home mortgage interest deduction gone
child tax credit gone
business expense deductions gone
and I don't even pay payroll taxes because I am self employed, I would be totally screwed under 999.
You forgot...
Property tax deduction - gone
State and local income tax deduction - gone
Employee expenses deduction - gone
The list of lost deductions is endless.
1. Regarding the child tax deduction - what you’re saying is that you’re all for redistribution of wealth when it is YOU that is receiving the distribution.
2. Regarding payroll taxes - if you’re self-employed, you’re paying DOUBLE payroll taxes - over 15% total, because you pay both the employee and employer portions.
Everyone is forgetting another thing.
Cain also advocates the Chilean model of social security. That means, yes you won’t pay any payroll taxes *BUT* you would be contributing 10-20% each month to a retirement fund instead.
How in the heck do you get both the EIC and the home mortgage deduction?
Every year that *I* have filed, it’s one or the other.
I’ve NEVER claimed my mortgage deduction because I get more money from the EIC.
I run a mom and pop business and pay 15% of gross profits every year in payroll taxes. Some years I pay very little income tax, but that 15% is a constant. How do you do it?
“and I don’t even pay payroll taxes because I am self employed, I would be totally screwed under 9”
If you are self-employed and not paying FICA, I wouldn’t broadcast it on FR.
oh good grief, I had forgotten about the child tax credit.
I have 4 kids I can’t afford to lose that credit!
home mortgage interest deduction gone
child tax credit gone
business expense deductions gone
and I don’t even pay payroll taxes because I am self employed, I would be totally screwed under 999.
But the main point is that with a marginal income tax rate of 9%, instead of your current rate plus the 15% payroll tax, those deductions wouldn’t be big enough to worry about too much. Deductions are precious only because tax rates are so high. With low tax rates you won’t miss them.
and I don’t even pay payroll taxes because I am self employed, I would be totally screwed under 999.””
Don’t know what you do as a “self-employed” person, but you surely should be paying BOTH HALVES of the payroll taxes—a total of 15.3 percent. You are both the employee & the employer, therefore you pay the 6.2 % Fica & the 1.45% Medicare, which wquals 7.65% times 2, which equals 15.3%...It should be reported on your tax return under section/page SE for Self Employment.
Based on the postings here on FR, I am unclwar if businesses will still have ‘deductions’, even if some are carved down.
Particularly, paying out payroll to others would end up being taxed twice if such deductions don’t get allowed.
If you have been self employed for some time & have NOT had a professional prepare your tax returns, please get them reviewed & see if you are in a deliquency position. If so, get it straight as quickly as possible. This affects the records of your input into the SS Administration & will affect your retirement income in the future.
Being self employed, you are responsible for the full 15% (FICA and Medicare). Are you saying that you are a tax cheat and not paying it.
“and I don’t even pay payroll taxes because I am self employed, I would be totally screwed under 999.”
As a self-employed individual, you are supposed to be paying SECA (Self-Employment Contribution) towards Social Security and Medicare. Instead of FICA where the employer pays 15% and the employee 15%, with SECA you are supposed to be charged the full 30%.... so either you are paying SECA and didn’t realize they are payroll taxes or you owe A LOT in back taxes to the IRS...