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I was under the impression that in a capitalist system, demand for stuff created jobs.
How can a rich person who owns a business give me a job if nobody wants what he is selling?
There is a lot of money. It is all off shore. What happened to all the job creation the last time they cut taxes?
You can demand things all you want. People have to have the money to make the purchase.
A rich person won't be rich for long if no one is buying what he is selling.
A lot of money is off shore because it's too expensive to be used here (high taxes and too many regulations). That's why Trump is looking to shift 20% of the taxes from the corporate tax rate to taxing imports.
There's a huge causal link that people continuously overlook in "trickle down."
Because I have more money as a business owner does not mean I suddenly decide to start hiring people. That's foolish.
When they buy their 7th house (with the extra money from trickle down), they might hire a few more illegal house cleaners and landscapers. But they surely won't start hiring more workers unless they start selling more products and/or services that necessitate the need for more workers. Even then, they might offshore the work anyway, or outsource it to a company that uses offshore labor.
When they buy their 7th house (with the extra money from trickle down), they might hire a few more illegal house cleaners and landscapers. But they surely won't start hiring more workers unless they start selling more products and/or services that necessitate the need for more workers. Even then, they might offshore the work anyway, or outsource it to a company that uses offshore labor.
Guess what else they buy - all of the stuff that goes in the home - roof, wall material, paint, plumbing, electrical, paintings, stereos, computers, yard furniture, pools... people have to manufacture that stuff as well - and construct it, and maintain it also. It all helps the economy. It all adds to tax revenue, assuming everything is above board.
One - we have to realize the the upper income earners pay the majority of the taxes, so yes, they are going to get the majority of the cut benefits. Aside from the envy that people express - what if it helps? Tax cuts usually bring in more revenue... however, deficits are a function of revenue and spending.
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No, tax cuts don't bring in more revenue. The only economists who still believe the Laffer curver are those that are bought and those that are loons. See the example of Kansas - the Republican government cut taxes and now their tax revenues have crashed.
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Two - I think Trump - by looking at taxing imports, is hoping to get companies to make their products here - which would employ more people and hopefully expand the pool of people paying into the system, which is a good thing.
No, it won't. The Smoot Hawley Tariff of 1930 was enacted to do what you propose would happen - that tariff was a failure in terms of job creation.
A border tax while lowering corporate rates is exactly the kind of change I would expect from Trump. Since he began campaigning, he's been all about infrastructure. But the problem is the already brutal debt this country is carrying. And if/when business starts shifting from importing to US made, we'll have to deal with the higher costs of labor in this country, benefit packages which get choked by insurance companies, etc. Very complicated stuff.
Senate Majority Leader Mitch McConnell said that any tax overhaul can’t add to the growing U.S. budget deficit, a position that places him at odds with President Donald Trump, who has called for a significant tax cut.
McConnell said in an interview Tuesday with Bloomberg News that the nation’s “alarming” debt requires an approach that would balance tax cuts with new sources of revenue to avoid changing overall government receipts.
“It will have to be revenue-neutral,” he said. “We have a $21 trillion debt.”
...
In an interview with The Economist that was published last week, Trump said “it is OK” if tax legislation increases the deficit in the short term in order to “prime the pump” for economic growth.
One of the tax changes being discussed is a border levy tax that would tax imports 20%. I assume this to counter the corporate tax being lowered from 35% to 15%. Companies say that it would cause them to raise their prices. The companies would have to choose to pay the extra tax, or make more of their goods here. I'm OK what that.
Anyway - there is going to be a big tax battle on this.
Trumps tax cuts will add $7 trillion dollars to our national debt in the next 10 years, and then add $20.7 trillion dollars to our national debt in the next 20 years.
Trumps tax cuts will raise low income workers after-tax income by 0.8% and raise middle class Americans after-tax income by 1.5% (one point five percent.)
Then Trumps tax cuts will raise the richest 1% of Americans after-tax income by 13.5%, and raise the richest 0.1% of Americans after-tax income by 14.2%.
Oh lookee here crooked mitch wants to continue the theft of earnings from working folks at all costs.
Where was his fiscal concern while obama piled up the debt?
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