Trump Tax Cut

MDDad
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Re: Trump Tax Cut

Post by MDDad »

Wabash wrote:Every tax dollar collected is spent in either the salary of a government employee who then puts those dollars into their local economy, or spent purchasing goods and services from private contractors.
Well, except for those billions and billions and billions of dollars that are spent to service the interest on the national debt.
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Re: Trump Tax Cut

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We have established that conservatives don't care about debt unless a Dem is in the White House.
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Re: Trump Tax Cut

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Which does nothing to correct the error in your statement of where all tax dollars go. Even an economics major should know better.
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Re: Trump Tax Cut

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Nearing the end of the year and learning more about the tax plan. Not sure how this is all going to shake out, but it seems that we could have done just as well with lowering the Corporate tax rate to 25% and use some of the revenue to pay for the bill. It's not revenue neutral.

Bick and I had a brief exchange on home ownership incentives. I've thought about that more and still worry about the effect lack of tax incentives will have on home prices. It seems that it will only affect higher priced homes, which could mean middle class in some areas, but not for most of the nation.

There is still a lot to like about the tax bill as it stands, so long as the spending cuts that are being discussed are tabled. If the tax bill really does cause cuts to medicare and social security, that won't be good.
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Re: Trump Tax Cut

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One of the benefits to the lower corp tax rates is the lowering of the benefit of tax deferred assets. You're seeing some of those write-offs already - BP took a $1.5B hit, and Shell is looking at about $2.5B.

Credit Suisse says a new U.S. tax on services and interest payments to affiliated companies outside the U.S. could push its tax liability up. Longer term though, the bank said the tax changes would boost U.S. economic activity and its business there.

Hopefully, this is the first step towards a much more simplified tax code that eliminates the tax incentives, and allows for a more efficient competitive economy.

In simple terms, making mortgage interest tax deductible gives a disproportionately greater incentive to the wealthy than the middle class. Taxpayer in a 50% bracket gets a 20% discount on a property v. someone in a 30% bracket. Not exact terms obviously, but directionally accurate. This discount incentivizes potential buyers to pay more because of the discount.

I believe the limit to mortgage interest will have a downward pressure on home prices, especially in CA. I believe that's a good thing in the long run.
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Re: Trump Tax Cut

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USA Today has put together a list of companies that paid bonuses or boosted pay since tax bill passed. It includes 14 companies that are giving bonuses of at least $1,000 each to 870,000 workers. That list doesn't include Fiat Chrysler who today announced bonuses of $2,000 each to 60,000 workers. We're talking $1 billion so far on this list alone.

The article also lists some of the companies that have raised the wages of their employees since the tax cut bill was signed into law.

https://www.usatoday.com/story/money/20 ... 023848001/
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Re: Trump Tax Cut

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Have they put together a list of companies that laid off a portion of their workforce.
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Re: Trump Tax Cut

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Looking forward later this year to their list of employees who lost their healthcare or whose premiums have doubled because of this corporate tax giveaway
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Re: Trump Tax Cut

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The people that benefit most from the tax break are betting that the people they're bribing with free stuff are too dumb to care that the top 20% will see an average tax reduction of $7,640 next year as compared to $930 for middle income earners and that the reduction in the top corporate tax rate to 21 percent from 35 percent is much larger than any of the reductions to individual rates. Oh, and the corporate tax cuts are permanent while the individual cuts aren’t...

Then again, Donald thinks this country is stupid, so maybe it'll work...
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Re: Trump Tax Cut

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Bonuses are great for morale (raises less so), but in this situation they're only single-year adjustments to income that will most likely increase the companies' profits in whichever year(s) they're taken and are meaningless if they aren't ongoing. Bonuses that aren't paid also have a big effect on morale. Republicans had better hope the companies repeat their "generosity" once the tax advantage is no longer a factor. Let's talk again in November 2020 and see if they're still working or if they've become sore points.
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Re: Trump Tax Cut

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Omar Bongo wrote:...the corporate tax cuts are permanent while the individual cuts aren’t...
As were the Bush tax cuts, 82% of which were then made permanent by a congress who knew they wouldn't be reelected otherwise.

These will have the same future.
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Re: Trump Tax Cut

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Well done, you've parroted the Trump/Ryan propaganda position perfectly

We'll see how that holds up when the new Congress is seated next January :thumbsup:
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Re: Trump Tax Cut

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John Q. Public wrote: Republicans had better hope the companies repeat their "generosity" once the tax advantage is no longer a factor
I wouldn't expect a bonus next year, just because they gave me one this year. I'm not sure any of these recipients think it's something they are entitled to. But they'll be very happy every year they get one.
Last edited by Professor Fate on Fri Jan 12, 2018 9:22 pm, edited 1 time in total.
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Re: Trump Tax Cut

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Meanwhile the debt meter keeps increasing.
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Re: Trump Tax Cut

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Here's what we've learned since forever ago, when we got tax cuts and two wars from George W. Bush at the same time. Deficits don't matter to Republicans. Not until there's a Democratic president.

Massive deficit-busting spending deal leaves fiscal hawks in the cold
Congressional leaders are nearing agreement on the costliest spending accord in years, and much of it could wind up on the credit card.

For fiscal hawks, it’s salt in the wound. Capitol Hill sources say there is scant evidence that negotiators are attempting to cover the costs of this year’s deal, unlike those in the recent past.
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Re: Trump Tax Cut

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I'm all for corporations giving bonuses, but I wouldn't be at all surprised if they just carved out a portion of the planned bonuses and called them special bonuses due to the tax cut for the publicity. I love how AT&T made a public statement about bonuses while quietly laying off workers.
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Re: Trump Tax Cut

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The G.O.P. Tax Cut Is Draining the Treasury Even Faster Than Expected
The U.S. government’s cash reserves are expected to run out faster than expected, the Congressional Budget Office said Wednesday, a result of lost revenue from last year’s tax cut law.

If the debt ceiling isn’t raised by the first half of March, CBO said, “the government would be unable to pay its obligations fully, and it would delay making payments for its activities, default on its debt obligations, or both.”

The White House and GOP leaders in Congress have repeatedly punted decisions on how to deal with the debt ceiling.

This is in sharp contrast to the approach Republicans took during the Obama administration, when the GOP insisted on deep spending cuts in exchange for any vote to raise the debt ceiling.
One of the many myths of trickle down economics is that tax cuts will boost revenues. They don't. The so called tax cut was in reality a tax RATE cut. Since debt will be incurred, taxes were not cut.
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Re: Trump Tax Cut

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And we have more debt thanks to the tax RATE cut from Trump.

The US's national debt spiked $1 trillion in less than 6 months
As of the latest reporting by the Treasury Department, the US gross national debt rose by $41.5 billion on Thursday, February 22, to a grand total of $20.8 trillion.
Who didn't see that one coming? Other than Trump supporters?
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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I just sold my mom's former condo here in Laguna Woods Village...we used it as a rental unit for about 17 years. Great profit on the sale...I just paid the income taxes on that profit. The taxes, closing costs, and the sales commission came to about the original purchase price of the condo. No complaints here...they've all been paid, and I no longer have to be a landlord. Free at last...free at last...
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Re: Trump Tax Cut

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Thank God Almighty...you are free at last. :cheers:
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