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0 pointsFreakLegion8mo ago0 comments

The BBB increased the QSBS exclusion and gross asset value limit by 50% and quadrupled the SALT deduction, among other things. I guess you could argue the meaning of "for the wealthy" here, but it would be hard to do in good faith.

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WalterBright8mo ago

> it would be hard to do in good faith

QSBS is capped, and the SALT deduction goes away with increasing MAGI. They're targeted at the upper middle class, not the wealthy.

The "S" in QSBS stands for "Small" business.

The previous limits were fixed, and this change seems to be adjusting it for inflation. It's been around since 1993. An inflation adjustment is not a "cut".

Even so, as I'm sure you're aware, these two items are not what people mean by "tax cuts for the wealthy". If you ask anyone (other than a tax accountant) what a QSBS deduction is, you'll get a blank stare.

FreakLegionOP8mo ago

QSBS is only capped for sweat equity. My Series A lead gets a $200m exclusion. With the new $75m asset limit, the Series B lead will probably triple that.

Things like QSBS and carried interest are absolutely part of what people mean by "tax cuts for the wealthy".

WalterBright8mo ago

> Things like QSBS and carried interest are absolutely part of what people mean by "tax cuts for the wealthy".

No they aren't. Nobody mentions them on the news/editorials, nobody's heard of them but you and I. What people meant is the marginal tax rate.

I am not a tax accountant, and never heard of them before your mention. I spent some time googling it, and it looks like the limits were adjusted for inflation.

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WalterBright8mo ago

> it would be hard to do in good faith

QSBS is capped, and the SALT deduction goes away with increasing MAGI. They're targeted at the upper middle class, not the wealthy.

The "S" in QSBS stands for "Small" business.

The previous limits were fixed, and this change seems to be adjusting it for inflation. It's been around since 1993. An inflation adjustment is not a "cut".

FreakLegionOP8mo ago

QSBS is only capped for sweat equity. My Series A lead gets a $200m exclusion. With the new $75m asset limit, the Series B lead will probably triple that.

Things like QSBS and carried interest are absolutely part of what people mean by "tax cuts for the wealthy".

WalterBright8mo ago

> Things like QSBS and carried interest are absolutely part of what people mean by "tax cuts for the wealthy".

No they aren't. Nobody mentions them on the news/editorials, nobody's heard of them but you and I. What people meant is the marginal tax rate.

I am not a tax accountant, and never heard of them before your mention. I spent some time googling it, and it looks like the limits were adjusted for inflation.

1 more reply

j / k navigate · click thread line to collapse