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LabMaster

New Tax "Reforms" offering D.C. Benefits

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2 hours ago, Liahona said:

I have NEVER donated to drum corps looking for a tax deduction...but I guess others may have different motives...

Me either.  We help members financially with their fees.  I’m going to continue to do that no matter what. 

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The links that shofmon posts have the best information so far, to which I would only add that even the experts are still trying to figure out how exactly the law will affect people, which should not be surprising given how quickly and secretly it was written and re-written (even the very title of the bill had to be changed at the last minute for failing to comport with Senate rules), such that members of Congress are being criticized for things that aren't even in the law--but which they did in fact vote for.

(For instance, 227 members of the House voted to prevent teachers from deducting the cost of supplies they buy for their classrooms. However, that provision was changed in the version of the bill which was signed into law. So is it fair, if you are in favor of teachers having that deduction, to criticize those House members for voting that way?)

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21 minutes ago, N.E. Brigand said:

I would only add that even the experts are still trying to figure out how exactly the law will affect people...

Again, I have no comment on whether the law is good or bad, just that people are scrambling to make financial decisions based on it:

"Local tax collectors across the country are working overtime as people line up to pay their property taxes early -- before the new tax plan goes into effect" (source).

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3 hours ago, Liahona said:

I have NEVER donated to drum corps looking for a tax deduction...but I guess others may have different motives...

Deducting donations is only smart. No need in try to shame us for doing so. 

 

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15 hours ago, cixelsyd said:

, let us assume everything you say is true.  

 I wouldn't if I was you.

 For example, two of the sources he cited were on record about a decade ago for having supported a Fed luxury tax on wealthy  boat purchasors of expensive boats with price tags over 2 million dollars... as a way to raise needed Fed revenue. it was estimated by the tax increase proponents that it would raise between 5-6 billion in additional Fed annual tax revenues.

 But it did no such thing. What happened was that people that could afford these million dollar boats bought them overseas ( one, believe it or not, was a prominent US Congressmen that voted for the luxury boats surcharge tax ). Boat Building communities ( such as New London, CT for just one example that could be cited ) saw yacht and expensive boat purchases decline, and new orders for new boats decline. Quickly then, boat building Companies were forced to lay off carpenters, electricians, plumbers, painters, laborers, other blue collar workers by the thousands. Instead of these people retaining their  steady, good paying jobs, they were forced to stop paying taxes, and began collecting Fed. unemployment compensation. Well.. in less than 3 years, and no extra billions collected, ( as projected ) Congress was forced to admit their mistake ( and bad data ) and rescinded the luxury surcharge tax on expensive multi million dollar boats. But the damage had already been done. The Rich got their boats overseas, and the non wealthy who worked the ship yards in the US were tossed a life preserver,... and unfortunately, more than a few then drowned in a sea of personal and/ or small business debt. So the luxury surcharge tax on expensive boats, in essence primarily hurt the finances of the Joe's and the Janes, not the Uber wealthy in the US. The lesson ? Be leary of tax revenue projections from ALL sources. Especially the ones with a history of very subpar optimistic ( or fatalistic ) revenue projections that never quite panned out as they said it would in years past. Only time will tell us, imo, the TRUE overall effects on taxpayors, businesses, economy, non profits, schools, charitable giving levels,  rich, middle class, poor, etc.

Edited by BRASSO
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2 hours ago, N.E. Brigand said:

Again, I have no comment on whether the law is good or bad, just that people are scrambling to make financial decisions based on it:

"Local tax collectors across the country are working overtime as people line up to pay their property taxes early -- before the new tax plan goes into effect" (source).

 This is somewhat offset however by IRS agents no longer being required to " work overtime " to go after the non purchasers of Individual Health Insurance. Under current Health Insurance law, the Individual Mandate with Fed Gov't required people to purchase a commercial product from a private company, to wit... they were required to purchase a  Health Insurance policy from a Co. or pay a tax penalty to the IRS... as much as 1.5% of their annual income. The overwhelming majority of the non purchasers of Individual Health Insurance were primarily the Young and the Healthy too. However, under the new Tax Law, the Individual Mandate has been struck down and is no longer the law, and no longer something the IRS will be garnishing from the wages of Young/ Healthy for non compliance. The sourced info cited above makes no mention of this at all however. But for the Young and the Healthy, this is a pretty big deal if they don't have Health insurance premiums subsidized by their Employers, but must purchase it themselves instead if they want/ need Health Insurance for themselves.

Edited by BRASSO

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2 hours ago, kdaddy said:

Deducting donations is only smart. No need in try to shame us for doing so. 

 

giphy.webp

:peek:

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honestly.....it behooves businesses to donate...good PR. And during the great panic, aka the recession that started in 07 and supposedly officially ended in 2010 ( really the effects lingered until 2014), individuals donated to drum corps like always. ticket sales started rising annually in 12 or 13 ( and while the economy may have helped, you can't deny more fan friendly programming and some #### tight competition helped).....so.....I don't think it'll really hurt. Several corps have gotten really smart about how they generate revenue beyond dues, merch sales and their share of the DCi funds, and many have gotten wise about spending as well.

 

We'll probably see the same corps that beg continuously beg continuously. There may be some finanicial one offs, but I think as a whole DCI's member corps have gotten a good chunk of their acts together

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3 hours ago, BRASSO said:

This is somewhat offset, however, by IRS agents no longer being required to "work overtime" to go after the non-purchasers of Individual health insurance. Under current health insurance law, the individual mandate from the fed. gov't. required people to purchase a commercial product from a private company, to wit... they were required to purchase a health insurance policy from a co. or pay a tax penalty to the IRS--as much as 1.5% of their annual income. The overwhelming majority of the non-purchasers of individual health insurance were primarily the young and the healthy, too. However, under the new tax law, the individual mandate has been struck down and is no longer the law, and no longer something the IRS will be garnishing from the wages of young/healthy for non-compliance. The sourced info cited above makes no mention of this at all, however. But for the young and the healthy, this is a pretty big deal if they don't have health insurance premiums subsidized by their employers, but must purchase it themselves instead if they want/need health insurance for themselves.

I can't respond to this in any substantive way because it will get this thread too far into prohibited off-topic matters, so I'll just say that there are other important and probably negative side effects (in fact, likely fatal in a small number of cases) that are likely to result from this particular part of the new law; you may wish to give those possibilities some consideration; PM me if you want specifics.

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33 minutes ago, Jeff Ream said:

Honestly ... it behooves businesses to donate: good PR. And during the great panic, aka the recession that started in 07 and supposedly officially ended in 2010 (really the effects lingered until 2014), individuals donated to drum corps like always.

Do the 990s show DCI and the corps receiving donations at the same levels each year? Wasn't the G7 in part a reaction to the top corps, at the heart of the Great Recession, getting worried about their finances and wanting to to take more of the scraps for themselves? Didn't the number of active corps fall during those years, only stabilizing around 2014?

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