Trump Tax Cut

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broman
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Trump Tax Cut

Post by broman »

Image

Corporate profits in the last ten years and they are getting a 14% tax cut

White House Economic Advisor Gary Cohn had an awkward moment last Tuesday at a Wall Street Journal CEO Council meeting. Sitting on stage to promote the tax cuts, Cohn watched as the moderator asked the roomful of executives whether their companies would expand more if the tax bill passed.

When only a few hands rose, Cohn looked surprised and said, “Why aren’t the other hands up?”

So maybe they were distracted or needed a minute to think. Fair enough. A few hours later, White House Economist Kevin Hassett appeared at the same event and asked the same audience the same question.

He got the same result: only a few raised hands.

Former Brightcove CEO David Mendels explained how big companies view this in a November 10 LinkedIn post.

A tax cut for corporations will increase their profitability. Why we should believe that this increase in profitability will lead to wage increases when we have already seen that increases in profitability over the last 10 years did not, but rather went to stock buybacks and dividend increases that benefitted the investors?

As a CEO and member of the Board of Directors at a public company, I can tell you that if we had an increase in profitability, we would have been delighted, but it would not lead in and of itself to more hiring or an increase in wages. Again, we would hire more people if we saw growing demand for our products and services. We would raise salaries if that is what it took to hire and retain great people. But if we had a tax cut that led to higher profits absent those factors, we would ‘pocket it’ for our investors.”

By “pocket it,” Mendels means executive bonuses, share buybacks, or higher dividends.
https://www.forbes.com/sites/patrickwwa ... a3a6982ce0
broman
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Re: Trump Tax Cut

Post by broman »

For the little people

"With this plan, the typical family of four will save $1,182 a year on their taxes."
— Paul Ryan on Friday, November 3rd, 2017 in a speech

49.25 dollars a paycheck...
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Re: Trump Tax Cut

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Commie Forbes totally left out the immense role that magic fairy dust will play in creating jobs. In an economy that's at record low unemployment.
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Re: Trump Tax Cut

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Bit on overseas profits...

The third leg of corporate tax reform is moving towards a “territorial” tax system in which foreign profits are taxed at an unspecified lower rate. The US currently taxes profits earned abroad by American companies, which has led businesses to stash about $2.6 trillion in other countries.

History shows that rather than investing in their employees, corporations will use these tax-free funds to reward their investors. In 2004, Republicans tried a “one-time” tax holiday for foreign profits. Companies used the preferential rate to reward shareholders before going back to amassing cash abroad. Republicans argue that eliminating taxes on foreign profits will incentivize investing in the US. But it looks more likely to encourage multinationals to spend more abroad and find loopholes that let allow them to keep money overseas.
http://www.motherjones.com/politics/201 ... -the-rich/

In 1986, executives got most of their pay through salaries, which showed up as ordinary income on their personal tax returns. But executive compensation has shifted dramatically since 1986. Company stock and stock options soared from 24% of compensation in the 1980s to 60% in the 2000s. As a result, executives today are more fixated on their corporation’s stock price and their capital gains rate
http://time.com/5005163/2017-tax-reform ... can-trump/

But the coal mines are opening up.....
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Re: Trump Tax Cut

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Seems the tax cut bill is getting through the conference committee this week. The GOP just eliminated their most powerful tool to fend off a recession. In fact, it is really the only tool congress has that can have a near term impact on a recession. Now we will only have two options. Massive quantitative easing or negative interest rates which are both controlled by the Federal Reserve. Japan tried both and neither worked. They had a 20 year recession and lost all global strength and financial leadership. This is what will happen to America. This isn’t the sky is falling or the end of the world. This is us fading away over the next 200 years to a few lines of history and it’s America’s fault.

It must be what the fall of the Roman Empire looked like. Only we'll have WiFi.
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Re: Trump Tax Cut

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I was going to complain that the title of this thread should be Trump Tax "Reform", but actually it's correct...thanks to this steaming pile Trump is getting a tax cut
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Re: Trump Tax Cut

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From NPR. And from Twitter. The biggest tax cuts ever. In the history of the world. Ever. Period.

Corker down at the bottom, there. He picks up about a million a year from the last-minute change he claims he didn't know about but changed his vote just... cuz.
Screenshot-2017-12-19 Donald J Trump on Twitter.jpg
Screenshot-2017-12-19 CHARTS See How Much Of GOP Tax Cuts Will Go To The Middle Class.jpg
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Re: Trump Tax Cut

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I would love to hear from a person who believes Trump and his rich friends are going to lose money becsuse of this deal.
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Re: Trump Tax Cut

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The rhetoric from conservatives is almost schizophrenic. In one breath the economy is going gangbusters. The Dow Jones being the example used.

In the next breath tax reform is needed to get the economy going again.

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Re: Trump Tax Cut

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Seems like everything Trump's said lately has contradicted something he said just before it.
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Re: Trump Tax Cut

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Apparently Issa and Rorhabacher voted No.
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Re: Trump Tax Cut

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Kind of ironic, but their being vulnerable in November forced them to actually vote the way their constituents wanted them to.
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Re: Trump Tax Cut

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McClintock was the only one that flipped. All of a sudden he doesn't care about deficits.
They told me if I voted for Hillary Clinton the president would be emotional, impulsive, and unpredictable. They were right. I voted for Hillary Clinton and got a president that is emotional, impulsive, and unpredictable.

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Re: Trump Tax Cut

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John Q. Public wrote:Seems like everything Trump's said lately has contradicted something he said just before it.
This is what will always make me :eh?: . Trumps not lying to me.... He's lying to his supporters.
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Re: Trump Tax Cut

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Meanwhile.... Susan Collins vote trade off is already being shot down by the House...
Rep. Tom Cole (R-OK), said there is widespread opposition in the House to these policies, which they see as propping up Obamacare.

“Our guys do not want to be in the position of upholding a system that we all oppose and that we tried to repeal and did repeal in this chamber. That’s a real problem,” Cole said, before taking aim at Collins. “We’re not going to let ourselves be blackmailed by one senator for one vote in the United States Senate. I don’t think so.”
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Re: Trump Tax Cut

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I don't remember seeing Mr. Cole's name on the "No" list.
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Re: Trump Tax Cut

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Collins announced Monday that she would vote for the tax bill based on promises from President Trump and Senate Majority Leader Mitch McConnell (R-KY) to support two health care bills aimed at mitigating the expected damage from the tax bill’s provision killing Obamacare’s individual mandate. One bill would to restore government subsidies to insurance companies known as CSRs that the Trump administration cut off earlier this year, and the other would set up a temporary federal reinsurance program. Both policies would lower insurance premiums, which are predicted to rise sharply as result of eliminating the individual mandate, but would do nothing to prevent an expected 13 million more people from becoming uninsured over the next decade.
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It's DOA.
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Re: Trump Tax Cut

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Just in...just before the "final" vote, the GOP slipped in a last-minute provision that could mean millions for Trump and Republican Senators. It allows for a tax deduction on income made from "pass-through" entities, like real estate LLCs, including those with few or no employees. At least 14 Republican Senators as well as the President stand to benefit financially from the last-minute change.

One of those who will benefit, Bob Corker (R-TN) who originally voted against the tax bill, supported it after the provision was added. Corker says he didn't know the provision was added because he didn't actually read the bill before he voted for it. Orrin Hatch (R-UT) chairman of the Senate's tax-writing committee, denied that Republicans added the measure at the last minute to win Corker's vote. When fellow committee member John Cornyn (R-TX) was asked if the language was added to benefit Corker, he refused to answer.

Let them have their little signing celebration tomorrow, this thing is guaranteed to end up screwing them next November
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Re: Trump Tax Cut

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John Q. Public wrote: From NPR. And from Twitter. The biggest tax cuts ever. In the history of the world. Ever. Period.
Did you even read the paragraph at the top of the NPR graph? It says that in 2027, the Republican tax overhaul will raise taxes on 53% of all households. Somewhat disingenuous don't you think. Even assuming that their figures are accurate, the only scenario where those 53% would see their taxes raised, is one in which Congress would choose to let the tax cuts expire.

I don't know why they were able to make the corporate tax rates permanent without triggering to 60 vote thing, but making the individual tax rates permanent would have done so.

No congress is going to let those tax rates expire completely. They will adjust them to fit the 2027 situation, but they will not let them expire completely, if they expect to get re-elected.
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Re: Trump Tax Cut

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The Democrats are in hyperbole mode, trying to derail this plan. Is it time to tweak and re-introduce this tactic?

https://www.youtube.com/watch?v=eXWhbUUE4ko
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