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Old 11-21-2017, 04:43 AM
 
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Cutting taxes on rich people and the corporations they own isn’t going to cause economic growth. Rich people don’t spend more if you cut their taxes. Corporations don’t hire more staff if you cut their taxes. Driving up the national debt to make rich people richer just gets the US closer to doing a Greece.

I’ve been a 5%er since the 1980s. My effective tax rate is far lower now than it was under Ronnie. Another tax cut won’t change my life at all. It would be better for the country if I paid more taxes so the budget is balanced in good economic times and so the country is investing in infrastructure and improving the skills of the labor force. I’d like the corporate tax code rewritten to kill the loopholes and lower the rate. I’d kill the housing subsidy 5%ers get writing off interest and property taxes and reserve that for middle class first home buyers. Payroll taxes need to go up to 100% fund Social Security instead of 70% funding the program. What the Republicans are doing now is going to cause an epic economic collapse. Another $1.5 trillion of debt. It’s crazed.
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Old 11-21-2017, 08:41 AM
 
Location: Alexander Archipelago
2,803 posts, read 1,497,897 times
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Quote:
Originally Posted by cttransplant85 View Post
According to Heritage. I believe it; Q4 is pacing around 4% and this is before anything is done on the tax side. There are no obvious bubbles like we had in 08. This would put major upward pressure on wages. Lets hope it gets done.


How the GOP Tax Bill Will Affect the Economy | The Heritage Foundation
Beyond wishful thinking, this is just a crack pipe dream. 5-6%?

There's no real evidence from the past to confirm that cutting taxes stimulates growth.

I like this guys' warning:

"You have to come back to the maxim that economic recoveries donít die of old age. But like all of us, they donít walk as fast as they used to," says Mark Hamrick, a senior economic analyst at Bankrate.com. "What you don't want to do is exacerbate the sustainability of the [economic] expansion by injecting an elderly athlete with adrenaline, which causes him to have a heart attack."
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Old 11-21-2017, 09:06 AM
 
Location: la la land
27,167 posts, read 11,349,748 times
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Quote:
Originally Posted by cttransplant85 View Post
According to Heritage. I believe it; Q4 is pacing around 4% and this is before anything is done on the tax side.
Did you check any non partisan sources for confirmation of that?

"The economic momentum should continue into the fourth quarter, with 2.7% growth....Expect a pickup in growth to 2.6% in 2018, after 2017ís 2.2% full-year pace"

https://www.kiplinger.com/article/bu...-forecast.html

It is not up because of Trump or his tax plan, but rather because there has been large increases in car sales and construction due to the storm damage. There has to be an impetus to move the GDP in a mature economy, either new technology or innovation that amount to major changes in the economy, or increases in government spending such as disaster recovery. I don't know why some people have trouble figuring that out. At no point in time have corporate tax cuts raised the GDP.

https://www.cbpp.org/economy/economi...current-limits
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Old 11-21-2017, 09:39 AM
 
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Tax reform has a 20% corporate tax rate on domestic operations but only 12.5% on overseas operations. This is an incentive for corporations to relocate operations overseas, and could very well lead to increased unemployment and layoffs in the U.S. You won't get 5% GDP growth in that scenario.
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Old 11-21-2017, 09:42 AM
 
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I wouldn't mind seeing pass-throughs get the biggest cuts. Small businesses. A majority of the employment in this country comes from them. Corps aren't exactly bleeding poverty right now. In fact just the opposite. They don't need the help.
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Old 11-21-2017, 10:18 AM
 
3,529 posts, read 2,173,136 times
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Quote:
Originally Posted by Ro2113 View Post
I wouldn't mind seeing pass-throughs get the biggest cuts. Small businesses. A majority of the employment in this country comes from them. Corps aren't exactly bleeding poverty right now. In fact just the opposite. They don't need the help.
Exactly. If you want to know how to grow the GDP, it's a question of who would spend the money they got. Corporations already have loads of cash they're sitting on, a tax cut will just get thrown on the pile. They aren't holding back for lack of funds, but lack of customers with enough money to buy more of their products.
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Old 11-21-2017, 10:56 AM
 
Location: Olympus Mons, Mars
5,000 posts, read 8,032,221 times
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Markets are up 1.5% just in the last 2 days based on tax reform... if it does not pass there will be mayhem in the markets, as Trump himself would say "believe me"!!!

Quote:
Originally Posted by Ro2113 View Post
It's amazing how people can convince themselves the economy is struggling when practically every metric says otherwise.
It depends on who you are talking about, I think the gains are polarized... the upper middle class and the wealthy are making out like bandits, the middle and lower are being increasingly screwed - this is due to the fact that most of the assets that are inflating to the moon (real estate and equities) are owned by the former group. Wages etc. which the middle and lower participate in are going down inflation adjusted.
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Old 11-21-2017, 10:59 AM
 
698 posts, read 383,163 times
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Quote:
Originally Posted by Ro2113 View Post
I wouldn't mind seeing pass-throughs get the biggest cuts. Small businesses. A majority of the employment in this country comes from them. Corps aren't exactly bleeding poverty right now. In fact just the opposite. They don't need the help.
Small and large businesses each employ about half of all workers. The standard dividing line between small and large businesses is 500 employees. On that basis, small businesses are responsible for about 65% of new private sector employment creation, but also for impressive shares of new private sector UN-employment creation due to the high rates at which they fail. Of the roughly 28 million small businesses out there, only 3-5% make any net positive contribution to the economy at all. The rest tend to be dead-weight at best.
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Old 11-21-2017, 11:03 AM
DKM
 
Location: Thousand Oaks, CA
2,060 posts, read 671,463 times
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Deficit funded tax cuts should be considered stimulus and saved for a downturn.
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Old 11-21-2017, 11:04 AM
 
698 posts, read 383,163 times
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Quote:
Originally Posted by FrankMiller View Post
Exactly. If you want to know how to grow the GDP, it's a question of who would spend the money they got. Corporations already have loads of cash they're sitting on, a tax cut will just get thrown on the pile. They aren't holding back for lack of funds, but lack of customers with enough money to buy more of their products.
Same old Mexican standoff as in the Great Recession. Consumers reluctant to spend because of fears of job and income losses. Firms reluctant to hire due to consumer demand being in the doldrums.
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