Charlie Munger is harsh on the current plan to tax stock buybacks, something Berkshire has done as a shareholder friendly way to increase value for many years.
I think it’s insane. Literally insane," Munger, the [right-hand man of legendary investor Warren Buffett] said
“I don’t think the dividend policies of American corporations ought to be determined from Washington,” Munger told CNN.
Being CNN of course they had to get a comment from the Brandon administration-
“We have had an economy based on tax breaks and tax evasion by billionaires for decades. That strategy has failed — as the 2017 tax giveaway to the wealthy and corporations demonstrated — and buybacks long have been used to increase executive compensation at the expense of our middle class,” a White House official told CNN in response to Munger’s comments. “President Biden instead believes we should shift to supporting families, getting to work and getting ahead. We understand why some billionaires might be disappointed.”
You see the far left would rather companies not be responsible to their shareholders, who are probably members of the Evil Rich or at least middle class people saving and investing for their retirement, but they’d rather have “stakeholder socialism” where the workers or unions become de facto owners of the company and policies are dictated for their benefit rather than the owners.
Maybe the first year but for many taxpayers the difference was large enough that you did not need to recalculate each year. For us, we were about $5-6k short of the standard deduction so the first time around we entered deductions normally in tax software. But since then we skip that part because we know it’s not gonna be close due to our deductions being in the same ballpark each year.
That’s a ludicrously high limit. It’s just a BS excuse to subsidize McMansions and high-tax states.
And how would raising the SALT cap not increase the deficit? It can only decrease tax revenues by allowing larger deductions so what is getting axed to compensate this tax revenue loss? So much BS to justify nonsense pork.
P.S.: I just read that the Joint Committee on Taxation was the one which declared the increase in SALT cap would be revenue neutral over 10 years. That’s deceptive IMO because they looked over 10 years knowing the SALT deduction cap was due to sunset in 2025 (meaning no cap after that) and they moved the sunset date to 2031. So compared to current 10-yr outlook, a tax revenue loss in the next 4 years but more tax revenues (than no cap at all) over the following 6 years. Of course, if the law changes again before 2031, we’ll have eaten the tax revenue loss first and won’t get the added tax revenues later. I hope that people are not fooled that easily by kicking the can like that.
LOL. Maybe it wouldn’t be 2000+ pages if the margins weren’t so wide. High school students trying to fit the required length with large font, line spacing, and margins
Is this the one that was signed this week or the one that’s still coming? Can’t keep track. Didn’t even know there were two.
Do you have the same chart in 2026 for the combined top tax rates according to the current law? All marginal tax rates were supposed to get bumped back up anyway in 2025 according to the TCJA of 2017. How different are these new BBB Framework rates? Are they just higher than the current law by the extra tax on super wealthy?
Yellen said: “We don’t know what the source of the leak of that information was, and I would say it’s premature to indicate that it came from the IRS.”
It doesn’t seem like there is a sense of urgency to get to the bottom of things. Meanwhile Democrats push for more IRS power, more IRS agents, more IRS audits.
It’s been nearly six months, and still there is nothing but radio silence, all while the American people are supposed to just shrug and accept the imposition of enormous new IRS powers – including bank account snooping – as proposed by Democrats in their tax and spend blowout bill. Over the decades, the IRS has proven to be unable or unwilling to safeguard taxpayer data.
Musk is also 100% correct the companies and individuals likely to have the biggest ROI from being audited are already being audited each year.
So it’s clear that the extra staff is gonna audit smaller fish and likely taxpayers with less well documented reports of income (farm, rental, royalties, small businesses). All BS PR that it’s to make billionaires pay their fair share is just obligatory political circus around the reality that it is gonna affect people with a lot less than billionaire status.
But for me, I have no sympathy for tax evaders. The more they pay, the less I have to or the less in debt the country is, both of which benefit me. Hence why my only bottom line is whether the extra staff will more than pay for itself in extra tax revenues. Anything else is just window dressing for me.
Congress has made two key changes to enhance tax breaks for giving during the pandemic that expire after this year. One allows millions of taxpayers who wouldn’t normally get a tax break for donations to deduct up to $300 per single filer and $600 per married couple filing jointly. The other allows a full deduction this year for donors making gifts up to 100% of their income, instead of a partial one.
Cost of living and new taxes surely must have help these people make the decision, not only desire to get closer to family. But hey with all the flying restrictions and hassle, that’s probably been a factor.
It’ll be interesting to find out if the trend reverse once the pandemic is over and most people in the workforce return to in-person work. Probably not completely I’m guessing since I think remote work got a non-temporary boost with the pandemic.
I doubt it’ll change anything in election results though. Most states are too fubar with gerrymandered districts for small migration numbers to make a difference.
Apps, marketplaces and payment providers have long had to report certain payments to the Internal Revenue Service for any user that collected more than 200 transactions that totaled more than $20,000 in value in a given year. The new $600 threshold arrived last year as part of the American Rescue Plan, which the White House billed as a way to provide relief to small businesses hit hard by the pandemic.
I’m actually kinda surprised it took this long for them to mandate this. With other 1099 thresholds being $600, I don’t know why the 1099-K wasn’t already $600.
Taxpayers alarmed by IRS notice asking them to resend their 2020 returns. Is it a scam?
It’s not a scam. It is real and it reflects the depth of the hole in which the IRS currently finds itself. I’m not going to go through this article and pull out all the very troubling statistics. If you care you will click:
Ironic that these letters that were issued because the IRS has a backlog for processing paper returns, will result in many taxpayers submitting duplicate paper returns to add to the processing backlog.
One more reason to not file via paper going forward as it doesn’t look like this backlog is going anywhere fast.
