My theory: Indeed, if we just cut income tax instantly, the reaction by corporations, the stock market and real estate would be so sharp it would lock up the entire system. Basically we have to first reverse quantitative easing, and then we shrink interest to almost nothing. Writing interest off on a American car gives an example; send the bill to the IRS instead. It's the Fed's bad money and interest, its their bonds they bought that artificially stimulated the economy, so they can eat their lunch. It also results in sort of a tariff against the Fed. Then you start reducing income tax liability and then position the country to be lifted from it. The death of the income tax is the end of the Fed.
Unfortunately we the people are the ones who create money, so in order to get it back, we have to starve the root instead of cutting it all the way out.
Once upon a one time, I was able to deduct interest off my credit cards and car payments
** Prior to 1987, most personal interest expenses, including interest on car loans, could be written off as an itemized deduction. Under current law, only mortgage interest and certain investment interest are available as itemized deductions.
Instead of dumping a tax abolition.... take it down slowly in the form of MASSIVE INCENTIVES to re-industrialise. It makes sense. You could eliminate tax all together, but you risk a capital flight to foreign goods. Better to take it down in a way that improves domestic industrial investment.
Later, once the industrial base is rebuilt, you can remove the taxes wholesale, and you are now in a better position. It's actually genius.
eh, we will have to see how all of this pans out. Its not all going to be smooth as silk. lol
edit - I did mail in my property tax check over 2 weeks ago and it hasnt been cashed yet. So either its lost or theyre taking their time cashing it.
To all old-timers out there. Was there a time when a taxpayer could deduct auto loan interest from their taxes. My memory says yes, maybe back in the 60s, but my memory isn’t what it used to be.
Yes, prior to 1987, the U.S. tax code allowed individuals to deduct personal interest expenses, including interest on car loans, as itemized deductions. This changed with the Tax Reform Act of 1986, which eliminated the deduction for personal interest expenses, such as those from car loans and credit cards. Since then, car loan interest has qenerally not been deductible for personal use vehicles However, if you're self-employed or a business owner and use your vehicle for business purposes, you may be eligible to deduct the portion of car loan interest that corresponds to your business use.
Potentially a big nothing burger. By far most people now get the standard deduction which hurts churches and other charitable orgs. Business vehicles interest is already deductible. The tax code is so complex as to be almost illegal.
@ all the people saying I thought he said no income tax, this stuff takes time, did you really think that you wouldn't be filing taxes this year? This is a massive undertaking and you have to give time for doge to work and for changes o be made.
My state did away with state income taxes under a certain income level but we voted to keep the property tax for now because if we didn't it would hurt our state economy too much, we have tons of roads to maintain, and two seasons, winter and road construction season.
So yeah I agree with doing away with the federal income tax, but you have to be patient and let things fall into place.
I mean, it's going to take some expensive car loans to get a lot of people enough interest to make it worth claiming deductions. The standard deduction is so high now, it probably only makes sense for people getting overpriced homes with 6+% rates and then doubling up and financing an overpriced computer on wheels with a similar rate. I'm guessing this will make more sense for business fleets.
Car interest used to be deductible in the 80s. I remember when they removed a lot of deductions and all that really remained was interest on your mortgage. I don’t know why Trump says it’s never been done.
I just quit paying income tax because of what Doge exposed, I refuse to give one red cent more to corruption. So... should I still be expected to get arrested?
Ok, does this mean that if I pay $1,000 in interest for my American made car, and owe $1,000 in income taxes, I will not owe any income tax? Or, does this mean the $1,000 I paid in interest on my American made car [insert IRS math here] means I can deduct $10 from the $1,000 in income taxes I owe?
Isn't "No Income Tax" the goal though?
Eventually. But that comes after they balance the budget. Push through the cuts they want done. And get Tariff income flowing.
All three things have to come first before that. Which could take the vast majority of his term
This. You ease the masses into this stuff. They’re doing it right.
Agreed they have a strategic plan and road map how to reach that point.
It also steers future votes. Carrot on a stick enters the chat.
My theory: Indeed, if we just cut income tax instantly, the reaction by corporations, the stock market and real estate would be so sharp it would lock up the entire system. Basically we have to first reverse quantitative easing, and then we shrink interest to almost nothing. Writing interest off on a American car gives an example; send the bill to the IRS instead. It's the Fed's bad money and interest, its their bonds they bought that artificially stimulated the economy, so they can eat their lunch. It also results in sort of a tariff against the Fed. Then you start reducing income tax liability and then position the country to be lifted from it. The death of the income tax is the end of the Fed.
Unfortunately we the people are the ones who create money, so in order to get it back, we have to starve the root instead of cutting it all the way out.
That's what I thought also.
^ just because it’s the goal doesn’t mean it all happens in month 3.
The 'no income tax' is the goal, but he needs tariffs money coming in and cuts made before that can be implemented.
Once upon a one time, I was able to deduct interest off my credit cards and car payments ** Prior to 1987, most personal interest expenses, including interest on car loans, could be written off as an itemized deduction. Under current law, only mortgage interest and certain investment interest are available as itemized deductions.
Income tax? Damn.
H.R.25 - FairTax Act of 2025
Many states have already abolishes state income taxes, its proven to work.
Instead of dumping a tax abolition.... take it down slowly in the form of MASSIVE INCENTIVES to re-industrialise. It makes sense. You could eliminate tax all together, but you risk a capital flight to foreign goods. Better to take it down in a way that improves domestic industrial investment. Later, once the industrial base is rebuilt, you can remove the taxes wholesale, and you are now in a better position. It's actually genius.
This. If you just remove income tax overnight. All you get is massive inflation and no incentive to reindustrialise at all.
This isn't the Biden Administration that bans something (like gas production) without first putting an alternative plan in place. Trust the plan.
well, there goes 'abolish the taxes'
That's what I thought too.
eh, we will have to see how all of this pans out. Its not all going to be smooth as silk. lol
edit - I did mail in my property tax check over 2 weeks ago and it hasnt been cashed yet. So either its lost or theyre taking their time cashing it.
how about we get rid of income tax and call it good..........
That's what I say too.
How about any car? How about no income tax?
Well, I get that he wants people to buy cars made in America so more companies will come to the US to do business.
True. But I guess I'm so far not a fan of US car quality, style, etc. But it is what it is.
That’s why you should be happy so many foreign manufacturers are moving here.
You'll be surprised to find that the most US made cars (assembly and content) are not US brands. https://www.cars.com/articles/2024-cars-com-american-made-index-which-cars-are-the-most-american-484903/
Thats what tariffs are actually supposed to do
How about we be patient until an alternative plan is in place?
To all old-timers out there. Was there a time when a taxpayer could deduct auto loan interest from their taxes. My memory says yes, maybe back in the 60s, but my memory isn’t what it used to be.
Yes, prior to 1987, the U.S. tax code allowed individuals to deduct personal interest expenses, including interest on car loans, as itemized deductions. This changed with the Tax Reform Act of 1986, which eliminated the deduction for personal interest expenses, such as those from car loans and credit cards. Since then, car loan interest has qenerally not been deductible for personal use vehicles However, if you're self-employed or a business owner and use your vehicle for business purposes, you may be eligible to deduct the portion of car loan interest that corresponds to your business use.
Reagan stopped that
Tax Reform Act of 86 changed everything.
Damn! I guess income tax is not going to go away then, at least until they come close to getting everything balanced.
So, no income tax is off the table now? Dam!
No. That’s still the goal. You can’t just go straight to it before tariffs start replacing revenue though.
I think the debt should be invalidated. It was all put upon us through deception. The contract is null and void.
Agreed.
Thanks for the clarification.
Potentially a big nothing burger. By far most people now get the standard deduction which hurts churches and other charitable orgs. Business vehicles interest is already deductible. The tax code is so complex as to be almost illegal.
Except that most people don't qualify to itemize deductions anymore.... The standard deduction is so high now....
Yeah what happened to abolishing the IRS altogether?
@ all the people saying I thought he said no income tax, this stuff takes time, did you really think that you wouldn't be filing taxes this year? This is a massive undertaking and you have to give time for doge to work and for changes o be made. My state did away with state income taxes under a certain income level but we voted to keep the property tax for now because if we didn't it would hurt our state economy too much, we have tons of roads to maintain, and two seasons, winter and road construction season.
So yeah I agree with doing away with the federal income tax, but you have to be patient and let things fall into place.
I don't think his wording is gonna sit well with his followers. NO INCOME TAX AT ALL!!!!
I mean, it's going to take some expensive car loans to get a lot of people enough interest to make it worth claiming deductions. The standard deduction is so high now, it probably only makes sense for people getting overpriced homes with 6+% rates and then doubling up and financing an overpriced computer on wheels with a similar rate. I'm guessing this will make more sense for business fleets.
Back ib the 79s you could deduct interest on car loans and credit cards
Car interest used to be deductible in the 80s. I remember when they removed a lot of deductions and all that really remained was interest on your mortgage. I don’t know why Trump says it’s never been done.
Yeah, to little to late.
https://x.com/RapidResponse47/status/1905674815312118110
Damnit!!! 0% for 72 during cophid...
Oh well... still using their money interest free
Support American Made!! Love it!
What income tax? I thought that was over. There should be no income tax and any tax the states apply like sales or use tax should be rescinded too.
I cant itemize anyway. Wont do me any good.
Wowie. /golf clap
I just quit paying income tax because of what Doge exposed, I refuse to give one red cent more to corruption. So... should I still be expected to get arrested?
Used to be able to claim interest on credit cards Reagan stopped that
Not important to me. I know better than financing a depreciating asset.
It would be better to make it a tax credit.
We used to be able to deduct all interest. That changed to only your mortgage. Cars now cost what houses used to cost.
Ok, does this mean that if I pay $1,000 in interest for my American made car, and owe $1,000 in income taxes, I will not owe any income tax? Or, does this mean the $1,000 I paid in interest on my American made car [insert IRS math here] means I can deduct $10 from the $1,000 in income taxes I owe?
If you paid $1000, I think it means you claimed to make $12,500 in income.
You subtract $1000 from $12,500 (or whatever that marginal bracket rate is) and pay 8% on $11,500, so $920 instead of $1000.
(Edit: The current low bracket is 10% on $0-$11,600, and 12% after that, but I’m sticking with 8% flat to $12,500)
Hope the liberation of people is worldwide! In my country people follow politicians blindly and any new tax is easily accepted!
What income taxe