The stimulus bill includes a tax break for the 1%

[head]

I still find this information hard to believe. Apparently the stimulus bill was voted on, and approved, before everyone could read the entire bill, which is 888 pages long. Looks like the 1% win again. Thanks.
https://www.cnn.com/2020/03/28/opinions ... index.html

[tspwizard1]

I still find this information hard to believe. Apparently the stimulus bill was voted on, and approved, before everyone could read the entire bill, which is 888 pages long. Looks like the 1% win again. Thanks.
https://www.cnn.com/2020/03/28/opinions ... index.html

I saw this too. Thanks GOP! Now the rich get millions in tax breaks/refunds and use that money to buy even more properties and then charge too much to rent them to people they see as money making cattle.

With a recession/depression almost certain at this point the division of class will grow even more.

[SnareMV17]

What a horribly trashy article. Of course you would expect this from CNN’s site. First of all, there’s a reason that depreciation exists, and it’s mainly because investment properties generally have a limited useable lifetime where they will need to be replaced. They don’t last forever without major upgrading or alterations. Depreciating the value simply allows the owner to recoup those costs over time instead of all at once. But yes, it’s one of the reasons that buying actual real property as an investment is superior to tinkering in the stock market or many other investments.

I don’t buy he 1% garbage either. These leftists sure do love to drive home that ridiculous number. Do you realize that many of the users of this site are in the 1%? It doesn’t take much to save and invest your money over a career or lifetime and end up a millionaire, either. This is truly pathetic. Hey, let’s vilify people who purchase actual physical things that are useful and provide them to people who couldn’t afford to purchase it on their own. Because that’s such a terrible, awful thing, right? The changes made will really only affect the super rich who have huge portfolios, yes. Or have huge properties with several doors. I own two properties and this wouldn’t even come close to making a lick of difference to me.

So instead of vilifying real estate investors, why not just become one? Do you really think that maxing out your TSP is the only way to have a comfortable retirement? You could be buying property and enjoying the tax benefits of owning a physical, useable thing, also. And heck, interest rates are crazy low right now.

[hamjam916]

SnareMV17: strongly concur. I took out $100K TSP loan after 2009 and bought two Hawaii condos, at steep discounts. Best move I ever made. And yes, depreciation is a wonderful thing - one of few gifts IRS gives.

[Sauktim]

" many of the users of this site are in the 1%" The last numbers I heard from the IRS were adjusted gross INCOME of greater than roughly $510,000 put you in that club. Didn't realize I was in such good company

[SnareMV17]

" many of the users of this site are in the 1%" The last numbers I heard from the IRS were adjusted gross INCOME of greater than roughly $510,000 put you in that club. Didn't realize I was in such good company

Lol, net worth can put you in the 1% too. Some people here have net worths above $10 million, don’t let them fool you.

[head]

The bill should have also included the middle class tax cut that the President keeps talking about. Thanks.

[McWinning]

" many of the users of this site are in the 1%" The last numbers I heard from the IRS were adjusted gross INCOME of greater than roughly $510,000 put you in that club. Didn't realize I was in such good company

Lol, net worth can put you in the 1% too. Some people here have net worths above $10 million, don’t let them fool you.

That must be a huge 1% if you can get in through multiple different top 1% demographics...

[stilljammi]

" many of the users of this site are in the 1%" The last numbers I heard from the IRS were adjusted gross INCOME of greater than roughly $510,000 put you in that club. Didn't realize I was in such good company

Lol, net worth can put you in the 1% too. Some people here have net worths above $10 million, don’t let them fool you.

That must be a huge 1% if you can get in through multiple different top 1% demographics...

He's right though. Many rich people hide their wealth thru capital gains or their companies or whatever. You get taxed to hell thru income. Looking solely at income, technically the president is NOT in the 1% because he forgoes a presidential salary. But we all know he has more money than that (or maybe not).

[Aitrus]

It's all about perspective. Much of America is in the 1% if you're talking about world income. We have it very good here and benefit from the hard work of our ancestors who set up a fantastic society and economy.

https://www.investopedia.com/articles/p ... -world.asp

[sonofnthng]

We are the 99% locally, we are the 1% globally. However, I find it hard to justify/defend loopholes for a tax-free haven for rich people who own real estate. When the same conservative would be outraged by someone collecting welfare because of the cards they were dealt and the system that keeps those people cornered. Do you think inheriting daddy's real estate fortune and living tax free is 'working hard'? Give me a break.

[Aitrus]

I disagree. From experience, I know firsthand that people are easily able (compared to the rest of the world) to move up and down the economic ladder in this country. All you have to do is work hard and make good choices. I grew up in the poorer section of the trailer park (we couldn't afford a fancy double-wide, it was an old beat up single-wide for us). Single uneducated mom, brother and kid sister. We shopped at thrift stores, went to food banks, and eating out at McDonald's was a rare once-a-year birthday treat. By comparison, I now live in a mansion and am rich beyond my wildest childhood dreams - and I'm just a GS-9. People move in and out of the 1% all the time.

Yes, I will concede that there is a small fringe of those who are unable to work due to disability or whatnot. However, using the small 10% group to justify the laziness / greed / poor choices of the other 90% on welfare isn't logical. If somebody who is able to work is on welfare their entire life, that's largely due to their own actions. My mother, father, and most of my family fall into that category. I chose not to, and that has made all the difference. I chose to work and save and be frugal with my money.

The vast majority of millionaires in the country are self-made. They didn't get that way from inheriting money. They got it from hard work, good decisions, and (for a great many of them) frugal living. You don't build up the poor man by tearing down the rich man.

[mjedlin66]

The vast majority of millionaires in the country are self-made. They didn't get that way from inheriting money. They got it from hard work, good decisions, and (for a great many of them) frugal living. You don't build up the poor man by tearing down the rich man.

According to Fidelity, 88% of millionaires are self-made.

https://money.usnews.com/money/blogs/on ... llionaires

However, I will say that privilege plays a massive role. Rich people provide their kids with better resources and more support. I am a successful man, but I can't count on two hands and two feet the number of times my own ventures would have failed without financial support or sound guidance from my folks.

For example, I flipped a house a few years ago. After the first 12 months, it damn near bankrupted me. But my parents and my in-laws lent us some money. It was our hard work/skill/determination that ultimately made the project successful, but without that help at the right time, we could have easily gone under. By finishing the house, my wife and I jumped way ahead in the financial game.

I'm all about using tax dollars to provide better resources that will help people succeed on their own. Public education is an example.

And yes, sometimes that means welfare. Many college students and entrepreneurs live on food stamps for a while and go on to become extremely successful.

[Aitrus]

I don't disagree with you on that point, MJ. Yes, some people do need help from time to time - and I'm fine with it as long as it doesn't become their lifestyle.

What I was disagreeing with sonofnthing's post was the part where he insinuates that government corners people, gets them on welfare, and keeps them there. While I can agree that a certain segment of the public wants it to be that way (and a certain political party takes steps to make it so), that is not how things are now.

I also disagreed with him that tax breaks only benefit the rich. That's now how tax breaks work.

An example of how tax breaks work: https://www.youtube.com/watch?v=BomQxCG5VG4

[mjedlin66]

I don't disagree with you on that point, MJ. Yes, some people do need help from time to time - and I'm fine with it as long as it doesn't become their lifestyle.

What I was disagreeing with sonofnthing's post was the part where he insinuates that government corners people, gets them on welfare, and keeps them there. While I can agree that a certain segment of the public wants it to be that way (and a certain political party takes steps to make it so), that is not how things are now.

Specifically on this point, the thresholds are often a problem. Get a $1.50 raise at work, and suddenly disqualified for food stamps or other financial assistance. Ultimately, they completely lose the assistance which was worth more than their raise.

I believe that ALL of our welfare programs should have a linear phase-out. Determine at what income level 100% of the support stops. As you go up from there, for every extra $1 you make, you lose 25 cents of support.

So if you're getting $400/month in foodstamps now, and get a $500 raise at work, you're now receiving $275/month in foodstamps.

Pre-Raise
$1000/month salary
$400/month food stamps
$1400 total

Post-raise
$1500/month salary
$275/month food stamps
$1775 total

That would help people without trapping them. Give them a way out!