May 5, 20179 yr Author Let me ask this, if the loophole stays and the AMT stays, wouldn't he still pay only 15% based on the way the loophole works? For the record I hate calling these things loopholes. I am saying structure an AMT that prevents uneven (unfair?) taxation. You, nor I, know for sure he could or could not do this. Purely speculation at this point. This is not my speculation. I read or heard it from someone else. I can't recall the source. The info I am posting in this thread is something I heard/read elsewhere.
May 5, 20179 yr I am saying structure an AMT that prevents uneven (unfair?) taxation. How would it be unfair?
May 5, 20179 yr Let me ask this, if the loophole stays and the AMT stays, wouldn't he still pay only 15% based on the way the loophole works? For the record I hate calling these things loopholes. I'm with you. Loopholes make it sound like some sketchy gray area that the found to work around the rules. What they are is exceptions. I'm all for everyone and anyone taking advantage of all available legal tax reductions that are out there.
May 5, 20179 yr Author How would it be unfair? Someone makes $20 million profit in a pass through business and pays tax at the 15% rate.
May 5, 20179 yr Someone makes $20 million profit in a pass through business and pays tax at the 15% rate. Is it legal to do that? Is that option available to every single person to take advantage of if they qualify? If the answer to those is yes, it's not unfair at all.
May 5, 20179 yr Author Is it legal to do that? Is that option available to every single person to take advantage of if they qualify? If the answer to those is yes, it's not unfair at all. I hear you. I believe you are saying as long as you follow the rules, it is ok. That is why there needs to be an AMT in the rules. One specific group should not be allowed to pocket such a significant profit that other income earners do not get. Design the rules to prevent it and include in the rules an AMT to prevent it.
May 5, 20179 yr That is why there needs to be an AMT in the rules. One specific group should not be allowed to make such a significant profit. Design the rules to prevent it and include in the rules an AMT to prevent it. I don't follow. Why can't successful people make a huge profit? Why does that bother you? If you and I make the same amount of money, but you are able to itemize, get the energy credit, and the childcare credit and I don't, and the result is you end up in a lower tax bracket, is that unfair to me in your eyes?
May 5, 20179 yr Author I don't follow. Why can't successful people make a huge profit? Why does that bother you? If you and I make the same amount of money, but you are able to itemize, get the energy credit, and the childcare credit and I don't, and the result is you end up in a lower tax bracket, is that unfair to me in your eyes? I have no problem with people making a huge profit nor with anything else in your example. Let's say you and I have the exact same type of business and I can change my business structure to an LLC but you can't. Now my income is taxed at 35% and yours is taxed at 15%, I think that is an unfair advantage. The rules should be written in a way that prevent that.
May 5, 20179 yr Let's say you and I have the exact same type of business and I can change my business structure to an LLC but you can't. Now my income is taxed at 35% and yours is taxed at 15%, I think that is an unfair advantage. The rules should be written in a way that prevent that. How is it unfair? It sounds to me like you just have an issue with very wealthy and successful people.
May 5, 20179 yr Author How is it unfair? It sounds to me like you just have an issue with very wealthy and successful people. Sorry. I can't explain it any better than I have already. I have zero problem with very wealthy and successful people. I want them to be treated evenly and fairly.
May 5, 20179 yr I have no problem with people making a huge profit nor with anything else in your example. Let's say you and I have the exact same type of business and I can change my business structure to an LLC but you can't. Now my income is taxed at 35% and yours is taxed at 15%, I think that is an unfair advantage. The rules should be written in a way that prevent that. So is your problem more that some can do this and some can't, so everyone can't take advantage. Or is your issue that no one should be able to make $20,000,000 and only pay $3,000,000 in tax
May 5, 20179 yr Sorry. I can't explain it any better than I have already. I have zero problem with very wealthy and successful people. I want them to be treated evenly and fairly. Completely evenly and fairly would be everyone paying the exact same percentage in tax regardless of income level. That'll never happen though, and based on your posts in here, it sounds like you'd be completely against that. If there's deductions and credits that some can't take advantage of that others can, then they need to do better so they can take advantage of them.
May 5, 20179 yr Author So is your problem more that some can do this and some can't, so everyone can't take advantage. Or is your issue that no one should be able to make $20,000,000 and only pay $3,000,000 in tax I want every individual who makes 20 million dollars profit to pay tax at the same rate, whatever the rate is for that income level.
May 5, 20179 yr I want every individual who makes 20 million dollars profit to pay tax at the same rate, whatever the rate is for that income level. So if you and I both make 75k, and because of deductions you get dropped to a lower tax bracket then me, you consider that unfair?
May 5, 20179 yr Author So if you and I both make 75k, and because of deductions you get dropped to a lower tax bracket then me, you consider that unfair? I already answered that above. But, just to make it clear, I have no problem with that.
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