But still we needed the restructuring of the code

Re: And there's also -- savvvvvywhat
Posted by brownhound , Tue, Dec 26, 2017, 20:44:29 Post ReplyTop of ThreadReviews by brownhoundFirst Amendment Message BoardMain BigDoggie.net site

Without it the larger corporations would continue to have record earnings but the mass of small businesses and Americans would not move forward out of the stagnation we have been experiencing in wage and income growth.

If you read the the new tax bill (and I have) you see page after page of elimination of deductions and restructuring of deductions, from benefitting the largest to benefitting the small to medium entities. There is a story going around, falsely, that this is not tax reform. Yet they did clear out a lot of the complication in the code and made it cleaner. If the corporation is big, it gets hit harder, in a lot of ways, including the frills - small business can't afford the frills, but lot of corporate fat cats will be disappointed their entertainment and other frill expenses are no longer allowed or significantly reduced ;--)

There are something like 30 million passthrus. And lots of smaller corporations that could never effectively make use of the special interest deductions and thus were paying a high corporate rate. They are going to benefit greatly from the new Section 179 provisions, which now include real property and improvements in real property such as renovations, roofs, heating systems and security systems. Section 179 is now a killer benefit for small businesses!!

Corporations like GE will not like this code. They were already paying nothing, and an elimination of some deductions will bring up their effective tax rate. I'm not sure if it does anything to Apple, who also pays nothing, as they are incorporated in ireland and make use of that loophole, but I have heard there are perhaps some provisions affecting foreign corporations.

And this type of restructuring and re-balancing of our revenue stream from benefitting only the larger corporations to now benefitting more the middle and smaller entities was long overdue.


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