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Biden wants to spend $750b to help middle class families pay for daycare (you’ll have a choice between getting a $666 monthly check or pay for childcare vouchers not more than 7% of your income). In exchange, he proposes to get rid of all the special tax breaks in the real estate industry, especialy for people making $400k+.
How would this affect the frum community? For or against?
Against.
At first it will help the frum community but the government isn’t going to indefinitely give a $666 monthly check or pay for childcare vouchers. Pretty soon down the line they will start saying that if you want us to pay you have to follow our rules and send to a daycare that meets certain legal requirements …
Those requirements (1) will be very difficult for a frum daycare to meet (2)will greatly increase the cost of daycare wiping out the $666 monthly (3)probably decrease the quality of daycare being given in frum playgroups. Dedicated morahs will be replaced by indoctrinated “child care provider specialists”
It is true that if the liberals get too much power those regulations will be put in place anyway only without the the $666 monthly even so they will be easier to ignore without the loss of government funding
It will also hurt the frum community in the sense that many of the major frum philanthropists make their money from real estate
“In exchange, he proposes to get rid of all the special tax breaks in the real estate industry, especialy for people making $400k+.“
Doesn’t that negatively affect Ctlawyer?
What “special tax breaks” is he talking about? Like capital gains treatment?
Remember: Whatever goodies the government is going to pass out all come with strings attached. Your freedom is at stake when you are dealing with Big Government politicians like Biden. Take a pass.@CoffeeAddict
I have not read the proposed plan
I do not know what ‘special tax breaks in the real estate industry for people making $400K+’ are.That said, the OP is mis-characterizing the Plan and how it is to be funded. I did a quick Google search and find:
“Biden’s campaign says the 10-year plan will be paid for by “rolling back unproductive and unequal tax breaks” for real-estate investors making more than $400,000, as well as increasing “tax compliance for high-income earners.”
The tax breaks are not in the real estate industry per se, but for those investors in Real Estate making more than $400K per year.I read this to mean profits of more than $400K per year from Real Estate Investments, not that one’s income is $400K+ and has any profits from real estate investments.
Please do not worry for CTL. #1 I do not personally profit more than $400K annually from Real Estate Investments. As a Trust and Family attorney, most of our real estate holdings are held in various trusts.
Furthermore, to quote my late father Z”L, when he’d be writing a hefty check every April 15th. “America is a great country, you’ve got to make it to pay it.”
It is both my honor and privilege to make a large income and pay taxes on it.
BTW, I filed my taxes July 14th. This year, I was able to restructure things due to the Trump Tax changes and restore the 25K that had not been there for Tzedaka in 2018. B”H our philanthropy increased to its highest level ever in 2019.Since frum yidden disproportionately benefit from real estate tax breaks and loopholes, just assume the Biden plans is just another form of latent antisemitism propagated by the Dems. Alternatively, you might check the facts and discover we have a child care crises in our country for low and middle income working families and that his plan is well intended and necessary and the issue is how much federal funding is appropriate.
The Biden plan will also cover 12 weeks paid family leave as well as free universal pre K programs for 3-4 yo’s.
CTlawyer,
When trump put out his tax plan you said something of how it’s bad because you have to pay more money
But with Biden you say
“Furthermore, to quote my late father Z”L, when he’d be writing a hefty check every April 15th. “America is a great country, you’ve got to make it to pay it.”
It is both my honor and privilege to make a large income and pay taxes on it.“What is it
Big government programs are awesome. I, for one, happen to love the Post Office as well as the massive Public Education system. Both are doing wonders for us as a country.
Time to renew my driver’s license. Where’s the end of the line…?
Dear Ed,
Your money is where you consider yourself free?!?If you have a fear of big government, than you should speak up about Portland.
Dear Shnitzel,
Funny that you did not put anything about elder care or any of the other parts of his plan. We as a community would see more benefit out of those parts than the childcare programs. Our community is very resourceful, and we will make the best of it. If I remember correctly, your take is that our activists should not push for financial benefits that are specific to our community.A little correction. There does not seem to be any significant mention (In the care plan itself.) of how to pay for this bill. What you mentioned about real estate taxes, is from a different source. To me that means that Biden would push for these tax changes, regardless of what programs he puts in place. Every congress and every president push for changes to the tax code. And the public never gets a good feel for why and how they are being taxed.
@CoffeeAddict
I objected to Trump’s plan that capped deduction for state taxes at $10K. This was aimed at Blue states. The flyover states have much lower taxes/My comment quoting my late father has to do with income taxes.
I have made no comment about the Biden plan as I stated I have yet to read the plan and there are no firm details, Furthermore, I will comment after the plan is finalized and available to digest.
That said, there is a good reason for like type property swaps, besides avoiding capital gains taxes on a direct sale. Once a property is fully depreciated for tax purposes (generally 29 years, the loss of the depreciation expense makes the same rents a taxable profit and is a disincentive to keep the building. If one swaps the new owner gets to depreciate it all over again, rents can remain the same and the commercial tenants are not hit with a rent increase if they have a triple net lease to cover the increased income tax without depreciation.
I have clients who have used to swaps for tax advantages, often on small commercial buildings or apartment buildings of less than 12 units. I don’t generally sell real estate, but place it into trusts for future generations of the CTL clan
Dear Shnitzel,
I did not read anything thoroughly. [Including this thread.] I think it would help our families that want to keep their patriarch out of a home. Especially, bringing an elderly parent to the children or grandchildren in a different state. Nursing homes would be for those who do not have family. The day care seems to be mostly free pre-k in public schools. It would affect us if our schools are eligible for funding. That would be a big shake up to our economics.
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