordinary income rather than as capital gains
- The State and Local Tax Deduction will be capped at $30,000
- The New Mortgage Deduction cap will be $750,000

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OSR stands with Israel
Computer89
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« Reply #9 on: May 06, 2020, 06:45:37 PM »

So this bill has been amended to make every small business gets a tax cut and I have added an extra tax bracket as well.

I also explained how we would eliminate the carried interest loophole as well.


Also here: https://www.cbo.gov/budget-options/2018/54795
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thumb21
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« Reply #10 on: May 06, 2020, 08:36:40 PM »

The amendment is an improvement though I still don't intend to vote for it. I'm always supportive of tax cuts for working class people, very much including those who run small businesses but I don't think we should be cutting taxes for people who already have a lot of money. After the objection period is over for this amendment, I plan to propose an amendment.
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S019
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« Reply #11 on: May 06, 2020, 09:17:11 PM »

Capping deductions is a bad idea, many hardworking families rely on these deductions, especially here in the Northeast, I will be very disappointed if this is passed, as written.
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Computer89
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« Reply #12 on: May 06, 2020, 10:30:35 PM »

The amendment is an improvement though I still don't intend to vote for it. I'm always supportive of tax cuts for working class people, very much including those who run small businesses but I don't think we should be cutting taxes for people who already have a lot of money. After the objection period is over for this amendment, I plan to propose an amendment.

Well I would be willing to come to a compromise if you say only don’t cut taxes for the one million or above bracket but taxes should be cut for business making less than a million for sure . Most profit these businesses make usually get reinvested right in their own businesses.


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« Reply #13 on: May 06, 2020, 10:32:22 PM »

Capping deductions is a bad idea, many hardworking families rely on these deductions, especially here in the Northeast, I will be very disappointed if this is passed, as written.


30,000 is a pretty large threshold though
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S019
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« Reply #14 on: May 06, 2020, 11:12:56 PM »

Capping deductions is a bad idea, many hardworking families rely on these deductions, especially here in the Northeast, I will be very disappointed if this is passed, as written.


30,000 is a pretty large threshold though

The average deduction is above that in much of Northern New Jersey: https://patch.com/new-jersey/manasquan/report-says-trump-tax-cut-hurt-nj-heres-how

This bill is basically a declaration of economic warfare on much of the Northeast
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fhtagn
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« Reply #15 on: May 06, 2020, 11:13:30 PM »

Capping deductions is a bad idea, many hardworking families rely on these deductions, especially here in the Northeast, I will be very disappointed if this is passed, as written.


30,000 is a pretty large threshold though

The average deduction is above that in much of Northern New Jersey: https://patch.com/new-jersey/manasquan/report-says-trump-tax-cut-hurt-nj-heres-how

This bill is basically a declaration of economic warfare on much of the Northeast

Hurting NJ is a good thing.
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S019
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« Reply #16 on: May 06, 2020, 11:22:08 PM »

Capping deductions is a bad idea, many hardworking families rely on these deductions, especially here in the Northeast, I will be very disappointed if this is passed, as written.


30,000 is a pretty large threshold though

The average deduction is above that in much of Northern New Jersey: https://patch.com/new-jersey/manasquan/report-says-trump-tax-cut-hurt-nj-heres-how

This bill is basically a declaration of economic warfare on much of the Northeast

Hurting NJ is a good thing.


If said "hurting VA" was "a good thing," I'd be mocked and denounced, and rightfully so. New Jersey has as much of a right to exist as any other state. Honestly, though, the only state that I could see justifiably "hurting as a good thing" is AL, given the racism that's so prevalent and pervasive there.
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fhtagn
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« Reply #17 on: May 06, 2020, 11:27:00 PM »

Capping deductions is a bad idea, many hardworking families rely on these deductions, especially here in the Northeast, I will be very disappointed if this is passed, as written.


30,000 is a pretty large threshold though

The average deduction is above that in much of Northern New Jersey: https://patch.com/new-jersey/manasquan/report-says-trump-tax-cut-hurt-nj-heres-how

This bill is basically a declaration of economic warfare on much of the Northeast

Hurting NJ is a good thing.


If said "hurting VA" was "a good thing," I'd be mocked and denounced, and rightfully so. New Jersey has as much of a right to exist as any other state. Honestly, though, the only state that I could see justifiably "hurting as a good thing" is AL, given the racism that's so prevalent and pervasive there.

No it doesn't.
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S019
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« Reply #18 on: May 06, 2020, 11:30:09 PM »

Capping deductions is a bad idea, many hardworking families rely on these deductions, especially here in the Northeast, I will be very disappointed if this is passed, as written.


30,000 is a pretty large threshold though

The average deduction is above that in much of Northern New Jersey: https://patch.com/new-jersey/manasquan/report-says-trump-tax-cut-hurt-nj-heres-how

This bill is basically a declaration of economic warfare on much of the Northeast

Hurting NJ is a good thing.


If said "hurting VA" was "a good thing," I'd be mocked and denounced, and rightfully so. New Jersey has as much of a right to exist as any other state. Honestly, though, the only state that I could see justifiably "hurting as a good thing" is AL, given the racism that's so prevalent and pervasive there.

No it doesn't.

Please explain how AL is better than NJ. (Since you think that states shouldn't exist, I'm puzzled when you didn't pick the worst one, that has lots of racism, still present)
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Deep Dixieland Senator, Muad'dib (OSR MSR)
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« Reply #19 on: May 06, 2020, 11:31:09 PM »


It's in the South and not in Lincoln, that's how!
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S019
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« Reply #20 on: May 06, 2020, 11:39:15 PM »


AL also has lots of racist people, and there are places in rural Alabama where people openly fly Confederate flags
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Pericles
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« Reply #21 on: May 06, 2020, 11:44:09 PM »

I'm going to play moderate hero here and say all the great states of Atlasia have a right to exist. It is not a good thing to hurt the people of any state. Thankfully, as your President I'm helping the people of every state.
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At-Large Senator LouisvilleThunder
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« Reply #22 on: May 06, 2020, 11:45:56 PM »

We are going to repeal SALT! It's time.
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Pericles
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« Reply #23 on: May 06, 2020, 11:46:43 PM »


No we won't, I don't think such a policy is a good idea.
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At-Large Senator LouisvilleThunder
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« Reply #24 on: May 06, 2020, 11:47:56 PM »


No we won't, I don't think such a policy is a good idea.
You were elected as a Labor president. Aren't you supposed to think supporting the working class is a good idea.
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