I say it doesn't matter what the corporate rate actually is because these guys usually pay ZERO anyway. If there are no write-offs and then they pay 15%, That would be an improvement but I suspect it is just more of the same so they will continue to pay ZERO. Probably small business will now be also able to pay Zero as well.
1
"Like his".
Talk about cutting off your nose to spite your face.
Talk about cutting off your nose to spite your face.
I have no trust that President Trump acts for the benefit of the country over his own personal own interests - need Trump's Federal Income Tax Returns prior to considering Tax Code changes!!!
10
Don't worry trash, they'll get to your and your loser factory jobs after they address the estate tax and luxury tax in their yachts.
Be patient.
Ha, ha, ha, ha, ha...losers...you gotta' love 'em.
Be patient.
Ha, ha, ha, ha, ha...losers...you gotta' love 'em.
3
Why is always corporate tax cuts first? Then no money to do anything next, except build up military. Seen this show before, war, deficits, cut back benefits, then crash and burn the economy.
5
This new Trump/GOP tax reform proposal sure sounds like more of the failed GOP voodoo economics we have suffered in the recent past. Basic idea is to take from the poor, give to the rich, and everyone will be happy, healthy and better off. This is not reality. Fake news it is. Truth is, every time this has been tried it failed. Cut taxes on the better-off, the economy overheats, and disaster inexorably follows when the bubble bursts. Have US citizens forgotten, 2009, -10, -11 with 14+% unemployment, monthly job losses of 600,000+ in late 2009, and foreclosures ruining whole neighborhoods at once? Or maybe US citizens want to repeat Lehigh Acres, FL in their town? I do not. No desire for a repeat of the Great Depression, either. Old adage goes “Slow and steady wins the race.” Been around a long time because it’s true. Greed and failure of a society to provide for the least among them are sure recipes for downfall. “If we can’t give them bread, give them circuses.” “If they have no bread, let them eat cake.” Who wants to add “Real progress is hard and slow. Overheat to give the US easy results fast.” to the list of infamous quotes? Easy answer: Trump and his Wall Street retread minions. Big losers if they are successful: You, me, our kids and grandkids.
3
This is fascism, it its best, complete merger of not only state but federal with corporate power. Corporations run this country. They are eating W-2 workers for dinner. Why they need more cuts? The more they get ,the greedier they become. Soon, we the middle class be working for bread and roof over our heads for this corporate plantations. It is getting harder and harder to stay afloat and who is getting these cuts? Those who need the them least. If you think that these cuts will translate into salary ,benefit increases you are a fool
4
Is this some kind of surprise, or what we expected all along?
From all that I have read, not only is Trump looking to cut his own tax rate, he also is looking to take advantage by repealing the inheritance tax, a tax that only affects very wealthy people, it doesn't kick in until you're into the multiple millions...yea, no surprise, just more of the same self serving policies for Trump and the GOP.
From all that I have read, not only is Trump looking to cut his own tax rate, he also is looking to take advantage by repealing the inheritance tax, a tax that only affects very wealthy people, it doesn't kick in until you're into the multiple millions...yea, no surprise, just more of the same self serving policies for Trump and the GOP.
3
Since the Roberts Court has determined that corporations are people (think Citizens United) then it would seem reasonable to assume that all citizens would be using the same 15% tax rate, and not just corporations.
3
I can only imagine what the rest of the world must think of us. Ignorant Americans who keep making the same mistakes that lead to recessions. Reagan's tax breaks caused a recession. W's tax breaks caused a global recession. Are we fools?
If you look at the Golden Age of America both the corporate and individual tax rate was much higher. We invested in our country and upward mobility was possible thanks to affordable education.
Our infrastructure is failing. Income inequality is rapidly stealing the American dream from our young people. Home ownership and business startups are at an all-time low. Our young people can't afford to leave home.
We need to get serious if we want to stop ourselves from slipping further behind.
If you look at the Golden Age of America both the corporate and individual tax rate was much higher. We invested in our country and upward mobility was possible thanks to affordable education.
Our infrastructure is failing. Income inequality is rapidly stealing the American dream from our young people. Home ownership and business startups are at an all-time low. Our young people can't afford to leave home.
We need to get serious if we want to stop ourselves from slipping further behind.
7
Headline should be "Wall Street Loves Trump!".
1
Really so much stupidity in this world, please remember when Reagan cut taxes it stimulated the economy the more you make the more you spend the government took in more in tax dollars than they cut. Large companies cant afford to expand their work force due to taxes, this will open up jobs and enable more income for families. So I guess you all just want to keep paying higher taxes so we can continue to pay for a bunch of deadbeats who dont want to work and live off of you. Get a life folks the people have spoken TRUMP deal with it. be a part of helping "Make America Great Again" instead of being part of the problem.
2
So, it's back to Laffer and his ridiculous theory of "trickle down economics" which has been thoroughly debunked. Where does Rump find these white, rich, male secretaries who wander the halls of congress with idiotic grins on their faces as they continue to undo legislation that has been put in place to safeguard Americans? The idiotic border wall will not put food on peoples tables, nor help with their healthcare, nor help them save money or even have jobs. These tax cuts will help the rich, who already have enough loopholes to never pay even close to what they earn in taxes as well as corporations that never pay the 35% tax rate due to all of the write-offs they can conjure up. Since when does helping corporations actually help the economy? During the last 6 years, corporations were banking their earnings and not hiring - was that due to taxes? No, just greed. Look at the airlines who are flying with the minimum number of crew members in order to keep costs down when they are making millions per day; no wonder tempers are flaring. How is trump going to pay for all of those infrastructure projects, the military, or anything else? Also, I think there is a horrible smell coming off "ethics" of a president proposing legislature for his own benefit. Trump has finally made the presidency irrelevant.
7
Why do so many of the 99% always allow the 1% to beat them up and steal their lunch money? How does the party of the 1% win electoral pluralities and majorities?
They're after our last dollar now. We must fight back.
They're after our last dollar now. We must fight back.
15
Because the investor class cleverly tied the rest of the their Trickle Down nonsense with The Bible, The Gun and The Womb.
The 'poorly educated's rust belt losers and traitorous confederate trash didn't stand a chance.
The 'poorly educated's rust belt losers and traitorous confederate trash didn't stand a chance.
7
"I love the poorly educated"
- Donald Trump
- Donald Trump
7
"The border adjustment tax may be revisited later but was considered too controversial to include now."
Ryan's "Border Tax" of 20% might make up some of the loss in revenue to the government, but, it's a guarantee that every last bit of that Border Tax would be passed on to all Americans in the form of higher prices for everything we buy that is imported.
Plus, the importers or sellers would most likely add in a bit more, say another 5%, to boost their profit margin. So, what do we Average Americans gain by this tax cut and boost in prices? I'd say we would be at a net loss on the deal. But the rich would still be smiling from ear to ear with their 15% Income tax rate.
Ryan's "Border Tax" of 20% might make up some of the loss in revenue to the government, but, it's a guarantee that every last bit of that Border Tax would be passed on to all Americans in the form of higher prices for everything we buy that is imported.
Plus, the importers or sellers would most likely add in a bit more, say another 5%, to boost their profit margin. So, what do we Average Americans gain by this tax cut and boost in prices? I'd say we would be at a net loss on the deal. But the rich would still be smiling from ear to ear with their 15% Income tax rate.
3
Does Senator Mitch McConnell realize that part of his job in being a politician is to make deals and compromise? On day 1, he is threatening to change the Senate rules to get a tax plan passed. Seriously, Mitch is the biggest loser. He changes the rules anytime he has to work for something. Work for what is best for America please.
By the way, this is going to kill our deficit! Aren't Republicans supposed to support sound finances? They do the exact opposite of what they claim!
By the way, this is going to kill our deficit! Aren't Republicans supposed to support sound finances? They do the exact opposite of what they claim!
5
Ok so the President want's to give Corporations a 15% tax reduction. Being that his Companies would be effected this does not look good. This is the same Trickle Down nonsence we heard in the past. All this is going to do is increase the deficit and the burden will fall to the working people. Hey how about lowering working people's tax by 15%. How about talking about Student loans. No it all for the top % and corporations his buddies.
9
Ronald Reagan on steroids, uppers, downers, hallucinogens, and Geritol. Because it worked out so well in 1981.
12
Define "small business."
Anyone in the 1%.
1% is small.
1% is small.
2
In the past the GOP included any Subchapter S corporation in its definition of small business. S Corps have a limit on the number of shareholders, not revenues...for example, Bechtel, a multibillion dollar corporation is an S Corp. I expect that the "new" definition of "small business" will be "pass-through" entities, which include S Corps and partnerships...and conveniently enough, Trump's businesses.
1
Mr. Trump's second, truly catastrophic effort--the first being his shameless effort to dismantle Obamacare without a plan to properly replace it.
5
Kansas which is about to die, salutes you!
9
It's ok.
The 1% are doing very well in Kansas.
The 1% are doing very well in Kansas.
2
Cut Income Taxes and there will be no Infrastructure repairs, replacement at all.
And we have to remember that Paul Ryan still wants to pass his so called health care plan that would kill the Affordable Care Act and the Medicaid Law so that would then give the rich and the wealthy an additional tax cut of $880 Billion Dollars and deprive 20 plus million Americans of any health care and force the closure of rural hospitals across America that depend on Medicaid to stay open.
And we have to remember that Paul Ryan still wants to pass his so called health care plan that would kill the Affordable Care Act and the Medicaid Law so that would then give the rich and the wealthy an additional tax cut of $880 Billion Dollars and deprive 20 plus million Americans of any health care and force the closure of rural hospitals across America that depend on Medicaid to stay open.
10
I would think that given what we are being told is the future of work, that any savings from tax breaks would be invested in accelerating automation.
4
When I read this, it makes me want to weep for our country. What are we doing to ordinary and poor Americans?
15
I think the question should be: What are these people doing to themselves? I certainly didn't vote for Trump nor have I voted for any Republican since the rise of Regan, the neocons, and general idiocy. There have been no surprises. The Republicans have won influence in all three branches of government by appealing, again and again, to that depressingly large segment of the population which denies science, loathes minorities and women and gives every appearance of enjoying being victimized by their elected officials. I think I may have reached the point at which I am willing to stop fighting them.
2
Why are we talking about losing the mortgage deduction for individuals in order to offset a massive tax cut for corporations? By the way, I've also seen speculation that they are considering taking away the pretax status of 401K contributions.
6
This bill may include parts that are bad for individuals, but that's not obvious. Larger personal exemptions help individuals, for example. Corporations now spend vast amounts on lawyers and accountants to minimize corporate taxes. They'd do less of that if rates were lower -- just as individual tax-avoidance schemes decreased when individual rates were lowered. While it may have been worthwhile to pay vast amounts to lawyers and accountants to avoid taxes when top rates were at, say, 91%, or 70%, spending those vast amounts makes sense to fewer and fewer people when rates are only, say, 35% or 39.6%. Some will still try to avoid taxes, to be sure, but few people like paying vast amounts to lawyers and accountants any more than they like paying vast amounts to the IRS.
The reason to lower the US corporate tax rate is because the US has the highest statutory corporate tax rate of all 33 industrialized countries at 39%. That's simply not competitive. Corporations, jobs, and money are fleeing. The effective tax rate is lower, but that requires hiring an army of lawyers and accountants and is a wasteful use of business resources.
The truth is that the US tax rates are too high and the system is too complex with byzantine rules and loopholes. A lot of useful energy is wasted on "tax avoidance strategies."
Lower the tax rates, close loopholes and deductions, and you get a simpler, more competitive tax system. Less time, money and energy will be wasted on tax strategies and more will be spent on growing businesses and jobs. Plus, stored wealth sitting in foreign subsidiaries can come home and be spent on research, jobs, investments, or dividends.
Here are some competitor nations and their corporate tax rates:
Ireland 12.5%
Switzerland 21%
Sweden 22%
Netherlands 25%
Denmark 25%
Korea 24%
U.K. 19%
Germany 30%
Japan 37%
worldwide average corporate tax rates are ~20-25%.
http://www.oecd.org/tax/tax-policy/tax-database.htm#C_CorporateCaptial
The truth is that the US tax rates are too high and the system is too complex with byzantine rules and loopholes. A lot of useful energy is wasted on "tax avoidance strategies."
Lower the tax rates, close loopholes and deductions, and you get a simpler, more competitive tax system. Less time, money and energy will be wasted on tax strategies and more will be spent on growing businesses and jobs. Plus, stored wealth sitting in foreign subsidiaries can come home and be spent on research, jobs, investments, or dividends.
Here are some competitor nations and their corporate tax rates:
Ireland 12.5%
Switzerland 21%
Sweden 22%
Netherlands 25%
Denmark 25%
Korea 24%
U.K. 19%
Germany 30%
Japan 37%
worldwide average corporate tax rates are ~20-25%.
http://www.oecd.org/tax/tax-policy/tax-database.htm#C_CorporateCaptial
3
"Lower tax rates and close loopholes and deductions"... That would make sense. This proposal only has the first part. It will ballon the deficit. It will not stimulate the economy enough to pay for the cuts (see Kansas). As we have seen time and again, the Republicans only care about the deficit when a Democrat is in power.
How exactly does this create growth? Good chance it might allow for greater productivity, by allowing greater capital investment in improved technology. But that, probably would not create jobs at a rate fast enough to improve the numbers or wealth of consumers ready to absorb the fruits of greater productivity. Will it give American business enough new revenue that it could, if the cuts don't just go to increasing profitability, drop the cost of its products so that they would become competitively priced to take on China and other lower wage economies? Think, guys. That's just one starting point for an examination of the flaws in the proposal. Learn to play chess, and think your impulses through, past the first sound bite.
1
As usual Mitch McConnell misrepresents the truth and betrys the overwhelming majority of Americans when he states that Democrats are more interested in "wealth transfers" than in economic growth.
Questions surrounding economic inequality are not and cannot be divorced from economic growth. If the only significant players in the economy are themselves a tiny percentage of the whole population then any supposed growth will accrue almost exclusively to and within that tiny minority. That is where we are and have been headed for decades. Trump and McConnell are pushing to increase inequality. They may think that is the way to some sort of "growth" but they are totally wrong when "growth" is measured by prosperity of the vast majority of people.
Questions surrounding economic inequality are not and cannot be divorced from economic growth. If the only significant players in the economy are themselves a tiny percentage of the whole population then any supposed growth will accrue almost exclusively to and within that tiny minority. That is where we are and have been headed for decades. Trump and McConnell are pushing to increase inequality. They may think that is the way to some sort of "growth" but they are totally wrong when "growth" is measured by prosperity of the vast majority of people.
7
Laissez–faire capitalism is a wealth-tranfer mechanism, upward toward the wealthy. ("Capital in the Twenty-First Century," Thomas Pikkety)
4
Such a welcomed change from the Obama era. This will be welcomed by any small business owner who is struggled to survive under the massive Obama tax increases. Obama increases taxes by 20%, which Trump decreases by 10%, is called a "tax break for the wealthy" by the Democrats.
1
THE CORRECT CORPORATE INCOME TAX RATE IS ZERO.....
Corporations are NOT taxpayers. Corporations are tax COLLECTERS.
This is axiomatic. Corporate income taxes only serve to distort the markets for goods and services by favoring (inevitably) one industry over another through incentives, loopholes, and punishments adopted for political not economic reasons.
As an analogy, compare the business sales tax (a state and local tax) to the Corporate Income tax. On whom is it imposed; the business selling the taxable goods? No. Legally, the sales tax is imposed on the consumer, the buyer of the taxable products. But, the same law imposes a duty to COLLECT the sales tax on the business selling the taxable products.
Similarly, corporation have to make a profit and to make a profit they have to first cover all of their expenses...including the corporate income tax. Their products are priced accordingly. So in a very real, economic sense, the consumer is paying the corporate income tax and the corportation is collecting it.
Corporations are NOT taxpayers. Corporations are tax COLLECTERS.
This is axiomatic. Corporate income taxes only serve to distort the markets for goods and services by favoring (inevitably) one industry over another through incentives, loopholes, and punishments adopted for political not economic reasons.
As an analogy, compare the business sales tax (a state and local tax) to the Corporate Income tax. On whom is it imposed; the business selling the taxable goods? No. Legally, the sales tax is imposed on the consumer, the buyer of the taxable products. But, the same law imposes a duty to COLLECT the sales tax on the business selling the taxable products.
Similarly, corporation have to make a profit and to make a profit they have to first cover all of their expenses...including the corporate income tax. Their products are priced accordingly. So in a very real, economic sense, the consumer is paying the corporate income tax and the corportation is collecting it.
4
"Trickle down" economics don't work! They are just empty words.
Case in point:
for 5 years I've worked full time as a 1099 'contractor' for a $70M company because the company refuses to hire any 'employees'. The company does this because they don't want to provide health insurance or paid leave, 401K or ANY other benefits. It is particularly painful at tax time because I have no business deductions of my own AND I have to pay both the employer and employee's parts of FICA & SS. This causes me to have an extraordinary tax rate of 35% (whilst the company pays net 0%). I cannot afford health insurance because my premiums went up to $1400/ month. Corporations know that we can't complain to the US Labor Dept., because we'd lose our jobs and it's hard to find a work when you're an older person. There is no incentive or mandate for the company to actually hire an employee so there is no tickle down.
Case in point:
for 5 years I've worked full time as a 1099 'contractor' for a $70M company because the company refuses to hire any 'employees'. The company does this because they don't want to provide health insurance or paid leave, 401K or ANY other benefits. It is particularly painful at tax time because I have no business deductions of my own AND I have to pay both the employer and employee's parts of FICA & SS. This causes me to have an extraordinary tax rate of 35% (whilst the company pays net 0%). I cannot afford health insurance because my premiums went up to $1400/ month. Corporations know that we can't complain to the US Labor Dept., because we'd lose our jobs and it's hard to find a work when you're an older person. There is no incentive or mandate for the company to actually hire an employee so there is no tickle down.
15
SecTreas. Steve Mnuchin is the front man for this tax scam. There is an appropriate name for all this--and Trump's team--the title of a recent (and really bad) movie Mnuchin is credited for producing: "Suicide Squad".
9
Trump and the rest of the rich, the wealthy, the 1%, the richest 4.4% of Americans making over $350,000 up to the $ Billions, would pay 15% Income Tax while the rest of Americans in the Middle Class with a good income up around $70,000, $100,000 or a bit more would pay 25% Income Tax.
Trump and the rest of the rich are toasting this great deal with a hearty: "How Sweet It Is!" as Jackie Gleason used to say on his TV show.
Trump and the rest of the rich are toasting this great deal with a hearty: "How Sweet It Is!" as Jackie Gleason used to say on his TV show.
10
You're missing the point entirely:
"So, if I work for a big company my wages would be taxed at 37% at the top end. If I was self employed, I would set up an S corporation and pay myself a distribution and be taxed at 15% for the same work."
A specific aside: Ironically, decades back, when tax rates on "earned income" (for example, compensation for services) topped out at 50% but rates on "unearned income" were as high as 70%, owners of many S corporations tried to do just the opposite: the argued that most or all of what they received from the corporation was "earned income" for services rendered; the IRS, in contrast, argued that most of it was "unearned income" subject to the higher (70%) rate.
S corporations (which have existed for decades) already avoid corporation-level taxes. Indeed, that's the whole point: to convert an otherwise taxable corporation into a "pass through" entity, just like a partnership or nearly all LLCs. Only "C corporations" pay entity-level taxes, and many of the larger ones don't.
I get the clear impression from many comments that many Americans don't understand that many US business ALREADY avoid entity-level income taxes. Either they are standard "C corporations" that avoid those taxes by one or more of several tax-avoidance arrangements, or they are not "C corporations" at all because they've instead chosen to do business through some "pass through" entity (for example, as a partnership, S corporation, or LLC taxed as a partnership).
"So, if I work for a big company my wages would be taxed at 37% at the top end. If I was self employed, I would set up an S corporation and pay myself a distribution and be taxed at 15% for the same work."
A specific aside: Ironically, decades back, when tax rates on "earned income" (for example, compensation for services) topped out at 50% but rates on "unearned income" were as high as 70%, owners of many S corporations tried to do just the opposite: the argued that most or all of what they received from the corporation was "earned income" for services rendered; the IRS, in contrast, argued that most of it was "unearned income" subject to the higher (70%) rate.
S corporations (which have existed for decades) already avoid corporation-level taxes. Indeed, that's the whole point: to convert an otherwise taxable corporation into a "pass through" entity, just like a partnership or nearly all LLCs. Only "C corporations" pay entity-level taxes, and many of the larger ones don't.
I get the clear impression from many comments that many Americans don't understand that many US business ALREADY avoid entity-level income taxes. Either they are standard "C corporations" that avoid those taxes by one or more of several tax-avoidance arrangements, or they are not "C corporations" at all because they've instead chosen to do business through some "pass through" entity (for example, as a partnership, S corporation, or LLC taxed as a partnership).
This is based on the Laffer's curve an intellectual exercise that has demonstrated to be a mirage. When these people get savings from the tax cuts they simply buy a bigger yacht, a golden toilet it is a fantasy that they will reinvest those proceeds back into the economy.
On top of that the actual corporate rate is not even close to the nominal 35%. There are so many loopholes, obscure exceptions that so many companies like GE for example or the Dallas Cowboys paid basically 0%, if not asked #45 he said that he bragged that he pays 0, nada, zip taxes so why he is so obsessed with lower corporate taxes?
This by itself with nothing to offset the lost revenue will send the fiscal deficit to a new highs.
On top of that the actual corporate rate is not even close to the nominal 35%. There are so many loopholes, obscure exceptions that so many companies like GE for example or the Dallas Cowboys paid basically 0%, if not asked #45 he said that he bragged that he pays 0, nada, zip taxes so why he is so obsessed with lower corporate taxes?
This by itself with nothing to offset the lost revenue will send the fiscal deficit to a new highs.
5
"15 percent business tax rate not only to corporations but also to companies that now pay taxes through the personal income tax code — from mom-and-pop businesses to his own real estate empire"
And:
"providing a modest cut for middle-income people and simplifying the process of filing tax returns"
There we are again. The rich are writing the Income Tax Laws, or want to, again.
Trump wants all "Pass Through Business" to pay only 15% Income taxes, just as he wants corporations to pay. "Pass Through Business are all of the "small business", as opposed to a GM or Ford, that are Partnerships or small corporations like Mom and Pop or ranches, real estate, law firms, doctors or other Limited Liability corporations of individuals.
So we who are not one of the above and make say, $70,000, would pay 25% Income Taxes, but Trump, making $Hundreds of Millions, would pay 15%. How does that grab you?
And this: "providing a modest cut for middle-income people and simplifying the process of filing tax returns." There is the rich folks belief that the Average American, the poor and middle class deserve only a "modest cut", while the rich get a Whopper! of a tax cut. How does that grab you?
We had better start writing our Representatives and Senators and tell them how unacceptable this tax cut proposal is. The rich would get "Welfare For The Rich" and the vast majority of Americans would get crumbs.
And:
"providing a modest cut for middle-income people and simplifying the process of filing tax returns"
There we are again. The rich are writing the Income Tax Laws, or want to, again.
Trump wants all "Pass Through Business" to pay only 15% Income taxes, just as he wants corporations to pay. "Pass Through Business are all of the "small business", as opposed to a GM or Ford, that are Partnerships or small corporations like Mom and Pop or ranches, real estate, law firms, doctors or other Limited Liability corporations of individuals.
So we who are not one of the above and make say, $70,000, would pay 25% Income Taxes, but Trump, making $Hundreds of Millions, would pay 15%. How does that grab you?
And this: "providing a modest cut for middle-income people and simplifying the process of filing tax returns." There is the rich folks belief that the Average American, the poor and middle class deserve only a "modest cut", while the rich get a Whopper! of a tax cut. How does that grab you?
We had better start writing our Representatives and Senators and tell them how unacceptable this tax cut proposal is. The rich would get "Welfare For The Rich" and the vast majority of Americans would get crumbs.
1
"God gave me my money,"
JD Rockerfeller
JD Rockerfeller
Funny how the GOP goes rabid when the thought of increasing the deficit with a Dem in the WH- but when DT wants to do it, all they can say is that we have the highest corporate tax rate so we need to slash the corporate tax rate.
But what they don't say is that other countries have a much higher personal tax rate. You can't have it both ways and not blow up the deficit.
So, it looks like we're going to blow up the deficit- which seems to be ok to do as long as it is not done by the Dems. Hypocrisy rules in DC.
But what they don't say is that other countries have a much higher personal tax rate. You can't have it both ways and not blow up the deficit.
So, it looks like we're going to blow up the deficit- which seems to be ok to do as long as it is not done by the Dems. Hypocrisy rules in DC.
4
Here's the big picture. In my lifetime, Vietnam and Nixon ruined people's trust that government could be a force for good. Then the neo-cons, with Ronald Reagan their standard bearer, took that opening and ran with it, encouraging distrust in government and promoting policy that contributed to many of the ills plaguing America today: national debt, failing infrastructure, and rising income inequality.
Well, in pondering where we are today, we should remember that for 200 years, this country was a partnership between government and citizens that benefited the nation overall. Today, government done right could continue to shape a society in which we all share in the benefits, while still encouraging a free market economy—one that rewards innovation and risk-takers.
Alas, we continue to live under the shadow of mistrust, electing representatives so opposed to government that their openly stated mission is to starve the beast. Blowhards such as Rush Limbaugh haven't helped, leading many to believe it's all or nothing: government is bad, and so anyone who advocates for it is not just wrong, but anti-American and evil.
The current Trump plan does nothing to help. Federal tax reform is badly needed. But until we return to a basic trust that the government does have a role to play in shaping a fair and just and prosperous society—and that we all agree to pay our fair share of taxes to support its functions—we won't make meaningful progress, as we won't have the money to do so.
Well, in pondering where we are today, we should remember that for 200 years, this country was a partnership between government and citizens that benefited the nation overall. Today, government done right could continue to shape a society in which we all share in the benefits, while still encouraging a free market economy—one that rewards innovation and risk-takers.
Alas, we continue to live under the shadow of mistrust, electing representatives so opposed to government that their openly stated mission is to starve the beast. Blowhards such as Rush Limbaugh haven't helped, leading many to believe it's all or nothing: government is bad, and so anyone who advocates for it is not just wrong, but anti-American and evil.
The current Trump plan does nothing to help. Federal tax reform is badly needed. But until we return to a basic trust that the government does have a role to play in shaping a fair and just and prosperous society—and that we all agree to pay our fair share of taxes to support its functions—we won't make meaningful progress, as we won't have the money to do so.
17
Here in Michigan our illustrious Republican governor, Rick Snyder, has a majority in both houses of state government. Now in the middle of his second term, Snyder and company have had a field day passing new legislation and a multitude of new pro-business laws have been enacted. A huge corporate tax cut was enacted early on with promises of jobs, jobs, jobs. To be sure, Michigan's unemployment rate has improved, but no more than similar industrial states have under President Obama's stimulus and other economic initiatives. After eight years under Snyder our roads and infrastructure add greatly to our reputation as a world leader in ruin porn tourism. Bombed-out streets are of no concern to a pro-business administration and new job sources proved to be just one of many false narratives Michiganders have had to swallow. Consider Michigan as a trial run for what Trump is proposing to do on a national scale.
4
I swear people like Julie Hirschfeld Davis must rely on the ignorance in economics that the left seems to have. All corporations put the cost of taxes into the goods and services. The poor get hit hardest by corporate taxes because the price of goods and services must be increased to accommodate them. Anyone who tells you that the corporation pays the tax and not the consumer is simply lying to you. The only money the corporation gets is selling its goods and services. Lowering that tax will help the corporations, but it also helps the consumer. Further more, if we have an extremely low corporate tax it is an invitation for companies to move here.
3
Shane, that's a lovely fairy tale but in fact when you lower corporate costs and increase corporate profits, consumer prices still rise — but not as fast as CEO salaries.
How many years has it been since the dramatic drop in fuel prices was supposed to reduce air fares just as dramatically? What happened instead? No one lived happily ever after.
You accuse others of economic ignorance, but you seem to be the victim of (and mouthpiece for) AEI and Heritage Institute propaganda.
How many years has it been since the dramatic drop in fuel prices was supposed to reduce air fares just as dramatically? What happened instead? No one lived happily ever after.
You accuse others of economic ignorance, but you seem to be the victim of (and mouthpiece for) AEI and Heritage Institute propaganda.
6
Neal, this is the story a liberal likes to tell. But since you wanted to respond, where do the taxes the corporations pay come from? What you are saying is that they won't lower the cost. As far as fuel costs for the airlines go, how much did the taxes go up? The excise tax for transportation went up how much? It is the liberal fairy tale that you can tax a corporation and it will have no effect on pricing.
2
Republican policy for the last 30 years-
1. Bomb Muslim Countries
2. Cut taxes
3. Blame liberals for terrorism and the deficit
Amazing......
1. Bomb Muslim Countries
2. Cut taxes
3. Blame liberals for terrorism and the deficit
Amazing......
8
The fiscal hawks come into office and spend, spend, spend. They go out of office and all we hear is deficit, deficit, deficit. Once they drive the debt higher, it is cut, cut, cut entitlements. Just the same old cycle.
4
It's great to be King!!! Let's hope we're all here to enjoy these wonderful tax breaks after the nuclear holocaust. Do you think this will trickle down to the poor folk? We know for sure it will make the rich richer. There's only 2 things we can know for sure in life, death and taxes. Wait a minute, if you're Donald Trump there's only one thing!
1
Add this plan to the pile now occupied by
Trumpcare
The wall
Travel ban (x2)
Sanctuary city funding threat
Mike Flynn
Tax reform
The junk pile just keeps on growing.
Trumpcare
The wall
Travel ban (x2)
Sanctuary city funding threat
Mike Flynn
Tax reform
The junk pile just keeps on growing.
2
Follow the money.
1
I'm in favor of a 15% rate, if every corporation paid a flat 15% - no deductions, no credits, no allowances.
2
Good Job.
Just those miners and othrs who voted for Trump do not like that the mine owners now get more money to stash away in panama accounts too or spend in Mar a lago resort with the president! ( remember you do not get to know who is visiting the WH so definitely forget about Mar-a-lago )
Just those miners and othrs who voted for Trump do not like that the mine owners now get more money to stash away in panama accounts too or spend in Mar a lago resort with the president! ( remember you do not get to know who is visiting the WH so definitely forget about Mar-a-lago )
Do you know what Buffet meant?
"Recall Warren Buffet's comment that he pays an actual tax rate that is less than his secretary pays, which he noted is completely unfair."
Buffet's comment reflects the simple fact that tax rates are lower on long-term capital gains (almost certainly most of Buffet's taxable income) than on "ordinary income" (such as his secretary's salary). That will remain true whether this tax plan takes effect or not. Indeed, it sounds like Buffet's secretary will pay lower taxes than she does now, and that Buffet's tax bill probably won't change.
"Recall Warren Buffet's comment that he pays an actual tax rate that is less than his secretary pays, which he noted is completely unfair."
Buffet's comment reflects the simple fact that tax rates are lower on long-term capital gains (almost certainly most of Buffet's taxable income) than on "ordinary income" (such as his secretary's salary). That will remain true whether this tax plan takes effect or not. Indeed, it sounds like Buffet's secretary will pay lower taxes than she does now, and that Buffet's tax bill probably won't change.
1
Trickle Down Economics, again.
To quote President George H.W. Bush:
"It just isn't going to work, and it's very interesting that the man who invented this type of what I call a voodoo economic policy is Art Laffer, a California economist."
10 April 1980, Carnegie Mellon University
To quote President George H.W. Bush:
"It just isn't going to work, and it's very interesting that the man who invented this type of what I call a voodoo economic policy is Art Laffer, a California economist."
10 April 1980, Carnegie Mellon University
1
Every time I see Steve Mnuchin he is smirking.
That smirk tells me he knows how destructive these policies are and he doesn't care...just another vampire squid enjoying the art of the deal.
That smirk tells me he knows how destructive these policies are and he doesn't care...just another vampire squid enjoying the art of the deal.
8
Those LOSERS who read the FAKE NEWS will say my policies will create MASSIVE DEFICITS and long term financial IRRESPONSIBILITY for our children are SO SAD!
1
Working Americans are in big trouble. They need to remember the Republican Bush W tax cuts of 2003. That's five years before the Republican 2008 financial collapse. The U.S. had small manageable deficits prior to the2003 conservative Republican tax cuts. The Bush W tax cuts created huge deficits, which the Republicans than argued needed to reduced. This proposal will do the same thing. The Republican goal and apparently Trump
goal is create extreme deficits and than argue for their reduction without any comparable revenue. It is truly shameful that the NYTs would print any comments be Mr. Moore, who is really not qualified to comment on anything. The Heritage Foundation is an extreme Conservative organization heavily funded by conservative corporate interests. The NYTs needs to spell that out for readers.
goal is create extreme deficits and than argue for their reduction without any comparable revenue. It is truly shameful that the NYTs would print any comments be Mr. Moore, who is really not qualified to comment on anything. The Heritage Foundation is an extreme Conservative organization heavily funded by conservative corporate interests. The NYTs needs to spell that out for readers.
4
Well great! I guess everyone's wages will rise with the tax cut...
Let's hear it for the 'job creators'!
Will the Obama's benefit from these new tax rates? The Clintons? Buffett? Bloomberg? Steyer? Soros? Zuckerberg? The Times Corporation?
"Getting the country moving" are simply code words for removing obstructions including taxes, to making the rich richer. Designating public lands open for development, eliminating environmental restraints, lowering the tax rate on developers, will all accelerate real estate development, property leveraging and resources mining. All of it started within the next three years, before backlash can turn it around. The man openly feathers his own nest.
10
Suggestion to the Times: Please do some graphics showing the estimated distributions, both where the money is like to come from, and where it is likely to go to. Providing some way to zoom into on the most affected families, individuals, industries, programs, and benefits would be useful, especially if executed as adjustable dynamic animations. You might wish to consult with Tableau for help on the execution. I've always suspected that the oscillating cycles of expansion, recession, and tax "reform" would something that looked like the systematic pumping out of money of the commonweal into concentrated hands, think of a ballon sculpture of a dog or a cat. The whole sculpture may be getting larger overall, but somehow all of the hair pumped into the the animal's nose its body as a shrunken appendage. (I don't know, in fact, if this is quantitatively true, but doing the analysis and then rendering it in simple, animated terms, would be helpful). Thanks.
5
We are a damn sight better off from the huge chasm left by Bush eight years ago with the economy in veritable freefall, leaving behind a record deficit of $1.3 trillian (an unprecedented unsustainale 10% of the econmy) after more than doubling the national debt, and trillians more in unpaid bills for two wars. While stablizing the economy and containing our war footing, the Obama administration grappled fiscally with that massive deficit reducing it at a faster rate than during WW2 demoblization to a more managable 2% of the economy.
Now in one fell swoop so-called president trump rather than building on a sound fiscal construct is recklessly throwing it all away. This is sheer lunacy. God help us.
Now in one fell swoop so-called president trump rather than building on a sound fiscal construct is recklessly throwing it all away. This is sheer lunacy. God help us.
9
What is wrong with NYT? You make the so-called DT tax plan sound like something good in the headline. Take a leaf from CNN's notebook. They, at least try to get at DJT's yet-another terrible idea. CNN: A fatal flaw in Trump's tax cut: Senate rules @CNNPolitics http://cnn.it/2pfU8ov
First principle: do no harm. NYT does harm when it waters down or evades reality.
First principle: do no harm. NYT does harm when it waters down or evades reality.
3
trump and his royal family live better than kings, while you sink further aND further into destitution
doesnt that make you feel like suckers, folks ?
not even a little bit ?
4
Instead of lowering the tax rate to 15% from 35% (or 39.6%) why not make that a more modest cut and then allow wages to be written off at 105% or 110% of actual.
Basically amplify businesses' expense of labor by tying it or chaining it specifically to wages and by extension new hires.
Both strategies result in tax reductions for businesses. But the later would have a much greater impact on GDP spending incentivizing the increase of dollars flowing to wages. And it would be an immediate benefit to companies bottom line, providing that extra cash they say is needed to increase business. The very same argument for lowering tax rates.
And remember, consumer spending is what drives 70% of GDP. Plus the fact that almost all of wage earners' income is immediately spent directly back into the economy.
Basically amplify businesses' expense of labor by tying it or chaining it specifically to wages and by extension new hires.
Both strategies result in tax reductions for businesses. But the later would have a much greater impact on GDP spending incentivizing the increase of dollars flowing to wages. And it would be an immediate benefit to companies bottom line, providing that extra cash they say is needed to increase business. The very same argument for lowering tax rates.
And remember, consumer spending is what drives 70% of GDP. Plus the fact that almost all of wage earners' income is immediately spent directly back into the economy.
1
Many foreigners are amazed at how high US taxes are on businesses. Reducing the top corporate tax rate to 15% probably will help, though there still will be businesses that try to reduce it even lower -- to 0% -- by choosing business entities (e.g. LLCs) that pay no entity-level tax at all. Some suggest -- and I agree -- that we might as well do away with entity-level taxation, and "pass through" corporate earnings to shareholders.
Good idea. Those who oppose it should keep in mind that, today, shareholder pay NO tax on a corporation's earnings unless and until the corporation distributes its earnings. Often this doesn't happen: the corporation just hangs on to the earnings -- perhaps plowing them back into the business, perhaps shifting them offshore through some clever tax-avoidance plan, whatever. Whatever the corporation does with its earnings, the shareholders don't pay tax on them unless and until they're actually distributed. This could easily be changed by taxing corporations the same way other business entities (e.g. LLCs) are taxed: just treat the entity as a "pass through," and tax its earnings to the owners (i.e. the shareholders) whether those earnings are distributed or not.
Frankly, I doubt this would change tax collections much, if at all. Taxes paid by corporations obviously would decline, but taxes paid by the owners of those corporations would rise.
Good idea. Those who oppose it should keep in mind that, today, shareholder pay NO tax on a corporation's earnings unless and until the corporation distributes its earnings. Often this doesn't happen: the corporation just hangs on to the earnings -- perhaps plowing them back into the business, perhaps shifting them offshore through some clever tax-avoidance plan, whatever. Whatever the corporation does with its earnings, the shareholders don't pay tax on them unless and until they're actually distributed. This could easily be changed by taxing corporations the same way other business entities (e.g. LLCs) are taxed: just treat the entity as a "pass through," and tax its earnings to the owners (i.e. the shareholders) whether those earnings are distributed or not.
Frankly, I doubt this would change tax collections much, if at all. Taxes paid by corporations obviously would decline, but taxes paid by the owners of those corporations would rise.
Big business, busy despoiling our beautiful planet, pays low-to-no taxes, while the administration eliminates environmental regulations and the agency entrusted with environmental care. I guess it makes sense to republicans. Most of them are cold-blooded reptiles and can survive under a rock.
1
OK, so the people who have benefited most financially from living and doing business in America should enjoy the additional benefit of lower tax rates than those Americans who are struggling? You would think that they would gratefully pay their fair share. I bet none of them ever served in the U.S. armed forces. I bet all of them contribute to the politicians who do their bidding. Historical data proves without a doubt that lower taxes raise deficits. Lower taxes have never caused an economic upturn. Our economy has always done better for all when taxes were evenly distributed, and everyone paid their fair share.
1
No change in the percentage for business will be effective without LOOPHOLE reform. The large corporates will continue to avoid paying what they owe. The rich will get richer and the pittance of relief given the middle class earners is insulting. Wake up fellow taxpayer.
1
Trickle down economics at it's best. They've been pushing for this forever. It's a job creator, that is, if you like working for the minimum wage flipping burgers at Carl's Jr.
3
Let's give it away, let's give it all away. The working poor will pay to keep the rich guys in Armani and their female co-conspirators in Louboutin with their rounded heels.
IT's OK with me if trumptydumpty wants to wreck the US economy and the nation and perhaps the world with another nuclear war started between 2 children who have deadly arsenals. We no longer have democracy or a democratic republic --what we have is propbably not even printable in PRAVDA, the Russian state newspaper called TRUTH.
Like an alcoholic, we need to hit bottom before we start to recover, and the road to recovery will be long for many reasons which to many are all too clear. Those in power choose to live in an alternative world until they will be affected and then they will say, HE did it. It will be too late.
IT's OK with me if trumptydumpty wants to wreck the US economy and the nation and perhaps the world with another nuclear war started between 2 children who have deadly arsenals. We no longer have democracy or a democratic republic --what we have is propbably not even printable in PRAVDA, the Russian state newspaper called TRUTH.
Like an alcoholic, we need to hit bottom before we start to recover, and the road to recovery will be long for many reasons which to many are all too clear. Those in power choose to live in an alternative world until they will be affected and then they will say, HE did it. It will be too late.
1
Apart from the historic failure of trickle down economic policies to create jobs & middle class income - the idea that lower corporate tax will so effectively bring business back to the US that no other revenue source will be necessary to prevent staggering deficits is implausible.
Without substantial infrastructure spending- much like a 'war budget' - America cannot compete with other industrialized nations to motivate corporate relocation. Slow internet, commuter transportation,water, municipal service, skilled workers- all these have made America appealing to companies. As these structures crumble, no tax break will make much difference.
A balanced plan would invest in the guts of America- which defintiely produces jobs.
The hysterical fear of government & federal programs has made the GOP archaic & dysfunctional. Reagan faced a very different global market, Congress & US citizenry. Using his motto: "Government is the problem" to govern now is a fool's nostalgia.
Without substantial infrastructure spending- much like a 'war budget' - America cannot compete with other industrialized nations to motivate corporate relocation. Slow internet, commuter transportation,water, municipal service, skilled workers- all these have made America appealing to companies. As these structures crumble, no tax break will make much difference.
A balanced plan would invest in the guts of America- which defintiely produces jobs.
The hysterical fear of government & federal programs has made the GOP archaic & dysfunctional. Reagan faced a very different global market, Congress & US citizenry. Using his motto: "Government is the problem" to govern now is a fool's nostalgia.
2
There is no "debate." That ended long ago. We have almost thirty years of "real world" statistics to show supply-side is nothing but a ruse: Alan Greenspan himself acknowledged as much in the face of these incontrovertible facts: Reagan's tax cuts indeed created some jobs, but they blew up the deficit; GHWB did the same, even coining the phrase, Voodoo Economics (ironically); W's tax cuts similarly exploded the deficit, erasing the amazing gains so hard fought-for under Clinton.
And stop omitting this extremely critical fact when discussing the corporate tax issue: US rates indeed are high, but the actual taxes paid (because of a ridiculous number of loopholes and deductions) are very low when compared to other developed nations. This centering on the bogus "rate" is going to lead to support for this issue and create yet more obscene bonuses for CEOs. American workers are in trouble. American corporations are awash in cash. Continuing to focus on the rich and corporations for any tax cuts is insane: it is the workers who need money. How else are they going to purchase the products of these corporate wizards?
Henry Ford, a century ago, understood this when he gave his workers an unprecedented wage increase. He did not call for tax relief for himself or his company. Ford Motor Company thrived.
What we continue to witness from the Republican Party truly is amazing. More amazing, however, is the inability of some Americans to repeatedly be cheated and come back for more.
And stop omitting this extremely critical fact when discussing the corporate tax issue: US rates indeed are high, but the actual taxes paid (because of a ridiculous number of loopholes and deductions) are very low when compared to other developed nations. This centering on the bogus "rate" is going to lead to support for this issue and create yet more obscene bonuses for CEOs. American workers are in trouble. American corporations are awash in cash. Continuing to focus on the rich and corporations for any tax cuts is insane: it is the workers who need money. How else are they going to purchase the products of these corporate wizards?
Henry Ford, a century ago, understood this when he gave his workers an unprecedented wage increase. He did not call for tax relief for himself or his company. Ford Motor Company thrived.
What we continue to witness from the Republican Party truly is amazing. More amazing, however, is the inability of some Americans to repeatedly be cheated and come back for more.
4
Many other countries -- and many Americans -- already do:
"If low taxes on business profits is such a good thing for workers and economic growth, why stop at 15%? Why not just eliminate all income tax on businesses?"
Many comments suggest to me that many Americans don't know that that's already being done, even right here in the US of A. Many entities do business without paying any entity-level income tax. The business' earnings are simply "passed through" to the entity's owners, whose income tax payments are then based on their respective taxable incomes. This is true, for example, of S corporations, nearly all LLCs (which can "elect" to be taxed as a corporation, but very few do), and partnerships. All of these entities are referred to as "pass through" entities in tax-law parlance: no entity-level tax (other than franchise taxes or other state taxes -- states rarely pass up an opportunity for those). Right now in the US, there are many advantages to operating in the "standard" corporate form (usually known as "C corporations"), but there are many disadvantages (such as the entity-level income tax) that often are avoided simply by doing business in some other legal form.
In many other countries, taxing authorities just boost the tax burdens on individuals, not tax the entity too.
Simply reducing, or even eliminating, the entity-level income tax on corporations obviously would reduce tax revenues, but not if that's offset by higher taxes on owners of those entities.
"If low taxes on business profits is such a good thing for workers and economic growth, why stop at 15%? Why not just eliminate all income tax on businesses?"
Many comments suggest to me that many Americans don't know that that's already being done, even right here in the US of A. Many entities do business without paying any entity-level income tax. The business' earnings are simply "passed through" to the entity's owners, whose income tax payments are then based on their respective taxable incomes. This is true, for example, of S corporations, nearly all LLCs (which can "elect" to be taxed as a corporation, but very few do), and partnerships. All of these entities are referred to as "pass through" entities in tax-law parlance: no entity-level tax (other than franchise taxes or other state taxes -- states rarely pass up an opportunity for those). Right now in the US, there are many advantages to operating in the "standard" corporate form (usually known as "C corporations"), but there are many disadvantages (such as the entity-level income tax) that often are avoided simply by doing business in some other legal form.
In many other countries, taxing authorities just boost the tax burdens on individuals, not tax the entity too.
Simply reducing, or even eliminating, the entity-level income tax on corporations obviously would reduce tax revenues, but not if that's offset by higher taxes on owners of those entities.
2
Look at all the greedy Democrats and liberals posting here. They always want to pour more of our tax money into an already bloated and spendthrift federal government. Remember Solyndra? $500 million in your taxes simply thrown away. Remember the $1 trillion stimulus plan that Obama said would create shovel ready jobs for middle America? That money went to preserve jobs for teachers and auto union members who voted overwhelmingly for Obama. A dollar sent to the federal government is a dollar wasted, except if it is spent on our common defense. Cut taxes, and return the people's money to the people who earn it. Let them decide how it is best spent.
2
In my area, stimulus funds went to infrastructure projects. If the money was diverted where you are, blame the states that took the money.
"SOS" Do tax cuts pay for themselves? Sure they do, just look at the deficit numbers year by year during the Reagan and Bush Jr. years. Same old snake oil, this time from the Carny Barker.
5
Any legitimate tax reform plan should tax capital gains and dividends as ordinary income.
There is no reason that the tax code should favor unearned income over income from labor. (My wife and I are in the 15% federal tax bracket, still work, but currently pay no taxes on long-term capital gains and qualified dividends. We, and everyone else, should pay taxes on this income.)
There is no reason that the tax code should favor unearned income over income from labor. (My wife and I are in the 15% federal tax bracket, still work, but currently pay no taxes on long-term capital gains and qualified dividends. We, and everyone else, should pay taxes on this income.)
6
Don't make me Laffer...
3
Too SAD.
Trickle Down economics was proclaimed as a failure by it`s creator, D. Stockman of Reagan`s cabinet. Trump is looking after his own company in this budget/tax reform plan. It is more Trickle Up economics. When will the deplorables wake up ?
America , look at what you have done to yourself ! Impeach this fool & run the GOP out of office everywhere.
America , look at what you have done to yourself ! Impeach this fool & run the GOP out of office everywhere.
First, I guess all of that Republican rhetoric about the national debt and the evils of deficit spending was just so much hot air after all. Waiting to hear from Senators Cruz and Paul on this one.
Second, the only thing we got from the Reagan and Bush II tax cuts were more debt and an increase in income inequality.
Third, so the election really was a way to see to it Donald Trump would pay even less taxes than he already does not pay.
Fourth, what happened to all of those Middle Class values like thrift, fiscal responsible and a willingness to pay for those things that are in the national interest. For all of those cultural warriors who want to blame Mexicans and Muslims for our national condition, look in the mirror. As Pogo said, we have met the enemy and it is us.
Second, the only thing we got from the Reagan and Bush II tax cuts were more debt and an increase in income inequality.
Third, so the election really was a way to see to it Donald Trump would pay even less taxes than he already does not pay.
Fourth, what happened to all of those Middle Class values like thrift, fiscal responsible and a willingness to pay for those things that are in the national interest. For all of those cultural warriors who want to blame Mexicans and Muslims for our national condition, look in the mirror. As Pogo said, we have met the enemy and it is us.
1
Thanks to Kansans we have the ultimate experiment in tax-to-achieve-growth policy. And the verdict is that it is an unmitigated disaster. Debt is up, schools are closing, and Brownback was the country's least popular governor until a 110% effort by Chris Christie pushed Brownback to No. 2.
Yet conservatives look away and try to sell the Laugher Curve [sic] as realistic economic policy. If only they believed in science maybe they would see that this theory has been tested and it needs to be filed next to "The Earth is Flat".
Yet conservatives look away and try to sell the Laugher Curve [sic] as realistic economic policy. If only they believed in science maybe they would see that this theory has been tested and it needs to be filed next to "The Earth is Flat".
3
Wait, Trump's tax plan benefits him and his company financially? Huh. What a surprise.
2
There is no doubt that the shape of the Laffer curve is basically correct. However, there is as yet no quantitative determination of where the maximum return point is. More importantly, a different issue has been ignored in the analysis that economic growth will replace the lost taxes from reduced rates. It is the fact that economic growth requires more infrastructure, some of which only governments can provide. These require more taxes to pay for them or deficits will increase even if the loss from lower rates has been restored. Economists need to address this additional complication. What has been demonstrated to provoke economic growth that produces net positive tax returns is government investment in infrastructure: railroads, highways, airports and the internet. These have produced much more economic growth than the taxes they cost to produce or maintain. Net return on investment is comprehensible to all.
1
1974 - Laffer Curve
1984 - Laugher Curve after Reagan's trickle down fail
2000 - Bush - Don't the Republicans learn anything
2017 - Trump -Don't the Republicans learn anything again.
As they say, the definition of insanity....doing the same thing over and over again and expecting different results.
1984 - Laugher Curve after Reagan's trickle down fail
2000 - Bush - Don't the Republicans learn anything
2017 - Trump -Don't the Republicans learn anything again.
As they say, the definition of insanity....doing the same thing over and over again and expecting different results.
1
If we are going to reduce the corporate tax rate then we will need to make ALL corporate income, including what they sequester overseas and in phony-baloney foreign subsidiaries, subject to US income tax, just like we do with individual American citizens who earn money overseas and are liable for tax on it all whether they bring it home or not.
3
Every time I read about the urgent need to cut corporate taxes because they're SO, SO onerous, I go look at the handy chart of how much corporations pay toward the federal budget every year. Guess what? Their share has been shrinking ever since the 1950s. You know what kind of taxes are making up for that? Income taxes and payroll taxes, of course. The ones paid by people who work for a living. https://taxfoundation.org/income-taxes-account-largest-share-federal-rev... And I don't want to hear any arguments about how companies pay half of payroll taxes either. We all know that in reality the total comes out of the employee paycheck, especially when jobs are scarce. Here's why: https://taxfoundation.org/what-are-payroll-taxes-and-who-pays-them/
2
As a small business person I would love to see a tax cut. I am sick and tired from paying high rates while big corporations with armies of tax lawyers are off the hook with zero federal taxes.
Then I stopped reading when I read that would include Trump's real estate empire. Talking about the system being rigged.
Then I stopped reading when I read that would include Trump's real estate empire. Talking about the system being rigged.
1
Today, we learn that at least half a dozen state retirement funds are invested in trump real estate. If that isn't a conflict, I don't know what is. Investigate, impeach, imprison. And while they're at it, reform the tax law for the wealthy to increase revenue, and punish evaders (like trump.)
Can we please do away with this magical world where tax cuts pay for themselves with economic growth? Or can someone show me somewhere that this actually worked? Sure hasn't in Kansas and Wisconsin isn't looking great either.
Insanity is doing the same thing over and over and over and expecting a different outcome. We are living in insanity.
Insanity is doing the same thing over and over and over and expecting a different outcome. We are living in insanity.
How many corporations are actually paying anything in taxes after deductions? Which means that the government will be handing out even more money to big businesses, which will result in ringing it out of us working stiffs. This is plutocracy, plain and simple!
1
How about a 15% tax rate for everyone and every business for all incomes?
No deductions or loopholes on anything
Any plan that leaves workers paying higher rates than business owners and corporations and shareholders is a bad plan that increases inequality
No deductions or loopholes on anything
Any plan that leaves workers paying higher rates than business owners and corporations and shareholders is a bad plan that increases inequality
1
Once again the Republicans want to cut taxes, thereby increasing the deficit further and interest payments on the debt. This will all somehow magically be paid for by voodoo economic trickle down stimuli, even though there is zero evidence for this. Thanks Republicans for increasing the debt for future generations so you can help the rich get richer.
It makes sense now.The forgotten man from the inauguration speech were big business and corporations.
In the first 100 days can't think of one policy agenda that was supposed to help the majority of Americans who are not millionaires and billionaires.
In the first 100 days can't think of one policy agenda that was supposed to help the majority of Americans who are not millionaires and billionaires.
1
These days, the only times when Republicans care about deficit reduction is when they are opposing legislation introduced by Democrats. Otherwise, they're happy to make the rich richer and the rest of us poorer, without any regard for the deficit.
2
Here we go again; the Republicans are more concerned with making money than with people. A tax rate of 15% will only put our country deeper in debt and make it more difficult to sponsor and support programs that help mankind. This is the most disgusting administration in years. More money for businesses more money for business owners and stock holders. The rich will get richer for now and the poor will become more poor. When the poor can no longer supply themselves with the basics, food, clothing, shelter and medical care and they begin to die will we call it genocide?
My main concern is that corporation's, and the others included with them, will get better tax treatment than "I" the individual. I want my taxes the same or better than 15%!
Trump doesn't pay taxes already, so how does tax reform help him? Seriously, Trump already pays far less than 15%, so a Corporate or personal tax cut will not benefit Trump, since he already pays no taxes. What am I missing? Isn't 0% still less than 15%?
1
Many businesses use the excuse that high taxes justify not paying their workers a living wage. They also complain about and lobby against raising the minimum wage - which in many states is still (the federal rate of) $7.25/hr.
So if they get to pay 20 percent less in taxes are they going to still claim that they "can't afford" to pay their workers more?
So if they get to pay 20 percent less in taxes are they going to still claim that they "can't afford" to pay their workers more?
1
Sounds pretty reasonable - strong companies are important for society - after all, companies make jobs and make things people use. Moreover, with increased competition they make things more efficiently and the costs to consumers go down.
What's not to like in a program that will improve employment, make peoples lives better and help consumer by lowering costs.
What's not to like in a program that will improve employment, make peoples lives better and help consumer by lowering costs.
1
The current high tax rate is a lie anyway when we consider the numerous tax loopholes that damage our economy through distorted behavior.
- Why is interest on an RV tax deductible?
- Why is carried interest capital gains rate of 20% vs 39%?
- Why to Tesla owners get tax deductions but not Ford Focus?
The list goes on and on. Notice that all these deductions favor the wealthy, and yet does not do anything to improve the real economy.
It is estimated that Americans spend 6 billion hours, and $260 billion on tax compliance. And THIS abolutely does not create wealth for anyone aside from accountants and lawyers. We need comprehensive tax reform that includes lower, simpler tax rates AND less loopholes that favor the wealthy and forces bad decisions.
- Why is interest on an RV tax deductible?
- Why is carried interest capital gains rate of 20% vs 39%?
- Why to Tesla owners get tax deductions but not Ford Focus?
The list goes on and on. Notice that all these deductions favor the wealthy, and yet does not do anything to improve the real economy.
It is estimated that Americans spend 6 billion hours, and $260 billion on tax compliance. And THIS abolutely does not create wealth for anyone aside from accountants and lawyers. We need comprehensive tax reform that includes lower, simpler tax rates AND less loopholes that favor the wealthy and forces bad decisions.
1
follow trumps fiscally conservative golf outings to maraloco, updated daily
https://istrumpatmaralago.org/
from forbes mag:
Donald Trump's regular jaunts to his Mar-a-Lago club in Florida appear to be costing taxpayers a small fortune. The president's three trips have probably cost the federal Treasury about $10 million, the Washington Post estimates, based on an October 2016 Government Accountability Office analysis of White House travel.
By comparison, Barack Obama's travel expenses averaged just $12.1 million during each year of his presidency. In total, Obama's eight year travel bill came to $97 million and unbelievably, Donald Trump is on pace to outspend him in less than one year. The Washington Post says "the elaborate lifestyle of America’s first family is straining the Secret Service and security officials, stirring financial and logistical concerns in several local communities, and costing far beyond what has been typical for previous presidents."
as of 17 april
The site IsTrumpAtMarALago.org, launched on Friday by the Center for American Progress Action Fund, tracks how many weekends Trump has spent there and what the estimated cost has been for taxpayers. As of Monday morning, he had gone to the resort seven out of his 13 weekends as president, costing taxpayers an estimated $25 million.
3
So instead of going to work each day and paying my taxes at the 25% rate like (I am guessing) the great majority of NYT readers and Trump voters, I can declare myself a corporation and immediately get down to a 15 % rate. There will be lawyers coming out of the woodwork who will do all the paperwork for $295, and there will be companies who will pass some more of the savings onto themselves by cutting pay, and the net effect will be the rich getting the gravy and the poor, as ever, getting the blame.
Interesting that Senator McConnell is accusing Democrats of wanting "wealth transfers" when President Trump's proposal is exactly that: a wealth transfer from the common good to corporations and wealthy individuals, such as hedge fund managers. Maybe this proposal should be called the "Anti-Robinhood Tax Plan" as it robs from the poor to give to the rich.
3
This makes complete sense. Conservatives don't believe in evidence-based decision making on energy, climate change or medical care. Why would they abandon supply side economics even though it's been an abject failure when it's been implemented. Question is, where are the deficit scolds in Congress now that the debt is likely to blow up?
1
Raising the standard deduction for individuals is a clever way to give middle America a tax cut while maintaining existing rates for those of us on the coasts and other high cost areas. I guess if it makes realtors and builders unhappy, he's on the right track. Bolder and better would be to eliminate the mortgage interest deduction entirely.
So the barons of business will have additional oceans of cash that they can donate to their pals in Congress and state houses across the nation, so they can keep control over the political system. And there will be less and less chance of anyone ever attaining political power who will be able to make them pay their fair share, treat employees decently, respect the interests of consumers and anything else that really matters to the average citizen. That's the Trump tax plan. The rest is hot air.
1
It's "deja vu all over again".
Deficits now no longer matter, so "deficit hawks" like Paul Ryan, who voted for trillions in deficit spending in the Bush years, who were so concerned about the deficit and its negative impact on our American future during the Obama years have suddenly come to the light to see the glories of deficit spending.
Something must have changed.
This tax plan is just another example of the GOP's sixty to seventy year plan of kicking the same people from the middle and lower-middle class and blue collar workers who voted for them.
Deficits now no longer matter, so "deficit hawks" like Paul Ryan, who voted for trillions in deficit spending in the Bush years, who were so concerned about the deficit and its negative impact on our American future during the Obama years have suddenly come to the light to see the glories of deficit spending.
Something must have changed.
This tax plan is just another example of the GOP's sixty to seventy year plan of kicking the same people from the middle and lower-middle class and blue collar workers who voted for them.
3
I thought that Candidate Trump wanted to get rid of the carried interest rule that gave such advantaged treatment to hedge funds. Is this how President Trump plans do it? Just change the rules so they don't need to call their earnings "carried interest" in order to pay a lower marginal rate than any middle class wage earner?
1
The fowl backing Citizens United have come home to roost.
1
One other remark: Why does tax law use discreet tax brackets, rather than use some continuous function to implement the idea of progressivity, especially when returns to capital tend to be exponential (like, "the miracle of compound interest")? This could eliminate much of distortions caused by gaming to get to the top, but not exceed, a bracket. The argument might be that tax brackets are easy to under stand, but they induce so many other weird rules, that the system as a whole is incomprehensible. Lastly, since the gov gets Form 1099's anyway, let them do the first drafts of our tax returns. Sure, Intuti and H&R Block, who want the system to be complex so as to need their services, object, but screw 'em. Grover Norquist doesn't want that either, of course, because he wants tax filing to be hard, so that people will hate them. But nuts to him too. Tax Reform that reduces a return to an easily fill-outable postcard is completely achievable today without crazy "reforms" that will direct even more bucks to Norquist's sponsors.
Here's an idea - Have each of the top 500 biggest corporations submit a report on the exact number of new jobs they would create as a result of the tax reduction and check back in a year so we can finally dispel this myth once and for all.
1
Alert: buried at the end of this article is the most important fact: Mitch McConnell said he'd use cloture (it brought us Gorsuch) to pass the tax bill.
So, this already may be a done deal, unless, ironically, the Freedom Caucus balks at the deficit-exploding result of this insanity.
So, this already may be a done deal, unless, ironically, the Freedom Caucus balks at the deficit-exploding result of this insanity.
19
Seems like a lot of firsts in this administration. Let's hope nuclear holocaust and the extinction of both republicans and democrats (and independents!) isn't one of them.
Conflict of interest? Why is the congress enabling this man who won the election with the help of an adversary foreign nation? I don't understand.
The Republicans are a one-issue party: eliminate taxes for the rich.
Everything else is window dressing.
Everything else is window dressing.
Remember the outcry during the presidential campaign from all the voters calling for a massive tax rate reduction for corporations?
That's right, neither do I.
That's right, neither do I.
" The package will also increase the standard deduction for individuals and provide a modest tax cut for middle-class people"
Tax cuts solely for the rich, attempts to take away healthcare, nothing for infrastructure. When are you ardent Trump supporters going to "wake up and smell the coffee?"
Tax cuts solely for the rich, attempts to take away healthcare, nothing for infrastructure. When are you ardent Trump supporters going to "wake up and smell the coffee?"
So Trumpski took out his crayons and wrote up a tax plan all by himself. It was the best tax plan, a huge tax plan, that cut taxes for himself, his family, everyone in his cabinet, rich Republicans and their corporations — by more than half.
What's not being reported is that this is a huge tax increase for the 99%. That's tax reform, Republican style.
What's not being reported is that this is a huge tax increase for the 99%. That's tax reform, Republican style.
How about this. If your products are 100% Made In The USA, not assembled but 100% Made In The USA from design, engineering and parts through assembly and distribution, you pay no corporate taxes and give your employees a raise and other humane and common sense benefits.
It's funny how the media talks about the lack of proof that tax cuts pay for themselves. The republicans KNOW that tax cuts don't pay for themselves and have always known it. They also know that when the inevitable destruction of the economy arrives due to enormous deficits they will be sitting pretty with billions in safety deposit boxes while the average schmo will have thousands in debt. Please don't say "tax cuts won't pay for themselves". That's a truism that everyone knows is true (except the media?).
1
Where's Grover? Funny how all of these idealist Republican thugs have disappeared in the last three months. Is he gonna anoint a challenger to Trump in 2020 due to this budget busting, deficit increasing, absurd "plan"? Comment on how much the president and his family stand to make on this?
Or sit on his hands?
I think we all know the answer. Grover "The Coward" Norquist. Pathetic.
Or sit on his hands?
I think we all know the answer. Grover "The Coward" Norquist. Pathetic.
Surprise, Surprise, Surprise! Who did not know the rich guy would propose huge tax cuts for his fellow elite and ignore those of us who could use the help, not have to pay for those cuts? This is outrageous and unconscionable. Everything he does is calculated in his own personal favor and that of his backers.
Good grief and multiple curses!
How long will US citizens put up with this desecration of democracy?
Good grief and multiple curses!
How long will US citizens put up with this desecration of democracy?
If you want growth then lower taxes to 10% for folks earning less than $100k. Those people spend every dime they make. Provide those people universal healthcare through a payroll tax on employers and employees and now you get more growth as they are not tied to employers.
Corporations spend when they see demand. Tax breaks to wealthy don't drive demand.
If you give me a tax break I will put it in savings.
Corporations spend when they see demand. Tax breaks to wealthy don't drive demand.
If you give me a tax break I will put it in savings.
Let's see the Republican Congress pass this puppy. The R's gained majorities in Washington and state houses by feeding resentment, gaming the system and promising the impossible.
This agenda flies like the Hindenburg with the same conclusion.
This agenda flies like the Hindenburg with the same conclusion.
1
Wouldn't it simplify the tax code perfectly if we subjects paid our taxes directly to King Trump?
1
It would make for great TV, if like the annual golden tribute to the Aga Khan, we were all required to bear our tax dues on our backs all the way to Washington, in order to lay the fruits of our labors at Trump's tiny feet.
Some especially ardent Trump supporters could offer their dues up in lieu of Trump's missing taxes, a sum we might be able to gauge if he'd only release those returns.
In case you don't know about the AK, his "subjects" give him his weight in gold every year on his birthday in tribute. All the more reason for Trump to keep downing those calorie burgers, I suppose.
Some especially ardent Trump supporters could offer their dues up in lieu of Trump's missing taxes, a sum we might be able to gauge if he'd only release those returns.
In case you don't know about the AK, his "subjects" give him his weight in gold every year on his birthday in tribute. All the more reason for Trump to keep downing those calorie burgers, I suppose.
when will people learn? trump is a liar and a con artist. He will never be a servant to others. We need a civil servant. We need some one who is on our side. We need some one who is like the common man. Trump is a 1%er. He is one "of them". He will tax the poor, the middle class, but lessen the burden on the wealthy so that he can buy another building or have another gold plated toilet.
Market loves Trump
Record highs for all 3 indexes today.
Record highs for all 3 indexes today.
4
That's like saying bloodsuckers love the lead vampire.
Markets aren't indicative of the larger economy, only already wealthy and enormous publicly traded companies. Wouldn't read too much into that.
Even if those indexes are a reaction to Trump, it says more about what he will do for them than a general optimism for the economy. Trump has made is apparent he wants to dismantle the already-limited financial oversight we have and will obstruct any effort to get a livable minimum wage for the workers of these companies.
Even if those indexes are a reaction to Trump, it says more about what he will do for them than a general optimism for the economy. Trump has made is apparent he wants to dismantle the already-limited financial oversight we have and will obstruct any effort to get a livable minimum wage for the workers of these companies.
1
They also liked Obama!
2
One word: Kansas.
3
Historic. Thanks. Always like to be a part of something that's failed over and over and now is going to work like a dream. Because the same idiot who's been right about absolutely nothing said so.
1
Terrific! Trump and the GOP are determined to bankrupt America while making huge profits on the deal.
So the basic tax plan of President Trump is, cut everyone's taxes...businesses, individuals, dogs and cats...all get a tax cut. Re: balancing the budget? Not so much.
Way to go, you really knocked this one out of the park. This plan to increase the deficit sure took a lot of blood, sweat and tears. A plan to run up the government's credit card should only be expected from someone who lead the field in declaring bankruptcy and stiffing the average Joe Worker.
And the Republican base will be cheering from the sidelines - Hip Hip Horay!!! Let's throw this plan and the kitchen sink upon our kids and our grandkids shoulders!!! Let's all Live For Today!!!!
Way to go, you really knocked this one out of the park. This plan to increase the deficit sure took a lot of blood, sweat and tears. A plan to run up the government's credit card should only be expected from someone who lead the field in declaring bankruptcy and stiffing the average Joe Worker.
And the Republican base will be cheering from the sidelines - Hip Hip Horay!!! Let's throw this plan and the kitchen sink upon our kids and our grandkids shoulders!!! Let's all Live For Today!!!!
1
Russian oligarch model, winning is expensive.
2
Basic economics is taught as early as high school. Depending on the student and/or the state this same Econ education can start as early as middle school (some call it junior high).
The micro, macroeconomic concepts that completely refute the economic ideas coming out of this WH are covered in these courses.
Kind of tells you something about DJT's base and who the GOP really appeals to.
The micro, macroeconomic concepts that completely refute the economic ideas coming out of this WH are covered in these courses.
Kind of tells you something about DJT's base and who the GOP really appeals to.
1
For as long as I can remember, Republicans have preached fiscal austerity while at the same time being the most irresponsible stewards of the budget anyone could imagine. Everytime they get the keys to the whitehouse, the GOP cuts taxes without cutting spending and causes deficits to explode. Then, when voters wake up and boot them out, the GOP blames the democrats who then proceed to undo the damage. It would be laughable if it wasn't so incredibly damaging and hypocritical.
3
Crooked regime/attempt at creating a dynasty
I expect this means a lot of highly paid professions, like myself, will become LLC and reduce their income taxes to 15% W2 worker bees will continue to be taxed at 30% and higher.
Seems like a great plan, for me. Seems like an awful plan for the middle and lower income classes, seems like a horrible plan for infrastructure, the environment, education, food safety, etc. since those things all COST MONEY.
Seems like a great plan, for me. Seems like an awful plan for the middle and lower income classes, seems like a horrible plan for infrastructure, the environment, education, food safety, etc. since those things all COST MONEY.
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Corporations are not "Taxpayers." Corporations are "Tax Collectors." Think about it.
1
Right. Because we're just sitting around thinking that the greatest injustice in this country right now is that Walmart, Amazon, and the Trump Corporation pay too much in taxes.
Someday people will realize there's a lot more people with less and a lot fewer with more, and the end of that story isn't going to be pretty.
Here we go again. Cut taxes for wealthy, and increase deficit. Trickle down again? What is the definition of insanity?
Trump is Robin Hood in reverse - he gives to the rich and takes from the poor.
I thought Republicans cared about the federal deficit and the nation's total debt?
Citizen's United said, I thought, that "Corporations are people". Why aren't they being taxed like the people?
1
NYT's, as always a insightful article. However, most of Trumps base does not read the Times so it's left to folks like me (and the rest of his "non-base") who did not vote for him to add our comments to articles like this and to attend as many rallies as possible against Trump and his administration who if left un-checked will cause great harm to our once great nation.
1
Repeat after me: trickle down does not work. Obviously, Congress fails to understand the result no matter how many times the experiment is repeated.
Fortune 500 companies have already figured out how to get their corporate tax rates down super low with the army of lawyers they've hired. GE for example. The money these companies save will only boost stock buybacks and dividends. I am very skeptical of them hiring more and expanding in the US unless they are forced to.
So let's get this straight: Trump says he'll waive the $400,000 salary of the office of President and then he gives himself a multi-million dollar tax break. Correct?
1
companies like exxon and ge are way ahead of trump
taxes?
they dont have to pay no stinkin' taxes
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Moving news forward.
Apr 6, 2010
ExxonMobil paid no federal income tax in 2009. (Updated)
By Ben Armbruster
Last week, Forbes magazine published what the top U.S. corporations paid in taxes last year. “Most egregious,” Forbes notes, is General Electric, which “generated $10.3 billion in pretax income, but ended up owing nothing to Uncle Sam. In fact, it recorded a tax benefit of $1.1 billion.” Big Oil giant Exxon Mobil, which last year reported a record $45.2 billion profit, paid the most taxes of any corporation, but none of it went to the IRS:
Exxon tries to limit the tax pain with the help of 20 wholly owned subsidiaries domiciled in the Bahamas, Bermuda and the Cayman Islands that (legally) shelter the cash flow from operations in the likes of Angola, Azerbaijan and Abu Dhabi. No wonder that of $15 billion in income taxes last year, Exxon paid none of it to Uncle Sam, and has tens of billions in earnings permanently reinvested overseas.
1
Did I read this correctly, that this proposal has an unspecified impact on the budget?
If that's true, then, this proposal, or any other is an exercise in irresponsibility.
If that's true, then, this proposal, or any other is an exercise in irresponsibility.
And once again, for the umpteenth time, the inherently contradictory impulses of militaristic, anti-tax, right-wing Americans are on full display. These people want two irreconcilable things: A massive, bloated military-industrial complex that pours trillions of dollars down the toilet every year in some futile quest to maintain American "hegemony," and at the same time the slashing down to virtually nothing the corporate and income tax rates on the richest companies and individuals.
You don't need to be very smart to understand why you can have one of these things or the other, but not both. But apparently every Republican who wants both (Ryan, McConnell, Hatch, Graham, McCain, etc.) is too stupid to rise to even that relatively low level of common sense and intelligence.
I'm not sure how much longer the USA can go on like this. The country was founded in the 18th century on the basis of a deeply selfish and self-centered tax revolt. In a sense, what has occurred since the 1980s has been a second American "Counterrevolution"--a massive backlash against the steeply progressive rates of tax that NEEDED to be implemented after World War II to both pay off the debts incurred during that conflict and to maintain a high defense budget in emerging the Cold War environment.
Look, if right-wingers want America to be a bigger version of Ireland or the Cayman Islands, i.e. a low-tax or no-tax haven, PLEASE realize why those places also have very small budgets for "defense."
You don't need to be very smart to understand why you can have one of these things or the other, but not both. But apparently every Republican who wants both (Ryan, McConnell, Hatch, Graham, McCain, etc.) is too stupid to rise to even that relatively low level of common sense and intelligence.
I'm not sure how much longer the USA can go on like this. The country was founded in the 18th century on the basis of a deeply selfish and self-centered tax revolt. In a sense, what has occurred since the 1980s has been a second American "Counterrevolution"--a massive backlash against the steeply progressive rates of tax that NEEDED to be implemented after World War II to both pay off the debts incurred during that conflict and to maintain a high defense budget in emerging the Cold War environment.
Look, if right-wingers want America to be a bigger version of Ireland or the Cayman Islands, i.e. a low-tax or no-tax haven, PLEASE realize why those places also have very small budgets for "defense."
12
Also, much smaller populations. A lower percentage of a lot of money is needed to prosper "bigly".
While the GOP is interested in cutting taxes for their wealthy donors will they ask Trump to release his tax returns for the last 10 years so we can see how much benefit he'll be getting from these tax cuts? And just remember, Trump is still very involved in his various businesses so the American public cannot assume that he is an impartial actor in this charade.
4
If the Democrats are interested in seeing that the majority of Americans get a fair deal from the tax cuts McConnell is right. But what's wrong with a wealth transfer that benefits working Americans? Or is the GOP interested only in the welfare of the economic elites, i.e. the 1% who own them? Has anyone told the GOP and the top 1% that allowing the rest of us to have decent lives helps them when it comes to making money? Impoverished unhealthy and unhappy citizens/employees aren't good for business. Then again we are imitating China in how we discard and abuse employees so I guess it no longer matters how much the GOP destroys the lives of working Americans.
It is pathetic how the GOP clings to the idea that by serving the economic elites they are serving working Americans. These elites are people/companies who have enough money to run a small country and they don't need welfare or tons of government assistance. Americans who do not have tons of money are told that they are asking too much when they desperately need government assistance while watching the GOP fawning over Wall Street, the likes of GE, Pfizer, GM, and the Koch Brothers empire, none of whom need assistance. Maybe it's time to start rereading "A Tale of Two Cities".
It is pathetic how the GOP clings to the idea that by serving the economic elites they are serving working Americans. These elites are people/companies who have enough money to run a small country and they don't need welfare or tons of government assistance. Americans who do not have tons of money are told that they are asking too much when they desperately need government assistance while watching the GOP fawning over Wall Street, the likes of GE, Pfizer, GM, and the Koch Brothers empire, none of whom need assistance. Maybe it's time to start rereading "A Tale of Two Cities".
2
These people are addicted to greed.
They will never have enough.
If you wait for them to rein themselves in, you are on a fool's errand.
They will never have enough.
If you wait for them to rein themselves in, you are on a fool's errand.
Businesses currently do not pay an actual tax rate of 35%, especially corporations which use many tax avoidance techniques already. If the business tax rate is cut to 15% those same tax avoidance mechanisms will result in an even lower actual tax rate than today. Recall Warren Buffet's comment that he pays an actual tax rate that is less than his secretary pays, which he noted is completely unfair.
Supply-side economics, also known as trickle down economics does not work. This is because manufacturers will not increase their production resulting in hiring more employees if the general population cannot afford to buy more products. Instead, the lower corporate tax rate will provide for bonuses to executives and dividends to shareholders, leaving the average citizen out of participating in the benefits of this deceptive 'tax reform' plan.
Supply-side economics, also known as trickle down economics does not work. This is because manufacturers will not increase their production resulting in hiring more employees if the general population cannot afford to buy more products. Instead, the lower corporate tax rate will provide for bonuses to executives and dividends to shareholders, leaving the average citizen out of participating in the benefits of this deceptive 'tax reform' plan.
75
Their base believes it.
That's all they care about.
"I love the poorly educated"
- Donald Trump
That's all they care about.
"I love the poorly educated"
- Donald Trump
US multinationals pay an effective tax rate lower than 35% because much of their profits are earned in tax jurisdictions which, almost without exception, have lower corporate tax rates than the US. While lowering the US rate will make their overall effective tax rates even lower, more of their taxable income and employees( who in turn earn taxable wages) will reside in the US. Why is that a bad thing?
1
Since many (especially) large US corporations actually pay 0% in taxes, and situate headquarters in tax havens like Ireland, as well as go to tax-free, free land & building "business friendly" states I'm curious as to how will this actually have any real impact. It sounds like the real costs will actually fall back to the states in exchange for jobs--as we have seen this hasn't worked to spur significant job growth.
It might help small businesses--but look at what happened when Kansas cut the tax rate (in a more extreme way). They are billions in the hole and can't fix their own roads, are shutting down schools. Is that what we want?
It might help small businesses--but look at what happened when Kansas cut the tax rate (in a more extreme way). They are billions in the hole and can't fix their own roads, are shutting down schools. Is that what we want?
3
As with personal income which has tax rates pegged to income, corporate rates should also have graduated rates with a lower, perhaps 10 percent rate for small businesses rising in steps to 25-30 for large corporations that repatriate their offshore funds here. One rate seems simple, but, in reality, it's plainly simplistic, in that it's a big bonus for the large multi-national corporations which has been able to avoid paying their fair-share of taxes for years while still penalizing those true engines of job creation, small businesses, that have few, if any loopholes. If you want to help the American worker to help "Make America Great Again," focus on the corporations that really need it and where you really will get a "bang for your buck"--small business. The cost to the taxpayer will be low and the benefit both immediate and large.
5
I'm sure the elimination of the Inheritance Tax will be buried in the fine print.
8
We’re still waiting for Trump's Tax Returns - let NYT and the rest of the media focus on that. To paraphrase Trump - please hack the so-called President's tax returns please, in order to get real clarity about him. Focus, focus!!!
9
If deductions and loopholes already reduce business taxes to very low numbers, what is the point of changing the tax rates?
Let's simplify the tax code too, get rid of the lion's share of the deductions so that businesses really pay 15%, rather than have a rate of 39% but actually pay less than 10%.
Let's simplify the tax code too, get rid of the lion's share of the deductions so that businesses really pay 15%, rather than have a rate of 39% but actually pay less than 10%.
9
Those of you trying to rationalize it - don't...its Trump. Its good for him and his friends - he wants it...how this person became the hero of the working class is beyond me. This is a win-win for republicans, slash rates for the donor class, then have massive exploding deficits that need to be shrunk by slashing social programs. Remember back in the late 1990s when the debt clock was taken down because it was counting backwards...
11
When this gets passed and the rich get richer, and the poor get poorer, and crime increases in the deep red states, and the farmers suffer because they can't afford to sell their crops, and middle america suffers even more then they will know the truth, then they will look at the white house with anger and disgust and speak the truth as they now know it.....
"This is somehow Obamas fault"
"This is somehow Obamas fault"
13
"Other Republican senators appeared ready to embrace a tax proposal that adds to the deficit in the name of jump-starting the economy."
These are the same patriots who opposed any spending proposal by Obama as budget busters; now they are the patriots jump-starting the economy.
And they wonder why they have so little credibility?
These are the same patriots who opposed any spending proposal by Obama as budget busters; now they are the patriots jump-starting the economy.
And they wonder why they have so little credibility?
19
Attempting to jump start an already running engine will result in a breakdown.
1
The truly amazing thing is that they still do have credibility with some sectors of the American public. They still can't see the gigantic, odorous hypocrisy right in front of their faces.
1
So this is what winning and making America great again looks like...
How much in wasted energies and expenses are being consumed by the new reality TV Executive Branch (and Congress) following the antics of a President throwing his weight around like a drunken sailor...I want a healthcare plan this week! Cut taxes to 15% tomorrow! Now I went a new healthcare plan Friday! Obama spied on me! How dare that judge refuse my order! Let's all meet in my office this week for a chin-wag on my non-existent plan for North Korea! Best 100 Days for a new President ever! Who cares about an "artificial barrier" of 100 Days?! Set up a temporary SCIF here! No, now I want another SCIF there! Actually, who needs a SCIF?! Where do I sign my next EO? Now I need to head to one of my properties to siphon off some more taxpayer cash, see you later, suckers!!
How much in wasted energies and expenses are being consumed by the new reality TV Executive Branch (and Congress) following the antics of a President throwing his weight around like a drunken sailor...I want a healthcare plan this week! Cut taxes to 15% tomorrow! Now I went a new healthcare plan Friday! Obama spied on me! How dare that judge refuse my order! Let's all meet in my office this week for a chin-wag on my non-existent plan for North Korea! Best 100 Days for a new President ever! Who cares about an "artificial barrier" of 100 Days?! Set up a temporary SCIF here! No, now I want another SCIF there! Actually, who needs a SCIF?! Where do I sign my next EO? Now I need to head to one of my properties to siphon off some more taxpayer cash, see you later, suckers!!
16
As a middle class taxpayer, I listened to Mr. Trump champion tax cuts for us, a wall that Mexico would pay for, and a 'wonderful' health plan. The current proposal to give corporate and real estate interests huge tax breaks at the expense of the national debt, with maybe some crumbs for the rest of us, is becoming par for the course. It is now obvious Trump has no interest in helping the middle class, it is all smoke and mirrors.
63
Just outrageous, and even more outrageous is the New York Times' complete lack of discussion of how massive tax cuts like this, and the ones under Reagan and George W. Bush, exploded the deficit AND helped to create the massive income and wealth inequality we see today. Meanwhile, when Bill Clinton RAISED taxes in 1992, despite all the Republican doom and gloom predictions, he presided over one of the longest periods of economic expansion and left us with a surplus in 2000. A SURPLUS! But that cannot be mentioned, I guess. Instead, it's more of the absurd GOP tax-cutting same!
11
So businesses and those who have large stakes in the stock market benefit the most, and those with middle and working class salaries will pay the burden of increased military spending and The Wall, and experience decreased healthcare with rising costs. Plus pay more for imported goods. Why would working class and middle class Americans ever vote for a Republican, much less Trump? For how long can he fool so many ignorant Americans?
2
trump (with a little t) is giving himself and his global business a windfall of money in the form of a tax cut. THIS is going to be the biggest transfer of wealth from the federal government and lower and middle class to the upper and wealthy class.
First, the GOP passes a tax cut that reduces federal revenues that provide the very services that over 151 million people depend upon and support infrastructure, research, education, etc..
Then, much later, after everyone 'forgets' about the tax cuts, you begin arguing that the federal government spends too much on, and needs to be cut from, social programs: ACA subsidies, Medicare, Social Security, & housing assistance, while still pumping up military budgets. Skip infrastructure, it'll never happen because the wall will soak up so much money that the wall will become our war within our boundaries: wall spending that will never end.
These strategies and tactics makes villains of those with the least, as the problems that "cost" those with the most, to pay taxes. This will be the argument that dupes people into voting against themselves-AGAIN.
See Census Bureau 2015 Report: https://www.census.gov/newsroom/press-releases/2015/cb15-97.html
First, the GOP passes a tax cut that reduces federal revenues that provide the very services that over 151 million people depend upon and support infrastructure, research, education, etc..
Then, much later, after everyone 'forgets' about the tax cuts, you begin arguing that the federal government spends too much on, and needs to be cut from, social programs: ACA subsidies, Medicare, Social Security, & housing assistance, while still pumping up military budgets. Skip infrastructure, it'll never happen because the wall will soak up so much money that the wall will become our war within our boundaries: wall spending that will never end.
These strategies and tactics makes villains of those with the least, as the problems that "cost" those with the most, to pay taxes. This will be the argument that dupes people into voting against themselves-AGAIN.
See Census Bureau 2015 Report: https://www.census.gov/newsroom/press-releases/2015/cb15-97.html
3
I'm pretty sure all those low-income Trump voters in the south voted for this. I'm certain, that they were thinking exactly of this when they were pulling that lever in the voting booth.
2
No real taxes on importation, no wall , no health care reform, no ban on Muslims, Isis is still a threat in Syria, no big infrastructure spending and on and on . Trump received big applause during the campaign when he promised he was going to be the president that gets things done and except executive orders , it doesn't look like he is going to accomplish much . But let's not worry , his voters will blame the democrats as usual .
3
The United States Supreme Court determined that corporations are people with first amendment rights, should Congress and President Trump reduce corporate IRS taxes to 15%, the same 15% tax rate should apply to All of America's tax-paying people! 15% for individuals, families, and voters regardless of party affiliation.
In other words a universal personal 15% flat tax on all income and be damned with the federal deficit!
In other words a universal personal 15% flat tax on all income and be damned with the federal deficit!
2
Rich will be richer and poor will be poorer ----------Trump's economic policy. Everybody will get tax cut and deficit will go down which is VOODOO economic. Trump was born with gold spoon in his mouth. He has no idea how the poor and middle class live and how hard it is. He is for corporate tax cut but during campaign he blamed Hillary that she was with Wall Street and corporations. What a fake promise to ordinary people before election!
7
This tax 'cut' would add 2.2 trillion dollars to the debt. Then the GOP state that the debt is too high and they must cut safety net programs. This is the same old plot they have been running since Reagan. It's corporate welfare and the middle class will get screwed somehow. Vital programs will get cut across the board such as infrastructure and renewable energy investments.
5
This trickle down is like cotton candy. Looks good when you buy it. But wait... as it deflates to nothing but a colored sludge that is sickening.
2
Ttump's tax reform will promote growth and inspire individuals to work because they will keep more of their hard earned money. Thank you.
1
Except that most Americans won't get anything from it, no matter how hard they wotk.
1
Fortunately, deficits are only 4 alarm fires when a Democrat is in office.
9
Laffer promises increased revenue through decreased taxes. We'd all love that but there's an old saying that if something sounds too good to be true, it probably is. I wish the Republicans would look as sceptically at Laffer's plan as my grandmother does at telemarketers.
3
The 2016 coup leader has "not revealed his tactics for replenishing lost tax revenue." Hmm, let me take a guess how that's going to play out? Your clocks are correct, everyone. They are going forward one tick at a time but are not synchronous with the coup leader who is trying to take us back to a golden age when men were men and women were women (whatever that meant; it still confounds me). These tax cuts for the wealthy do not work. Human nature since the Agricultural Revolution is not looking out for the group. It's looking out for itself. Communism is a great idea too for a small group but cannot work due to the sheer number of us. Homo sapiens have a 10,000 yr training ( some would say maladapation) in some very few individuals enjoying surplus wealth. We just went through this with Bush-league and what happened? It might have been worse than the Great Depression but for the Bailout. The poor and middle class are constantly bailing out the wealthy. Just what is going on here? Since we don't learn, I guess we're doomed. So all the horrible things that have happened in history, which I never thought would happen again, will happen despite all the inputs we have to avoid such horrible outcomes. I thought we were past that. I didn't think so until this past November.
1
Are we all going to be like Kansas now? Broke.
14
I can't recall neither a politician nor a well researched article that could fully explain just why lowering business taxes is supposed to help business grow and pass the benefits along to their workers. On the face of it there is some idealistic logic: you scratch my back and I'll scratch yours. But it never works out that way. It seems to be: You scratch my back…. Thanks, see ya.
7
A corporation that is publicly held belongs to many people. The poor don't own a business, are un-employed, those who were employed lost their jobs to Mexico and China. Yet, a plan that will bring back large corporations back to the U.S is seen as only pro-rich?. If carrier (A Large corp) relocates to Mexico as they have to pay huge taxes in the US; finds it attractive (or not worth the effort to re-locate) to come back to the U.S, how does it only benefit the RICH? Large corporations generate employment WW. You can't blow it up as it is a "Concept" (Good or bad) that will continue to exist for a while. They make decisions solely to save/make a profit. Investing in US will be seen as profitable now; the CEO's won't be hiring their family to work for them, they will look for people who have a valid employment permit/citizens to work. That is a good thing to increase jobs.
2
Yes notice how many new jobs George W. Bush created.
1
what are you talking about. a corporation shareholders have stock, but it BELONGS to the largest shareholders- which are typically the CEO et al. I am curious Sub, where do you shop and why do you shop there - Is it because you can pay more for goods or less? You have a real word salad going here. Corps are owned by many, make decisions sole for profit - CEO's like Trump you mean who would never hire their family? Don't you get it? Education and economics. Foreign tech workers get hired for the same money in the US because they are smarter and have more valuable skill sets- if there were enough smart motivated people here, they would get hired. As far as blue collar and service industries, have you ever watched these terrible foreign work? They are tireless and do great jobs. If an American wanted that same yard raking, dish washing,, rock stacking, veggie picking, job they would have it. Its demand then supply....
@Lastcard JB> I am not talking about who does what IN THE US. I am talking about JOBS that have moved OUT of the US. Here is how it works. Large U.S corp consults Large U.S Consulting firm (KPMG/McKinsey/PwC) on how to be more profitable. Large U.S Consultants study global market & suggest things like.. "If you move your XYZ operations to Singapore u pay 0 tax and can show revenue increase by x%); "You are in Oil & Gas: U don't need to pay benefits for upstream/Downstream to I.T Dept. Outsource them to India & keep your headcount low" This is currently profitable as current U.S Corp tax vs opening a branch in diff country is huge. Cutting tax will mean that the I.T worker (regardless of race & immigration status) will be in the US. Is it enough to bring them back (after all they spent $$ opening up a center in India/China/Taiwan)-- I don't know. Is it enough to prevent more companies from re-locating abroad? Most likely Yes. If companies don't have any incentive to locate out of US, that is GOOD for those who live in the U.S from a JOBS's perspective.
"Senator Roy Blunt, Republican of Missouri, said he was also open to tax cuts with an expiration date if that was the only way to get them passed without Democratic support, pointing to President George W. Bush’s cuts."
Because the first thing you think of when you think of George W. Bush is Great Economy!
Because the first thing you think of when you think of George W. Bush is Great Economy!
8
This is another example of why the repubs get away with this every few years. They claim the tax cuts will help everybody by letting a few of the crumbs fall off the table for the rest of us while the rich buy new houses in aspen with all the money they save on taxes. Meanwhile the left, the nyts and the Dems will go on and on about why we need to protect illegals, how all white people are racists, there's nothing we can do about job losses and why do we have any borders at all? This in effect drives a fair number of voters who used to be a natural fit with progressive, democratic values to the right because they see no one who even gives them lip service anymore on the issues that actually influence their lives and their kids futures. Many trump voters, voted twice for Obama. That got many of them almost nothing. They're not all racist, bigots and low information red necks. They're desperate. The Dems better start listening.
12
So, when corporations get a big tax cut will any of their additional revenue go to their employees or their customers? I think not. When Apple had $5 billion in excess profits they did not give any of it to their workers in China who make their products, or to employees in their stores who sell them, or to the customers who buy them; they gave stock dividends to their stock holders. Big corporations and Republicans share the same mindset: how can we screw the middle class and get rich? If Trump voters don't figure out this time around that Republicans ALWAYS screw them, then they never will.
10
If ALL businesses pay the 15%, we might come out ahead. But if the same loopholes that now allow 300 of the Fortune 500 to pay little or zero taxes, that number will 500 out of 500 with the effect of just widening the filthy lucre pipeline to Switzerland, the Cayman and Bermuda Islands.
5
Voodoo Economics Redux!
2
Kansas eliminated taxes on LLC's under the premise they would use the extra income to create jobs. That didn't happen. Instead, there was a huge increase in the number of LLC's, no jobs were created and Kansas quickly ran out of money. We have a billion dollar deficit thru 2019. These tax cuts are a giveaway to the wealthy. We will have financial disaster if these cuts become law.
92
YES, perfect example.....the disaster that Brownback brought to Kansas....through corporate tax cuts, all the money went into their pockets, none of it trickled back into the economy. And, there was no money in the coffers to take care of things...
But, here we are again....with the GOP's obnoxious greedy bid to do it again to the whole nation.
But, here we are again....with the GOP's obnoxious greedy bid to do it again to the whole nation.
When the Republicans passed a trillion dollar tax cut under George W. Bush back in 2003, they said it would stimulate the economy and create new jobs. Instead we went into a recession and then the whole financial system cratered. How many times do they get to shovel this kind of crap to the American people? God, I hope we don't fall for it again.
3
More mis-direction from the master. We are losing count of the unfulfilled promises and fanciful statements of this showman.Surely even his base will eventually catch on.
So McConnell disdains "wealth transfers". Isn't there a wealth transfer min giving tax cuts to corporations and business owners that would balloon the deficit and lead to cuts in social programs such as job training, school funding, food and energy assistance, etc.? Seems to me that struggling members of lower income group would be losing, and the affluent would be gaining. Definitely sounds like a wealth transfer to me.
It's Econ101, tax cuts for companies and other job creators will result in more jobs and more economic growth.
It's Econ101 theory is what it is. It's not a guaranteed, magic formula. In fact, most recent evidence over several decades suggests it doesn't work that way.
It has never worked before.
We are still waiting for the "trickle" from the Reagan years.
We are still waiting for the "trickle" from the Reagan years.
Why hasn't that ever happened?
Because of the emotional whiplash created by Trump's first 97 days, I am fatigued. This tax cut to 15% for corporations, Trump's included, is not a surprise.
It's egregious to sever income necessary to run the United States, but certainly expected from a greedy President and his Cabinet and Legislative accomplices.
Analysis of what has happened to company surplus funds since the 1990s shows that they do not invest their liquidity in new U.S. jobs, r-and-d, new U.S. businesses. or jobs retraining for displaced workers.
They have placed most profits in tax-free, off-shore accounts, whose interest benefits company officers and their shareholders.
In manufacturing, they have built factories in low-wage, human rights-free countries and pocketed the profits. Or, they have invested in robotic technology and eliminated the need for employees, save for those who can repair the tech.
This low tax rate will not keep companies in the U.S., as there is no punishment for relocating. It simply increases their wealth.
While Republicans pretend to cast about for how they will make up for this dramatic loss in revenue, it seems the answer is clear. Lease our National Lands to Big Oil and Mining. Eviscerate women's health care, prevent abortion and ignore the unwanted infants. Abandon all Federal programs designed to serve and help, e.g., Education, Health Care, Medicare, Social Security, the VA, the EPA.
Seeing the U.S. laid waste, Steve Bannon must be chuckling with glee.
It's egregious to sever income necessary to run the United States, but certainly expected from a greedy President and his Cabinet and Legislative accomplices.
Analysis of what has happened to company surplus funds since the 1990s shows that they do not invest their liquidity in new U.S. jobs, r-and-d, new U.S. businesses. or jobs retraining for displaced workers.
They have placed most profits in tax-free, off-shore accounts, whose interest benefits company officers and their shareholders.
In manufacturing, they have built factories in low-wage, human rights-free countries and pocketed the profits. Or, they have invested in robotic technology and eliminated the need for employees, save for those who can repair the tech.
This low tax rate will not keep companies in the U.S., as there is no punishment for relocating. It simply increases their wealth.
While Republicans pretend to cast about for how they will make up for this dramatic loss in revenue, it seems the answer is clear. Lease our National Lands to Big Oil and Mining. Eviscerate women's health care, prevent abortion and ignore the unwanted infants. Abandon all Federal programs designed to serve and help, e.g., Education, Health Care, Medicare, Social Security, the VA, the EPA.
Seeing the U.S. laid waste, Steve Bannon must be chuckling with glee.
3
So - We cut the riches taxes to 15%. And we give us middle class people a "slight" break on our taxes. But then to make this revenue friendly we add a border tax - gee who pays for border taxes? People who buy goods from overseas. Like from China. Like all the stuff at your average Walmart. So.. Breaks for the rich funded by the middle yet again. Why are people so dense?
3
I understand the inherent appeal & the broad theory of slashing corporate tax rates in order to in increase profits and either lower costs or hire and expand the company. What I fail to understand is how we [they] cannot grasp that corporate greed / CEO / executive pay will once again drive us into a recession.
The ratio of CEO pay to the company's median employee salary is the sticking point here that politicians refuse to even mention. In the U.S., CEOs earn 400 - 500 times the median salary, in the U.K. the ratio is 22, France, comes in at 15 & Germany at 12. China also controls CEO salary ratio. These fat cats are what make us wildly non-competative and this is nothing more than a gift to rich donors & lobbyists.
The ratio of CEO pay to the company's median employee salary is the sticking point here that politicians refuse to even mention. In the U.S., CEOs earn 400 - 500 times the median salary, in the U.K. the ratio is 22, France, comes in at 15 & Germany at 12. China also controls CEO salary ratio. These fat cats are what make us wildly non-competative and this is nothing more than a gift to rich donors & lobbyists.
4
If we implement a progressive income tax system, those with less money would get more. And, where do you think that extra money would go?
If this is too complicated for wing-nuts, let me explain: the money would be spent at businesses, and then, because they could not keep up with increased demand, these same businesses would have to hire more people to satisfy the increased demand resulting from this new wealth-redistribution phenomenon.
How could some goofball tax plan that professes tax-cut for the billionaires will 'trickle-down' to those less who are less wealthy?
Honestly, I'm seeking fact-based information regarding the fallacy of my reasoning, thanks!
If this is too complicated for wing-nuts, let me explain: the money would be spent at businesses, and then, because they could not keep up with increased demand, these same businesses would have to hire more people to satisfy the increased demand resulting from this new wealth-redistribution phenomenon.
How could some goofball tax plan that professes tax-cut for the billionaires will 'trickle-down' to those less who are less wealthy?
Honestly, I'm seeking fact-based information regarding the fallacy of my reasoning, thanks!
1
This slight of hand has been tried before and has failed. To offset the lost tax revenue our congressional "buddies" began raiding the Social Security coffers and replace the missing funds with worthless I.O.U.'s. I would hazard to guess that the next victim of any tax cut will be the funds in the Thrift Savings Plan. Does anyone seriously believe that if lower tax rates for big business and the economy was such a wonderful event that it wouldn't already have been in place permanently? Get real. Think!
2
TAX RETURNS first, mr. WH man. Who do you think you are kidding? Spineless GOP, raping us again? Shameful. Poison the environment, take away privacy, enriched those that don't need it, reduce our health care plans. There is hardly room to list it all. Oh, saber rattling.
1
So much for a balanced budget. What this shows are Trump's and the Republicans' priorities: money to the rich, money to wealthy corporations that already have record profits.
Trump has not staffed the government but has left many positions open after firing entire swaths of different departments. He has appointed heads of agencies and divisions whose major goal is the destruction of those same departments. He has put in a freeze on new hires. He proposes the elimination of important departments such as the NEH, the IMLS (funding federal libraries), the NEA, and the CPB. He proposes to deeply slash the funding of the Coast Guard, medical research at the NIH, public health (which handles epidemics like Zika or Ebola), and other departments. Trump and the Republicans tried to throw 24 million off healthcare and take $80 billion from Medicaid, transferring that money saved into a trillion dollar tax break for the wealthy.
We have a corporate raid of America in progress. No money for basic functions, for established departments, emptying out government which was already at a decades-low level in terms of funding and staffing, no replacements, departments being destroyed, functions being transferred into private companies. Pretty soon the pension fund will be raided, and an empty shell will be left.
Trump, his family, his corporate donors and the lobbyists will walk away wealthy, leaving behind a bankrupted America.
Trump has not staffed the government but has left many positions open after firing entire swaths of different departments. He has appointed heads of agencies and divisions whose major goal is the destruction of those same departments. He has put in a freeze on new hires. He proposes the elimination of important departments such as the NEH, the IMLS (funding federal libraries), the NEA, and the CPB. He proposes to deeply slash the funding of the Coast Guard, medical research at the NIH, public health (which handles epidemics like Zika or Ebola), and other departments. Trump and the Republicans tried to throw 24 million off healthcare and take $80 billion from Medicaid, transferring that money saved into a trillion dollar tax break for the wealthy.
We have a corporate raid of America in progress. No money for basic functions, for established departments, emptying out government which was already at a decades-low level in terms of funding and staffing, no replacements, departments being destroyed, functions being transferred into private companies. Pretty soon the pension fund will be raided, and an empty shell will be left.
Trump, his family, his corporate donors and the lobbyists will walk away wealthy, leaving behind a bankrupted America.
5
The sky is indeed falling SMB.
1
"His plan would put off the difficult part of a tax overhaul: closing loopholes and increasing other taxes to limit the impact of tax cuts on the budget deficit." - That has always been the Republican's Gold Standard
"Mr. Moore conceded that finding ways to offset the large revenue reductions envisioned in the blueprint would be a challenge." - A challenge that has never been met, nor have any solutions ever materialized after any of the previous GOP tax cuts.
"Mr. Trump may yet reveal other tactics for replenishing lost tax revenue" - The best time to identify and lock in these "tax replenishing" tactics is prior to giving the gift of the tax break.
Why buy the cow when you can get the milk for free? This idiom is usually used to refer to men who don't want to get married, when they can get all the benefits of marriage without getting married. But perfectly applies to GOP tax mantra as well.
"Mr. Moore conceded that finding ways to offset the large revenue reductions envisioned in the blueprint would be a challenge." - A challenge that has never been met, nor have any solutions ever materialized after any of the previous GOP tax cuts.
"Mr. Trump may yet reveal other tactics for replenishing lost tax revenue" - The best time to identify and lock in these "tax replenishing" tactics is prior to giving the gift of the tax break.
Why buy the cow when you can get the milk for free? This idiom is usually used to refer to men who don't want to get married, when they can get all the benefits of marriage without getting married. But perfectly applies to GOP tax mantra as well.
Isn't 100 days enough time for all to see how incompetent and dangerous this man is? The real tax plan here should call for the various committees to subpoena his tax records to once and for all put an end to this travesty and mockery of justice being perpetuated - time to wake up from the nightmare.
3
And that's going to stimulate our economy how?
What a plan! I wonder how long it would take to show the kind of results for US finances that extreme tax cuts achieved for Kansas?
2
I really do feel like Alice in Wonderland at The Mad Tea Party, when a sitting US President can sculpt the tax code to his personal benefit.
91
Alice, you can be forgiven for not understanding that the President is merely submitting a proposal to Congress. Had Davis, et al, written a news article rather than just another bash Trump piece, the tentative nature of Trump's plan would have been emphasized in the first paragraph. Perhaps you could secure a copy of the US Constitution, which spells out the duties of Congress to enact taxes. The President merely signs the resulting Congressional tax bills, or he vetoes them. That's all.
yes, besides just "winning" the presidency, this is what Trump wanted....lowering his taxes, getting rid of the inheritance tax so his kids don't have to pay anything....yep.
So how Trump going to pay for his infrastructure plan that was promised as "yuge" and "terrific"?
Middle class and poor white Trump supporters brace yourself, this tax hike is not intended for you.
Middle class and poor white Trump supporters brace yourself, this tax hike is not intended for you.
3
Democratic lawmakers should not vote on
Trump tax plan which is designed to further
enrich himself. Furthermore he has not produce his tax returns and should not be given additional privileges to scam system.
Trump tax plan which is designed to further
enrich himself. Furthermore he has not produce his tax returns and should not be given additional privileges to scam system.
3
If the proposed tax cut was bundled with loop-hole closures, a border adjustment tax and holding military spending at the present level there might be room for healthy debate and constructive compromise. As it is, the proposal is simply the latest deficit spending bill from the GOP. In isolation, it makes no sense and is bad policy.
Maybe a tax cut to 15% would be significant - if the major corporations actually paid any income tax at all! I've forgotten the statistics, but seems to me I recall that GE paid no tax at all a few years ago. What with investment credits, accelerated depreciation, deductions for "losses" overseas, etc., most corporations pay little if any tax right now, so a 15% rate is as meaningful as a 35% rate - 35% of nothing is equal to 15% of nothing.
As for the rest of us, the middle income taxpayers who shoulder the largest part of the load, if you cut our taxes back to an effective rate of 15%, you might see some spending and some recovery. But that doesn't help the Repugnants and their cronies as directly and as quickly, it just helps the "little guy", and he doesn't count.
As for the rest of us, the middle income taxpayers who shoulder the largest part of the load, if you cut our taxes back to an effective rate of 15%, you might see some spending and some recovery. But that doesn't help the Repugnants and their cronies as directly and as quickly, it just helps the "little guy", and he doesn't count.
4
Taxes should be raised for both Corporations and Zillionaires. They've had more than enough Welfare. And they've brought the economy of this country to the brink of disaster every time their bought and paid for pols are in power. They keep taking and taking and taking. They want to pay less into the society they benefit from more than anyone else, even as they shovel thousands and millions into the pockets of corrupt pols who try and force through tax cuts like these.
Only recently with their budgets. regulation cuts, and healthcare proposals they've said non-rich old people should starve, and non-rich sick people should die, and regular everyday working people should slave away for next to nothing without any protections. But they don't think they should have to pay even one penny into the public coffers for anything other than bombs.
Their greed for more is only surpassed by their desire to subjugate everyone else.
Enough!
If they want to be part of this country then they need chip in. Otherwise they can move to Russia or Brazil. In return, they'll have a nice stable country with clean water in which to build their castles. And they'll have lots and lots of customers for their businesses. Assuming business is what they're really interested in.
Only recently with their budgets. regulation cuts, and healthcare proposals they've said non-rich old people should starve, and non-rich sick people should die, and regular everyday working people should slave away for next to nothing without any protections. But they don't think they should have to pay even one penny into the public coffers for anything other than bombs.
Their greed for more is only surpassed by their desire to subjugate everyone else.
Enough!
If they want to be part of this country then they need chip in. Otherwise they can move to Russia or Brazil. In return, they'll have a nice stable country with clean water in which to build their castles. And they'll have lots and lots of customers for their businesses. Assuming business is what they're really interested in.
5
MaryAnne, it would be much better for everyone concerned if we could turn the hands of time back 150 years to when people were accountable only for themselves, their families and their immediate communities. If you don't work let your family take care of you, if you have a bad crop year, you go hungry and if you have a dispute settle it your own way. We don't need no government, all we need are ourselves.
This tax cut probably speaks for itself. I do not know if the Democrats needs to say one thing. The years of hoopla regarding any deficit spending has been ingrained as a part of the landscape by the current Republicans. The hypocrisy will be very apparent. People are standing in line for Social Security, Healthcare Infrastructure needs and the Coal Miners are appealing now for an extension of their safety net. Eventually someone is going to hear a "No". That is when all heck will break loose. These heavy tax cuts with increased military spending are enough to cause deep anxiety with anyone capable of doing the math. This may be more effective than War, Russian Scandals and Late-nite Tweets at turning a lukewarm base against Republicans!
2
great now we all can be as prominent and vitally important just like Kansas.
3
...and a government of the rich, by the rich, and for the rich, shall long endure...
3
Yeah, let's all not pay any taxes, but "spend" even more wasted dollars on the military, cut programs that actually benefit American citizens, and destroy our national lands in the name of corporate, tax free profits. Only fascist idiots would think any of this makes any sense. "Well", Reagan showed the way with insane deficit spending (and proved there is NO "trickle down" effect), and w. gave us three wars "off the books" (not to be outdone), wrecking the economy in the process, and now we have another republican "idea" to transfer even more middle=class money to the top .1% (and that number's getting smaller). Ruining the country seems to be the republican's idea of "governance". We need to stand up to being beaten and robbed, once again.
NO!
NO!
2
color me shocked
1
I don't know. It's hard to imagine when enough money for the rich will be enough.
These folks really need to go into rehab.
These folks really need to go into rehab.
8
And I'd say the same about those perpetually on the government welfare programs, how much is enough?
These folks really need to take some responsibility for themselves.
These folks really need to take some responsibility for themselves.
Or the Defense Department?
@Kurt It's unclear what you mean Kurt. When the government gives a tax break to "business" it's a welfare program...mostly for people who have more money than they can ever spend. or ever WILL spend. It's basically like taking the money out of circulation.
Moreover, in the old days these guys would create jobs for the ordinary citizen. So, you could somewhat justify it. Now, they don't, mostly. They just suck it out of our economy.
So, really, why do you care more about rich people than you do the downtrodden, who CAN'T take any responsibility? Or won't? I mean, what they cost is peanuts (less than peanuts) compared to the wealthy, who, by the way, are working just as much or less as the poor.
Moreover, in the old days these guys would create jobs for the ordinary citizen. So, you could somewhat justify it. Now, they don't, mostly. They just suck it out of our economy.
So, really, why do you care more about rich people than you do the downtrodden, who CAN'T take any responsibility? Or won't? I mean, what they cost is peanuts (less than peanuts) compared to the wealthy, who, by the way, are working just as much or less as the poor.
And when the dust settles and our deficit balloons, the next big idea will be to slash government spending on everything but the military.
People will scream and yell, the plan will be scrapped, the market will start sliding downward over fears of debt-related inflation, and a Democrat will inherit the mess. The Democrat will try to save the economy from this damage, and will then be blamed for the debt and deficit she created.
Sound familiar? Rinse, recycle, repeat. Americans deserve the government they vote for.
People will scream and yell, the plan will be scrapped, the market will start sliding downward over fears of debt-related inflation, and a Democrat will inherit the mess. The Democrat will try to save the economy from this damage, and will then be blamed for the debt and deficit she created.
Sound familiar? Rinse, recycle, repeat. Americans deserve the government they vote for.
5
Given a choice between a rock and a hard place Trump could not make up his mind. So he decided on a soft place, a belief in a worn out doctrine that won't hold water but will reward the plutocrats that run the show. As for the rest of us it's the old saw, "I've got mine, you get yours."
2
I'm self-employed as an S corp. 15% corporate tax rate? Forget it, even as a small business owner. It'd be the height of irresponsibility and bankrupt the government. No knowledgeable, patriotic American would want that. Putin probably does and it should be no surprise that Trump would too.
73
Outrage doesn't begin to describe my reaction to this proposal. All I can say is that if the Republicans now thinking raising the deficit is okay and they will "jump-start" an already good economy (unemployment very low), then they can immediately: increase social security payments, fully fund Medicare, fund the ACA, fund the EPA and all other art and humanities services and restore all the cuts Trump now proposes. And, by the way, how about a maximum 15% tax for individuals, with all deductions preserved, which might actually encourage spending and improve an already good economy. And then there's that bridge they want to sell you.
1
One more (of many) reasons I did not vote for Trump.
4
This, according to the old adage about the certainty of death and taxes, now makes to former the lesser of the two evils, for thank God that's out of our own incompetent hands.
The Republicans had 6 years to come up with a Replacement for ACA and had nothing. Now they throw out a half-baked Tax Change Plan. Where is the leadership and deep thought on a complicated issue?? Government policy in 140 characters or less, in a week or less...
2
Trump will be paying himself hefty sums of money with tax cuts for real estate conglomerates. A self serving President motivated by greed, shameful.
7
Trump once said that we were going to win so much that we will get sick of winning and beg him to stop wining, so Mr. so much smart as more than others President, I am for one really sick, you turn my stomach everyday.
3
Reaganomics on steroids. It didn't work the first time, so why not try again? Of course it makes perfect sense if you subscribe to the Laffer curve - the most aptly named term in economics.
2
Trickle Down Economics have proven not to work. Period.
What will the Republicans do do ensure jobs come back when corporations have finally gotten their way? Who actually believes any company will close up manufacturing in China and come back to the US? Its just not going to happen.
If the corporate tax rate is cut in half, I think not a single Republican should be able to say we can not afford to raise the minimum wage. So, perhaps this will finally shine the spotlight on all the bad actors in this conversation!
What will the Republicans do do ensure jobs come back when corporations have finally gotten their way? Who actually believes any company will close up manufacturing in China and come back to the US? Its just not going to happen.
If the corporate tax rate is cut in half, I think not a single Republican should be able to say we can not afford to raise the minimum wage. So, perhaps this will finally shine the spotlight on all the bad actors in this conversation!
Let's look at actual evidence of the effect of massive tax cuts: Kansas tried this and it failed miserably, with massive revenue shortfalls and an inability to fund even some of the most basic functions of government (i.e., education). The problem, according to some (http://www.chicagotribune.com/news/opinion/commentary/ct-kansas-sam-brow..., was that they had the right idea, but simply didn't cut taxes enough. To borrow from Albert Einstein, how is doing the same thing over and over, expecting a different result, not insane?
2
The "make America a 3rd world country" plan: History shows that giving companies more tax cuts funds bonuses and dividends to the wealthy. Of course, the oligarchy continues to make itself wealthier and more powerful. Meanwhile, the social safety net is unraveling.
I'm so sad for the people struggling with multiple jobs when the social security and medicare won't be there for them. They are paying into the system, and the government will switch to some lousy cash balance plan. Are we prepared to see the suicides rise?
Businesses like airlines, hotels, restaurants and high tech increasingly compete for the upper middle class dollar. Meanwhile those companies who depend on the middle class can take their tax break and wave good bye to their customers. The Republicans like to run the country like a lottery ... some Horatio Alger type will break through to wealth, and then it is winner take all. Somehow everyone thinks they will be a lucky winner.
Why not limit the tax cuts to small mom and pop business? Will the loopholes that allow the big profitable companies to evade taxes be fixed? The Trump people gave to the slightest pressure ... the great deal maker is such a wimp.
I'm so sad for the people struggling with multiple jobs when the social security and medicare won't be there for them. They are paying into the system, and the government will switch to some lousy cash balance plan. Are we prepared to see the suicides rise?
Businesses like airlines, hotels, restaurants and high tech increasingly compete for the upper middle class dollar. Meanwhile those companies who depend on the middle class can take their tax break and wave good bye to their customers. The Republicans like to run the country like a lottery ... some Horatio Alger type will break through to wealth, and then it is winner take all. Somehow everyone thinks they will be a lucky winner.
Why not limit the tax cuts to small mom and pop business? Will the loopholes that allow the big profitable companies to evade taxes be fixed? The Trump people gave to the slightest pressure ... the great deal maker is such a wimp.
2
This 'Bankruptcy King' is taking all tax payers to the cleaner with his kind of business: 'robbing the poor to pay the rich'. Just watch the fine prints. What favor has Wall Street done for the public good? How does 1929 and 2008 'grab' you!
2
I have been predicting ever since Trump was elected that he would crash the economy and the stock market - much worse even than Bush Jr.
This is how.
This is how.
4
We all know what trickle down economics leads to...trickle up poverty. When will we learn?
5
Is this really a surprise. Duh. More money into Donny's pocket.
And where corps are concerned, more profit means more robot factories.
And where corps are concerned, more profit means more robot factories.
2
Train derailments and delays are becoming a common occurrence in the NYC area, bridges all over the country get a D rating or lower for safety, climate change is causing huge problems with flooding and droughts, with terrible repercussions to the area in which they occur, forest fires are increasing, etc. Fixing any of these problems will cost vast amount of money, in the form of taxes. So what does Trump propose to help the situation? Cut corporate taxes to 15. That's insane. Besides don't some corporations like GE already pay no taxes. Are they going to be given a check? When will people in this country learn that tax cuts, especially to the already wealthy and corporations, do nothing but aid in our country's decline.
60
you got that right.....instead of lowering tax rates, pass a law that will stop companies from leaving, from setting up off shore accounts, etc....why do WE the american taxpayer have to bend over backwards for corporations, why do they get a tax cut, but the people do not.....the current REALITY ( something that seems to not be taken into account ) is Corporations are at all time highs...record profits...meanwhile, people are suffering and not doing well.....so, they come up with an idea that will help the Corporations !!! Then, there's the death tax repeal.... something that will ONLY help the ultra rich...this plan stinks.
1
That's great but first show us your own returns - the last ten years please. That would tell everybody what other changes are needed as well. So, when?
4
as of now, they dont pay 35, not even close
and when its lowered, theyll pay nothing
some of them do now
• As a group, the 288 corporations examined paid an effective federal income tax rate of just 19.4 percent over the five-year period — far less than the statutory 35 percent tax rate.
• Twenty-six of the corporations, including Boeing, General Electric, Priceline.com and Verizon, paid no federal income tax at all over the five year period. A third of the corporations (93) paid an effective tax rate of less than ten percent over that period.
• Of those corporations in our sample with significant offshore profits, two thirds paid higher corporate tax rates to foreign governments where they operate than they paid in the U.S. on their U.S. profits.
These findings refute the prevailing view inside the Washington, D.C. Beltway that America’s corporate income tax is more burdensome than the corporate income taxes levied by other countries, and that this purported (but false) excess burden somehow makes the U.S. “uncompetitive.
*** • One hundred and eleven of the 288 companies (39 percent of them) paid zero or less in federal income taxes in at least one year from 2008 to 2012.
**** • Five companies — Wells Fargo, AT&T, IBM, General Electric, and Verizon — enjoyed over $77 billion in tax breaks during this five-year period.
3
Do you want to create more jobs? Or do you want to tax the only job-creators?
Choose, and remember which way you chose.
Choose, and remember which way you chose.
2
Do you want to drink the Kool-Aid here in Jim Jones' jungle camp? Or do you want to get the heck out of the jungle?
Choose, and remember which way you chose.
Choose, and remember which way you chose.
Like everything else these incompetents have proposed this "plan" is going nowhere.
1
This is ridiculous! We are at full employment and most companies have a long list of unfilled skilled jobs that they cannot fill because the needed workers are not there. We have had 80 straight months of expansion. The economy is doing well as are corporate profits. These tax savings can't be put back into productive use as there is no room to grow no matter how hard we might try. And thus, they will float out there and create bubbles and inflation. Basic economics. With a $500 billion deficit even with the economy running at its capacity, this tax cut will only fuel inflation and huge deficits. And at most Trump only want s to cut budget by $55 Billion.
Growth never offsets tax cuts. Not ever. not once. It is a lie used over and over. Why do the Media Elites keep discussing this bull like it has worked somewhere at sometime? It is a lie that lets Republicans and more than a few Corporate Democrats shift taxs from the rich onto the middle class. Period.
2
If corporations and small businesses get major tax cut shouldn't we at least agree to raise the minimum wage across the country asap? If businesses get to keep more, give some of that to employees who will spend it on necessities and help grow the economy.
1
So once again Republicans have given tax breaks to the Waltons, Kochs, Buffets and Corporations. Once again nothing for the temp. workers and Buffet's secretary. What a great Tax Plan..... for the rich!
1
Richard Heinberg, Post Carbon Institute writes:
"Yet while modern civilization is subject to cyclical constraints, in our case the boom has been fueled to an unprecedented extreme by a one-time-only energy subsidy from tens of millions of years’ worth of bio-energy transformed into fossil fuels by agonizingly slow geological processes. One way or another, our locomotive of industrial progress is destined to run off the rails, and because we’ve chugged to such perilous heights of population size and consumption rates, we have a long way to fall—much further than any previous civilization.
Perhaps a few million people globally know enough of history, anthropology, environmental science, and ecological economics to have arrived at general understandings and expectations along these lines. For those who are paying attention, only the specific details of the inevitable processes of societal simplification and economic/population shrinkage remain unknown."
The trainwreck begins, with Donald J Trump as (incompetent) train engineer.
"Yet while modern civilization is subject to cyclical constraints, in our case the boom has been fueled to an unprecedented extreme by a one-time-only energy subsidy from tens of millions of years’ worth of bio-energy transformed into fossil fuels by agonizingly slow geological processes. One way or another, our locomotive of industrial progress is destined to run off the rails, and because we’ve chugged to such perilous heights of population size and consumption rates, we have a long way to fall—much further than any previous civilization.
Perhaps a few million people globally know enough of history, anthropology, environmental science, and ecological economics to have arrived at general understandings and expectations along these lines. For those who are paying attention, only the specific details of the inevitable processes of societal simplification and economic/population shrinkage remain unknown."
The trainwreck begins, with Donald J Trump as (incompetent) train engineer.
1
More failed Republican "Trickle Down" theory. Stupidity is doing the same thing over and over and expecting a different result. It will end up that iI. on Social Security with a modest pension, will pay a higher percentage of my income than the super rich. We already have the lowest business income tax in the world, once all the special deductions are factored in.
1) Revenue burden will shift even more to lower and middle income consumers as inevitable national sales tax is levied to offset the hit.
2) The largess to companies' bottom lines will mostly go to extant shareholders, not capex. If it does go to capex, most of it will outside the US. 3) The lower tax rate will lead to a rush of takeovers by foreign companies of varying political origins. The foreign element of DC lobbying (and campaign "activities") will naturally increase.
America first? Hardly!
2) The largess to companies' bottom lines will mostly go to extant shareholders, not capex. If it does go to capex, most of it will outside the US. 3) The lower tax rate will lead to a rush of takeovers by foreign companies of varying political origins. The foreign element of DC lobbying (and campaign "activities") will naturally increase.
America first? Hardly!
1
Depends on your definition of America or Americans.
@JG Le B
Those in the middle class or aspiring to move up into it. Living in the US, of course.
Those in the middle class or aspiring to move up into it. Living in the US, of course.
If corporations assert a dubious right to "personhood", then they need to pay individual income tax, just like you and I do.
If "they" want to steal our elections using ads full of political lies, as a Court imposed right, pay the tax! like a person.
If "they" want to steal our elections using ads full of political lies, as a Court imposed right, pay the tax! like a person.
5
If low taxes on business profits is such a good thing for workers and economic growth, why stop at 15%? Why not just eliminate all income tax on businesses? That way, they wouldn't have to spend money on tax lawyers and CPAs to find all the workarounds to minimize their tax bills or pay lobbyists to write the tax laws for Congress, buy the votes of Congress members, and set up shell companies and offshore accounts to avoid tax altogether. Tax avoidance is expensive for businesses and the wealthy.
Just a more extreme version of the typical Republican strategy for trying to prevent spending on things they don't like. In this case Trump knows his budget slashing probably won't fly so this is a different route to the same goal - decimate the revenue side. A route that benefits him and his family, of course.
2
If Trump runs the country as he ran Taj Mahal Casino, the God Bless all!
2
Someone once told my Trump puts his name on all his buildings so the banks know which ones to take.
"The plan did not include Mr. Trump’s promised $1 trillion infrastructure program"
Why do people take this seriously? I have more faith in the tooth fairy than Trump delivering on his promised infrastructure spending.
Why do people take this seriously? I have more faith in the tooth fairy than Trump delivering on his promised infrastructure spending.
3
Republicans trash the economy and then Democrats come in and try to pick up the pieces, which is hard and less flashy than big (unfunded) tax cuts. This is our sad cycle. This cycle benefits the wealthy, who get bargains when the economy tanks, but it is devastating for regular Americans. We will never be able to escape this boom and bust approach unless we can get Republicans out of power for good.
11
This almost more than anything else that has happened with Trump makes me retch. It says once and for all that America has decided it has no use for a civil, well-ordered, progressive society.
3
How will he fund the deficits, is he going to get Mexico to pay for it?
8
Totally not a wonk, just an ordinary joe type, but it distresses me to read all the partisan stuff in these sidebars, particularly in this case, where my understanding is that it is actually one where there is a lot of room for bipartisan cooperation. To wit, yes, the corporate tax rate is 35%, but the code is so larded with exemptions and qualifications that while some, as I recall retail clothiers are an example, pay the full 35%, others, like many mining industries (and again my memory may be off here), pay as little as 6%. Last I paid attention to this issue, I recall voices from both sides of the aisle saying there was, and presumably still is, a real need for rationalizing the corporate tax code. Further, I remember legislators from both parties saying that if everyone were paying the same rate, that figure would certainly be lower than the current 35%. Just because the guy with the bad hair is suggesting it, doesn't mean there's not a problem.
27
It's really just a bunch of rich guys trying to loot the government.
1
Have you not noticed the repeated practice of the GOP to announce a tax cut and promise to get around to fixing the "little details" like closing tax loopholes "later" and then they never do?
If Trump wants this pie-in-the-sky tax cut, let him include how it is paid for.
If Trump wants this pie-in-the-sky tax cut, let him include how it is paid for.
Glen you and so many others either just don't get it or just don't want to. Job creation generates a flood of revenue for all sorts of taxes; income, sales, real estate, excise, gas, cell phone and cable are but a few we all pay. When industries and corporations go away so does the tax base which they perpetuate. Granted we need to close loopholes and tighten up on corporate regulations but remember, they are operating under the laws which our elected officials in Congress voted into law.
" Mr. Trump may yet reveal other tactics for replenishing lost tax revenue, someone who has been briefed on the plans said."
Yes, maybe Trump can sell "USA Vodka" or "USA Steaks" to offset the trillions lost. There is also professional wrestling.
Yes, maybe Trump can sell "USA Vodka" or "USA Steaks" to offset the trillions lost. There is also professional wrestling.
15
When you take money from public service in nature entities
you diminish the buying/purchasing power of its employees/agencies. This will be a
significant drag on consumer demand. The money to be given to
private sector entities need not be used to create jobs or
comparable demand for services. It can easily be used to
pay down debt and increase salaries that would not necessarily
increase demand but rather savings or private investments. The
effect on economic performance as measured by consumer demand is then mitigated by the diffuse nature of the new spending.
It can hardly be maintained as a result that applying voodoo part 3 is
going to be any more effective than the two preceding variants. In
particular, the economy at present is in better shape globally than
in '81 or '01.
Then there is the deficit creation that some are supposed to
worry about in our Lower Duma. This will not magically
disappear since the expected benefits don't accrue entirely
to creation of demand given the loss of demand as a result
of the cuts in government spending.
All this is purely quantitative, it does not address the
qualitative damage due to the targets of the cuts. That however
is principally a political matter not an economic one (more or less).
It would help, but I would not hold my breath, if the on going
discussion would incorporate the effects of the consumer demand decrease
bought about by the proposed cuts in government agencies to
help pay (in part) for the tax cuts.
you diminish the buying/purchasing power of its employees/agencies. This will be a
significant drag on consumer demand. The money to be given to
private sector entities need not be used to create jobs or
comparable demand for services. It can easily be used to
pay down debt and increase salaries that would not necessarily
increase demand but rather savings or private investments. The
effect on economic performance as measured by consumer demand is then mitigated by the diffuse nature of the new spending.
It can hardly be maintained as a result that applying voodoo part 3 is
going to be any more effective than the two preceding variants. In
particular, the economy at present is in better shape globally than
in '81 or '01.
Then there is the deficit creation that some are supposed to
worry about in our Lower Duma. This will not magically
disappear since the expected benefits don't accrue entirely
to creation of demand given the loss of demand as a result
of the cuts in government spending.
All this is purely quantitative, it does not address the
qualitative damage due to the targets of the cuts. That however
is principally a political matter not an economic one (more or less).
It would help, but I would not hold my breath, if the on going
discussion would incorporate the effects of the consumer demand decrease
bought about by the proposed cuts in government agencies to
help pay (in part) for the tax cuts.
3
Taxes? What taxes, we don't need no stinkin taxes.
Just more of the same, cut taxes for the wealthy.
Just more of the same, cut taxes for the wealthy.
9
This is the Reaganesque magical concoction redux. The tax fairy visits Republicans at night and whispers tales of magic and sorcery in their ears and teaches them enchanted words like Laffer curve, supply-side economics, and dynamic scoring. Mix it all together and you get debt-reduction. Visions of huge corporate profits dance in their heads. And when Democrats regain control and we discover that the debt has once again exploded the tax fantasists will talk about how we lost the benefits of the rich getting richer because we had so little faith in the tax- fairy's magic nostrums and now we're going to have to cut funding for the EPA to make up some of the difference..
15
The Regan tax cuts resulted in the 1984 recession. The Bush tax cuts almost bankrupt the world. Now the Republicans would like to double down on trickle down.
Like watching crack addicts on the street corner.
Like watching crack addicts on the street corner.
80
Yes, except that we all pay for their addiction.
1
More voodoo economics. As per usual the article uses weasel words where the facts are well established. Tax cuts have not spurred growth under any GOP administration from Reagan forward. To the contrary the economy grew the most under Clinton when taxes went up. Not to mention that the country grew incredibly in the fifties and sixties when tax rates were very much higher.
Republican tax reduction is like a mental illness in the party. A compulsion to lower taxes with no regard for reality. In fact they act in spite of reality as our infrastructure and public institutions collapse all around us. And these thieves call themselves patriots.
Senator Mitch McConnell of Kentucky, the majority leader should be impeached for treason as he has completely failed to represent the voters who keep him in office where he uses it to serve GOP donors.
The Trump team more logically should work to overhaul the ridicules process private citizens have to through to determine what they owe.
Only a fool like Paul Ryan and an idiot like Kevin Brady of Texas could be so blind as to think a border adjustment tax was not DOA.
It's the same old Republican story, as they are getting one foot out of a mess they firmly bury the other in a worse pile.
Republican tax reduction is like a mental illness in the party. A compulsion to lower taxes with no regard for reality. In fact they act in spite of reality as our infrastructure and public institutions collapse all around us. And these thieves call themselves patriots.
Senator Mitch McConnell of Kentucky, the majority leader should be impeached for treason as he has completely failed to represent the voters who keep him in office where he uses it to serve GOP donors.
The Trump team more logically should work to overhaul the ridicules process private citizens have to through to determine what they owe.
Only a fool like Paul Ryan and an idiot like Kevin Brady of Texas could be so blind as to think a border adjustment tax was not DOA.
It's the same old Republican story, as they are getting one foot out of a mess they firmly bury the other in a worse pile.
18
It's not a mental illness. They know exactly what they want and what they are doing. It's the PLAN: to steal whatever they haven't stolen yet, and reduce everyone else to serfs.
If they want to pass it through reconciliation, avoiding the filibuster, then it can't increase the federal deficit beyond 10 years out. Corporate tax cuts increase the federal deficit well beyond their duration. http://www.slate.com/blogs/moneybox/2017/04/25/donald_trump_s_corporate_...
2
This is even worse than I imagined. Major tax cuts for corporations with no incentive or mandate to bring the TRILLIONS of bucks they have stashed overseas back to the States.
More tax cuts and advantages for the Real Estate industry which is where Trump's billions are made and take away the only break the average citizen has, which is his interest deduction to pay for it.
Does the ignorant general public understand the Real Estate people are the only ones that can depreciate an asset that is growing in value? I doubt it.
No mention of the infrastructure rebuild Obama wanted that the Republicans killed.
The tax cuts are stated to increase the debt by 200 billion per year and that is to make the economy grow 5%? In a cocked hat. Why don't we make corporate taxes zero, nada, nothing, will that make the economy grow 10%?Of course not. Why don't we reduce Trump's and the billionaire's taxes to zero and that should increase the trickle down voodoo economics in the working man's favor? Particularly if we do completely away with the minimum wage so the poor can work for less, creating more for the billionaire Wall Street Oligarchs to trickle to the middle class and all will be perfect.
Of course not, stupid, stupid, stupid to listen to Wall Street and Heritage Foundation "think" tank thinkers and their stupid bought and paid for politicians like Hatch. Trump et al want to keep us that way.
More tax cuts and advantages for the Real Estate industry which is where Trump's billions are made and take away the only break the average citizen has, which is his interest deduction to pay for it.
Does the ignorant general public understand the Real Estate people are the only ones that can depreciate an asset that is growing in value? I doubt it.
No mention of the infrastructure rebuild Obama wanted that the Republicans killed.
The tax cuts are stated to increase the debt by 200 billion per year and that is to make the economy grow 5%? In a cocked hat. Why don't we make corporate taxes zero, nada, nothing, will that make the economy grow 10%?Of course not. Why don't we reduce Trump's and the billionaire's taxes to zero and that should increase the trickle down voodoo economics in the working man's favor? Particularly if we do completely away with the minimum wage so the poor can work for less, creating more for the billionaire Wall Street Oligarchs to trickle to the middle class and all will be perfect.
Of course not, stupid, stupid, stupid to listen to Wall Street and Heritage Foundation "think" tank thinkers and their stupid bought and paid for politicians like Hatch. Trump et al want to keep us that way.
21
Some will rob you with a six gun, and some with a fountain pen....and so it goes.
1
More wish list nonsense.
5
Corporations make a killing as the middle class is obliterated by more GOP dumb policies. Corporations already pay nothing. The middle class has an overwhelming burden. The rich few get richer on the backs of the lower classes. Sick and twisted. Why anyone votes for the GOP is mind boggling.
15
I don't think any tax or any other legislation should be even contemplated by any of the Congress that would in anyway benefit the Trump or his family businesses, period!
If the Congress wants to do some kind of tax reform that would impact any of Trump's businesses or personal investments by tax breaks or windfalls, it should be done only after he's out of office, but to have him propose these kind of windfalls for his own family business is unseemly. unethical and smacks of something that would be done in a third world dictatorship.
Now, I'm hearing Paul Ryan talking his stupid ideas for the umpteenth time, that are non-starters like still replacing the Affordable Healthcare Act, he is starting to remind me of the character that Dustin Hoffman played in the Rain Man, stop with the nonsense.
Tax reform should only be done to benefit the middle class and below, that has been the tax base that have been abused in the past 20 years at the benefit of highest 2% income earners like Donald Trump, his family and the cabinet members.
If the Congress wants to do some kind of tax reform that would impact any of Trump's businesses or personal investments by tax breaks or windfalls, it should be done only after he's out of office, but to have him propose these kind of windfalls for his own family business is unseemly. unethical and smacks of something that would be done in a third world dictatorship.
Now, I'm hearing Paul Ryan talking his stupid ideas for the umpteenth time, that are non-starters like still replacing the Affordable Healthcare Act, he is starting to remind me of the character that Dustin Hoffman played in the Rain Man, stop with the nonsense.
Tax reform should only be done to benefit the middle class and below, that has been the tax base that have been abused in the past 20 years at the benefit of highest 2% income earners like Donald Trump, his family and the cabinet members.
10
Mr. Laffer says that if businesses have a lower tax rate, they will be more likely to pay in full and not cheat on their taxes. Why would anyone believe that? Businesses will use their tax savings to hire more lawyers to find ways to pay NO taxes.
Businesses want all the benefits of taxation: military protection here and abroad, bridges and roads, municipal and gov't services, gov't funded research, etc., but they don't want to pay their fair share. So in the end, the middle class supports society and props up the 1%.
President Elizabeth Warren!
Businesses want all the benefits of taxation: military protection here and abroad, bridges and roads, municipal and gov't services, gov't funded research, etc., but they don't want to pay their fair share. So in the end, the middle class supports society and props up the 1%.
President Elizabeth Warren!
35
Anyone who thinks Elizabeth warren could win the presidency is deluding themselves. She has less Chance than Bernie Sanders. And Bernie Sanders had the help of trump, the Republicans, the FBI and foreign infiltrators. And still got whipped by millions of votes. She is shrill and too excitable. She is not I repeat she is not presidential material.
4
Mick --
"Shrill and too excitable"? "Not presidential material"? Are you describing Elizabeth Warren or the current occupant of the oval office?
"Shrill and too excitable"? "Not presidential material"? Are you describing Elizabeth Warren or the current occupant of the oval office?
1
NYT, please explain how tax cuts and a growing economy do nothing to help the working class when most of the economic gains are going to the top 1% of the population.
23
corps will use the money to create the millions of jobs that trump promised
just watch the flood of jobs come rushing in
can you see them yet ?
theyre coming, keep wishing ...
12
Here we have visible proof that Trump is using the presidency to enrich himself. Then there's the less visible moves, such as congratulating Erdogan, who just turned Turkey into a dictatorship. Trump makes a lot of money from his businesses deals in Turkey, which, by the way, just bombed Kurdish forces helping the U.S. fight ISIS in Syria.
22
Trump wants to give himself a big tax break. Why am I not surprised?
42
I am not sure if everyone realizes this or not but not all corporations are million or billion dollar companies. Actually, only about 2% of millions and millions of businesses make millions of dollars. Cutting to 15% helps everyone!
11
So the question should be what percentage of Americans own corporations and what percentage doesn't. That would give an idea of how many would actually benefit from this tax cut.
Corporate tax rates are progressive. Changing the tax rate to 15%!will increase the taxes on many of those small businesses.
Yay, someone that understand economics.
Corporations only pay around 9% of the total tax revenue in the US. Individuals pay ~80%. A business tax cut doesn't have to create many jobs for it to pay for itself.
Corporations only pay around 9% of the total tax revenue in the US. Individuals pay ~80%. A business tax cut doesn't have to create many jobs for it to pay for itself.
No surprise, the political party of balanced budgets and fiscal responsibility only talks the talk. When they are in charge they play Santa Claus with the rich and blow a hole in the budget that numbers in the trillions.
5
Do you own stocks, do you own mutual funds, have a 401k or a pension? If so, you should be pro-corporate tax rate deduction.
4
Until it all comes crashing down. These people don't give a damn about your 401k. Next stop deregulation, kill Dodd-Frank and consumer protection and we're right back to the glory days of 2008/2009. By that time while street will have secured their profits offshore and you will be working another 10 years past your retirement date to make up the loss to that 401k.
2
Yes.....they did rather well under President Obama!
1
@Dennis, Only as long as ALL the loopholes are closed. And 20% would be better.
1
FOLKS :
Does anyone truly believe the Congress can function together ?
Does anyone believe these two parties, now as polarized as ever, could work towards the good of the governed ?
They are so incredibly out of touch with the working stiffs of this country, we don't get chauffeured around in limos, neither do we have gold plated health plans as the members of Congress do. They are also protected by special law enforcement.
They don't care - their lives are so far removed from the voters as to be a ruling class unto themselves.
Does anyone truly believe the Congress can function together ?
Does anyone believe these two parties, now as polarized as ever, could work towards the good of the governed ?
They are so incredibly out of touch with the working stiffs of this country, we don't get chauffeured around in limos, neither do we have gold plated health plans as the members of Congress do. They are also protected by special law enforcement.
They don't care - their lives are so far removed from the voters as to be a ruling class unto themselves.
5
The tax breaks on corporations from 35 - 15% is going to result in massive deficits. The deficit only matters when Democrats are not in the majority? The ideology that bigger tax breaks for companies will result in better employment numbers and a more robust economy has been debunked for over 30 years now. Trickle down approach only makes the companies, their shareholders, and the executives richer. It won't create more jobs or stop the outsourcing of jobs to offshore locales for cheaper salaries.
7
We don't need social safety nets so why should corporations pay more taxes? In the shadows of the big buildings in downtown San Francisco, the banks, the corporate offices are a growing population of homeless and mentally ill people. on the trains are beggars in greater numbers moving from car to car. some hold babies as they walk the aisles begging for money. Yes we've always had beggars and bums and mentally ill and drunks but what I'm seeing is a crowded mass of them. I can only akin the Mnuchins and the bankers as Scrooges.
"Are there no prisons? Are there no workhouses?"
"If they would rather die," said Scrooge, "they had better do it, and decrease the surplus population."
"Are there no prisons? Are there no workhouses?"
"If they would rather die," said Scrooge, "they had better do it, and decrease the surplus population."
9
Never mind that lowering taxes will result in more debt. It's only make believe money anyway.
3
It is amusing to read that Senator McConnell has accused Democrats of being more interested in "wealth transfers" than in spurring economic growth.
Have we not witnessed lots of upward wealth transfers?
Shall we once again hear praise for the trickle down theory?
Have we not witnessed lots of upward wealth transfers?
Shall we once again hear praise for the trickle down theory?
10
Perhaps the President should ask Gov. Sam Brownback of Kansas, who already tried this, how it worked out in real life?
16
When Mitch McConnell volunteers to live on $7.25 an hour for a year, I'll listen to such nonsense about "wealth transfers." According to his ilk, when wealth flows to the entitled wealthy it is called economic stimulus, while the rest of us are entitled to struggle.
19
Barack Obama isn't living on $7.25 an hour. But apparently that's okay with you. The NYT reports he just signed a $400K contract to give a speech. That's probably about $20,000/hr, assuming 20 hours to prep and deliver. And that's just the first for this year, it'd be hard to believe he's only going to do one. Then there's the multi-million dollar book deals both he and and his wife have been given. Yeah, that life is pretty harsh. With a few more speaking gigs, they'll be almost as broke as the Clintons were when they left the White House.
2
I would be in favor of this cut if it made US businesses competitive internationally...as long as the loss in tax revenue is offset by an increase in capital gains and salary income of the wealthy.
1
An article on the first page of today's business section addresses the problem of low inflation, resulting from there being a glut of supply. Prices are everywhere too low, because there is too much stuff around. Why, then, would we want to encourage an increase in supply through tax policy? Even if supply side economics has some merit -- doubtful, as past history shows -- this would not be the time. This plan looks like an excuse to lower taxes on the wealthy "bigly", everyone else be damned.
3
Where are the true fiscal conservatives?
"Remember Democracy never lasts long. It soon wastes exhausts and murders itself. There never was a Democracy Yet, that did not commit suicide. It is in vain to Say that Democracy is less vain, less proud, less selfish, less ambitious or less avaricious than Aristocracy or Monarchy. It is not true in Fact and no where appears in history. Those Passions are the same in all Men under all forms of Simple Government, and when unchecked, produce the same Effects of Fraud Violence and Cruelty. " - President John Adams in December 1814
5
The lower tax on businesses will particularly lure jobs back to the US manufacturing sector that were lost to i.e., China when that country had a corporate tax rate in the single digits compared with ours at 35%. Now that China's rate is 25%, US multinationals will be incentivized to take advantage of a lower US rate. Via intercompany transfer pricing, taxable income as well as jobs( which will attract taxable wages) will return.
Also, the incentive for transfers of taxable income-producing intangibles and the so-called corporate inversions with respect to places like Ireland will diminish. Finally, a one-time lower tax on the repatriation of the $ trillions of offshore earnings( which would otherwise remain there) to fund infrastructure will surely super-charge the economy.
Also, the incentive for transfers of taxable income-producing intangibles and the so-called corporate inversions with respect to places like Ireland will diminish. Finally, a one-time lower tax on the repatriation of the $ trillions of offshore earnings( which would otherwise remain there) to fund infrastructure will surely super-charge the economy.
1
Everybody loves tax cuts. Yippee!!!
Unfortunately, everybody also loves the things that tax revenues pay for – things like, oh, I don’t know... say, schools, hospitals, roads, infrastructure, things like those off the top of my head.
Now, while I’m perfectly happy to see soot-dunked urchins back cleaning chimerneys and sick old people dying as soon as possible so as to decrease the excess population, some part of me thinks that mayyyyyybeeeee it’s not a good idea to cut taxes too low, because of the consequences on Society as a whole.
If you told me that, for example, 0.25% of my taxes was used to maintain the Widows Fund, then I’d say not to cut that 0.25%. And 0.3% goes to pay for coastguard services? Well, uh, That can’t be cut, right? And 0.28% goes to support under-five preschool teacher supports? Umm... that should probably not be cut. And – the list goes on.
I’m making all of these things and percentages up, but that’s rather the point of taxes – they get doled out to pay for all these things, and many more. Slash the taxes too much, and you slash the things that they pay for. Cause, and effect.
Of course, you can cut taxes with one hand – and introduce entirely new charges with the other. The nation’s maids and gardeners and barmen all play a key role in propping up tax revenues, but slashing business and corporation taxes is an entirely dangerous game to play, as the impact could be potentially devastating for the economy, and - even - American society...
Unfortunately, everybody also loves the things that tax revenues pay for – things like, oh, I don’t know... say, schools, hospitals, roads, infrastructure, things like those off the top of my head.
Now, while I’m perfectly happy to see soot-dunked urchins back cleaning chimerneys and sick old people dying as soon as possible so as to decrease the excess population, some part of me thinks that mayyyyyybeeeee it’s not a good idea to cut taxes too low, because of the consequences on Society as a whole.
If you told me that, for example, 0.25% of my taxes was used to maintain the Widows Fund, then I’d say not to cut that 0.25%. And 0.3% goes to pay for coastguard services? Well, uh, That can’t be cut, right? And 0.28% goes to support under-five preschool teacher supports? Umm... that should probably not be cut. And – the list goes on.
I’m making all of these things and percentages up, but that’s rather the point of taxes – they get doled out to pay for all these things, and many more. Slash the taxes too much, and you slash the things that they pay for. Cause, and effect.
Of course, you can cut taxes with one hand – and introduce entirely new charges with the other. The nation’s maids and gardeners and barmen all play a key role in propping up tax revenues, but slashing business and corporation taxes is an entirely dangerous game to play, as the impact could be potentially devastating for the economy, and - even - American society...
146
Tax revenues pay for – things like schools, hospitals, roads, infrastructure ... OH WAIT ... and most importantly ... the MILITARY.
1
It is not a rumor that Americans have been tooled to do without. Hence originate apt 3d-world references which one-third see not; one-third see but care not. Incorporate that into your fair-minded view. How else could the GOP effect its plan?
Why isn't the headline "Republican Hypocrisy Hallmark of Trump Tax Relief for Billionaires." Remember when Obama couldn't get support for a jobs bill without giving in to the blackmail of cutting some vital program?
If journalists won't call this what it is, we're sunk.
If journalists won't call this what it is, we're sunk.
11
Okay, but how will we pay for this? Yes, businesses will love it, but what will we be giving up? At least twice they blocked raising the debt sealing for Obama.
4
You want simple? You want lower taxes? Keep...whatever...70% of what you earn and send the rest in. TaDa.
1
but then how could you afford your trillion dollar military w its trillion dollar f 35 and trillion dollar a/c fleet
how, i ask you, how ?
2
I don't think you can sensibly have a different rate for pass-through business income than wage income without creating the world's largest tax loophole.
Not to mention it would accelerate the "gig economy"--now everyone can be their own small business paying 15%, rather than an employee paying twice that.
I'd prefer to simplify the code so that all income was taxed at the same rate no matter the source. And corporations could deduct dividends as well (if paid to non-exempt taxpayers), so there would only be one layer of tax on corporate earnings rather than double taxation.
Not to mention it would accelerate the "gig economy"--now everyone can be their own small business paying 15%, rather than an employee paying twice that.
I'd prefer to simplify the code so that all income was taxed at the same rate no matter the source. And corporations could deduct dividends as well (if paid to non-exempt taxpayers), so there would only be one layer of tax on corporate earnings rather than double taxation.
1
I simply don't understand the logic to cutting the corporate tax rate from 39.6% to 15% when corporations barely pay their due 39.6% they have due to begin with.
5
I don't get it. President of the Electoral College Trump promised a middle-class tax cut. Rather than cut 2 trillion dollars from corate taxes which will just go to the top executives and stock holders, why not cut middle-class salary and wage taxes by that amount instead? Wouldn't that be more likely to spur on the voodoo economic growth?
4
Gee. Tax lawyers and accountants will be sad to hear this, as they will bill less hours for this rate. Companies would rather pay lawyers and accountants to avoid paying taxes, rather than support the society and country their companies call home. And since they pay for representation, their Republican congressmen will support them. It's unfortunate that we all don't have the funds to pay for our congressmen. Maybe the then, we, the working folks, could be represented too.
4
I worked for a while in Accounts ReceivableAccounting for a major auto manufacturer back in the early 1990s. Did you know you could drain the machine oil from a molding machine, turn off the electricity and the machine was considered "idle" for tax purposes? Neither did I until that point. The machine was still in the factory, ready to be brought back to production in about an hour. The company got some sort of tax break by doing that.
Now Trump is giving the corporations a huge tax break, as if they didn't enjoy special considerations which always made their effective tax rate lower than my personal tax rate anyway.
So maybe these corporations will use these breaks to fund pension accounts, provide healthcare, great healthcare, and higher wages?
Nah...
Now Trump is giving the corporations a huge tax break, as if they didn't enjoy special considerations which always made their effective tax rate lower than my personal tax rate anyway.
So maybe these corporations will use these breaks to fund pension accounts, provide healthcare, great healthcare, and higher wages?
Nah...
100
So, just like their failed Obamacare "repeal and replace" Trump and Republicans tell Americans they can keep all the good stuff, "terrific coverage for less money," their tax "plan" (in "Spicer" air quotes), offers cuts for everyone with none of those pesky deduction and loophole eliminations that will somehow magically come later. Right.
And infrastructure? Have I got a great deal on a bridge in Brooklyn for you...
And infrastructure? Have I got a great deal on a bridge in Brooklyn for you...
4
The history of tax cuts demonstrates that they pretty much do little to help the economy, create jobs, or pay for the huge deficits they create while doing a great deal to help make millionaires and billionaires a lot richer. Whatever economic stimulative value they might have is usually short lived and paid for by huge deficits, recessions, and even depressions. Think of it as like a snort of cocaine that gives you a quick high followed soon be a new low. Reagan's tax cuts gave us a recession and huge deficits that we are still trying to work off, while Bush 2's cuts gave us the Great Recession.
Trump, never one to be out done by others, seems determined to give us another Great Depression with huge unfunded tax cuts for the wealthy (including himself) structured in a way that actually discourages job creating investments. Needles to say whether now or later his ta on imports is sure to start a trade war that will just about guarantee a global economic meltdown.
The question is just how many times are we going to keep laughing at the "Laffer Curve" before it stops being a laugh and becomes a real disaster, and just how many times are working class people who vote rightwing going to keep believing in trickle down economics?
Trump, never one to be out done by others, seems determined to give us another Great Depression with huge unfunded tax cuts for the wealthy (including himself) structured in a way that actually discourages job creating investments. Needles to say whether now or later his ta on imports is sure to start a trade war that will just about guarantee a global economic meltdown.
The question is just how many times are we going to keep laughing at the "Laffer Curve" before it stops being a laugh and becomes a real disaster, and just how many times are working class people who vote rightwing going to keep believing in trickle down economics?
7
Just as we thought: a huge tax cut for Trump and other real estate moguls, hedge fund managers, corporations and the top 1% -- and a "modest" tax cut for the middle class, already opposed by the real estate industry and thus likely to be dropped altogether. I'm sure all the current loopholes and deductions that corporations now use to dodge the 35% rate will still apply, so their 15% will likely be 0-5%. No wonder Wall Street is happy.
8
"Other Republican senators appeared ready to embrace a tax proposal that adds to the deficit in the name of jump-starting the economy. "
“I’m open to getting this country moving,” said Senator Orrin G. Hatch of Utah
Here's the way I interpret this: Let's create another economic bubble for our wealthiest and most influential financial supporters.
“I’m open to getting this country moving,” said Senator Orrin G. Hatch of Utah
Here's the way I interpret this: Let's create another economic bubble for our wealthiest and most influential financial supporters.
The Laff-able curve returns! I'm all for lowering the corporate tax rate, but you should be raising income tax rates on the wealthiest 1%, including that income they give themselves in the form of stocks. And estate taxes should be much much higher.
4
This is the same old voodoo economics that George HW Bush noted years ago. This approach to "fiscal responsibility" is why the economy has done better under Democratic administrations than Republican ones. It is shameful, a disaster for the American people and our economy but a windfall for trump and his wealthy benefactors and pals. It makes one wonder about our future and whether the plutocrats will cause a second American revolution. It's getting a little scary.
4
A good start.
But the correct corporate.business tax rate is 0% As the left never tires of shouting -- in contexts in which it is irrelevant -- corporations aren't people. And since only people can pay taxes, making as assessment against a legal fiction constitutes bad policy. It's akin to placing a tax upon Hogwarts; since it doesn't exist, the person behind the name will be forced to pay.
Corporate taxes come out of the pockets of the shareholders, employees, and customers; it cannot be otherwise. A rate of 0% would admit this obvious fact and would instantly staunch the flow of American companies moving overseas to avoid confiscatory tax rates.
Now, if there were only a way to staunch the never-ending envy of the left, which avers that two people buying the same goods and services should pay different prices based upon their wealth or income.
But the correct corporate.business tax rate is 0% As the left never tires of shouting -- in contexts in which it is irrelevant -- corporations aren't people. And since only people can pay taxes, making as assessment against a legal fiction constitutes bad policy. It's akin to placing a tax upon Hogwarts; since it doesn't exist, the person behind the name will be forced to pay.
Corporate taxes come out of the pockets of the shareholders, employees, and customers; it cannot be otherwise. A rate of 0% would admit this obvious fact and would instantly staunch the flow of American companies moving overseas to avoid confiscatory tax rates.
Now, if there were only a way to staunch the never-ending envy of the left, which avers that two people buying the same goods and services should pay different prices based upon their wealth or income.
Just look at how CEO pay has skyrocketed in the past 40 years compared to the pay of average workers. The lesson of history seems to be this: When it comes to "re-investing" profits, corporations are more interested in concentrating wealth into fewer and fewer hands than in building plants or creating jobs. Rather than this enormous tax cut (which looks too much like further reward to me), better to close tax loopholes and eliminate tax shelters.
Some Liberal-minded friends put their social and humanistic and environmental values to the side and voted for Trump this past November because their business-owner values took precedence in the last election. While I understand their wanton desire to stay ahead economically, I say shame on them for not voting in favor of their social conscious. They sicken me by their vote!
5
Does this 15% tax rate apply to capital gains on business real estate for mom and pop business?
1
The same old same old Republican trickle down nonsense that has always failed.That the population never wises to Republican chicanery is more proof that Einstein was right when he said "Only two things are infinite, the universe and human stupidity, and I'm not sure abut the universe". What an ignorant species humans are, perhaps they don't deserve the beautiful planet Earth.
5
Tax cuts that lead to more profits create a greater disparity between the wealthy and less privileged. Less money spent on education and healthcare create a two class/tier system: those that have access to the better tier and those that do not. Competition doesn't exist to fight for the middle class because there is no middle class.
Trump has been cooling relations with common allies, while approaching and courting countries under dictatorial or authoritarian style leadership. He sees "paralysis by analysis" in the West, and for him, the biggest culprit is Democracy and its associated tax burdens laden with bureaucracy; Republicans cheer.
With this tax proposal, Trump has proven he is the President of two segments of the population: the wealthy, fearful of preserving their investments and privilege; and the less educated Americans, who have been exploited by fear into believing that the educated "elite," immigrants, foreign countries(foreigners) or African Americans are stealing their right or children's rights to a better economic standing than themselves. (800lb gorilla: cost of advanced education?)
This tax cut undermines Democracy and weakens a country. A country's enduring strength is measured by its ability to provide opportunities for all of its citizens through participation and fairness while protecting the same. A tax cut does not contribute to this end. Corporations alone, if at all, do not make a great country.
Trump has been cooling relations with common allies, while approaching and courting countries under dictatorial or authoritarian style leadership. He sees "paralysis by analysis" in the West, and for him, the biggest culprit is Democracy and its associated tax burdens laden with bureaucracy; Republicans cheer.
With this tax proposal, Trump has proven he is the President of two segments of the population: the wealthy, fearful of preserving their investments and privilege; and the less educated Americans, who have been exploited by fear into believing that the educated "elite," immigrants, foreign countries(foreigners) or African Americans are stealing their right or children's rights to a better economic standing than themselves. (800lb gorilla: cost of advanced education?)
This tax cut undermines Democracy and weakens a country. A country's enduring strength is measured by its ability to provide opportunities for all of its citizens through participation and fairness while protecting the same. A tax cut does not contribute to this end. Corporations alone, if at all, do not make a great country.
5
I cannot see how Trump's giving himself a tax cut is legal. It seems ludicrous, in light of the fact he seems to have always proudly found a way to avoid paying taxes in the first place, and yet, I suppose paying 15% (about half the taxes that I as a teacher have had to pay) makes it easier for his cronies' tax consultants. I could weep, and indeed, I have. What a disgrace this man is, what naivete on the part of the voters, what a disaster for the world. I just can't come to terms with it.
3
The notion of massive tax cuts stimulating the economy is a myth that has been disproved over and over again. What this is really about is the far right-wing's desire to "starve" government so that it will cease to be a factor in economic and social justice, labor rights and health and safety regulation.
The kind of world envisioned by these extremists is one that pretends the Great Depression and the New Deal never happened and where we can all be "free" to starve once the "job creators" decide we are no longer useful to them!
The kind of world envisioned by these extremists is one that pretends the Great Depression and the New Deal never happened and where we can all be "free" to starve once the "job creators" decide we are no longer useful to them!
Here we go again. Republicans cut taxes. The economy crashes. Then Democrats will have to clean up the mess.
All depressions and recessions have followed large tax cuts.
That is history.
All depressions and recessions have followed large tax cuts.
That is history.
7
Once again, the definition of insanity is doing the same thing over & over again expecting a different result. They want to take away health care subsidies, make health insurance unaffordable, hire more immigration employees, build a wall AND increase military spending astronomically. Who is paying for this after these tax cuts? It won't be corporations or the wealthy.
It will be the poor, the working and middle class. The wealthy and corporations do not NEED tax relief.
Those corporations that still produce a physical product are really getting a super deal. Our infrastructure, roads, bridges, water systems and the like, are deteriorating with each passing day. This tax cut effectively shifts part of corporation's contribution to infrastructure off on the non-wealthy. Sounds about right for republicans!
Republicans began their descent into insanity in the 80's. Forty years, and their trickle-down, supply-side never worked. What's it going to take to get them to knock it off?
Trump is shooting himself in the foot with his bait-and-switch game. It may take almost the full 4 year. But, there's going to be a very big surprise in 2020, if not 2018. Keep it up 45. You're digging your own grave.
It will be the poor, the working and middle class. The wealthy and corporations do not NEED tax relief.
Those corporations that still produce a physical product are really getting a super deal. Our infrastructure, roads, bridges, water systems and the like, are deteriorating with each passing day. This tax cut effectively shifts part of corporation's contribution to infrastructure off on the non-wealthy. Sounds about right for republicans!
Republicans began their descent into insanity in the 80's. Forty years, and their trickle-down, supply-side never worked. What's it going to take to get them to knock it off?
Trump is shooting himself in the foot with his bait-and-switch game. It may take almost the full 4 year. But, there's going to be a very big surprise in 2020, if not 2018. Keep it up 45. You're digging your own grave.
"The 15 percent rate would apply both to corporations, which now pay 35 percent" - with all due respect to Davis, Rappeport, Kelly, and Abrams; please don't pee on my leg and tell me it's raining. Finding a large American corporation that currently pays 35 percent would be like finding a field of four leaf clovers - Trump's proposed simplification might actually encourage corporations to pay 15 percent rather than spend untold amounts attempting to circumvent it.
4
As all politics is local, all taxes are local. This lowering of the federal tax rate on corporations means nothing to myriad local and state taxing authorities. As one person earlier commented, a number of corporations already pay less than a 15% federal rate.
There is NO "tax overhaul" until we address the profound injustice of a regressive tax system: selective property tax that excludes property of stocks and bonds, payroll tax that stops at $118,000/year, marginal income tax rate at 39% when it was 94% under Roosevelt - the most popular president in the history of the US, estimates of average paid corporate tax rate at 17% - NOT 35%, tax exempt status of places like Yale University. What we are getting is more of the "Vile maxim: all for us, and nothing for the rest" (Adam Smith, the wealth of nations, 1776)
The average Trump supporter won't give a hoot about the consequences of big corporate tax cuts...as long as he throws them a cut too, even a modest one
44
And how will Trump try to make up the deficit created by tax cuts for the rich, such as himself? But cutting programs that benefit his voters, who will continue to support him because they don't want to admit they've been conned.
2
They'll get whatever hits the floor; like dogs.
1
when the government cvan't pay for anything that smacks of "socialism" that will be be their CUT--no services for the poor, the struggling, the intemperate, the violent, the "disabled" on worker's comp. They'll get their cut, you betcha.
I'd love to see my personal income taxes cut by 20%. But we know that won't happen. I wish for once people like Mnuchin were forced to prove their trickle down nonsense. There's small business, then there's Trump. C'mon.
2
Seems like the only ones taking the risk are the working class and what's left of the middle class. "Trickle down" economics is something we've bought into before and only the top tier makes out. Fool me once, shame on you; fool me twice, shame on me. Not surprisingly Trump has not learned anything from his multiple bankruptcies.
1
I would like to comment but I have to run to an accountant to create a fake corporation in order to pay 15%.
My small corporation will parse and collate fake news.
My small corporation will parse and collate fake news.
5
We need to remember what happened in Bush's 2004 "Job Creation" tax cut. Net approximately 100,000 jobs were lost. Pfizer one of the largest beneficiaries of that tax cut, laid off 41,000, cut research and used the tax cut money to buy back there own stock. Maybe they would have done that anyway but why did we pay them billions while they did it? HP laid off14,000. Same question. What they did was not illegal according to the act. In fact job creation was only one thing the tax cut could be used for. And the money could be used to create jobs anywhere in the world. So if we want to "reward" US job creation, give a company a reward by way of tax rebate once the job is created and is a job that is well above minimum wage and lasts of over a year. If you want to understand the results of a 2004 style job creation tax cut I recommend the book "Fine Print".
2
If they overheat the economy through lower taxes and deregulation we may as well invite the next crash. Do we ask the most drunk person in the room to drive everyone home after dinner?
1
This con is a transparent get-rich quick scheme right out of Trump's real estate playbook. The lowering of the tax rate, which balloons the national debit, is in fact a loan from the American people. He will bankrupt the future of our country as easily as his own business ventures, and walk away scott-free.
#stopdonthecon
#stopdonthecon
1
The reality of tax cuts is that cut at the top and someone in the middle and bottom struggle to pay what the top doesn't.
This is 100% pure CEO mentality. Slash and burn the middle and bottom so the top can offshore tax free profits. Yep. That'll work. Work us right back into the same Republican Recession foisted on the middle class during the Republican Bush Administration. Two cuts in 8 years weren't enough for money mad men of the GOP and Corporate dictatorship.
They held the Obama administration hostage for a 3rd tax cut in 2009 or, as they threatened then, they'd refuse to pass legislation to extend unemployment benefits to the 8 million Americans the money mad men unemployed from 2004 to 2008.
Was there really a reason other than profitizing offshore for cheaper labor than these cretons of Big Moolah were willing to pay American workers? You bet there wasn't. When you can pay offshore cheap labor one-quarter of the wages you'd have to pay Americans, you ship customer service, accounting and tech service jobs offshore.
But if you are a money mad CEO, you still get all those nice fat tax free profits. Thank the Koch boys and their Tea Party for this boondoggle and for Trump.
This is 100% pure CEO mentality. Slash and burn the middle and bottom so the top can offshore tax free profits. Yep. That'll work. Work us right back into the same Republican Recession foisted on the middle class during the Republican Bush Administration. Two cuts in 8 years weren't enough for money mad men of the GOP and Corporate dictatorship.
They held the Obama administration hostage for a 3rd tax cut in 2009 or, as they threatened then, they'd refuse to pass legislation to extend unemployment benefits to the 8 million Americans the money mad men unemployed from 2004 to 2008.
Was there really a reason other than profitizing offshore for cheaper labor than these cretons of Big Moolah were willing to pay American workers? You bet there wasn't. When you can pay offshore cheap labor one-quarter of the wages you'd have to pay Americans, you ship customer service, accounting and tech service jobs offshore.
But if you are a money mad CEO, you still get all those nice fat tax free profits. Thank the Koch boys and their Tea Party for this boondoggle and for Trump.
1
People should stop focusing on Trump's taxes - a tax decrease on corporate and small business is something that should have been done years ago. Let's focus on the good that will come out of this and not on what President Trump pays in taxes -
This is a step in the right direction to bring jobs back to the US.
This is a step in the right direction to bring jobs back to the US.
In other words, The Republican Establishment tax plan.
Now, what was that about Trump running against The Establishment?
Now, what was that about Trump running against The Establishment?
3
Republicans who agree to this increase in the national debt after years of calling for reductions should be identified and voted out of office.
3
Guess we'll see if corporations give their employees raises and hire more people since they always said they couldn't because of "corporate taxes". I always thought it's just because a lot of corporations in general are greedy, so the more you give them the more they horde.
2
"Senator Mitch McConnell of Kentuck....accused Democrats of being more interested in 'wealth transfers' than in spurring economic growth."
What hypocrisy! This so-called tax plan is nothing but a wealth transfer to the rich. Businesses already pay the lowest share of federal taxes in a generation. This tilts the playing field further in their favor.
What hypocrisy! This so-called tax plan is nothing but a wealth transfer to the rich. Businesses already pay the lowest share of federal taxes in a generation. This tilts the playing field further in their favor.
4
This is exactly the kind of disgusting, shakedown financial policy I would expect from an ignorant, cruel, and morally and financially bankrupt con man.
It's amazing to me that the Republican party can dedicate itself to such greed and naked cruelty for decades. What do Republicans do in their downtime? Drown puppies in a bucket?
It's amazing to me that the Republican party can dedicate itself to such greed and naked cruelty for decades. What do Republicans do in their downtime? Drown puppies in a bucket?
2
I'm entirely too accustomed to the damage Republicans do. Anymore when I find that Republicans control one or more of the House, Senate, White House, and/or the Supreme Court I don't wonder if they'll increase the deficit, start new wars, or broaden the divisions cleaving America into ever more fragments...
No, I wonder if the Democrats will be able to find enough not-Republicans-in-disguise in the next couple of election cycles to fix America "just one more time" - or will the Republicans have finally succeeded at destroying America...if not the world.
No, I wonder if the Democrats will be able to find enough not-Republicans-in-disguise in the next couple of election cycles to fix America "just one more time" - or will the Republicans have finally succeeded at destroying America...if not the world.
1
Hurrah for the wealthiest of our clan! They deserve relief from the overburdensome costs of paying accountants to find ways not to pay taxes! And I know their gains will trickle down to me like they have for the last 8 years. I have not had a raise/bonus in 4. Not even a cost of living bump. But now I know that they will be happy to share in their gains because it will be huge and they will have so much more to share with those of us who's backs they ride on to make their added millions in already VERY healthy profits. Senior Management continues to be rewarded for their ability to keep their cost centers under control. Their bonuses rely on it. But I know it will be different now that their tax burden will be nil. My company will continue to expand and buy up smaller ones (5 this year) and now I too will share in the wealth. The money will be flowing down hill along with the detritus, right?
2
I bought my house in the 1990's with a 5% fixed interest rate. I resisted the impulse to re-finance during the Great Recession and I do not have any regrets. Those of you that have variable rate mortgages might want to change that, and soon. And then fasten your seat-belts, because these tax cuts are not going to be for the benefit of the many, or the few, just the one (%).
Ever notice that the economy tanks after a republican has been in charge?
Ever notice that the economy tanks after a republican has been in charge?
3
The same old gutless republican plan, tax cuts that are paid for by future generations.
3
Ahh, the Leona Helmsley "We don't pay taxes. Only the little people pay taxes" school of economic thought.
3
Bread and circuses
2
Trump is doing and has done exactly the opposite of what he campaigned on.
A complete Bait and Switch from the world's sleaziest con man.
Trump is taking care of himself and his wealthy cronies.
A complete Bait and Switch from the world's sleaziest con man.
Trump is taking care of himself and his wealthy cronies.
1
Crash of the century now on sale.
5
What's the difference? The big corporations don't pay taxes at all. The "tax rate" may be over 30 percent, but no corporation actually pays that. Fifteen percent is probably the HIGHEST they pay now. So what's the difference? It's all PR, from where I sit.
1
Donald Trump currently pays zero in taxes and wants a bigger tax break.
No wonder he continues to hide the truth of his tax returns from the public.
Show me your taxes, Donald. Why do you continue to hide them if you are such a paragon of virtue?
No wonder he continues to hide the truth of his tax returns from the public.
Show me your taxes, Donald. Why do you continue to hide them if you are such a paragon of virtue?
3
Great! Small businesses are the backbone of our country's economic stability. I am looking forward to hearing what is planned.
1
Archie Bunker put it best when he said that this type of plan was "the tinkle down theory"
3
Mr Trump and Mr. Laffer - chief proponents of wishful thinking. But who doesn't love a big giveaway to the rich?
1
Small corporations pay 35% as well. And there are way more small than large btw
1
So we can now say firmly, and without any doubt, that Trump is personally enriching himself and his family from his position as President!
2
It appears that the NYTs has lapsed in to "Scientist Claims World Flat: Views Differ" mode, once again. I refer to their article that Laffer's tax theories are "contested". They are NOT just contested--they have been robustly disproven. In every case that this has been tried (Reagan, Bush, Kansas) they have resulted in enormous deficits. Conversely, when taxes have been increased (Clinton, California) the economy has boomed. NYTS: Man-up ! Please, give us the truth, not journalistic milquetoast.
32
Before we move an inch on tax reform , we must see his tax return !
14
"It'll be a big, beautiful deficit, the biggest you've ever seen!"
19
Welcome to Bush II--supply side/trickle down economics--and we all know how that ended.
12
This tax plan screws the middle class more than any tax plan in modern times has done. It must be stopped--nothing in it is good for ANYONE except the 1%.
4
Does this plan in any way affect the AMT (alternative minimum tax)? The AMT is affecting the middle class (what's left of it) more and more each year.
3
Isn't this a lot like what has crippled Kansas and put Louisiana under water?
10
Shame - Shame - Shame
4
What about repealing the AMT? Or tax cuts for personal returns? You know - the things he campaigned on?
2
Did anyone NOT expect lower rates for corporations and other businesses? Does ANYONE expect to get lower rates for individuals? EVER? The smoke keeps getting smokier, and the mirrors keep showing blanks. Smoke and mirrors work everytime for wealthy people, don't they????
15
Right, Pogo, they work every time for only one reason: the sheer stupidity of the American masses, who vote to be raped over and over. Mencken said it all: "No one ever went broke betting against the intelligence of the American people."
2
Finally somebody gets it. I just love my new President. That's why he was elected as our President!
8
You sound truly pleased, and to be honest I'm happy for you.
It's just that many of us know that each time this plan was tried before it hasn't worked - rich get richer, poor get poorer, infrastructure deteriorates, deficit grows.
It's just that many of us know that each time this plan was tried before it hasn't worked - rich get richer, poor get poorer, infrastructure deteriorates, deficit grows.
2
Not my President.
Wake up and smell the borscht.
Wake up and smell the borscht.
1
Well, TH, you must be one of the rich class or own a corporation. If you actually work for a living, you will end up holding the dirty end of this stick.
1
Wish the times would mention the debt clock more often in articles. Great resource to raise awareness: http://www.usdebtclock.org/
More voodoo. Turned out great last time, dinnit?
13
I was reading this article and thinking it was fine and normal and then came across this sentence:
The people who were briefed on the plan spoke on the condition of anonymity before a formal announcement that Mr. Trump has said will come on Wednesday, three days before he reaches the 100-day mark in office with nothing to show for his promises to cut taxes or revamp the health care system.
I was shocked. The phrase "Nothing to show for" just screams partisan and it's a shame because stuff like this is exactly why the right wing calls the NYT so left wing and discounts the reporting as dishonest. It's phrases like these that uncover the author's bias, and it's a huge shame that the editors let this get through.
The people who were briefed on the plan spoke on the condition of anonymity before a formal announcement that Mr. Trump has said will come on Wednesday, three days before he reaches the 100-day mark in office with nothing to show for his promises to cut taxes or revamp the health care system.
I was shocked. The phrase "Nothing to show for" just screams partisan and it's a shame because stuff like this is exactly why the right wing calls the NYT so left wing and discounts the reporting as dishonest. It's phrases like these that uncover the author's bias, and it's a huge shame that the editors let this get through.
1
I believe they are putting it in that light because the president promised to get all these things done in the 1st 100 days. Now whether the 1st 100 days is a meaningful measuring stick is another thing entirely but it's something that he (the president) promised so either we consider him a complete blow hard and ignore everything he says or take at face value that he is going to do the things he got elected for
1
"Nothing to show" is a perfect summary of Trump's accomplishments. Rather than cry "partisan" and "dishonest", why don't you list what the man has done so far?
2
Silly title of this article. It's provocative just to be provocative.
1
"President Trump plans to unveil a tax blueprint today that would apply a vastly reduced, 15 percent rate to a wide array of businesses, including his own. "
This is clearly a conflict of interest.
This is clearly a conflict of interest.
28
Former Google top lobbyist Andrew McLaughlin went to work in the White House's technology policy office. While there, he communicated with Google lobbyists about net neutrality, an area where the White House was advancing policies favored by Google. This violated White House rules.
This was clearly a conflict of interest under the Obama administration, P. Brown, especially after Obama signed an executive order on his first day in office stating the lobbyists would be excluded from policy making jobs.
Democrats, Republicans they're all liars.
This was clearly a conflict of interest under the Obama administration, P. Brown, especially after Obama signed an executive order on his first day in office stating the lobbyists would be excluded from policy making jobs.
Democrats, Republicans they're all liars.
And do we expect corps to now pay their employees more, because they are paying lower taxes. Don't hold your breath. But doing so would actually increase economic activity, because the middle class on down would spend their increased income of needful things like care, housing and better education for their kids.
11
This is true, corporations are tighter than shoe leather when it comes to their employees, but the C-suite gets bonuses, perks, etc. Enjoy your 1970's wages, America.
2
I know one thing... if this big tax break for businesses goes through, then the unions, those that are left, had better get aggressive like they haven't been since the 1930s and get their members a huge hunk of those tax savings. Refund pension accounts and make them primary over chancy self-contributing 401s. Start talking 3-5% wage increases with COLA immediately. And demand the corporations provide great health insurance. If dropping corporate rates by 20% is to be, then make sure that it is the workers, not just the stockholders that reap the benefits. The workers put Trump in office... it is time to find out who Trump really supports, business or his populist base.
I'll bet we already know the answer to that.
I'll bet we already know the answer to that.
1
You are still trying to measure Trump's actions by their benefit to the country.
It's a fool's errand.
Does a proposed action make liberals angry? Check.
Does a proposed action make pointed headed intellectuals blow steam out their ears? Check.
Does a proposed action make trump supporters feel like they are getting back at those two groups? Check.
Those are the yardsticks.
It's a fool's errand.
Does a proposed action make liberals angry? Check.
Does a proposed action make pointed headed intellectuals blow steam out their ears? Check.
Does a proposed action make trump supporters feel like they are getting back at those two groups? Check.
Those are the yardsticks.
15
Does a proposed action further help Trump's businesses make more money? Check.
Does a proposed action further violate conflict of interest laws? Check.
Does a proposed action that further violates conflict of interest laws worry Congress? No. Check.
Does a proposed action further violate conflict of interest laws? Check.
Does a proposed action that further violates conflict of interest laws worry Congress? No. Check.
4
And all the alt-left can do about it is sit on the sidelines and complain -jdt. Give Trump credit; he keeps your fire lit.
Why do budget deficits matter only when Democrats are in the White House?
118
Will corporations still be allowed all of the current deductions that bring their real tax rate much lower than 15%?
167
40% of American corporations currently do not pay any taxes.
1
"Will corporations still be allowed all of the current deductions that bring their real tax rate much lower than 15%?"
If the Democrats were smart this is what they would push for. Then we just might actually be able to make this revenue neutral while giving a huge bump to small businesses. Sadly they will probably just continue to scream to the converted and continue to alienate everyone else.
If the Democrats were smart this is what they would push for. Then we just might actually be able to make this revenue neutral while giving a huge bump to small businesses. Sadly they will probably just continue to scream to the converted and continue to alienate everyone else.
I don't know. Nothing as been said about getting rid of these deductions. I am pretty sure they will remain in place. Trump has no interest in getting corporations to pay their fair share.
1
Reducing taxes on corporations should be a good thing - if they paid the taxes they should have been paying in the first place. If these businesses truly were paying 35% rates, and those rates were reduced to 15%, then that would be a boon for their net incomes.
When the largest companies (like GE, which was exposed several years ago by the NYT as paying $0 in taxes after billions of dollars spent in lawyers' fees) pay nearly nothing in real dollars, a reduction in their tax rates is nominal at best.
Which means, the plan would effectively give license to reduce spending programs while offering almost no cause to do so beyond conservative politicking.
When the largest companies (like GE, which was exposed several years ago by the NYT as paying $0 in taxes after billions of dollars spent in lawyers' fees) pay nearly nothing in real dollars, a reduction in their tax rates is nominal at best.
Which means, the plan would effectively give license to reduce spending programs while offering almost no cause to do so beyond conservative politicking.
17
GE is prefect evidence of why leftist economic policy hurts the US.
It reduces its tax burden by concentrating profits overseas, where enlightened socialist countries are not nearly as greed or graspy as is our Federal Government. Here at home, its wind turnbines and nukes entitle it to huge "green energy" subsidies. Tesla does the same thing; it reaps huge subsidies from the government. Profits from selling cars? No so much.
Cut corporate taxes to zero and not only will the left have no reason to whine about offshoring -- because it won't happen; indeed, foreign companies will flock to the world's biggest tax haven -- but the ability of the government to direct the economy with tax credits and subsidies will vanish. Good bye to any company which relies upon gimmicks rather than products to survive.
Leftists can't have it both ways. GE brilliantly manipulates its affairs to ensure that it reaps the full benefit of the policies the left imposed and endorses.
If we eliminated corporate taxes today, tomorrow, trillions in offshore profits would flow into this country. And hundreds of billions annually would come here rather than stay in Europe or elsewhere. But the left opposes which policy, because a huge share would go to the "wrong" people: those who actually earned it. And the left would prefer that we all suffer mightily rather than permit a few to benefit hugely.
It reduces its tax burden by concentrating profits overseas, where enlightened socialist countries are not nearly as greed or graspy as is our Federal Government. Here at home, its wind turnbines and nukes entitle it to huge "green energy" subsidies. Tesla does the same thing; it reaps huge subsidies from the government. Profits from selling cars? No so much.
Cut corporate taxes to zero and not only will the left have no reason to whine about offshoring -- because it won't happen; indeed, foreign companies will flock to the world's biggest tax haven -- but the ability of the government to direct the economy with tax credits and subsidies will vanish. Good bye to any company which relies upon gimmicks rather than products to survive.
Leftists can't have it both ways. GE brilliantly manipulates its affairs to ensure that it reaps the full benefit of the policies the left imposed and endorses.
If we eliminated corporate taxes today, tomorrow, trillions in offshore profits would flow into this country. And hundreds of billions annually would come here rather than stay in Europe or elsewhere. But the left opposes which policy, because a huge share would go to the "wrong" people: those who actually earned it. And the left would prefer that we all suffer mightily rather than permit a few to benefit hugely.
Well said. I agree with this in a vacuum. The issue with your proposal, however, is that the government needs revenue to survive in its current state. Tax revenue goes a long way toward filling its coffers.
If there were no people in this country that needed government programs to survive, then yeah, your plan would be wonderful. A zero tax rate for corporations would absolutely attract major business. Competition would drive the economy, rather than, as you mention, push and pull tactics at the hands of the government through tax breaks and subsidies.
If we were to impose such a plan in our current state, how would we pay for all of the entitlements on which people rely? Would those programs simply go bust? What happens to all of those people?
If there were no people in this country that needed government programs to survive, then yeah, your plan would be wonderful. A zero tax rate for corporations would absolutely attract major business. Competition would drive the economy, rather than, as you mention, push and pull tactics at the hands of the government through tax breaks and subsidies.
If we were to impose such a plan in our current state, how would we pay for all of the entitlements on which people rely? Would those programs simply go bust? What happens to all of those people?
A proposed tax plan that lowers the corporate tax rate, it seems to me, will dramatically increase the federal deficit, something that Republican deficit-hawks have been making a stink about for many years. I'm no economist but this seems to me that it will increase inflation dramatically as well as the deficit. Revenue-neutral and deficit-hawk Republicans will cut programs as a way to "balance" the budget, which will severely hurt the middle class and totally cripple those at or near the economic bottom of our society.
In addition, Trump's proposed corporate tax reduction is completely and totally self-serving. I have predicted that Trump's presidency will enrich him and his family at the expense of millions of less-fortunate Americans. What a sham and what a shame.
In addition, Trump's proposed corporate tax reduction is completely and totally self-serving. I have predicted that Trump's presidency will enrich him and his family at the expense of millions of less-fortunate Americans. What a sham and what a shame.
It's the Trump Taj Mahal of tax cuts.
Guess who will be left holding the bag.
Guess who will be left holding the bag.
21
The wealthy have been cutting themselves bigger and bigger pieces of the economic pie for the past thirty years and at the same time they are willing to pay less and less of the expenses of running the country.
In the past, when the wealthy got a tax cut they used their gains to plunder and raid their competitors, increasing the use of robotics and shipping work overseas which resulted in job losses. The wealthy don't share their wealth they hoard it. Look how our own leader has to be sued by the paint company that worked on Mar a Lago for them to get their fair pay.
Instead, focus on closing the loopholes that allow a person earning millions or billions but only paying the tax rate equivalent to a middle class worker. Increase the inheritance tax and use that to pay for schools and education. Tax unearned income for social security and medicare.
Give more money to the poor and they will spend it, creating jobs and improving the economy as those funds trickle up back to the rich.
In the past, when the wealthy got a tax cut they used their gains to plunder and raid their competitors, increasing the use of robotics and shipping work overseas which resulted in job losses. The wealthy don't share their wealth they hoard it. Look how our own leader has to be sued by the paint company that worked on Mar a Lago for them to get their fair pay.
Instead, focus on closing the loopholes that allow a person earning millions or billions but only paying the tax rate equivalent to a middle class worker. Increase the inheritance tax and use that to pay for schools and education. Tax unearned income for social security and medicare.
Give more money to the poor and they will spend it, creating jobs and improving the economy as those funds trickle up back to the rich.
31
Not all business owners are wealthy
I agree in part with you Joe. Those who have vast sums of wealth have an interest in protecting and making it grow. A once prominent Democratic family, the Kennedy's, have a vast labyrinth of trusts set up that administer their family fortune. I guarantee you Joe that they take advantage of every tax law and loophole available to them. Who wouldn't? If we're going to reduce the tax rate across the board, then we must close the loopholes which benefit only the wealthy . Growing the economy, eliminating loopholes, creating the demand for jobs and scaling back the welfare entitlement programs will put us all in a better place.
If I remember my history correctly, the original American Revolution was for a major part a response to the tax policies of King George III toward the colonies. A new Revolution against King Donald the First would appear to be in order.
16
Be patient. It is coming...............
1
So, the corporations.get a 15% tax, down from 35%. I guess that's his idea of a fair tax code. So, where will the money come from to run the government? Either the deficit will rise, now be lowered or the taxes on the middle and working classes will have to go up or programs will keep being slashed that are necessary for many people. All so he can give his buddies a huge bigly tax cut. Shameful.
5
I am sure happy to see that "the man of the people" is taking care of everyone but.........................Republican hypocrisy on the national debt is disgusting. We cannot afford to increase the debt further without risking blowing us all up and the repubs' told us this over and over during the Obama administration. You may not pay close attention but you should. The day will come when the bills will become due. But, go ahead and continue to believe that trickle down works.
15
Closing all the loopholes, and then lower the business rate to 15 or 20 percent was good idea. Our rates should be similar to those of our trading partners.
But you have to start with closing all the loopholes, not kick the main component down the road.
But you have to start with closing all the loopholes, not kick the main component down the road.
5
Great, so the GOP will cut corporate taxes, which will increase the deficit, so next they'll say that in order to cut the deficit we need to cut spending on social programs that actually help people. Classic.
30
Why is it so difficult for middle and lower income voters to realize that when they elect Republicans they are voting against their own self interests?
No matter how bad it gets, you know as well as I do who will get the blame: OBAMA........
1
Many on the right do not believe in helping people. They only believe in people helping themselves. They don't want to support anything that would help anyone help themselves, either. This move, which will increase the deficit, is clearly aimed to stage budget cuts to any program that helps people, enriches society, and provides for health and stability for all. How else will they weed out useless people such as the sick, old, and disabled, if the stupid government keeps helping them?
Why not a tax cut that favors the wealthy? They are doing the economic heavy lifting in this country. Besides, you can't cut taxes for people who aren't paying any to begin with.
Government does many things that a civilized society cannot exist without. Government costs money and the tasks it performs must be paid for. Taxes are the way we pay for the things our government does that we all (or almost all) agree it should do. Most of us agree that we should support the good things that government does by paying taxes. The question is what should our government do with the money it collects? Individual income taxes based on earning is the fairest way to tax. Billionaires can certainly afford to pay more than those earning less than $50,000 per year. A flat tax rate of 15% for everyone making over $50,000 sounds reasonable, but would that pay for all those things Presidents and Congresses want to do? Since corporations are people according to our Supreme Court than Corporations should pay what any individual is expected to pay. NO LOOPHOLES PERMITTED.
3
Good point.
I'm not happy about citizens paying 12%, 25% and 33% compared to 15% for business.
20
For those who lament the notion of paying lower taxes, there's great news.
No one is obligated to pay only what they owe the IRS. You can give unlimited amounts of money to the IRS. Really! There's no penalty for giving them more than you owe. In fact, you get a charitable deduction for the following tax year! If you want to give the IRS virtually every dime you have, you can!
If tax rates are lowered, let's see how many are so outraged that they will actually pay more to the IRS than they have to. Any bets? Now where's that patriotism...
No one is obligated to pay only what they owe the IRS. You can give unlimited amounts of money to the IRS. Really! There's no penalty for giving them more than you owe. In fact, you get a charitable deduction for the following tax year! If you want to give the IRS virtually every dime you have, you can!
If tax rates are lowered, let's see how many are so outraged that they will actually pay more to the IRS than they have to. Any bets? Now where's that patriotism...
3
Democrats: tax and spend. Republicans: borrow and spend. At least the former makes sense.
12
Isn't it the Republicans who cry about giving away " freebies " and the increasing deficit ? If this isn't a give away I don't know what is .
And as for the argument that US companies pay more corporate tax than any other country , does that take into account all of the deductions and loopholes which can bring their effective rate down considerably to about 15%? Corporations are making record profits and giving it to their CEO's , not their employees . It's just disgusting greed which will only perpetuate under Trump .
Reagan economics has failed and in my opinion was the WORST thing that ever happened to this country . Reagan's policies set a destructive path and mindset in motion that only continues to plague us , increasing the divide between the very wealthy and the regular American like me struggling to make ends meet .
Ironically , the Republican Party with Trump at the top of the ticket ran on much of the same message that Bernie Sanders was trumpeting , but sadly Trump is doing exactly what is in the Republican playbook and more. Trump won the election with those same voters and he will betray them over and over again.
Someday maybe the American voters will wake up and see that the GOP is not on their side , period . One can only hope .
And as for the argument that US companies pay more corporate tax than any other country , does that take into account all of the deductions and loopholes which can bring their effective rate down considerably to about 15%? Corporations are making record profits and giving it to their CEO's , not their employees . It's just disgusting greed which will only perpetuate under Trump .
Reagan economics has failed and in my opinion was the WORST thing that ever happened to this country . Reagan's policies set a destructive path and mindset in motion that only continues to plague us , increasing the divide between the very wealthy and the regular American like me struggling to make ends meet .
Ironically , the Republican Party with Trump at the top of the ticket ran on much of the same message that Bernie Sanders was trumpeting , but sadly Trump is doing exactly what is in the Republican playbook and more. Trump won the election with those same voters and he will betray them over and over again.
Someday maybe the American voters will wake up and see that the GOP is not on their side , period . One can only hope .
11
One further thought, already alluded to by others. These tax cuts would ultimately have devastating impact on social security and medicare, both of which need additional financial support. Without any doubt, the increased deficit would be used by R's to bludgeon congress into reducing benefits... a strategy that they have used, quite cynically, in the past.
Why Democrats are not out in front in messaging about these absurd tax cuts, is beyond me. There is so much rich material here: the multiple failures of previous "trickle-down" tax cuts, the success of Clinton era tax cuts, the republican rhetoric of the last 10 years warning of financial armageddon due to budget deficits. Democrats, where are you ?? This is unbelieveable.
Why Democrats are not out in front in messaging about these absurd tax cuts, is beyond me. There is so much rich material here: the multiple failures of previous "trickle-down" tax cuts, the success of Clinton era tax cuts, the republican rhetoric of the last 10 years warning of financial armageddon due to budget deficits. Democrats, where are you ?? This is unbelieveable.
295
I'm not an accountant, but how would it affect social security and medicare? Those are completely separate taxes. I don't see any indication of change on that. He's talking about income tax. Maybe I am missing something....
We are an aging population, it is not realistic that we will get through the next 10 years with ultra low tax rates.
1
Why would cuts in income tax rates devastate SS and Medicare? The latter are payroll taxes. As for the devious Republicant conspiracy to axe SS, how has that worked out for them?
My question to the Administration and Republicans in Congress considering this lunacy is this: how much would US GDP have to increase to cover the expected 2 trillion dollar increase in the deficit? Not being an economist, my suspicion is that do so would require growth on level that 1990s China would envy.
4
Another brick in the wall of our rising Plutocracy. And further evidence that Republican worries about the deficit only apply to Democratic administrations. Everything about this is so wearily predictable.
3
"Reeling, writhing, and fainting in coils", after confabulating reality with quasi-religious devotion to Republican regressive opposition to science, health and social welfare; mathematics performed with actual numbers has once again come under fire. Trump learned from Roy Cohen one can make lots of money if you just don't pay your bills. After thriving for decades using the 'carried interest' deductions in real estate, this proposal frankly grabs the money while ignoring the debt. After Reagan and Bush II, how many times must we double and triple our national debt before figuring out we've been stiffed?
5
Bush's Repatriation Tax Holiday did nothing except cost the Treasury 3.3 billion dollars. No measurable effect on jobs, the money went all back into shareholders and company coffers. Bush tax cuts did nothing but add billions to the debt and increase the deficit. The Republicans are NOT fiscally sound and history bears this out. Yet, GOP voters keep harping on the debt and deficit and the legacy they will leave their children. Obviously they just care about dog whistles and are not informed. Multiple examples such as the policies enacted by Bush, and red states such as Kansas and Louisiana etc. should end this fallacy that GOP's are fiscally competent. I'm a liberal and I will get a $5k tax break with Trump's supposed cuts. I would rather have a tax cut in this period of time as to take away money from the treasury so that Trump cannot line his pockets. How can you call yourself a fiscal conservative when your president is spending over 24 million dollars on weekend golf in his first 100 days?
7
This should work, since the average American is terrible with math and tax law. Is there any doubt about the true mission of the new President? Big business now has a big business king installed to blatantly enrich the 1%. They are not even trying to hide it,
Media, do the math! This is a 57% TAX CUT FOR BUSINESSES! Why isn't that the headline?!
Media, do the math! This is a 57% TAX CUT FOR BUSINESSES! Why isn't that the headline?!
5
If a corporate tax cut coupled with a middle class tax cut was proposed by "President Hillary Clinton" with a Democratic congress it would pass with an overwealming majority but this comes from Donald Trump so Republicans will need to use reconciliation and the tax cut will not be permanent. Trump is learning: half a loaf is better than none. The tax cut will receive not a single Democratic vote since their supporters demand " Resist!!" irrespective of the merits of the legislation to jump-start the economy and provide jobs.
And once again the middle class will be left out. For the life of me I cannot figure out why anyone in this country who is in the middle class votes for Republicans.
2
Increasing the standard deduction is mainly beneficial to the middle class. The tax proposal also includes a major increase in military funding for national security which is a big issue for all Americans as we witness North Korea developing an ICBM which could deliver a nuclear weapon to Los Angeles, Chicago and New York where BTW many people in the middle class live.
Absolute stupidity, more wealth transfer to the top. Tax cuts are popular because it's all sugar no medicine. If Republicans were truly serious about balancing the books and helping out the middle class, they would close all the loopholes that only fortune 100 companies and the one percent use to stash trillions of dollars out of the economy. It's exhausting listening to Trump and the rest of the crooks in Congress talk about how they can't burden the poor coal miners with more taxes to pay for Big Big Bird, when tax payers are giving massive subsidies and tax credits to billion dollar corporations like the Kochs, GE and Grumman. According to the IRS $600 billion in corporate taxes go uncollected every year, meanwhile Trump says we can't afford to take care of our elderly and new borns. We have over 600+ billionaires that's 500 more than any country on earth (oddly enough their combined wealth is equal the $13+ trillion hole in our deficit), yet we have a President and Congress claiming we can't afford to educate the future of our nation. Let's stop fooling ourselves about America's "free market capitalism", we've allowed an oligarchy to rape, pillage and brain wash this country.
Corporate share of federal tax revenue has dropped by two-thirds in 60 years — from 32% in 1952 to 10% in 2013. When will the working middle class and poor get equal consideration? The struggling working middle class and poor are still waiting for the trickle down benefits.
Under Trump/GOP’s proposal will it be illegal for U.S. Corporations to:
1. Continue to hold the $2.1 trillion in profits officially hold offshore?
2. Pay NO federal income taxes as General Electric, Boeing, Verizon and 23 other profitable Fortune 500 firms from 2008 to 2012.
3. Continue to dodge the $90 billion a year in income taxes by shifting profits to subsidiaries — often no more than post office boxes — in tax havens.
Let’s try trickle up…. an immediate boost to the economy.
Under Trump/GOP’s proposal will it be illegal for U.S. Corporations to:
1. Continue to hold the $2.1 trillion in profits officially hold offshore?
2. Pay NO federal income taxes as General Electric, Boeing, Verizon and 23 other profitable Fortune 500 firms from 2008 to 2012.
3. Continue to dodge the $90 billion a year in income taxes by shifting profits to subsidiaries — often no more than post office boxes — in tax havens.
Let’s try trickle up…. an immediate boost to the economy.
2
"But Senator Mitch McConnell of Kentucky, the majority leader, said on Tuesday that he intended to pass tax legislation through budget rules that would block a filibuster." Pretty much says it all, the average citizen will get rolled....again.
3
Just keep your eye on the bouncing ball with Trump....it is always, always fame/celebrity and wealth. He cares not one iota for anyone else with this tax plan other than to further enrich him and his family. The Alternative Minimum Tax will be the next to go followed by a complete abolition of the Federal Estate Tax.
3
If 15% would lead to such a massive economic boom that it would pay for itself, then using this theory, why not propose 10%? or 5% for an EVEN bigger economic boom? Taking it further, wouldn't a 0% tax on businesses generate infinite revenue.
2
For those of you keeping score at home, the Dow hit 21,000 yesterday, the NASDAQ topped 6,000 for the first time. Inconvenient for Trump haters, but a rather salient fact, and infinitely more important to me that how a Trump-owned company might benefit from a tax cut.
What tax rate has Donald Trump paid over the past 10 years??? We need to know. NOW.
6
"The border adjustment tax may be revisited later but was considered too controversial to include now."
It appears ALL revenue considerations are too controversial to include now...
It appears ALL revenue considerations are too controversial to include now...
1
As I see things, it is the full intent of the Republican party's taxation philosophy to deliberately keep the government starved for cash, even though, and especially because, its policies will drive up the deficit and the public debt. They then use these latter numbers as "proof" that socialistic-leaning programs such as Medicare for all can only make things oh-so-much worse.
Record deficits and mountainous debt. While they use these as bogeymen, They are the Republicans' best friends.
Record deficits and mountainous debt. While they use these as bogeymen, They are the Republicans' best friends.
2
It's what one might expect from an administration of government neophytes. Start with the flawed supposition that all the current situation "is a mess", all previous efforts were the result of irresponsible actions and combine it a solution dependent on magical results. Only one certainty appears assured, significant tax cuts for the rich offset by the elimination of middle class tax deductions.
1
When the Little People get help, it's called welfare; when the rich get help, it's called tax cuts.
6
Businesses should not pay taxes people should pay taxes. Once the owner takes the money out of the company it should be taxed at the individuals rate. If my business pays 50k in taxes that is another store I could have opened and employed 3 to 4 more people. I can't do that now because I have to pay income tax on my business. No taxes for business. If you take the money out of the country their should be an exit tax. If you are not reinvesting the money back into your business you should be taxed then also.
Low corporate tax is a good idea when profits are kept within the corporation for continued growth and innovation. This produces jobs. But this must be associated with a steep and progressive tax on those who use the system to make billions for doing little work. Perhaps no tax for those making less than $100,000. Progression to 20% up to $500,000, 35% up to $1M, 50% up to $2M, increasing by some value such as 10% for every additional $500,000. This would prevent those corporate raiders from draining important corporation revenues from the company which reduces the capacity for growth and innovation. It may even encourage higher wages to employees and higher dividends to the ordinary investor and pension funds
Social security, medicare and health insurance subsidies will pay for it. The pitch: you no longer have to have those taxes deducted from your paycheck! Trump will then smile as those institutions go bankrupt. Removal of the Dodd Frank and Consumer Protection Bureau will prevent folks from having a voice or a buck. Finish it off with FOX news as state t.v. and voila! We are Russia. Thank you, Mr. Trump and his family of phonies. We are watching you.
2
Donald Trump: the all time consummate yegg to ever sit in the oval office. Abetted buy his Goldman Sach fried Muchin who's first words when nominated by Trump that a lifting of our debt ceiling would be his objective. Mission accomplished. I suspect this tax plan (not reform) will be one that top's Goldman Sach's plan with AGS. The plan that had the committee heading TARP investigation shaking their heads not knowing what the heck Goldman's CEO, President, Blankfein was talking about. Goldman's ended up with a piece of the TARP handout and immediately paid bonuses to top management despite less than acceptable performances. Did Mrs. Cruz receive a share? Now Goldman's is in on the biggest vault thief of all time, enter Donald Trump, master safecracker.
Amazing, is it not, that the same GOP that rejects the conclusion of well over 90% of the world's climate experts are willing to embrace an economic theory that has been broadly panned, even debunked, by an (arguably) similarly strong outcry from economic experts.
Again, republicans come up with plans that greatly increase the deficit and will continue to drive up the national debt. Then later, when they are no longer a majority in congress or there is a democrat in the White House, they will blame democrats for the debt even though they wrote the law that created it in the first place. They did it every day during Obama's presidency even though the drivers of the debt were put in place by republicans during the Bush years.
1
If businesses can't afford to pay their taxes, they shouldn't be in business. It's as simple as that.
3
The constantly repeated refrain that the US has the highest corporate tax rate in the world is a canard that never flew.
After useing all available loopholes such as tax credits, exemptions and off shore tax havens, the average effective corporate tax rate is 12.6% in the US.
According to the OECD, the US collects only 2.6% of its GDP through corporate taxes compared to other rich nations, making it the 11th lowest of all 27 OECD nations.
And now Trump wants to lower them even more, and apply them for his own Trump, Sons & Daughter Family Shop.
Make America Great Again through Trickle Up Economy.
After useing all available loopholes such as tax credits, exemptions and off shore tax havens, the average effective corporate tax rate is 12.6% in the US.
According to the OECD, the US collects only 2.6% of its GDP through corporate taxes compared to other rich nations, making it the 11th lowest of all 27 OECD nations.
And now Trump wants to lower them even more, and apply them for his own Trump, Sons & Daughter Family Shop.
Make America Great Again through Trickle Up Economy.
3
Americas finances are in the toilet anyway, this is just going to flush it.
This takes the concept of "starve the beast" to an unprecedented level. As does the idea that the resulting growth "will pay for itself".
We simply do not have enough able working people to grow the economy at 5%, which is the lowest level it will have to expand to off set these cuts. Also, the working class would have to work 7 days a week 365 days a year to achieve that level of growth.
If this fantasy world of a "tax" plan became law, almost every program the government participates in would see substantial cuts or elimination, including social security, medicare and medicaid, to just bring the plan to level of sanity.
This is, however, the subliminal plan of republicans. To muck up the finances of the government so much that it can only pay for Military spending. The ultimate goal is to get the government out of doing any thing at all for the people it governs. In the eyes of republicans, government does NOT help the people it governs and they will do everything in their power to see this through. This tax proposal is a good first step to those goals.
This takes the concept of "starve the beast" to an unprecedented level. As does the idea that the resulting growth "will pay for itself".
We simply do not have enough able working people to grow the economy at 5%, which is the lowest level it will have to expand to off set these cuts. Also, the working class would have to work 7 days a week 365 days a year to achieve that level of growth.
If this fantasy world of a "tax" plan became law, almost every program the government participates in would see substantial cuts or elimination, including social security, medicare and medicaid, to just bring the plan to level of sanity.
This is, however, the subliminal plan of republicans. To muck up the finances of the government so much that it can only pay for Military spending. The ultimate goal is to get the government out of doing any thing at all for the people it governs. In the eyes of republicans, government does NOT help the people it governs and they will do everything in their power to see this through. This tax proposal is a good first step to those goals.
1
So when Reagan pulled this stunt and the deficit soared in order to plug that new deficit hole he raised payroll taxes. Didn't hurt the rich because the cutoff was about $30,000. The middle class gets stiffed with a new tax while the wealthy go on their merry way. Oh and yes - deficits don't matter. More trickle on, sorry I mean down, theory nonsense.
Trumps Tax Plan : whatever most benefits the Trump Family Business.
Duh.
Duh.
4
Their greed is not over more money (they have more than enough to afford excessive luxuries) but the power over others that it gives them at our expense. We are no longer a nation indivisible. Safety nets being ripped. I see middle class families panicking. We are in a civil war against the middle class so these greedy execs can control us.
Fine, 15% business tax rate.
The important thing is that the businesses all PAY it, instead of paying nothing and moving profits overseas.
The important thing is that the businesses all PAY it, instead of paying nothing and moving profits overseas.
Throughout his career, Trump's guiding principle has always been, "What's in it for me?" Until we know how this proposal effects Donald's own bottom line, Congress should consider any tax revision a non-starter.
Show us your taxes, Mr. Trump.
Show us your taxes, Mr. Trump.
3
As Gomer Pyle used to say, "Surprise, surprise, surprise!"
Trump ran on being for the little guy. This proves he lied about that. History shows the results of this sort of action skew to the part where those with the least are the last to see gains.
Companies who suddenly have an alleged 20% decrease in costs will likely move that where it does the most good for the company. So for instance, and in no particular order: (1) expansion of facilities but when they have to staff those, they will claim there is only minimum wage left to pay; (2) profit then returned to shareholders in dividends so they can gain more by sale of more attractive shares; so employees who cannot afford to invest in securities gain nothing; (3) profit then returned to principals and well-perq's employees as profit sharing or bonuses; (4) wages and benefits to employees across the board.
I'll leave it as an exercise to the reader to set the odds on each of those happening, but remember: You don't become rich just by making money. You become rich by making money and not spending it.
Trump ran on being for the little guy. This proves he lied about that. History shows the results of this sort of action skew to the part where those with the least are the last to see gains.
Companies who suddenly have an alleged 20% decrease in costs will likely move that where it does the most good for the company. So for instance, and in no particular order: (1) expansion of facilities but when they have to staff those, they will claim there is only minimum wage left to pay; (2) profit then returned to shareholders in dividends so they can gain more by sale of more attractive shares; so employees who cannot afford to invest in securities gain nothing; (3) profit then returned to principals and well-perq's employees as profit sharing or bonuses; (4) wages and benefits to employees across the board.
I'll leave it as an exercise to the reader to set the odds on each of those happening, but remember: You don't become rich just by making money. You become rich by making money and not spending it.
The shameful hypocrisy of Republicans is staggering. Why don't they just tell us that those of us who make less than 1 million a year are not worth caring about? Dispense with the window dressing.
This is why it is called the "laugher" curve.
The joke's on us.
This is why it is called the "laugher" curve.
The joke's on us.
If corporations are people, then shouldn't their expenses be paid with after tax dollars, like mine are? I don't get to pay my utilities, transportation costs, food, and rent with pre-tax dollars.
The only thing we've ever learned (but seem to not remember) from republican tax cuts is that they never pay for themselves by growth and they usually go mostly to the top. If you want to spur growth you need to put money in the hands of everyone from the middle class down. They spend it. They have to. The rich merely insure nobody in their family will ever need to work again and that the local BMW dealer will stay in business.
I don't see any discussion in this article about scrapping the Alternative Minimum Tax. If that isn't done, this cut will have no benefit to me, or other "rich" people like me (I say ironically). As it is, people subject to the AMT don't get the full benefit of home ownership, and if you are single you are hit even harder. Fortunately, interest rates are low.
31
I'm sure that the poor would see little irony in your income. As you probably know, without the ATM, people like Trump would pay no tax at all. If you are subject to the ATM, at least call yourself "upper middle class" rather than mocking those who feel you are 'rich' (to whom you, in fact, are). And rather than calling for the ATM to be scrapped, why not call for adjusting it so that it applied to the "actual rich" or whatever you would want to call them?
1
Trump has called for the elimination of the AMT (mostly because it hit him). No idea if this "proposal" coming out today says anything about it.
The corporate tax cut has merit, if we clean up their special deductions, but the tax cut for pass-through entities is a gift to high income earners that will create few jobs. "Pass-through entities" is another word for people who own businesses who already do not have to pay corporate income tax on their business earnings - this proposed tax cut would cut their personal income taxes and send the bill to our children. Meanwhile meals-on-wheels, community services, and jobs training (among others) will be cut. This is what happens when the President thinks that doctors, lawyers, and property and business owners are the ordinary people who need better care and shelter.
1
Here we go again. Every recent Republican administration has run up the budget deficit. When they're in opposition, however, they're deficit hawks. I know that politics and hypocrisy are soulmates, but this is ridiculous.
4
It is obvious that Trump's only motivation with this presidency is to enrich himself and his family.
Oh, and the rich folks who have given him millions in order to get millions back in tax cuts.
I think if this tax cut passes, Trump will resign and blame the "fake" news media.
And then laugh all the way to the bank.
Oh, and the rich folks who have given him millions in order to get millions back in tax cuts.
I think if this tax cut passes, Trump will resign and blame the "fake" news media.
And then laugh all the way to the bank.
2
Just one question here - will this mean the big boys like GE will actually pay some taxes for a change ? Just askin' ...
1
Republican BUSINESS as usual.
All about corporate and business tax relief and next to nothing about what average American tax payers are burdened with. This alleged priming of the economic pump will work for a while but will then fizzle as has consistently been the case with past iterations — think Reagan and Bush Two.
The big surprise here is not the Republican approach to tax reform, that’s long standing GOP economic boilerplate.
The fabulous (you will absolutely just love it) turnabout is President DJT who looks more and more like the ravenous fox in the hen house.
The rapidly unfolding scope of Trump’s betrayal of his constituency is spectacular.
The GOP establishment is ecstatic, while the Democrats look absolutely feckless.
All about corporate and business tax relief and next to nothing about what average American tax payers are burdened with. This alleged priming of the economic pump will work for a while but will then fizzle as has consistently been the case with past iterations — think Reagan and Bush Two.
The big surprise here is not the Republican approach to tax reform, that’s long standing GOP economic boilerplate.
The fabulous (you will absolutely just love it) turnabout is President DJT who looks more and more like the ravenous fox in the hen house.
The rapidly unfolding scope of Trump’s betrayal of his constituency is spectacular.
The GOP establishment is ecstatic, while the Democrats look absolutely feckless.
Bingo! This could be the dagger to the heart of the left that Trump and his Republican comrades have been seeking--and it would only take a little sleight of hand for it to garner serious public support. If he can steel his spine and harden his heart a bit more and do away with the deduction for charitable contributions, the plan could effectively kill nearly all federal programs in addition to ending the private non-profit sector as we know it. The left would lose the ability to enact its agenda on any scale. Corporations and a government military/police force would finally be the sole, undisputed centers of power. And if it all falls apart? Good luck trying to raise taxes to fix it in the future, Democrats. Check mate. Well played.
The effective corporate tax rate is NOT 35 percent. How many corporations actually pay 35 percent? Will the plan close the loopholes?
The economy doesn't need a jumpstart. Middle class and poor people need help, businesses can't find trained workers for the jobs they have. How about a tax plan that actually focuses on what we need, instead of what benefits corporate America and Republican politicians? That would be a breath of fresh air that could go a long way towards at least airing out the swamp.
The economy doesn't need a jumpstart. Middle class and poor people need help, businesses can't find trained workers for the jobs they have. How about a tax plan that actually focuses on what we need, instead of what benefits corporate America and Republican politicians? That would be a breath of fresh air that could go a long way towards at least airing out the swamp.
Shameful, callous and maliciously calculated maneuver for a president who refuses to show his income tax returns. A 15% reduction for corporations (including his businesses) who already minimize their tax liabilities through the myriad of income tax loopholes is unconscionable while many of us are left with a marginal decrease if any and removal/erosion of already depleted tax deductions.
This President is robbing the country blind from health care, the environment, social and consumer programs and now taxes. This country was not meant to survive on the backs of the middle class and poor so that the rich can get richer. How much is enough for these thieves?
This President is robbing the country blind from health care, the environment, social and consumer programs and now taxes. This country was not meant to survive on the backs of the middle class and poor so that the rich can get richer. How much is enough for these thieves?
I'm all for this corporate tax cut -- as long as the minimum wage also goes to $25/hour.
1
True to form. Our deficit is going to increase greatly. The stock market is going to be on a 4 year sugar high, and then boom, another depression. A Democratic president and congress will get elected to clean the mess left behind. The country will slowly get better, and then we will show our gratefulness by throwing them out and the process starts all over again.
1
The proposed tax plan is simple.
If you are a republican, you get free money.
If you are a democrat, you get to pay your entire paycheck to the government.
Then, the government will take democratic dollars and feed southern republican states, and line the pockets of their friends (who fund them).
I suspect this works rather well for them. And I suspect democrats will be eager to compromise . . . er . . . cave, fold, and smile gleefully for the cameras.
Because we voted for it, we should not be complaining.
Had the democrats worked toward blocking everything that came out of Trump WH and the republicans in the congress . . . . I might have thought differently.
However, I remain plain nauseated by every lily liver democrat playing nice, and trying to compromise. I did not vote for Trump, but I doubt I am voting for another democrat - ever. Only weak willed, lily liver people could get on the same page with the folding, caving, disorganized democrats.
Kalidan
If you are a republican, you get free money.
If you are a democrat, you get to pay your entire paycheck to the government.
Then, the government will take democratic dollars and feed southern republican states, and line the pockets of their friends (who fund them).
I suspect this works rather well for them. And I suspect democrats will be eager to compromise . . . er . . . cave, fold, and smile gleefully for the cameras.
Because we voted for it, we should not be complaining.
Had the democrats worked toward blocking everything that came out of Trump WH and the republicans in the congress . . . . I might have thought differently.
However, I remain plain nauseated by every lily liver democrat playing nice, and trying to compromise. I did not vote for Trump, but I doubt I am voting for another democrat - ever. Only weak willed, lily liver people could get on the same page with the folding, caving, disorganized democrats.
Kalidan
One has to wonder how his base is feeling right about now. How are those jobs working out for you?
NYT readers need to recognize this 15% corporate tax proposal is but an opening position in a negotiation. Congress writes the laws, not POTUS. Even the conservative GOP Congress has serious doubts about this, not to mention the ultra-conservative GOP and the Democrats, both of which group's votes will be needed for any permanent change in the law that increases the national deficit.
1
I'm quite sure my local hedge fund operator needs a tax break. What land do these people dwell in? And please quit with the "mom and pop" business allusions or illusions--take your pick. Most mom and pop businesses (of which there are few) barely make a profit to pay any taxes on; don't worry about them.
Signed,
A Former Mom of a Mom and Pop Business
Signed,
A Former Mom of a Mom and Pop Business
Hey, Trump supporters... I'm talkin' to YOU. Are you still positive that Trump ran to be president for YOU? Are you even a bit dismayed that his tax "reform" is going to be a giant tax cut for, you know, HIM but not for YOU? Do you have any concerns that he is going to tax imported goods to pay for tax cuts for HIM -- you know, the imported goods that YOU buy every week at Walmart and Costco and Target, and which will now cost more because of those taxes?
Are you pleased that YOU are going to be paying for HIS tax cut??? Are you still on board with this guy???
Trump is a liar and a con man.
Are you pleased that YOU are going to be paying for HIS tax cut??? Are you still on board with this guy???
Trump is a liar and a con man.
5
The chorus of that old song comes to mind: Hey big spender....
Just this once I say: thank god for the Republicans! Their internecine warfare, pitting the "Reagan proved that deficits don't matter" crowd against Tea-Party deficit hawks, will kill this bill. As we saw with "repeal and replace," the GOP still has not solved the problem of a moody, noisy, recalcitrant faction.
The GOP is neglecting the future of young people. Without seeing Trumps tax returns how can we be sure he is not enriching his own corporations? And, as for healthcare they seem to be totally insensitive to the millions who will lose coverage. Shame on them for disregarding the future of young people, the lower middle income and poor.
3
Bankrupting the government is part of the Republican plan. Once there's no money left, they can defund social security, Medicare, Medicaid, etc.
6
Maybe the economy would grow 5% or more if this administration prioritized training unemployed workers in the areas of automation, technology, and renewable energy. These tax breaks will temporarily help a struggling middle class, but nothing will stop the American ingenuity and technological advancement that's putting them out of work.
But who are we kidding, Trump isn't actually in this thing for long term health of the US. He's here to make money, have his ego inflated by his core following, and walk away from the Presidency with the class clown superlative.
But who are we kidding, Trump isn't actually in this thing for long term health of the US. He's here to make money, have his ego inflated by his core following, and walk away from the Presidency with the class clown superlative.
3
That Stephen Moore's fingerprints are all over the tax plan means the 1% get richer and the middle class and poor once again get shafted. Deficits only matter to republicans when a democrat is president. Isn't that your take McConnell and Ryan?
2
It's deja "Voodoo" all over again!
3
The obvious way to pay for a significant portion of this lower corporate rate is to tax capital gains as ordinary income. Per the Tax Policy Center this would raise $108.6 billion in additional revenue, compared to total corporate FY 2015 tax revenue of $341.7 billion under current tax rates.
The shift in taxes would mostly impact people like Warren Buffet and go a long way to narrowing the different tax rates between him and his secretary.
Additionally, this shift would reduce incentives for corporations to seek tax domicile overseas, while taxing investments in capital at the individual level represents a much lower risk of the tax payer moving overseas.
The shift in taxes would mostly impact people like Warren Buffet and go a long way to narrowing the different tax rates between him and his secretary.
Additionally, this shift would reduce incentives for corporations to seek tax domicile overseas, while taxing investments in capital at the individual level represents a much lower risk of the tax payer moving overseas.
His election to the Presidency was NEVER about the common man and woman of our country, but about how much he can enrich himself and his family. This tax giveaway bonus is just more sweet topping to add to his empire. The guy doesn't pay income taxes, doesn't personally contribute anything to pay his way in life, or his use of taxpayer funded roads, airports, infrastructure, public services, etc. Yet, he now stands to make more money with his 15% tax rate for corporations...his corporations. This man has always scammed his way in life, lies about everything, and now he has the Presidency to make his ultimate dream come true. And you folks really thought that by electing him he was going to look out for the average Joe and Jane of America? He conned you, took you for a ride, and fed you snake oil which you just swallowed wholesale. Those jobs abroad are not coming back, nor will corporations invest more money here when they can make more profits investing it overseas. Corporations send jobs overseas for cheap labor, not taxes which they can always pass on to consumers. Just look at his whole clothing line, his daughter's clothing lines...they are not coming back. Believe what he does, not what he says which is what con men do.
4
It's theft from the working classes. Government health and old age benefits, consumer, investor and environmental protections go out the window so we can have more Trump Towers, Trump Palaces, etc. Reverse Robin Hoodism in its purest form is about to hit the majority of Americans. And Sessions is the Sheriff of Nottingham whose role is to curtail civil rights to go along with all the other obscenities that will benefit mostly the very rich.
2
It's interesting that in addition to not worrying about the burden to be passed on to future generations by climate change Republicans seem to be no longer worried about the burdens of "the deficit" to "children and grand-children" that they've been crying about throughout the Obama presidency.
Could it be that all they are really concerned about is the continued wealth of their oligarch masters?
Hypocrisy thy name is politician, but the Trumpster/Republican coterie take it to new heights!
Could it be that all they are really concerned about is the continued wealth of their oligarch masters?
Hypocrisy thy name is politician, but the Trumpster/Republican coterie take it to new heights!
3
The Republicans are giving the same argument as the Laffer Curve argument, that cutting rates increases business enough to pay for the cuts.
That is a "no brainer": you have to have no brain to believe it.
History shows, time and time again, that the argument is specious.
Simple math shows that the argument is specious: a cut from 35% to 15% is a reduction of the tax rate by 57%, meaning that one dollar of taxable income produces only 43% as much tax at 15% as it would at 35%. So to be revenue neutral, that is to collect the SAME AMOUNT OF TAX, the amount of taxable income would have to increase by a factor of 1/0.43 = 2.32, or an increase of 132% (more than double).
One way to accomplish this would be to increase sale by 132%. That is more easily said than done.
Another way would be for businesses to raise their prices to increase the profit per unit sold by 132%. In competitive industries, why would anyone deliberately do that just to try to generate tax revenue, given that sales of a more expensive product or service might in fact decline?
One has to believe in the tooth fairy to believe that an increase in profits by the required amount to reach a revenue neutral situation will "automatically" occur.
That is a "no brainer": you have to have no brain to believe it.
History shows, time and time again, that the argument is specious.
Simple math shows that the argument is specious: a cut from 35% to 15% is a reduction of the tax rate by 57%, meaning that one dollar of taxable income produces only 43% as much tax at 15% as it would at 35%. So to be revenue neutral, that is to collect the SAME AMOUNT OF TAX, the amount of taxable income would have to increase by a factor of 1/0.43 = 2.32, or an increase of 132% (more than double).
One way to accomplish this would be to increase sale by 132%. That is more easily said than done.
Another way would be for businesses to raise their prices to increase the profit per unit sold by 132%. In competitive industries, why would anyone deliberately do that just to try to generate tax revenue, given that sales of a more expensive product or service might in fact decline?
One has to believe in the tooth fairy to believe that an increase in profits by the required amount to reach a revenue neutral situation will "automatically" occur.
1
Laffer's theory comes out of the swamp - do you recall the tax proposals of Regan and the Bush folks and who benefited the most from those? More of the same here and who benefits, a rhetorical question but I'll answer: the 1% and this would include most of Trump's cabinet and the man himself, not to mention his heirs. And yes there is that question of the national debt, but not to worry that's for our children and grandchildren to fret about as those who benefit now will not have to worry down the road when there is, surprise, surprise, no reduction just credit card spending. And please, don't let me hear one more time how bad the economy was when our so-called clueless and thoughtless president inherited his throne. Yep, there's endless executive orders cutting the usual programs with little indication of realistic revenue to offset proposed programs and the game goes on. The biggest and most beneficial cut would be for us to dump Trump and his circus show before he pulls us all into the swamp.
3
Its clear as day , donnie milking every dollar he can from taxpayers while he still can *Officials working in his Hotel *Foreign Head of State meetings at his Mar-go-make-millions. His voters dont care about their financial future as long as donnie keeps his word to keep out the *Others*. America doesnt need a Donnie Trump but it probably deserve a Donnie Trump. For the last 8 years, President Obama did whatever He can to recover from the massive recession Bush Tax Cuts created..President Obama cant save us this time, I hope this *Tax Cuts* will hit donnie`s voters first. Sometime ur family comes first before ur hatred of other ppl.
2
So....trump's corporations, and those of his buddies (including Russian shell companies) get "tax breaks".
Middle class?
YOU get the Bill.
Impeach this Fraud NOW.
Middle class?
YOU get the Bill.
Impeach this Fraud NOW.
4
Just look at the photo. Look at it again. Do any of these guys know what it means to work for a living? The ultra rich don't need to work, and they don't need any more money for not working. This tax plan is a brass knuckled punch in the teeth to working Americans. What about all those working mom and pops? We don't count?!
231
I hear you, but to be fair it's entirely possible those men do work for a living. It's just that the amount of money they make and are allowed to keep is far out of whack with what the other 99% has access to. That imbalance, now aided and abetted by Trump's New Swamp, appears to be even more self-serving than the not-as-rich-and-powerful Old Swamp.
This is todays privileged class, doing everything it can to keep all the money. That's not new; it's just that it's usually not so blatantly supported by the administration. I guess at this point they feel they have nothing to lose. After all; it's not like the Trump voters weren't aware he was nothing more than a businessman.
This is todays privileged class, doing everything it can to keep all the money. That's not new; it's just that it's usually not so blatantly supported by the administration. I guess at this point they feel they have nothing to lose. After all; it's not like the Trump voters weren't aware he was nothing more than a businessman.
2
Yes, the picture of the privledged white guys with their tailored suits and $150.00 haircuts got to me as well. This tax plan will work just as the G.W. Bush tax cuts did and the Brownback tax cuts in Kansas did, which is to say, they will not spur growth, just pain and cuts for schools, that "wasteful" meals on wheels program, etc. It's wealth transfer alright McConnell, you blight on civilization, transfer from the middle class and poor to the wealthy who have more money then they will ever need already.
2
And who is that shadowy figure second from left. He has been lurking around Trump from day one at trump Tower and now in Washington like some kind of conspiratorial consigliere.
Time to get out of stock market.
In another NY Times article trickle-down economics is called a "contested theory" in the headline. It is not contested. It has been proven wrong, most recently during the George W. Bush presidency and in the failed use of it in Kansas by Governor Brownback. Republicans love it because it puts a huge amount more money in the pockets of the ultra rich and corporations. And what do big corporations do with that money? They buy up their competition and put Americans out of work. What a cruel sham.
2
"Aware of the math problem." That's great, but has math become another fact, to be ignored?
6
Wonder if Trump has read "his" tax plan.
2
he told then to summarise it for him in 25 words or fewer, but he got bored after 17 and went to his room to tweet about how great his tax plan was
3
Income taxes on members of small partnerships can have bizarre results under present law. I am a 10% partner, now retired, in a small consulting firm. I am fully retired, living on investments and IRA withdrawals. I will start collecting Social Security this year. By no measure am I "wealthy". I draw no distribution from the partnership. At this point, maybe three times a month I am asked to review an agreement. Otherwise, I have no involvement in the day to day business.
In 2016, we turned a profit, and my share was a little over $6,000 on paper. However, I received no cash or fringe benefits from this business. Because partnership income, whether paid or not, is flowed through as personal income to partners, this added $6,000 to my personal taxable income. In addition, this income was subject to the payroll self employment Social Security tax, at a rate o over 15% But I am already retired, and this tax payment added to my earnings record will do nothing for my Social Security retirement benefit.
In the end, I paid almost $1,900 in Federal and State taxes on $6,000 of paper income, of which I did not see one dime. And to pay this tax, I had to make an IRA withdrawal, which had its own tax consequence.
Am I interested in tax reform for someone in my situation? You bet! Being a partner in such a business should not be a negative tax shelter, where you pay taxes on income you do not actually receive.
In 2016, we turned a profit, and my share was a little over $6,000 on paper. However, I received no cash or fringe benefits from this business. Because partnership income, whether paid or not, is flowed through as personal income to partners, this added $6,000 to my personal taxable income. In addition, this income was subject to the payroll self employment Social Security tax, at a rate o over 15% But I am already retired, and this tax payment added to my earnings record will do nothing for my Social Security retirement benefit.
In the end, I paid almost $1,900 in Federal and State taxes on $6,000 of paper income, of which I did not see one dime. And to pay this tax, I had to make an IRA withdrawal, which had its own tax consequence.
Am I interested in tax reform for someone in my situation? You bet! Being a partner in such a business should not be a negative tax shelter, where you pay taxes on income you do not actually receive.
18
I'm sorry, you are in a partnership for whose benefit? Mine? Other taxpayers? No. Your own. You don't want to pay taxes on it, get out of the partnership. You want to reap benefits? Restructure it. But to ask "us" to pay for your rewards is ridiculous.
I guess you're making up for the businesses who earn income on which they pay no tax.
PS. A similar thing happened to me, RM, when I took a new job with a salary increase.
PS. A similar thing happened to me, RM, when I took a new job with a salary increase.
Your explanation makes no sense - why didn't you receive the $4,100 difference?
The unveiling of yet another vague proposal filled with impossible goodies, timed to distract us from this week's budget fight and the 100-Day Anniversary of Nothing.
During the campaign Trump proclaimed " I am the king of debt". This proposal, though reckless, fits right in with his thinking. He will enrich himself and we will all pay for the debt that he racks up with huge tax increases down the line.
36
Another case of smoke and mirrors. Why am I not surprised. It:
slashes tax rates on Trump's own business is one but that fact is meaningless as he already pays few if any taxes and is for that reason afraid to disclose that to the public. ( have the freedom to assert that idea until he releases his tax returns,)
Threatens violation of the Emoluments clause of the Constitution.
Further concentrates the wealth of this once great but rapidly declining nation.
Wow, is he making America Great Again or what.?
slashes tax rates on Trump's own business is one but that fact is meaningless as he already pays few if any taxes and is for that reason afraid to disclose that to the public. ( have the freedom to assert that idea until he releases his tax returns,)
Threatens violation of the Emoluments clause of the Constitution.
Further concentrates the wealth of this once great but rapidly declining nation.
Wow, is he making America Great Again or what.?
60
Yes, for the uber wealthy.
3
More like he is recreating the circumstances that gave rise to the French Revolution. . . how did that workout for the upper classes? Hmmm . . .
3
Congress should avoid any serious debate on this proposal until the president releases his own tax returns and comes clean on any potential conflicts of interest involving the "TRUMP Organization."
73
Why would Mr. Trump want to raise corporate taxes? Currently the effective rate of taxes paid by corporations is 14%. Please stop saying things like "corporations, which now pay 35 percent," which is the statutory maximum to be paid on only a part of earnings. This is like saying all personal income taxpayers now pay 39.6% , the top marginal rate on the personal side.
If Mr. Trump is going to raise the effective rate to 15% then I am all for it.
If Mr. Trump is going to raise the effective rate to 15% then I am all for it.
15
The danger of an economic know nothing President and Republican Party of proven abject economic failure. And for us, once again for the middle class having to pay for the Republican's tax gift to the wealthy and big business and its resulting massive debt clean up.
19
Republicans are not know-nothings; they know damn well how to cut to the head of the line, how to feather their own nests, how to curry favor with their supporters, and how to throw everyone else under the bus.
2
Is there any reason to keep dividend and capital gains rates significantly lower than income tax rates with a 15% corporate rate? The argument for double taxation seems to be moot.
8
How are the republican voters feeling now? Still support Trump? Trump and Co are just lining each others pockets as they take away everyone's health care, safety nets, arts funding etc. Aren't you all glad they will have many extra millions, billions in their pockets. I'm sure you would all vote for him again!
16
The sad truth is that most of them would vote for the Trumpster.
1
The sad fact is they probably will. Just look at the polls of Trump voters. Facts don't matter.
And we thought we had seen why a swamp looks like!
1
“You look at the tax cuts from 2002 and 2003 — well over 90 percent of them became permanent law,” Mr. Blunt said.
Yes, and that along with Iraq and other GOP actions accounts for a huge portion of the deficit accompanied by an economic meltdown and, ultimately, a loss of about 800,000 jobs a month.
Yes, and that along with Iraq and other GOP actions accounts for a huge portion of the deficit accompanied by an economic meltdown and, ultimately, a loss of about 800,000 jobs a month.
54
More tax cuts for the rich! When the top 1% have 42% of the wealth, and the bottom 50% have 1% of it, this isn't going to solve the problem. Remember that the top 5% have about 70% of the financial assets, so when corporations have more money after-tax they'll just give it to shareholders, as they've done in the past so often.
Can we have an honest discussion, which is about how much taxes go up on the rich and corporations, and how much of that gets transferred to people left behind by globalization, who voted against their own economic interests for Trump?
Can we have an honest discussion, which is about how much taxes go up on the rich and corporations, and how much of that gets transferred to people left behind by globalization, who voted against their own economic interests for Trump?
36
There is also no proof that growth will affect current salaries.
2
One more step along the road to kleptocracy. Is this a great country, or what?
25
Has ANYBODY in this administration come up with the idea that there might be something called:"Conflicts of Interest", when it comes to this unsustainable and unrealistic tax plan?
47
No T tax returns.
No T tax reform.
No T tax reform.
30
Where are all the “very serious people” who worried so much about the deficit? They seem to have run for the hills as this plan adds 2 TRILLION to the deficit over ten years! Guess who’s going to pay for that! Hint, it isn’t Trump and his Corporate Cronies.
40
thanks largely to obama who spent the taxpayers money on so many lavish vacation trips - and programs that did nothing but fail!
2
Re: RMG: Wait...You're whinning about "2 TRILLION to the deficit over the next ten years"?... Obama ran up the deficit from 10 TRILLION to 19 TRILLION in his eight years in office...The people who paid for that included many who voted for Trump...whether or not you think they are simply despicable and were voting against their interests.
2
JDR – you forget the $5billion+ for the Afghanistan & Iraq adventures that GWB had kept off the books (basically hidden, bc the war would pay for itself, dontcha know) was added into the deficit by Obama. So no, he didn't run it up – he showed where the money was really going.
1
Giving tax cuts to Wealthy and Corporations and also taxing consumers through the Border Tax looked bad. That's why Congress wants to delay the border tax. People have short memories.
12
Not this year. We are remembering every little detail. It will all come back at them.
3
Every American must sacrifice for the good of the country. And President Trump is leading the way. Imagine the burden of installing all the additional safes in Trump Tower and Mar-a-Lago for all the money this tax plan would force on him. Trump is not only Making America Great Again, but adding Safes for Democracy! And the burdens lifted from the Little People! No more complicated tax forms! No more hassles going to the doctor [at least for 24M of us...]! Yes, indeed, no President has had a First Hundred Days like this...
23
This tax plan is a total scam on the American people
Firstly the myth that our corporations are suffering vis a vis other countries is not true, the effective tax rate for the USA is about the same as a basket of compeititive nations.
Also the contribution of corporate tax to our total revenues is declining particularly in relationship to individual tax revenues , it is the American people who are carrying the burden of Defence expenditure , infrastructure etc not corporations.The priority should be lowering individual tax.
Corporate tax revenues must stay constant as a minimum and a reduction in nominal tax rates must be offset by cutting out Corporate welfare and ensuring ALL companies pay that rate.
Also the pipe dream that doubling of growth will pay for this hand out to corporations is ridiculous , we are close to statistical full employment and we suffer from a shortage of skilled workers in growth industries.
One last thought in comparing corporate tax rates with other countries , tax on dividends should be included. Other countries tend to tax dividends at much higher rates , a fact conveniently ignored by the Greedy Old Party
Firstly the myth that our corporations are suffering vis a vis other countries is not true, the effective tax rate for the USA is about the same as a basket of compeititive nations.
Also the contribution of corporate tax to our total revenues is declining particularly in relationship to individual tax revenues , it is the American people who are carrying the burden of Defence expenditure , infrastructure etc not corporations.The priority should be lowering individual tax.
Corporate tax revenues must stay constant as a minimum and a reduction in nominal tax rates must be offset by cutting out Corporate welfare and ensuring ALL companies pay that rate.
Also the pipe dream that doubling of growth will pay for this hand out to corporations is ridiculous , we are close to statistical full employment and we suffer from a shortage of skilled workers in growth industries.
One last thought in comparing corporate tax rates with other countries , tax on dividends should be included. Other countries tend to tax dividends at much higher rates , a fact conveniently ignored by the Greedy Old Party
32
"a reduction in nominal tax rates must be offset by cutting out Corporate welfare"
How about eliminating most of the useless, parasitic, self-serving bureaucratic vermin that infest all levels of government instead.
How about eliminating most of the useless, parasitic, self-serving bureaucratic vermin that infest all levels of government instead.
No tax reform until Trump releases his tax returns. How will HIS businesses benefit from these changes?
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No tax reform by this administration even if the tax returns are published!
The wealthy, individuals and corporations, do not need tax cuts. They need to pay more tax. That will not happen as long as Republicans hold sway.
Voting in this country is utterly uneducated and film-flammed by "fake news" and misleading propaganda.
Wake up, people!!!
The wealthy, individuals and corporations, do not need tax cuts. They need to pay more tax. That will not happen as long as Republicans hold sway.
Voting in this country is utterly uneducated and film-flammed by "fake news" and misleading propaganda.
Wake up, people!!!
1
A his businesses benefit
B his cronies' businesses benefit
C crumbs are throwin to the rest who he expects to cheer him (let them eat cake)
D the deficit increases and becomes the problem of the next president
Or is this just another example of his transactional way of getting tax reform or other programs implemented? Put out there in extreme position and meet somewhere but surely not in the middle?
Counting once again on tax cuts for the rich and corporations being a business generator is pure folly. History has shown when taxes were higher on corporations and the wealthy that businesses and individuals thrived. Why do Republicans insist on forgetting this important piece of history?
B his cronies' businesses benefit
C crumbs are throwin to the rest who he expects to cheer him (let them eat cake)
D the deficit increases and becomes the problem of the next president
Or is this just another example of his transactional way of getting tax reform or other programs implemented? Put out there in extreme position and meet somewhere but surely not in the middle?
Counting once again on tax cuts for the rich and corporations being a business generator is pure folly. History has shown when taxes were higher on corporations and the wealthy that businesses and individuals thrived. Why do Republicans insist on forgetting this important piece of history?
15
Just look at Kansas. They are in sad, sad shape.
4
Trump wants to slash taxes on wealthy and Corporations while taxing millions of consumers with an import tax.
Bring on the class war!
Bring on the class war!
9
When capital is in the form of corporate profits it becomes just like water, it will always seek it's lowest level. And like water, it is really mobile. It does the US economy absolutely no good to charge the world's highest rates on that capital. And second place is not even close. It's that huge sucking sound Ross Perot spoke about, capital and jobs fleeing the country.
Furthermore, it depresses wages by discouraging investment in plant and equipment that improves productivity. Together with Todd-Frank small business investment is nil. Workers are not mobile. Our tax and regulation policies leave them holding an empty bag.
Why invest in the US when the price elsewhere is much lower?
Furthermore, it depresses wages by discouraging investment in plant and equipment that improves productivity. Together with Todd-Frank small business investment is nil. Workers are not mobile. Our tax and regulation policies leave them holding an empty bag.
Why invest in the US when the price elsewhere is much lower?
2
... and just how much weight do you assign to the differences in the cost of labor in decisions to relocate jobs outside of the USA? A friend of mine worked at a company who shipped around 500 clerical jobs out of country over the last 5 - 6 years - jobs that paid around $13/hour but in the new country, paid $1.05 USD equivalent. This was not done because of marginal tax rates nor because of the cost of regulatory compliance.
1
Aww, it is party before country again!
Counting down the days until this situation can be corrected. And thinking with dismay how long it will take.
Counting down the days until this situation can be corrected. And thinking with dismay how long it will take.
Finally a way to justify a $7.25/hr. minimum wage!
Each and every person is in business for themselves and dependent loved ones to secure food, clothing, shelter and enough rest and leisure to keep going and to find it worthwhile to do so. Hoarders of wealth like Trump in service to their insatiable greed pretend otherwise and parasitically feed off of the masses that do the dirty work, heavy lifting and attention to detail that keeps an entire economy going. The Founders of the nation in the American Revolution ended WE THE PEOPLE’s slavery and indenture to their governance that served King George III and his entitles royalty and set the nation of the path of ever liberating more and more people with the following purpose of governance:
“We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. — That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, — That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness.” ~ In Declaration of Independe4nce, July 4, 1776.
“We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. — That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, — That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness.” ~ In Declaration of Independe4nce, July 4, 1776.
10
Just remember when the CBO scores it...they score static, not dynamic...which is never good. Tax cuts will spur business, which will in turn create new revenues...a static study won't show any of this.
6
Tax cuts will spur business just like it did in Kansas.
5
i thought the principle of trickle-down economics had been conclusively disproved.
4
How do you know tax cuts of this type will spur business? Prove it. Right now it's just a mantra, with all the power of saying 'OM'.
3
As Yogi taught us, deja vu all over again. Remember 2008. I don't know why the democrats don't have banners made with this slogan marching in front of the WH. Maybe because they are owned by big biz too?
To show the bizarre nature of this insanity. I really don't think it will give tax relief to these big Corps.....since the effective tax rate of this corporations is around 15% already not 35%.
The only corporations that will get relief are those they are either too poor or too dumb to hire lawyers to get this lower rate already with loopholes..
To show the bizarre nature of this insanity. I really don't think it will give tax relief to these big Corps.....since the effective tax rate of this corporations is around 15% already not 35%.
The only corporations that will get relief are those they are either too poor or too dumb to hire lawyers to get this lower rate already with loopholes..
3
Manufacturers that do all of their manufacturing and assemblies in the US should have the lowest tax. Those who offshore and export jobs should have the highest. There should be zero incentive to move American jobs out of America.
3
It's back - Voodoo economics! Complete with the GOP's much-loved magic asterisks! As Esquire's Charles Pierce often says, no matter how cynical I become, I just cannot keep up.
11
As a physician, I've worked with plenty of children over the years. It's amazing to see how they grow over time and learn not to do certain things like avoiding the pointy end of scissors or eating overly hot food because the first experience was unpleasant so they intuitively learned to avoid it.
It's amazing that Americans continue to see Republicans slash and cut corporate taxes and continue to shovel unnecessary tax cuts to the very wealthiest people over and over, cause deficits to explode, stagnate our middle and working class and slow the economy for the past 30+ years and STILL decide that they would vote in favor of touching pointy scissors and eating burning hot food.
I voted so that working class Americans that voted for Trump could possibly have a slightly easier way of life. They voted for me to get a massive tax cut. It's hard to say 'Thank you' and 'I'm sorry' at the same time.
It's amazing that Americans continue to see Republicans slash and cut corporate taxes and continue to shovel unnecessary tax cuts to the very wealthiest people over and over, cause deficits to explode, stagnate our middle and working class and slow the economy for the past 30+ years and STILL decide that they would vote in favor of touching pointy scissors and eating burning hot food.
I voted so that working class Americans that voted for Trump could possibly have a slightly easier way of life. They voted for me to get a massive tax cut. It's hard to say 'Thank you' and 'I'm sorry' at the same time.
624
How, really, does a tax cut help a person with no job?
And, the effective real tax rate for corporations now is 13%, virtually none pay the highest amount. But to listen to Republicans, we have "the highest corporate tax rate in the world!" Yes, but no one pays that.
Ferrari's go around 200 miles per hour, and that's dangerous, but none of them actually drive that fast. The upper limit on anything, is not the "standard practice." It's so disingenuous of Republicans to constantly conflate the two. Yet, they do this constantly, to push forward their agenda of simply lowering taxes on the wealthy and corporations.
Where is the push back? Where is the contrary opinion from Democrats? We should expect political parties to push their agendas, but be balanced by the opposition party. The Democrats are in the same king sized corporatist bed as the Republicans.
And, the effective real tax rate for corporations now is 13%, virtually none pay the highest amount. But to listen to Republicans, we have "the highest corporate tax rate in the world!" Yes, but no one pays that.
Ferrari's go around 200 miles per hour, and that's dangerous, but none of them actually drive that fast. The upper limit on anything, is not the "standard practice." It's so disingenuous of Republicans to constantly conflate the two. Yet, they do this constantly, to push forward their agenda of simply lowering taxes on the wealthy and corporations.
Where is the push back? Where is the contrary opinion from Democrats? We should expect political parties to push their agendas, but be balanced by the opposition party. The Democrats are in the same king sized corporatist bed as the Republicans.
4
My father in law says basically the same thing: "I keep voting to give my money away and they keep voting for me to keep it."
1
The goal is to take the income tax savings and have the corporations (i.e., shareholders) and businesses spend it in the local community rather than the federal government taking it from smaller states and distributing it to states like CA, NY and IL. CA mismanages its money as reported more than once by the LA Times. It gets much from the federal government. I assume the other two states do as well. This is one of the reasons we have a $20 trillion ($20,000,000,000,000) debt, not including unrecorded liabilities for pensions, disabilities, infrastructure and more, The AICPA (American Institute of Certified Public Accountants) published a report a few years ago on the present debt and unrecorded liabilities on a present value basis and it was $85 trillion ($85,000,000,000,000). This study does not include the liabilities for states, counties and cities. As we know, anything and everything can be rationalized, but generally numbers make a point even if the assumptions are questioned.
Any person think they have too much money can make charitable income tax deduction to the US government Buffet did not do that when his income tax rate was only 15%. Buffet made it known. I am a CPA and I am paid to help my client legally pay the least amount of income taxes. What about the underground economy which no income taxes are paid,
Your vote was still correct because Trump owes no one. That is why I voted for Trump.The middle class is coming back.
Any person think they have too much money can make charitable income tax deduction to the US government Buffet did not do that when his income tax rate was only 15%. Buffet made it known. I am a CPA and I am paid to help my client legally pay the least amount of income taxes. What about the underground economy which no income taxes are paid,
Your vote was still correct because Trump owes no one. That is why I voted for Trump.The middle class is coming back.
Unless one is having flashbacks to the depths of the Bush 43 recession, our economy is in no need of being jump-started. But now the party that fears deficits is proposing to exponentially expand our current one into a huge blimp, certain to later crash and burn.
Welcome to Trump's Hindenburg economy. When the crash eventually comes, and it will, especially with this bankruptcy queen and master-of-disaster in the cockpit, don't you dare point fingers at anyone else.
2021 can't come soon enough.
Welcome to Trump's Hindenburg economy. When the crash eventually comes, and it will, especially with this bankruptcy queen and master-of-disaster in the cockpit, don't you dare point fingers at anyone else.
2021 can't come soon enough.
114
With Clinton thinking of running again, it assures Trump 4 more years. The Democrats better rework their party from top; down. When 2/3 of the American feel the Democrats are out of touch, that assures GOP victories. Feinstein, Pelosi, Schumer and the rest need to be replaced with people who do connect with the public. They Democratic Party still does not get why they lost in November.
By the way, like Obamacare, the GOP will get this passed, and with it, the largest middle class tax hike in American history. The rate may go down, the personal exemption may go up, but a lot of deductions, mostly used by the middle class will go away. At least they will not hit the middle class witha 20% import tax on Mexican imports.
By the way, like Obamacare, the GOP will get this passed, and with it, the largest middle class tax hike in American history. The rate may go down, the personal exemption may go up, but a lot of deductions, mostly used by the middle class will go away. At least they will not hit the middle class witha 20% import tax on Mexican imports.
3
Hillary is toast as a candidate.
2020 will be Elizabeth Warren's time, if she wants it. She is everything that the American people should want - a firebrand, honest, experienced, sensibly progressive, a child of flyover country who hasn't forgotten where she came from.
Hillary was too status-quo for 2016 - and that, and a history of triangulation (which implies not meaning what you say, and saying only what you think people want to hear) allowed her to lose to the worst candidate in modern American history.
Bernie was a placeholder for a President who is to come. He was a never the ideal person to lead this movement.
2020 will be Elizabeth Warren's time, if she wants it. She is everything that the American people should want - a firebrand, honest, experienced, sensibly progressive, a child of flyover country who hasn't forgotten where she came from.
Hillary was too status-quo for 2016 - and that, and a history of triangulation (which implies not meaning what you say, and saying only what you think people want to hear) allowed her to lose to the worst candidate in modern American history.
Bernie was a placeholder for a President who is to come. He was a never the ideal person to lead this movement.
3
According to NBC Nightly News, this plan eliminated pre-tax deductions fro 401ks, possible employer provided health insurance, state income tax and property tax deductions. It may also eliminate home mortgage deductions. Leaving most middle class tax rates intact, with a slightly higher standard deduction. Also, lowers the highest personal tax rate to 25%. If you are single, you could be paying the same tax percent as Warren Buffett and a higher tax rate than multi-billion dollar corporations.
Now, I wonder if the way out of touch Democrats will try to block this mess, even though people like Schumer would support it. As would all the multi-millionaires in Congress and the White House. Yeah, Schumer, the one who has a stake in collection agencies employed by the IRS.
Now, I wonder if the way out of touch Democrats will try to block this mess, even though people like Schumer would support it. As would all the multi-millionaires in Congress and the White House. Yeah, Schumer, the one who has a stake in collection agencies employed by the IRS.
39
Mitch McConnell “… accused Democrats of being more interested in ‘wealth transfers’ than in spurring economic growth.”
The only “wealth transfers” apparent to me is given to corporations and wealthy Americans from the rest of us. George W. Bush’s tax cut was considered the largest transfer of wealth from the middle class to the wealthiest of Americans.
Apparently fiscal responsibility so long espoused by Republicans as a mantra applies only to the bottom 95%.
If Donald were to release his tax returns to see how his proposal would greatly benefit him, the public would howl.
The only “wealth transfers” apparent to me is given to corporations and wealthy Americans from the rest of us. George W. Bush’s tax cut was considered the largest transfer of wealth from the middle class to the wealthiest of Americans.
Apparently fiscal responsibility so long espoused by Republicans as a mantra applies only to the bottom 95%.
If Donald were to release his tax returns to see how his proposal would greatly benefit him, the public would howl.
199
We The People will get screwed again. That is the way this ignorant system of capitalism is designed to operate. Republicans and Democrats are idiots and Americans are missing in action. The entire agenda can be summed up in the constant smug expression on Mnuchin's face.
80
Quite the contrary we the people are the idiots and the smart ones are in the Capitol. Keep voting these leaders in people how's that working for you?
1
Mindless Tax Cuts 101...also know as Educational, Infrastructure, Regulatory, Healthcare, Environmental and Economic Collapse For Dummies....while causing massive national deficits for your children and grandchildren.
What's not to love about this incredible discredited right-wing ideological stupidity that has zero math to support it ?
Republicans have a rich track record of trashing the American economy through shameless, thoughtless tax-cut greed....and their tax-cut wrecking ball is out.
An economically weak country is a weak country...and these tax cuts will seriously weaken America....RESIST this reckless tax-cut stupidity.
What's not to love about this incredible discredited right-wing ideological stupidity that has zero math to support it ?
Republicans have a rich track record of trashing the American economy through shameless, thoughtless tax-cut greed....and their tax-cut wrecking ball is out.
An economically weak country is a weak country...and these tax cuts will seriously weaken America....RESIST this reckless tax-cut stupidity.
185
"zero math"? No, there is a lot of math supporting it. It is called Republican math.
4
This is just another Trump promise that looks good but that he will not be able to deliver on. He will now trumpet (pun intended) that he presented a budget plan before his 100 days where he is meeting most of his promises to his voters. This is done knowing full well that in the end it is untenable as it is written. If it fails to pass he will blame Congress and particularly the Democrats for its failure even though the causes for failure are built in. ACA all over again. If god forbid, it does pass he will slash Corp taxes with the promise that future business growth will fill the tax receipts void. When it doesn't happen, the advocates will say oops, sorry but the corporations (including Trumplandia) will be wealthier and the people poorer. Lets not fall for this con game again.
76
Gov. Brownback in Kansas has destroyed the states economy and driven hospitals to close and schools to go to 4 day schedules with this sort of plan. Pitiful that grown men can be so terribly entrenched in stupid economics. But then again, they only hire economists that think the way they want them to.
12
So, if I work for a big company my wages would be taxed at 37% at the top end. If I was self employed, I would set up an S corporation and pay myself a distribution and be taxed at 15% for the same work. If a small business wants the lower rates, become a C corporation. Can you imagine the games that would be played by small business to avoid earned income if this passes?
239
"...and pay myself a distribution and be taxed at 15% for the same work."
You have zero idea of how business taxes are determined.
An S-Corp gets taxed (currently 35%, hopefully soon to be 15%) before anything is "distributed" to you. After that tax is paid, then you can pay yourself whatever you want - and get taxed at the tax rate determined by how much you pay yourself.
Of course, you have to have an income - your S-Corp actually has to produce something that people are willing to buy.
You have zero idea of how business taxes are determined.
An S-Corp gets taxed (currently 35%, hopefully soon to be 15%) before anything is "distributed" to you. After that tax is paid, then you can pay yourself whatever you want - and get taxed at the tax rate determined by how much you pay yourself.
Of course, you have to have an income - your S-Corp actually has to produce something that people are willing to buy.
No. S corps are pass through. Meaning you will pay individual income tax on S corp earnings. You only save the self-employment tax on distributed earnings. However, you must pay yourself a "reasonable" salary if you work for an S corp, meaning you would also have to pay the FICA, and wouldn't be saving any money in your scenario.
For an individual using a C corp to pass through would involve 15% business income tax, then an additional 15% Capital Gains Tax assuming it is qualified. If it isn't it would be taxed at your regular personal income tax rate on the disbursements. Meaning best case scenario you are paying 27.75% taxes rate.
That you have 50 likes, with no understanding of taxes is troubling.
For an individual using a C corp to pass through would involve 15% business income tax, then an additional 15% Capital Gains Tax assuming it is qualified. If it isn't it would be taxed at your regular personal income tax rate on the disbursements. Meaning best case scenario you are paying 27.75% taxes rate.
That you have 50 likes, with no understanding of taxes is troubling.
2
They are already being played and have been for decades. I should know since I am a CPA.
Beyond the merits of particular rates for particular folks--this is madness. We cannot sustain the level of debt we now have, without a collapse eventually.
Remember well what Jared Diamond said about the Mayans, in Collapse?
"We have to wonder why the kings and nobles failed to recognize and solve these seemingly obvious problems undermining their society. Their attention was evidently focused on their short-term concerns of enriching themselves, waging wars, erecting monuments, competing with each other, and extracting enough food from the peasants to support all those activities."
This, friends, is us.
Remember well what Jared Diamond said about the Mayans, in Collapse?
"We have to wonder why the kings and nobles failed to recognize and solve these seemingly obvious problems undermining their society. Their attention was evidently focused on their short-term concerns of enriching themselves, waging wars, erecting monuments, competing with each other, and extracting enough food from the peasants to support all those activities."
This, friends, is us.
139
If Congress had not spent the money in advance this would not be an issue. Fact is if the return of taxes not stored out side the US is a provision of this Tax bill this brings "notorious" scofflaws like Apple back to actually paying taxes on outrageous corporate profits. Billions are tanked offshore and could be put to work here. Tighten up the rules and the 16% will yield more than the current 35+rate no one pays.
20
More supply side nonsense.
It should be pretty clear what has happened since Reagan. Taxes went down, National Debt went up, workers' wages went down. The rich got richer and everyone else go poorer. Socialize costs, privatize profits.
What was it like when America did better on the National Debt? Workers got paid a living wage. Americans need to understand strategies like the Earned Income Tax Credit (EITC), food stamps and Medicaid do nothing but transfer money from the public coffers to business profits. This is history.
What is better is paying all 40 hour a week workers a living wage so they can buy their own food and medicine and pay some taxes. And businesses that cannot pay their workers a living wage and pay some taxes and make a profit are a burden on our society and should not be in business. Poor businessmen should step aside and let someone more efficient into the competition. That is REAL capitalism, not this phony Crony Capitalism that we have now.
There is not successful country in the world that governs by low tax, low regulation policies, because all that does is put power into the hands of corporations, who only have interests in making a profit, even at the expense of the society that supports it.
It should be pretty clear what has happened since Reagan. Taxes went down, National Debt went up, workers' wages went down. The rich got richer and everyone else go poorer. Socialize costs, privatize profits.
What was it like when America did better on the National Debt? Workers got paid a living wage. Americans need to understand strategies like the Earned Income Tax Credit (EITC), food stamps and Medicaid do nothing but transfer money from the public coffers to business profits. This is history.
What is better is paying all 40 hour a week workers a living wage so they can buy their own food and medicine and pay some taxes. And businesses that cannot pay their workers a living wage and pay some taxes and make a profit are a burden on our society and should not be in business. Poor businessmen should step aside and let someone more efficient into the competition. That is REAL capitalism, not this phony Crony Capitalism that we have now.
There is not successful country in the world that governs by low tax, low regulation policies, because all that does is put power into the hands of corporations, who only have interests in making a profit, even at the expense of the society that supports it.
133
Re: "gratis": According to you..."There is not successful country in the world that governs by low tax, low regulation policies, because all that does is put power into the hands of corporations, who only have interests in making a profit, even at the expense of the society that supports it."
Please enlighten the readership of the NYT and reveal all those "successful" countries of the world that we in the U.S. should emulate...Please! .. before it's too late!!
Please enlighten the readership of the NYT and reveal all those "successful" countries of the world that we in the U.S. should emulate...Please! .. before it's too late!!
1
First, define 'successful'
Nothing surprising here. Throughout much of the industrialized world corporate taxes are lower, at times far lower, than in the US. (While, of course, personal/income taxes and VATs are much higher. Lowering corporate rates might, just might, bring about economic growth, investment, employment, etc.
5
Dream on. "Might, just might" is a weak prayer for a proven time and time again disastrous economics policy. Even Geo H.W. Bush called it Voodoo Economics until he lost his bid for the presidency in 1980 and had to eat his words or get off the bus.
10
"Lowering corporate rates might, just might, bring about economic growth, investment, employment, etc."
It's been tried and it doesn't. Why do you still believe a proven fallacy?
It's been tried and it doesn't. Why do you still believe a proven fallacy?
2
Sure, let's reward more businesses who ship jobs out of the country, they need a break right? We in NY state are the highest of those taxed where is our tax break Mr. President? No conflicts of interest either I suppose. The man is despicable.
69
Any new taxes to pay for safety nets such as unemployment benefits and health care for the people working in the 'gig' economy? There are only millions of us and we will continue to grow rapidly.
38
Time to declare ourselves corporations I guess.
2
So Trump is proposing an unsustainable tax plan that specifically enriches him and his family while relying on the fantasy of trickle down theory, which we all know does not work. I don't see anything great about this plan.
258
This publication predicted some months ago that Trump, Inc. would use the office of the executive to further enrich themselves, and his cronies, regardless of the impact on the economy and deficit.
15
How does the Emoluments Clause not become a factor here???
trump is SPECIFICALLY gaining from his time in office, not related to his salary.
trump is SPECIFICALLY gaining from his time in office, not related to his salary.
18
Anyone who voted for this shlep got taken for a ride, and it is not going be one from Disney World; more like the House of Horrors.
6
Get rid of the mortgage interest deduction? So a giant gift to super-rich landlords and an attack on most people trying to own their home. This is supposed to help the middle class and the economy? Not only does he seek ways to help himself, he seeks ways to hurt others. Nasty man.
229
If the standard deduction gets increased enough it won't hurt the middle class. Your and my problem is that we live in New York State where high real estate and income taxes are crushing us but Andrew Cuomo could care less because he delusionally thinks he will be a Presidential candidate by pandering to the under-achievers and tax dodgers
3
Actually, the mortgage deduction does not help people buy a home. It helps Real Estate agents, banks and Developers charge more for said home and its financing. If the buyer cannot afford it, the price will come down.
9
His plan does not get rid of the mortgage interest deduction (an itemized deduction). His plan raises the standard deduction rate, thus making the mortgage interest deduction a less compelling home-buying point for some (generally middle-class) people. Raising the standard deduction actually helps people who can't afford to own their own homes, not nasty at all.
6
I wonder, rhetorically, what the immediate response of Republicans would have been if Obama had proposed this sort of deficit spending?
586
They would have been for it, trust me. It is all about money.
They would have cheered the tax cuts, claimed it was their own idea, asked for even lower rates on the top brackets, get rid of the estate tax and demanded that all social spending be cut and stomped their feet about doubling the military. And blamed Obama for the ballooning debt. In other words, the usual.
11
@farby
They'd be up in arms.
Because gosh, can't let a Democratic President pass ANYTHING, remember?
They'd be up in arms.
Because gosh, can't let a Democratic President pass ANYTHING, remember?
8
"His plan would put off the difficult part of a tax overhaul: closing loopholes and increasing other taxes to limit the impact of tax cuts on the budget deficit."
'Senator John Cornyn, Republican of Texas, described Mr. Trump’s plan to cut the corporate income tax to 15 percent as “pretty aggressive,” with unknown consequences for the deficit.'
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This is another half-baked trickle-down tax fraud plan guaranteed to blow up the deficit and paint over it with imaginary 'growth' fairy dust paint'.
The largest corporations in American already pay an effective tax rate of about 13%.
Taxes should be raised, not recklessly slashed on large corporations.
'Senator John Cornyn, Republican of Texas, described Mr. Trump’s plan to cut the corporate income tax to 15 percent as “pretty aggressive,” with unknown consequences for the deficit.'
-----
This is another half-baked trickle-down tax fraud plan guaranteed to blow up the deficit and paint over it with imaginary 'growth' fairy dust paint'.
The largest corporations in American already pay an effective tax rate of about 13%.
Taxes should be raised, not recklessly slashed on large corporations.
348
Not only should they be raised, but to the level of the Eisenhower years.
13
Republicans failed to give the rich the tax relief that would have come with ACA repeal, so now seek to give it to them in the form of this 15% rate.
322
Their plan is to do both ACA repeal and tax reform. Big business sent all the jobs to foreign countries making huge profits and crushing American Labor. Now, they want to be rewarded with huge tax cuts. Without ACA, they will receive 100's of billions of dollars in tax cuts and Americans will have to pay huge healthcare premiums if they choose not to work for corporate America. It's a rock and hard place scenario.
So now we're back to the standard Republican position that deficits don't matter despite all the rhetoric of the last 8 years about passing on a huge burden to our children and grandchildren. And all this given that the debt is already 100% of GDP (principally as a result of the huge crash left by Bush); the deficit is already forecast to increase because of the impact of boomer retirements; and the Medicare and SS trust funds are under some medium/long term stress. And all so large tax cuts can be handed out to corporations including those in which the president and his family, and many of his principal officers like Mncuchin, Cohn and Ross, have huge personal stakes. Quite amazing.
397
Let's face it: US can not afford to police the world on its own expense much longer. If US can figure out how to charge other countries for protection that is the whole other story ...
...and let's not forget Regan who dropped the rate yet borrowed more during his tenure then any other administration since Ike, and maybe Bush...
3
Well, they want to cash in before they destroy the government.
6