And here’s some more good <cough> news about the tax cuts that passed :
The $330 billion tax-cut plan allows small-business owners and the self-employed to write off the entire cost of vehicles that weigh 6,000 pounds or more.
That means doctors, lawyers and other self-employed professionals can buy a $75,000 Hummer H2, for example, and write off the purchase price as a business expense.…
“Imagine being able to purchase the #1 large luxury SUV in America today, the Hummer H2 with its incredible styling, bona fide off-road capability and awesome driveability and receive a deduction for the entire purchase amount from your taxes this year!” wrote Chris Thorpe, sales representative.
All you need is an angle, I’m tellin’ you… Amazing.
I’ve corrected the table in ’s Picket Line.
I’d understated “Brian”’s tax burden by a few hundred dollars.
I also added a column for “Celia” who makes only $15,000 but doesn’t contribute to any retirement accounts.
Celia makes less than “Alice,” but because Alice puts a bunch of money into retirement accounts, their adjusted gross income is the same.
But Celia has to pay taxes on her income, and Alice doesn’t.
So Alice ends up with more to spend during the year, $6,150 saved up for retirement, and no tax burden — while Celia gets shafted.
I then added a column for “Don” that shows how if Celia contributed 8% of her income to a 401K she’d have $470 less to spend this year, but $1,200 saved up for retirement — overall, she’d be $730 richer because she would have eliminated her federal income tax burden.