Liz Truss and the miracle of tax cuts for the wealthy

Running a quite successful small business actually. But cute little subtle shot you took there.

 

I'm glad you caught it, it would have been wasted otherwise

I'm glad you explicitly told the board you run a small business, so they can keep that in mind when you show your lack of understanding about how taxes for small businesses work.

 

Yeah, it's seems like common sense that a business wouldn't buy new or upgraded equipment they didn't need or that wouldn't improve their business. But unfortunately, I had to clarify that for someone who assumed businesses would.

Anyway, if you want to continue to pretend that pass through LLCs are not a deduction off your personal taxes, even after I've quote the IRS and given you real life examples, then I don't want to tell you. Seems like a silly thing for someone to be in denial about,.but here we are.

 

Well your example did not come off as anything other than spending $40K just to pay zero taxes. So yes. Very few would spend $40K to save a little over $6K in taxes. And finance it so they can pay that interest (at least deductible lol).

But yes. I will continue to view business expenses as something different than the deductions and credits afforded people when they file their personal income taxes. Like most I think they see the difference.

 

No it didn’t, I said this hypothetical person had a good year in their business and bought some new equipment. You completely made up the part about it being some unneeded equipment just purchased as a tax dodge.

But hey, $6000 is $6000… why would someone be dumb enough to give it to the government when there are legal ways to keep it and improve your business at the same time… but you do you.

 

I don’t disagree with that. Just saying your hypothetical was and is a bit pushing it. A business/family having a good year with a family of four making $100K spending $40K to pay no taxes is just not very likely.

Again. Like most who see and view business expenses differently. I will as well. You can continue though…

 

Is that because you use a Roth IRA instead of a traditional IRA? … so let’s do away with traditional? It’s a tax dodge either way, you know … either take a small tax dodge now, or a potentially huge tax Dodge later. I’m a Roth guy myself, too, but I can’t see any reason the traditional shouldn’t exist. Or the 401k, which mostly functions like a traditional, for that matter.

Anyway, It’s weird how you said the only personal deduction that should survive is the charity deduction … but have since argued that several other personal deduction should survive after realizing you personally benefit from things like the Schedule C deduction on your personal taxes…. seems like you are just arguing from a selfish perspective … “get rid of all the deductions that don’t benefit me” is what you really meant, I think.

 

You are confusing something here, though. The hypothetical family business could have had $1,000,000 in revenue. An equipment purchase doesn’t come out of the owner’s paychecks…

 

I have a Roth from when I was younger. Use it as fun money now lol. I more than doubled it over 6-9 months during 21 with BP and should have stuck with it. Then switched to CCL and got crushed lol. So now waiting out that move as I still see CCL coming back. We are blessed and do not qualify for a Roth now (not interested in the back door Roth). We do a simple IRA and match 100% for the employees. I am not big on ira’s…I hope to have enough discretional income that our tax rates likely will not be lower when we retire. Could we switch to other retirement vehicles and deduct a lot more. Absolutely. But it does not fit our plan/vision like we have right now. That could change. And just because we are executing things one way does not mean it is the right way for someone else.

I just recognize business expenses are not the same thing you are trying to equate them to. Most everyone else like I sees this.

***appears we have a very similar view on iras***

 

The good news: Britain finally has elected its first British Asian Prime Minister in nearly 300 years. Britain is seeing increasing ethnic diversity - not through present migration as many like to suggest, but because of our previous Commonwealth .... erm, let's call them 'pursuits'. It should be a momentus occasion.

And yes, I agree. Compared to Johnson The Liar and Truss the Incompetent, Rishi Sunak is definitely preferential. He's a million miles more statesman-like and isn't as likely to embarass us on an international stage. He's also significantly more savvy about matters of the economy. On paper, he's their best shot of a salvage job.

The bad news: Rishi's first speech said he needed to restore 'integrity and accountability' in the party. No doubt, that's true. But in order to "unify" the party, he has frankly made some of the most ridiculous appointments to senior cabinet positions, to appease the harder right members of the party. None moreso than Suella Braverman - a woman who resigned (before she was sacked) less than a WEEK ago from the great state of office of Home Secretary when she was found to have breached the ministerial code. A women who openly says her "dream" to is oversee the deportation of asylum seekers who have arrived illegally to Rwanda - a country the Government is openly critical of about their human rights abuses.

The party's defense? "Evvvvvverrrrbody does it!"



There are similar misconduct stories for others appointed too. I mean, fill your boots:



This is 'integrity'.

I'll admit. I was hopeful that he might at least stem the tide of crud flowing into our rivers and seas (literally - yes, they voted to allow that). But his first day in office looks like it's going to be more of the same. What a wasted chance to make a statement of intent. As it is, he's filled the cabinet with more people that are looking after self and party interest than those of the people they were elected to serve. What a joke.

And for those who don't know about Rishi's integrity himself? His net worth is a reported £730m. And he still claims £150,000+ a year in "MP expenses" on top of his £85,000 a year salary while millions of kids sit below the poverty line in this country right now. He oversaw nearly £40bn of wasted public funding for the failed 'track and trace' system, wrote off billions as Chancellor in the resulting Furlough-Claims Fraud mess, and even wrote off debts for a company that received a £1.3m (tax-payer funded Covid loan) and then went bankrupt, in which *checks notes* aaaaah, yes, his wife held shares in.

His wife also held non-dom status for tax (and didn't pay tax on any UK ventures for years... but NOW she will, bless her. What a good egg. Easy to miss.) Oh and, whoops, he forgot to mention he had a green-card for the USA too - nothing abnormal for a senior UK politician, right? Oh, but then he gave it back - it wasn't for a tax benefit he says... just for travel. Even though that too may have broken US immigration rules. All an easy oversight, right?

And how he had "no financial interests" to declare for best part of 5 years as an MP and then suddenly had some, which he put into a blind trust in 2019, just prior to becoming Chancellor... and because of its nature, a blind trust hides where all that juicy money comes from..., well, just from the British Public he's claiming to serve.

Remember - £730m. But he wants to be "PM". You might be forgiven for wondering why? I'm inclined to think that it - as it is for most members of his wretched party - just another play thing.

Talking a better talk, being more of a grown up, is good. The underlying cesspool, though, is just as rotten as before.

 

Thanks @LimeyGator. I value your input about UK politics over the rest of the board combined.

 

Thanks AG - I'm not entirely sold on any political option right now, as you might be able to tell. They all lie and all serve their own best interests. But this Government has been the absolute pits. At this stage, I'll settle for anything resembling vague competence and non-embarrassment on the international stage. Yep, our bar is that low.

 

I guess the need to keep your nutjob and incompetent base happy in partisan politics is a worldwide phenomenon.

 

It's an extremely low bar, but hopefully he's an improvement over recent PMs. He certainly seems more professional and has better hair than Boris.
Given his financial background, there is reason for hope. Interesting tho that the first Asian PM appears to be no friend to minorities.