Mon
Dec 18 2017
01:44 pm

Ivanka Trump: "If you think about it, small businesses will have the lowest taxes since 1931, so think about how that gives them the latitude to be able to invest in growth."

Then came 1932, Herbert Hoover signed the Revenue Act of 1932, which "raised United States tax rates across the board, with the rate on top incomes rising from 25 percent to 63 percent. The estate tax was doubled and corporate taxes were raised by almost 15 percent."

For some reason, hearing Ivanka speak about taxes doesn't give me much confidence. But, then, not many people in the Trump administration give me much confidence.

bizgrrl's picture

Sort of like Haslam promoting

Sort of like Haslam promoting the tax cuts to sell Tennessee.

As Haslam explains it, those living in states with higher tax rates currently see a greater federal tax deduction. Residents in Tennessee, a low-tax state, don't benefit as much from the state and local tax deduction.

"That changes now," Haslam said, speaking Monday at Nissan's Smyrna plant. "A lot of people who live in states with income tax of 10 or 12 percent start going, 'Huh, well, only having to pay half is not such a bad deal, but if I'm having to pay all of it, maybe I'd be better off in Tennessee.' We think it actually will encourage both investment growth and population growth in Tennessee."

One thing I know as a small business owner, state taxes in Tennessee are a lot higher than in Florida. I don't know about the other states that don't have income taxes, but Tennessee would not be the first place I would consider to flee from taxes. On the other hand, it might be a good destination for those trying to flee liberals/progressives.

Metulj From the Lurkzone's picture

Massachusetts was running ads

Massachusetts was running ads in places like Atlanta and Charlotte asking Bay State born and educated folks to come on back as it is dripping with high-paying jobs. My recently finished masters advisee just landed a job that pays 2x what I make.

And Haslam is nuts if he thinks that the kinds of jobs here are going to flow to Tennessee. One of the myths he perpetuates here is that we pay 10-12% income tax. Nope. 5.10% and it is floats on economic indicators. Sales tax is 6.25% and it is easier to list what it is collected on (very few things) than what it isn't collected on (a whole bunch of things). For example, sports helmets are taxed. Makes sense. Why? The sales tax supports the 39 state owned ice rinks. Buy a helmet, support youth hockey or figure skating. Buying a t-shirt? Not taxed. Why? It's clothing and, well, it's just immoral to take on a necessity.

A gallon of milk at the grocery store here is the exact same price as it is in TN. No. Wait. It's ~10% less. It's not taxed.

bizgrrl's picture

Yeah, has Tennessee ever had

Yeah, has Tennessee ever had lots of high paying jobs? I'm pretty sure if I was in the market for a good, high paying job we'd be leaving again as we did in 1983,

jbr's picture

Mom, Pop -- you're the losers in this tax plan

This bill, despite the glossy, small business-friendly language being used to sell it, would actually do more to widen the tax advantage gap between large businesses and small ones than our present -- and already tilted tax code -- does. This bill does just that, thanks to the change from a worldwide tax system, which requires US companies to pay Uncle Sam taxes on all their profits, regardless of where the income is earned, to something called a territorial one, under which companies don't owe taxes to their own governments on income they make offshore.

Businesses would be allowed to shift profits offshore to avoid American tax rates. Essentially that means we would be creating a tremendous incentive to reassign or push profits offshore; businesses with the financial wherewithal and accounting savvy to take advantage of it could create perfectly legal tax shelters.

Mom, Pop -- you're the losers in this tax plan

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