Davin News Server

On 2025-07-30, -hh <recscuba_google@huntzinger.com> wrote:
> On 7/30/25 05:59, Governor Swill wrote:
>> On Tue, 29 Jul 2025 21:18:58 -0000 (UTC), pothead wrote:
>> 
>>> I wouldn't consider no taxes on tips, overtime and additional bonus added
>>> for seniors on SS increased SALT deduction. something the rich are interested in.
>> 
>> Most tips aren't declared anyway and so aren't taxed.  
>
> 84%, as per this cite:
><http://archives.cpajournal.com/old/10428232.htm>
>
>> The change mostly means that employers now have to pay both sides 
>> of FICA which will increase their labor cost.
>
> Good catch; I'd forgotten about that provision, plus even if they're 
> only required to pay the employer half, that's still ~8% expense on 
> those tip amounts.  If we oversimplify and say that its 9% and for 
> restaurant servers that tips are a third of their income, this is a 
> quick 3% increase in labor costs for their employer.
>
> As I commented yesterday evening:
>
> "Which means that this cap is more designed to send a message to those 
> who can re-categorize their income to limit their level of fraud/abuse."
>
>
>> If overtime is not taxed weekly, smaller refunds will result each
>> spring.
>> 
>> The middle class may get some benefit from a higher SALT deduction.
>
> Not really all that much, as the Standard Deduction remains relatively 
> large because what used to be, because personal deductions got rolled up 
> into it.  Previously, with the two split, itemizers only had to exceed 
> the Standard, and kept the personal deductions:  the 2017 TJCA had some 
> pretty clever slights-of-hand in this fashion.
>> The rich may not care about any of this because it won't drive up
>> their tax bills.  What it will do is drive the deficit.
> Like how we've heard some who've claimed "an almost $6k increase in 
> taxes if the BBB did not pass." ... but the income levels required to 
> have that much of a one year savings is $400K+ if filing Single.  Its 
> not as profound for MFJ (figure $160K), but this is just the first year 
> look before any of the middle class's temporary cuts start to phase out.
>> Trump's tariffs will mitigate some of that deficit but the resultant
>> inflation will eat up the middle and working classes.
>
> Tariff revenue is minuscule in comparison to the 1%'er tax breaks...
>
> ...plus if the tariffs actually accomplish what they've been claimed 
> that they're for (re-shoring manufacturing) they're a decreasing revenue 
> source that will never grow larger.
>
> -hh

All fine and dandy but I'm still not seeing this BBB benefits the billionaires at
the expense of the rest of us like the democrats keep claiming.

Maybe you have some insight into this?

-- 
pothead

"Our lives are fashioned by our choices. First we make our choices.
 Then our choices make us."
-- Anne Frank