U.S. Budget Negotiations

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Trump is now telling Congressional Republicans to raise taxes on the rich. I think he's finally running into math.

Trump tells Congress to raise taxes on the rich in budget bill​

nycfan said:
Republicans in the Senate have floated this already and been shot down, but ebb and flow I guess.

Would be interested in the math on how much that helps, though. The gap in their budgeting so far has been enormous.

On a related note, what is politically tricky here is that unless they come through on other working and middle class tax cuts, the working and middle class voter won’t actually feel the reduced tax rate — from their perspective, things will remain same. The rates would revert to Obama era rates if nothing is done but that can be tough to effectively message.
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One of Trump's proposals is "pushing to raise the top tax rate from 37% to 39.6% for individuals earning $2.5 million and higher or joint filers earning $5 million, with carve-outs for small businesses, according to one source."

Another is to plug the carried interest loophole for private equity.

I'm not against it but it's not likely to raise that much money. The carried interest proposal would cut the deficit by $13B over 10 years. That's a drop on the bucket. Just not sure how many people make $2.5M a year. That might be .01% or even less.
 
gtyellowjacket said:
Trump is now telling Congressional Republicans to raise taxes on the rich. I think he's finally running into math.

Trump tells Congress to raise taxes on the rich in budget bill​



One of Trump's proposals is "pushing to raise the top tax rate from 37% to 39.6% for individuals earning $2.5 million and higher or joint filers earning $5 million, with carve-outs for small businesses, according to one source."

Another is to plug the carried interest loophole for private equity.

I'm not against it but it's not likely to raise that much money. The carried interest proposal would cut the deficit by $13B over 10 years. That's a drop on the bucket. Just not sure how many people make $2.5M a year. That might be .01% or even less.
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The carried interest loophole should be closed asap and the fact that so many on both sides of the aisle oppose closing it shows how corrupt the whole thing is.
 
HintonJamesHeel said:
The carried interest loophole should be closed asap and the fact that so many on both sides of the aisle oppose closing it shows how corrupt the whole thing is.
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Yeah. Trump hates it too which is weird. He spoke out against it in his first term. I wonder if some hedge fund guy stole one of his girlfriends or something.

He doesn't mind getting capital gains treatment for his and others work in real estate development but he does not like private equity getting that tax treatment for their work.
 
gtyellowjacket said:
Trump is now telling Congressional Republicans to raise taxes on the rich. I think he's finally running into math.

Trump tells Congress to raise taxes on the rich in budget bill​



gtyellowjacket said:
Trump is now telling Congressional Republicans to raise taxes on the rich. I think he's finally running into math.

Trump tells Congress to raise taxes on the rich in budget bill​



Just not sure how many people make $2.5M a year. That might be .01% or even less.
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That might be .01% or even less.
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In 2022, there were 27,261 tax returns with incomes over 5,000,000 for a total Adjusted Gross Income of 1,413,000,000.
Not sure on single , Head household, or filing separate over 2.5 Million. But those from 2,000,000 to 5,000,000 single were 87,517 tax returns at something less then 80,000,000,000. Not many in Head of household or separate.

So Trump may be getting an extra $40,000,000,000.
 
HintonJamesHeel said:
The carried interest loophole should be closed asap and the fact that so many on both sides of the aisle oppose closing it shows how corrupt the whole thing is.
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Bullshit. The Dems were ready to close it throughout 2021-22. There was one Dem who opposed closing it: Kyrsten Sinema. Because all Pubs opposed it, and she opposed it, the votes were not there to pass.

All Pub Senators + one Dem-> independent Senator is not "so many on both sides of the aisle."
 
BlueSmoke said:
In 2022, there were 27,261 tax returns with incomes over 5,000,000 for a total Adjusted Gross Income of 1,413,000,000.
Not sure on single , Head household, or filing separate over 2.5 Million. But those from 2,000,000 to 5,000,000 single were 87,517 tax returns at something less then 80,000,000,000. Not many in Head of household or separate.

So Trump may be getting an extra $40,000,000,000.
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Thank you for finding those numbers. I assume all that is income and not capital gains?

$40 billion/year won't get us there but it is a significant amount of money. Hope it passes.
 
BlueSmoke said:
In 2022, there were 27,261 tax returns with incomes over 5,000,000 for a total Adjusted Gross Income of 1,413,000,000.
Not sure on single , Head household, or filing separate over 2.5 Million. But those from 2,000,000 to 5,000,000 single were 87,517 tax returns at something less then 80,000,000,000. Not many in Head of household or separate.

So Trump may be getting an extra $40,000,000,000.
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did you mean total AGI of $1.4T, not $1.4B?

How much of that is capital gains, though? Wouldn't be affected by raising top rates on ordinary income.
 
gtyellowjacket said:
Thank you for finding those numbers. I assume all that is income and not capital gains?

$40 billion/year won't get us there but it is a significant amount of money. Hope it passes.
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Very good question. Buried on Irs.gov tax statistics is one schedule that attempts to break out (somewhat) capital gains by 15% and 20%. I'm going to ignore the 15% because I have a feeling most of the high earners are in the 20%. For all tax returns at 20%, it shows #84,658 tax returns for a total figure of $308,739,000,000. So I am assuming its safe to deduct this capital gains from the 1.4 Trillion to arrive at a number to calculate 2.6% against. Extremely rough, but better then no idea.
 
I am assuming the way the IRS computer would be able to tabulate, that its most likely that capital gains are included in the gross number of 1.4 Trillion. Rather doubt it could break it out from tax return data. But perhaps a tax accountant on here could figure that out.
 
BlueSmoke said:
I apologize greatly. AGI of 1.4 Trillion or 1,400,000,000,000.
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No need. We don't usually see such big numbers written out.

A friend of mine is considering early retirement. He's an only child; his dad was an exec at a big Pharma company but died a while back; and his mom has been investing their money reasonably well over 30 years.

Anyway, he was telling me, "my mom is rich now. Her net worth is 10 figures"

I said, "your mom is a billionaire? WTF?"

He said, "Wait, no not 10 digits. 8 digits." LOL. That's still rich.
 
gtyellowjacket said:
Yeah. Trump hates it too which is weird. He spoke out against it in his first term. I wonder if some hedge fund guy stole one of his girlfriends or something.

He doesn't mind getting capital gains treatment for his and others work in real estate development but he does not like private equity getting that tax treatment for their work.
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Speaking of

 
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