#taxes and taxation

[stressed-depressed-and-bored]

People always say “who is going to pay for it?” as if it’s some profound “gotcha!”

The rich. The rich can pay for it. They did in the past and they can do it again.

In the 1930s and 1940s the United States was facing a debt crisis much like todays. The government was running out of money coming out of the Great Depression and going into World War 2, and the economy wasn’t doing too well. Everything was falling apart, much like it is now. What was the solution?

And it worked. The US working middle class and the economy did awesome well through the 50s and 60s. The working middle class was wealthier than ever before and wealthier than it’s ever been. Regular people like you and me. Public infrastructure flourished. States had the budgets to build free colleges. College used to be free by the way. It wasn’t until Ronald Reagan’s advisors warned him how “dangerous” an “educated proletariat” was (those are his words), that major universities started to see cuts in public funding and had to start charging tuition.

Today, the top 1% is only taxed at 43% and has been dropping since Ronald Reagan’s presidency. Reagan also set the precedent of ignoring labor and union rights, violating both domestic (NLRA, Wagner Act) and international (United Nations bill of rights) law. This too has only ever been made worse by Republican policy as time has gone on with yet more tax cuts for the wealthy. Look up the actual policies. Don’t take a politicians word, read their actual policy. They will and do lie to you.

Do y’all understand now why the US debt is going up so fast? It’s because Trump cut that tax rate even more, amassing a whopping 20% of our current total national debt within only 4 years. The debt ceiling was raised THREE TIMES during Trump’s presidency, the uppermost tax bracket was cut even more, and massive corporate bailout loans were forgiven. Research the PPE loans. This has been Republican policy for 40+ years.

The systemic deconstruction of the middle class and the government in favor of corporate control. We are living in a repeat of the Gilded Age of the Industrial Revolution. The railroads and the banks own and control everything, including the government.

These are facts. Read it in any history book.

Or you can just ban those books too and pretend it didn’t happen. That would be a mistake though.

If you wanna know how our economy has REALLY been doing for the last 40 years, I suggest looking into the Economic Policy Institute. Or ask any working class American how they have been doing lately, especially those of us who are young, trying to make it.

Our current struggle is not caused by the “Woke Mob” as propaganda outlet Fox News will tell you.

(Do any of you even know what “woke” means? It means you are aware and attentive to the fact that systematic societal issues and flaws exist. Wether it be race issues, income issues, whatever. Being “woke” literally means you’re not a sheep who follows along anything that the media and government tell you. Thats what it means. Literally look it up. I grew up as this word came to popularity. It’s been around for a very long time. The GOP is taking advantage of the fact that you don’t know what it is, and using it as a fear mongering tactic to channel your anger at your neighbor instead of the corporations pulling the strings. It is corporate propaganda).

Our current struggle is caused by the class warfare waged by corporate scum as they buy all of our politicians in return for bailing out the government’s debt. Both left and right, our politicians have been bought. None of them work for you. They work for the big corporations lining their pockets through unlimited lobbying.

So, when y’all say “I don’t wanna pay for it”- don’t worry, you aren’t going to be paying for it. The middle class will not be paying for it. The multi-billionaire corporations stealing your labor will be paying for it. The rich goons who increase the price of your groceries and lay you off all in the name of making a few extra bucks will be paying for it.

Do some research and you’ll see exactly why and when we got into this mess.

It’s not that complicated. It really isn’t.

Tax. The. Rich.

[itsglor]

😆

[zealouswombatrebel]

I think go fund me culture is kind of insane because at this point it's just taxes? Like a big fund for strangers so they get help for medical bills or funerals? That's just what taxes are for. Except that in a perfect world taxes more fair because the most wealthy give the most except the ones who have the biggest pity

[todayworldnews2k21]

Opinion: Why millionaires like us want to pay more in taxes | CNN

Editor’s Note: Abigail Disney is an Emmy-winning documentary filmmaker, activist, and member of the Patriotic Millionaires. Her latest film, “The American Dream and Other Fairy Tales,” co-directed with Kathleen Hughes, made its world premiere at the 2022 Sundance Film Festival. Morris Pearl is the chair of Patriotic Millionaires, and former managing director of BlackRock. The opinions expressed…

[phoenixyfriend]

Ko-fi prompt from @liberwolf:

Could you explain Tariff's , like who pays them and what they do to a country?

Well, I can definitely guess where this question is coming from.

Honestly, I was pretty excited to get this prompt, because it's one I can answer and was part of my studies focus in college. International business was my thing, and the issues of comparative advantage (along with Power Purchasing Parity) were one of the things I liked to explore.

-----------------

At their simplest, tariffs are an import tax. The United States has had tariffs as low as 5%, and at other times as high as 44% on most goods, such as during the Civil War. The purpose of a tariff is in two parts: generating revenue for the government, and protectionism.

Let's first explore how a tariff works. If you want to be confused, then you need to have never taken an economics class, and look at this graph:

(src)

So let's undo that confusion.

The simplest examples are raw or basic materials such as steel, cotton, or wine.

First, without tariffs:

Let us say that Country A and Country B both produce steel, and it is of similar quality, and in both cases cost $100 per unit. Transportation from one country to the other is $50/unit, so you can either buy domestically for $100, or internationally for $150. So you buy domestically.

Now, Country B discovers a new place to mine iron very easily, and so their cost for steel drops to $60/unit due to increased ease of access. Country A can either purchase domestically for $100, or internationally for $110 (incl. shipping), which is much more even. Still, it is more cost-effective to purchase domestically, and so Country A isn't worried.

Transportation technology is improved, dropping the shipping costs to $30/unit. A person from Country A can buy: Domestic: $100 International: $60+$30 = $90 Purchasing steel from Country B is now cheaper than purchasing it from Country A, regardless of where you live.

Citizens in Country A, in order to reduce costs for domestic construction, begin to purchase their steel from Country B. As a result, money flows from Country A to B, and the domestic steel industry in Country A begins to feel the strain as demand dwindles.

In this scenario, with no tariffs, Country A begins to rely on B for their steel, which causes a loss of jobs (steelworkers, miners), loss of infrastructure (closing of mines and factories), and an outflow of funds to another country. As a result, Country A sees itself as losing money to B, while also growing increasingly reliant on their trading partner for the crucial good that is steel. If something happens to drive up the price of B's steel again, like political upheaval or a natural disaster, it will be difficult to quickly ramp up the production of steel in Country A's domestic facilities again.

What if a tariff is introduced early?

Alternately, the dropping of complete costs for purchase of steel from Country B could be counteracted with tariffs. Let's say we do a 25% tariff on that steel. This tariff is placed on the value of the steel, not the end cost, so:

$60 + (0.25 x $60) + $30 = $105/unit

Suddenly, with the implementation of a 25% tariff on steel from Country B, the domestic market is once again competitive. People can still buy from Country B if they would like, but Country A is less worried about the potential impacts to the domestic market.

The above example is done in regards to a mature market that has not yet begun to dwindle. The infrastructure and labor is still present, and is being preemptively protected against possible loss of industry to purchasing abroad.

What happens if the tariff is not implemented until after the market has dwindled?

Let's say that the domestic market was not protected by the tariff until several decades on. Country A's domestic production, in response to increased purchasing from abroad, has dwindled to one third of what it was before the change in pricing incentivized purchase from B. Prices have, for the sake of keeping this example simple, remained at $100(A) and $60(B) in that time. However, transportation has likely become better, so transportation is down to $20, meaning that total cost for steel from B is $80, accelerating the turn from domestic steel to international.

So, what happens if you suddenly implement a tariff on international steel? Shall we say, 40%?

$60 + (0.4 x 60) + 20 = $104

It's more expensive to order from abroad! Wow! Let's purchase domestically instead, because these prices add up!

But the production is only a third of what it used to be, and domestic mines and factories for refining the iron into steel can't keep up. They're scaling, sure, but that takes time. Because demand is suddenly triple of the supply, the cost skyrockets, and so steel in Country A is now $150/unit! The price will hopefully come down eventually, as factories and mines get back in gear, but will the people setting prices let that happen?

So industries that have begun to rely on international steel, which had come to $80/unit prior to the tariff, are facing the sudden impact of a cost increase of at least $25/unit (B with tariff) or the demand-driven price increase of domestic (nearly double the pre-tariff cost of steel from B), which is an increase of at least 30% what they were paying prior to the tariff.

There are possible other aspects here, such as government subsidies to buoy the domestic steel industry until it catches back up, or possibly Country B eating some of the costs so that people still buy from them (selling for $50 instead of $60 to mitigate some of the price hike, and maintain a loyal customer base), but that's not a direct impact of the tariff.

Who pays for tariffs?

Ultimately, this is a tax on a product (as opposed to a tax on profits or capital themselves, which has other effects), which means the majority of the cost is passed on directly to the consume.

As I said, we could see the producers in Country B cut their costs a little bit to maintain a loyal customer base, but depending on their trade relationships with other countries, they are just as likely to stop trading with Country A altogether in order to focus on more profitable markets.

So why do we not put tariffs on everything?

Well... for that, we get into the question of production efficiency, or in this case, comparative advantage.

Let's say we have two small, neighboring countries, C and D, that have negligible transportation costs and similar industries. Both have extensive farmland, and both have a history of growing grapes for wine, and goats for wool. Country C is a little further north than D, so it has more rocky grasses that are good for goats, while D has more fertile plains that are good for growing grapes.

Let's say that they have an equal workforce of 500,000 of people. I'm going to say that 10,000 people working full time for a year is 1 unit of labor. So, Country C and Country D have between the 100 units of labor, and 50 each.

The cost of 1 unit of wool = the cost of 1 unit of wine

Country C, having better land for goats, can produce 4 units of wool for every unit of labor, and 2 units of wine for every unit of labor.

Meanwhile, Country D, having better land for grapes, can produce 2 units of wool per unit of labor, and 4 units of wine per unit of labor.

If they each devote exactly half their workforce to each product, then:

Country C: 100 units of wool, 50 units of wine Country D: 50 units of wool, 100 units of wine

Totaling 150 units of each product.

However, if each devotes all of their workforce to the product they're better at...

Country C: 200 units of wool, no wine Country D: no wool, 200 units of wine

and when they trade with each other, they each end up with 100 units of each product, which is a doubling of what their less-efficient labor would have resulted in!

The real world is obviously much more complicated, but in this example, we can see the pros of outsourcing some of your production to another country to focus on your own specialties.

Extreme examples of this IRL are countries where most of the economy rests on one product, such as middle-eastern petro-states that are now struggling to diversify their economies in order to not get left behind in the transition to green energy, or Taiwan's role as the world's primary producer of semiconductors being its 'silicon shield' against China.

Comparative advantage can be used well, such as our Unnamed Countries (that are definitely not the classic example of England and Portugal, with goats instead of sheep) up in the example. With each economy focusing on its specialty, there is a greater yield of both products, meaning a greater bounty for both countries.

However, should something happen to Country C up there, like an earthquake that kills half the goats, they are suddenly left with barely enough wool to clothe themselves, and nothing for Country D, which now has a surplus of wine and no wool.

So you do have to keep some domestic industry, because Bad Things Can Happen. And if we want to avoid the steel example of a collapse in the given industry, tariffs might be needed.

Are export tariffs a thing?

Yes, but they are much rarer, and can largely be defined as "oh my god, everyone please stop getting rid of this really important resource by selling it to foreigners for a big buck, we are depleting this crucial resource."

So what's the big confusion right now?

Donald Trump has, on a number of occasions, talked about 'making China pay' tariffs on the goods they import into the US. This has led to a belief that is not entirely unreasonable, that China would be the side paying the tariffs.

The view this statement engenders is that a tariff is a bit like paying a rental fee for a seller's table at an event: the producer or merchant pays the host (or landlord or what have you) a fee to sell their product on the premises. This could be a farmer's market, a renaissance faire, a comic book convention, whatever. If you want to sell at the event, you have to pay a fee to get a space to set up your table.

In the eyes of the people who listened to Trump, the tariff is that fee. China is paying the United States for access to the market.

And, technically, that's not entirely wrong. China is thus paying to enter the US market. It's just the money to pay that fee needs to come from somewhere, and like most taxes on goods, that fee comes from the consumer.

So... what now?

Well, a lot of smaller US companies that rely on cheap goods made in China are buying up non-perishables while they can, before the tariffs hit. Long-term, manufacturers in the US that rely on parts and tools manufactured in China are going to feel the squeeze once that frontloaded stock is depleted.

Some companies are large enough to take the hit on their own end, still selling at cheap rates to the consumer, because they can offset those costs with other parts of their empire... at least until smaller competitors are driven out of business, at which point they can start jacking up their prices since there are no options left. You may look at that and think, "huh, isn't that the modus operandi for Walmart and Amazon already?" and yes. It is. We are very much anticipating a 'rich get richer, poor go out of business' situation with these tariffs.

The tariffs will also impact larger companies, including non-US ones like Zara (Spanish) and H&M (Swedish), if they have a huge reliance on Chinese production to supply their huge market in the United States.

If you're interested in the repercussions that people expect from these proposed tariffs on Chinese goods, I'd suggest listening to or watching the November 8th, 2024 episode of Morning Brew Daily (I linked to YouTube, but it's also available on Spotify, Nebula, the Morning Brew website, and other podcast platforms).

[nickyysharmi]

The Art of Mastering Tax Strategies for Investors

Investing your hard-earned money is like planting a tree. You nurture it, and over time, it grows into something substantial. But here's the catch – just like a growing tree requires the right nutrients, your investments need the right tax strategies to thrive. In this blog, let's explore the art of mastering tax strategies for investors, especially tailored for the Indian audience.

Navigating the Tax Jungle

Let's face it; the Indian tax system can feel like a dense jungle. There are various taxes to consider, such as income tax, capital gains tax, and even a tax on dividends. Understanding the different tax implications on your investments is the first step towards mastering tax strategies.

Also Read: What Is NPA And Its Impact On Indian Economy? 

1. Tax-Efficient Investment Vehicles

Choosing the right investment vehicles can make a significant difference in your tax liability. For instance, investments in Equity-Linked Savings Schemes (ELSS) not only offer potentially high returns but also provide tax benefits under Section 80C of the Income Tax Act. Similarly, investments in the National Pension System (NPS) can fetch you additional tax benefits.

2. Long-Term vs. Short-Term Investments

The holding period of your investments can affect the tax you pay. Short-term capital gains (assets held for less than two years) are taxed differently from long-term capital gains. In most cases, long-term capital gains enjoy preferential tax treatment, making them an attractive option for investors looking to reduce their tax liability.

3. Tax Harvesting

Tax harvesting involves strategically selling certain investments to offset gains or losses for tax purposes. For example, if you have investments that have incurred losses, selling them can help you offset gains in other areas, reducing your overall tax liability. This technique can be particularly useful when dealing with capital gains tax.

4. Keep an Eye on Deductions

India's Income Tax Act offers a wide range of deductions, exemptions, and rebates. Familiarize yourself with these provisions and take full advantage of them. For instance, deductions for home loan interest payments, medical insurance premiums, and contributions to provident funds can significantly reduce your taxable income.

5. Plan for Retirement

Investing in retirement-focused instruments like the Employee Provident Fund (EPF) and Public Provident Fund (PPF) can be a smart move. Not only do these investments offer tax benefits, but they also help secure your financial future.

Also Read: The Ultimate Guide To Cash Flow Management

Conclusion

Navigating India's tax landscape can be complex, but with strategic investment choices and tax-smart planning, you can maximize your returns and secure your financial future. Mastering tax strategies is the key to growing your investments while minimizing tax burdens.

[eaudeclown]

I have a sympathy quota, I legally CANNOT feel bad for every vacuous John that decides to engage in imbecilic activities. There's taxes for everything

[jamessherbert624]

What is its overall mission when it comes to tax relief services?

Tax relief companies offer a variety of services to help individuals resolve their tax issues, but what is their overall mission when it comes to these services? In this article, we’ll take a closer look at the mission of tax solution companies and what they aim to accomplish for their clients.

Assisting Individuals in Resolving Tax Issues

The primary mission of tax solution companies is to assist individuals in resolving their tax issues. This can include helping clients navigate issues such as tax debt, IRS audits, tax liens, and wage garnishments. By providing expertise and guidance in these areas, tax solution companies can help individuals achieve a positive outcome and move forward with their financial goals.

Offering a Range of Services

In addition to assisting with tax issues, tax solutions companies also aim to offer a range of services to their clients. This can include tax preparation, tax planning, and financial consulting services. By providing these additional services, tax solution companies can help individuals not only resolve their current tax issues but also plan for their future financial goals.

Educating Clients on Tax Issues

Another key mission of tax solution companies is to educate their clients on tax issues. This can include providing resources and guidance on topics such as tax laws, IRS procedures, and tax resolution options. By educating their clients, tax solution companies can help individuals make informed decisions about their tax situation and take proactive steps to avoid future issues.

Prioritizing Customer Satisfaction

Finally, tax solution companies aim to prioritize customer satisfaction in all of their services. This can include offering a satisfaction guarantee, providing regular updates and communication throughout the process, and ensuring that clients feel informed and empowered throughout the process. By prioritizing customer satisfaction, tax solution companies can build long-term relationships with their clients and establish a reputation for excellence in the industry.

In conclusion, the overall mission of tax solution companies is to assist individuals in resolving their tax issues, offer a range of services to help them achieve their financial goals, educate clients on tax issues, and prioritize customer satisfaction in all of their services. By choosing a reputable tax solution company, individuals can get the help they need to navigate their tax issues and achieve financial stability.

[uninspiredtroubadour]

Greetings fellow travelers! I hope I find you well. Today was another busy one. Started with finishing up my taxes (gross) and filing my FAFSA (fun because yay college). I also worked on my car today. Hopefully I'll have it fixed soon.

I also bought myself a new laptop. I'm waiting for it to arrive. I have had a new once since 2018.

I also learned the fingering of Au Claire de Lune on the tin whistle. Fun things are ahead for me.

I hope my musings find you well. Safe travels and godspeed.

[pieckthecart]

Ayo don’t confuse me for a republican at all but I gotta say fuck Joe Byron that nigga owe me some money

[liberty1776]

Taxation is Theft

[aressida]

[yesterdaysprint]

The Ogden Standard-Examiner, Utah, May 14, 1922

[diablo1776]

[manda-kat]

I honestly don't see any need to say 'tax the rich'. I prefer 'stop taxing the poor'.

[democratthatlovesguns]

Short-Term Memory

Kamala Harris *Before Election*: Here's a detailed, 80 page, digestible read ... on exactly what I plan to do to revamp the economy.

Dumbasses *After Election*: She never talked about her plan for the economy.

What Harris failed to understand is that the majority of people would rather fuck themselves than take a thirty minute reading break.