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Old 12-10-2017, 09:41 AM   #1
tw
Read? I only know how to write.
 
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Trickle Down Economics - part 4

Trickle down economics did not work for Kennedy, Reagan, or George Jr. So we will try it again.

From the Washington Post of 9 Dec 2017:
Quote:
"As tax plan gained steam, GOP lost focus on the middle class"

The GOP tax plan on the cusp of becoming law diverges wildly from the promises President Trump and top advisers said they would deliver for the middle class — an evolution that shows how traditional Republican orthodoxy swamped Trump’s distinctive brand of economic populism as it moved through Washington.

The bill was supposed to deliver benefits predominantly to average working families, not corporations, with a 35 percent tax cut Trump proposed on the campaign trail as part of the “Middle Class Tax Relief and Simplification Act.” ...

But the final product is looking much different, the result of a partisan policymaking process that largely took place behind closed doors, faced intense pressure from corporate lobbyists and ultimately fell in line with GOP wish lists.

As top lawmakers from the House and the Senate now rush to complete negotiations to push the tax plan into law, it amounts to a massive corporate tax cut, with uneven — and temporary — benefits for the middle class that could end up increasing taxes for many working families in future years.

All told, the plan would cut taxes for businesses by $1 trillion, would cut an additional $100 billion in changes to the estate tax for the wealthy, and spreads the remaining $300 billion over 10 years among all households at every income level.

White House officials defend the tax bill emerging from the House and Senate negotiations, saying it follows through on Trump’s long-held promise of benefits for the middle class through a combination of exempting more income from taxation, expanding a tax credit benefiting families, and cutting business taxes in a way that will flow through to workers in the form of higher wages.
Did we not learn from George Jr's tax cuts. It (just like the Kennedy tax cut) resulted in a recession. That reality contradicts the sound bytes that most use - as if sound bytes are honest logic.

Quote:
Yet a review of more than 40 public statements that stretch back to the 2016 campaign and interviews with key officials in the White House and Congress shows how Trump and his top advisers have continuously prioritized corporate cuts — even though they have promised that middle-class cuts would be their focus.

Over several months, tax cuts for families were either stymied or scaled back. And corporate benefits only grew, a development that increasingly made some Republicans nervous as they saw the bill’s true impact. ...

“Any reductions we have in upper-income taxes would be offset by less deductions, so there would be no absolute tax cut for the upper class,” Steven Mnuchin, Trump’s national finance chairman and future Treasury secretary, told CNBC. ...

After Trump was sworn in, his top aides immediately began discussions with House and Senate leaders on how to combine his campaign promises with long-held GOP views that cutting taxes for the wealthy and corporations ultimately benefit workers.
It never has. But that myth lives on. Those tax cuts end up paying for other things such as extended and luxerious European vacations.

But it has been more than ten years. So everyone again forgets reality; are again brainwashed by trickle down economics.

Quote:
Until now, Republicans had the benefit of not explaining how they’d pay for their tax overhaul, which was going to cost trillions of dollars without offsets. Ultimately, Republicans agreed to borrow up to $1.5 trillion to finance the tax cut.

The $1.5 trillion ceiling on borrowing would ultimately force Republicans to make tough trade-offs between helping the middle class on the one hand and the wealthy and corporations on the other.

In writing their bill, House GOP leaders had created a new $300 “family flexibility credit” that could help Americans lower their taxable income. It wasn’t large, but it would be widespread — and an easy way for Republicans to show they were trying to help the middle class.
So your tax cut will be $300 while the national debt increases another $1.5 trillion? Trump knows how to make Trump great. And how to screw those angry white men while getting them to support him.
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Old 12-10-2017, 02:09 PM   #2
sexobon
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I like getting the $300; but, I don't like the national debt going up $1.5 trillion. Now I'm torn between voting for those who would reduce the national debt by raising taxes on American corporations and the rich; or, voting for those who would reduce the national debt by annihilating some of the countries we owe money to. Decisions, decisions.
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