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Message
Senate accidentally eliminates all corporate tax breaks
Posted on 12/4/17 at 11:45 am
Posted on 12/4/17 at 11:45 am
The WSJ story is paywalled so I'm linking a NYM summary with quotes: LINK
quote:Lowered rate AND no deductions? I've changed my mind, this bill rules. Look at how buttmad Bob Murray is at the prospect of actually paying the nominal rate for once:
This screwup — like most of the tax plan’s oddest features — was born of a math problem. Due to arcane Senate rules, the Trump tax cuts can only add $1.5 trillion to the deficit over the next decade. Last Thursday, the Senate tax bill already cost about that sum, and then McConnell started making expensive promises to his few holdouts. Susan Collins wanted a $10,000 property tax deduction for Americans in high-tax states; Ron Johnson wanted a 23 percent business-income deduction for the company that his family owns. This left the Senate Majority Leader searching under the tax code’s couch cushions for new sources of revenue.
Eventually, he came upon the corporate alternative minimum tax (AMT). At present, most corporations face a 35 percent (statutory) rate on their income. But by availing themselves of various tax credits and deductions, most companies can get their actual rates down far below that figure. To put a limit on just how far, the corporate AMT prevents companies from paying any less than 20 percent on their profits (or, more precisely, on the profits that they fail to hide overseas).
The GOP had originally intended to abolish the AMT. But on Friday, with the clock running out — and money running short — Senate Republicans put the AMT back into their bill. Unfortunately for McConnell, they forgot to lower AMT after doing so.
This is a big problem. The Senate bill brings the normal corporate rate down to 20 percent — while leaving the alternative minimum rate at … 20 percent. The legislation would still allow corporations to claim a wide variety of tax credits and deductions — it just renders all them completely worthless. Companies can either take no deductions, and pay a 20 percent rate — or take lots of deductions … and pay a 20 percent rate.
quote:Actual tax reform! By accident! House should pass it as-is rather than ruin it in conference.
Murray Energy Corp., an Ohio-based firm and the largest privately held U.S. coal-mining company, complained that the AMT decision and the Senate’s tougher limits on interest deductions made a “mockery out of so-called tax reform.” Robert Murray, the company’s chief executive officer, said the Senate tax plan would raise his company’s tax bill by $60 million.
“What the Senate did, in their befuddled mess, is drove me out of business and then bragged about the fact that they got some tax reform passed,” Mr. Murray said in an interview Sunday. “This is not job creation. This is not stimulating income. This is driving a whole sector of our community into nonexistence.”
This post was edited on 12/4/17 at 11:47 am
Posted on 12/4/17 at 11:46 am to Iosh
Conference committee meetings should be fun.
Posted on 12/4/17 at 11:56 am to Iosh
quote:Outstanding, and I don't have an issue with it
The Senate bill brings the normal corporate rate down to 20 percent — while leaving the alternative minimum rate at … 20 percent.
Posted on 12/4/17 at 11:59 am to Iosh
lol that is awesome...
guess mcTurtle should have read the bill before he asked for a vote on it.
guess mcTurtle should have read the bill before he asked for a vote on it.
Posted on 12/4/17 at 12:02 pm to Iosh
Gotta say, if this was trumps idea I will be so fricking on board with him it’s unreal.
Posted on 12/4/17 at 12:03 pm to Cruiserhog
I’ve been saying this is a good bill and I see no problem with it.
It just got better
It just got better
Posted on 12/4/17 at 12:05 pm to Iosh
quote:
The Senate bill brings the normal corporate rate down to 20 percent — while leaving the alternative minimum rate at … 20 percent. The legislation would still allow corporations to claim a wide variety of tax credits and deductions — it just renders all them completely worthless.
WTF I love AMT now
Posted on 12/4/17 at 12:06 pm to olddawg26
quote:
Gotta say, if this was trumps idea I will be so fricking on board with him it’s unreal.
quote:
The worldwide average top corporate income tax rate (accounting for 173 countries and tax jurisdictions) is 22.9 percent, 29.8 percent weighted by GDP. By region, Europe has the lowest average corporate tax rate at 18.7 percent (26.1 percent weighted by GDP). Africa has the highest simple average at 28.77 percent.
Let's be more like Africa than Europe
Posted on 12/4/17 at 12:08 pm to RogerTheShrubber
Ok, we’ll have Mugabe send over a bunch of black guys to kill you and take your shite.
Posted on 12/4/17 at 12:08 pm to Iosh
Effective rate of 20% for all, just as intended, right?
I can’t wait to see the jobs and factories rain down like manna from heaven.
I can’t wait to see the jobs and factories rain down like manna from heaven.
Posted on 12/4/17 at 12:22 pm to boosiebadazz
quote:
I can’t wait to see the jobs and factories rain down like manna from heaven.
The idea is to remove some of the incentive for corporations to move profit offshore
Posted on 12/4/17 at 12:24 pm to Iosh
Easy things they could have caught had they gone through the normal process.
Posted on 12/4/17 at 1:07 pm to Iosh
quote:
or, more precisely, on the profits that they fail to hide overseas)
some solid journalism here. Also, a pretty shoddy description of how corprate amt works
This post was edited on 12/4/17 at 1:10 pm
Posted on 12/4/17 at 1:09 pm to Iosh
They accidentally did something they should have done on purpose.
Posted on 12/4/17 at 1:36 pm to Iosh
"Eventually, he came upon the corporate alternative minimum tax (AMT). At present, most corporations face a 35 percent (statutory) rate on their income. But by availing themselves of various tax credits and deductions, most companies can get their actual rates down far below that figure. To put a limit on just how far, the corporate AMT prevents companies from paying any less than 20 percent on their profits (or, more precisely, on the profits that they fail to hide overseas)."
Writer doesn't understand what profits, deductions or credits are. He has no clue whatsoever what he's talking about.
Writer doesn't understand what profits, deductions or credits are. He has no clue whatsoever what he's talking about.
Posted on 12/4/17 at 1:38 pm to Ole War Skule
Not to mention any AMT paid that is above the "regular" rate is a credit in future years. Corporate AMT does not increase revenues. It accelerates them. Which has value, for sure. The author has no clue, though.
Posted on 12/4/17 at 1:51 pm to Iosh
Lol well sun shines on a dog’s arse every now and again.
Posted on 12/4/17 at 1:59 pm to olddawg26
quote:
if this was trumps idea I will be so fricking on board with him it’s unreal.
read the article again
it has nothing to do with trump.
just a mistake by McConnells team in haste
Posted on 12/4/17 at 2:02 pm to CelticDog
I think the saying requires modification: We gotta pass it to see what we accidentally put in it!
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