HB 24-01: Small Business Tax Cut Act (Failed)

[OSR stands with Israel]

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

[OSR stands with Israel]

Ok here is my amended bill

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

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

[OSR stands with Israel]

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

[OSR stands with Israel]

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.

[OSR stands with Israel]

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

[OSR stands with Israel]

Can we not get into a debate on which state is good or not here please.

We are going to repeal SALT! It's time.

No we won't, I don't think such a policy is a good idea.

I capped it at a level that would only impact the wealthy

[OSR stands with Israel]

One thing I'm interested in regarding SALT is whether the in-game SALT includes regional taxes implicitly.

This was an issue I brought up a lot last year while I was DGM and encouraged some form of 'regionalization' of taxes so we wouldn't have to worry about the question of triple taxation and whatnot. Otherwise you have the situation where regions are assumed to be the in-game analog of states, yet the NPC states are assumed to still be operating largely as if the regions didn't exist.

The reason I bring this up is that if Lincoln's taxes are 'regionalized' (can't remember if they are or not) then the matter of high state taxes in NJ leading to high deductions might not apply here (although iirc Lincoln's taxes are pretty high rn because they tried to balance the budget last year after two years of having no budget whatsoever).

Tbh in real life Lincoln's economy would be in shambles; but this is Atlasia and actions do not carry consecuences so

Well if Lincoln's economy is in shambles, declaring economic warfare on it doesn't help.

$30,000 is more than a reasonable cap and would only impact really people making 250k or more.

[OSR stands with Israel]

I will object on the basis of having the tax rates being so similar to individuals. Businesses needs separate tax rates as 100k in business income is widely different from having 100k in personal income.

[OSR stands with Israel]

Nay

[OSR stands with Israel]

Aye. We cannot have a regressive tax system for the working and middle class.

It’s not at all regressive

[OSR stands with Israel]

What is your opinion on the Border-adjustment tax

[OSR stands with Israel]

What is your opinion on the Border-adjustment tax

I'd have to see the details before I support any individual proposal but I'm supportive of any reasonable idea to protect Atlasian industries. But, as I've said before, I can't support this bill while there are tax cuts for people who don't need them.

I disagree on idea that these people don’t need them

[OSR stands with Israel]

What is your opinion on the Border-adjustment tax

I'd have to see the details before I support any individual proposal but I'm supportive of any reasonable idea to protect Atlasian industries. But, as I've said before, I can't support this bill while there are tax cuts for people who don't need them.

I disagree on idea that these people don’t need them

I'm sure our views on this are different but if someone is making $300,000, they can almost certainly afford to live in a decent house, pay their bills and buy their essentials with plenty to spare to invest in their business or to use elsewhere. In any case, people making much lower than that need that money much more. We have a limited amount of resources, and I don't think this is the best way to spend them.

A business making 300k is not the same as an individual making 300k As most of the money is reinvested in their business.

The money they use for themselves in this case (personal use ) will still be taxed at the individual not this new business level .

I can amend the bill to make that more clear if you would like

[OSR stands with Israel]

What is your opinion on the Border-adjustment tax

I'd have to see the details before I support any individual proposal but I'm supportive of any reasonable idea to protect Atlasian industries. But, as I've said before, I can't support this bill while there are tax cuts for people who don't need them.

I disagree on idea that these people don’t need them

I'm sure our views on this are different but if someone is making $300,000, they can almost certainly afford to live in a decent house, pay their bills and buy their essentials with plenty to spare to invest in their business or to use elsewhere. In any case, people making much lower than that need that money much more. We have a limited amount of resources, and I don't think this is the best way to spend them.

A business making 300k is not the same as an individual making 300k As most of the money is reinvested in their business.

The money they use for themselves in this case (personal use ) will still be taxed at the individual not this new business level .

I can amend the bill to make that more clear if you would like

I'm not sure how we are separating business income from personal income, especially for sole traders and single member LLCs who don't get a salary or dividends. One of the benefits of this is that you have full control over the money, wherever you want to spend it. If we were to separate the two for tax purposes, presumably we'd need to add rules around this that would ruin some advantages of being the sole owner of a business.

I also think that higher earners should pay more in income tax in general.

We are creating separate tax rates for these businesses and not having them be the same as personal income again

[OSR stands with Israel]

I would like to Motion for a vote on this bill

[OSR stands with Israel]

Aye