mazarick
Full Member
Posts: 103
Likes: 28
Ethnicity: White - Caucasian
Country: US
Region: Southeast
Location: Raleigh NC
Ancestry: Greek, German, Scottish, English
Politics: none
Religion: Christian
Relationship Status: Married
Hero: Thomas Jefferson
Age: 66
Philosophy: pragmatic
Member Admiration & Reason: Elizabeth- she was there for me
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Post by mazarick on Jul 31, 2018 18:35:40 GMT
This is only a government projection, but the Treasury Department doesn’t guess wrong when it comes to their money. I am really concerned that there is no growth in the US economy. That means that we have fallen away from God’s oath that he would take care of our material wealth as a country if we followed His will. God always keeps his word. It is up to us to change the direction.
I was concerned about this until I looked at the latest numbers. What they show is that we are moving in the right direction. Not fast enough because the numbers do not indicate this nation is moving fast, but it is going in the right direction (it would be hard to be in a more “wrong” direction). It is all about timing, and the optimal time is now. I had forgotten this when my mother wanted to know what happened to her $20k investment. I looked this up last year and was absolutely appalled by what I discovered.
I have been following the Small Business JOBS Act of 2010. It provided 100% avoidance of Capital Gains and 100% no Alternative Minimum Tax for gains resulting from an investment in the stock of a High Tech or Manufacturing company that was held for 5 years. It was enacted for 3 months of 2010 and when the Republicans took over Congress, they allowed the standard to be 10x the investment amount in exchange for the Capital Gains rate to remain at 15% rather than go to 20% to pay for this. It was passed every year by congress with the improved provisions. I am concerned there were no “winners”. It doesn’t matter what the Capital Gains rate is.
I am disturbed about this. Although it is a series of projections by the Treasury Department, it provides graphic proof that we are a “Banana Republic” rather than being the “Land of Opportunity”. When the rich keep getting richer/poor getting poorer and the rich are so few in number that all of them will fit into a small house that means there is no opportunity.
Please find attached numbers from the Treasury Department. When VCs and Investment Bankers can only claim a $140M tax break in a recent year, it means that the winners have made $140M NATIONWIDE in Capital Gains from investment in a high tech or manufacturing small business worth less than $50M at the time the investment was made. It might as well be $0.
The spreadsheet provided by the Treasury Department accurately measures the tax deduction taken on this on line 71 as “Capital Gains of Small Business Stock”.
PS – the first year this came into effect was 2015 and it was made a permanent part of the tax code in December of that year. The full amount would only show up on a wealthy individual’s 2016 tax return. It remains the only deduction for Alternative Minimum Tax on the books, but since there is so little capital gains on investment in small business, it is widely ignored by both Democrats and Republicans (that’s why you can’t find anything on it). It was a good try, but the rules have already changed. Small business no longer creates most of the jobs. You can extrapolate the number of jobs created from the money they made (or didn’t make). The Fat Lady has yet to sing, but it doesn’t look good because the audience is leaving their seats. For 2015, it was this: (prepared in 2013) Table 1. ESTIMATES OF TOTAL INCOME TAX DEDUCTIONS FOR FISCAL YEARS 2013-2019 2013 | 2014 | 2015 | 2017 | 2018 | 2019 | 2015-19 | 140 | 340 | 640 | 850 | 1,000 | 1,010 | 3,980 |
For 2016, it was this: (prepared in 2014) Table 1. ESTIMATES OF TOTAL INCOME TAX DEDUCTIONS FOR FISCAL YEARS 2014-2024 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2015-24 | 140 | 220 | 380 | 530 | 680 | 780 | 600 | 520 | 460 | 400 | 5,290 |
For 2017, it was this: (prepared on November 11, 2015) Table 1. ESTIMATES OF TOTAL INCOME TAX DEDUCTIONS FOR FISCAL YEARS 2015-2025 2015
| 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025
| 2016-25
| 220 | 380 | 620 | 780 | 680 | 490
| 430 | 390
| 5,510
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For 2018, it was this: (prepared on September 28, 2016) Table 1. ESTIMATES OF TOTAL INCOME TAX DEDUCTIONS FOR FISCAL YEARS 2016-2026 2016
| 2017
| 2018
| 2019
| 2020
| 2021
| 2022
| 2023
| 2024
| 2025
| 2026
| 2017-26
| 540
| 700
| 850
| 1,050
| 1,210
| 1,320
| 1,420
| 1,520
| 1,600
| 1,660
| 1,710
| 13,040
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