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US tax reform

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    US tax reform

    Very nice really:

    Income tax brackets: 10%, 25% and 35%
    Capital gains tax: 20%
    Corp tax: 15% (0% on foreign profits!!!)
    Death tax: 0% (!)

    Nice...

    #2
    Just yesterday I was saying we should go to 15% CT. You saw me say it.

    If the Tories don't pull out their finger after the election, maybe I'll just move to America.

    (Of course, they have to actually pass it, and they'll probably not get a single Democratic vote in the Senate.)

    Comment


      #3
      Originally posted by AtW View Post
      Very nice really:

      Income tax brackets: 10%, 25% and 35%
      Capital gains tax: 20%
      Corp tax: 15% (0% on foreign profits!!!)
      Death tax: 0% (!)

      Nice...
      Does that include state income tax too?

      https://www.thebalance.com/state-inc...-rates-3193320

      Comment


        #4
        Originally posted by Pondlife View Post
        Does that include state income tax too?

        https://www.thebalance.com/state-inc...-rates-3193320
        No.

        State income tax is deductible from your federal taxable income. In many states, federal tax is deductible for purposes of state taxable income.

        They are proposing taking the standard deduction (what we call the personal allowance) to $24K (about £19K with current currency rates) for a married couple. In the US you get married couple taxation which is almost always beneficial. You also get a personal exemption of $4K for you, your spouse, and any dependent children. So a family of 4, under the proposal, would have no income tax to pay on the first $40K of income. And most states match the exempt income levels.

        Yeah, I think I will move.

        Some states don't even have any state income tax. I'll move to one of those. New Hampshire doesn't have income or sales tax. Property tax is a killer, though. But it's close enough to be able to fly out of Boston when I have to go see clients.

        Comment


          #5
          Originally posted by WordIsBond View Post
          No.

          State income tax is deductible from your federal taxable income. In many states, federal tax is deductible for purposes of state taxable income.

          They are proposing taking the standard deduction (what we call the personal allowance) to $24K (about £19K with current currency rates) for a married couple. In the US you get married couple taxation which is almost always beneficial. You also get a personal exemption of $4K for you, your spouse, and any dependent children. So a family of 4, under the proposal, would have no income tax to pay on the first $40K of income. And most states match the exempt income levels.

          Yeah, I think I will move.

          Some states don't even have any state income tax. I'll move to one of those. New Hampshire doesn't have income or sales tax. Property tax is a killer, though. But it's close enough to be able to fly out of Boston when I have to go see clients.
          You need to take into account of medical insurance, even if your employer contributes, it's still significant.
          I'm alright Jack

          Comment


            #6
            Originally posted by BlasterBates View Post
            You need to take into account of medical insurance, even if your employer contributes, it's still significant.
            13.8% of your salary on employer side plus 13%-tish on up to 40k-ish figure everybody pays here?

            Comment


              #7
              Originally posted by WordIsBond View Post
              They are proposing taking the standard deduction (what we call the personal allowance) to $24K (about £19K with current currency rates) for a married couple. [...]. So a family of 4, under the proposal, would have no income tax to pay on the first $40K of income. And most states match the exempt income levels.

              Yeah, I think I will move.

              .
              ?? At current rates a married couple in the UK get combined personal allowances equivalent to $29.5K 2 kids would net them $2.3K in Child benefit. Any remaining difference, if any, is likely to be swallowed up in the higher cost of living.

              And, curiously they haven't told us the thresholds for the new bands. Unlikely to be great news, unless you're a billionaire, I suspect.
              As well as slashing costs for his own businesses, the new proposals will also cut the alternative minimum tax (AMT), a tax designed to stop the super-wealthy from taking so many tax deductions that they avoid paying anything. Leaked documents have shown that in 2005*Trump paid $31m*in tax thanks to the AMT.
              You'd have to make it a LOT more attractive before moved to the land that voted Orange T.

              From <https://www.theguardian.com/us-news/2017/apr/26/trump-tax-cuts-proposal-deductions-brackets>
              My subconscious is annoying. It's got a mind of its own.

              Comment


                #8
                There's no concept of "married filing jointly" in the UK. The married couples allowance is not the same thing. The UK personal allowance is not transferable.

                Comment


                  #9
                  Originally posted by jamesbrown View Post
                  There's no concept of "married filing jointly" in the UK. The married couples allowance is not the same thing. The UK personal allowance is not transferable.
                  So much for encouraging marriage...

                  Comment


                    #10
                    Originally posted by AtW View Post
                    So much for encouraging marriage...

                    I'd like to get a second opinion from Brillo.

                    Comment

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