Author Topic: Half of Trump Tax Cuts Go To Top 1/2 of 1%  (Read 786 times)

Steven

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Re: Half of Trump Tax Cuts Go To Top 1/2 of 1%
« Reply #15 on: October 20, 2017, 03:43:22 PM »
You guys shouldn't be so mad at Bill just because he's going to get such a big tax break! I'm happy for him.

Solon

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Re: Half of Trump Tax Cuts Go To Top 1/2 of 1%
« Reply #16 on: October 21, 2017, 02:33:16 AM »
During a weak recovery from the greatest economic calamity since the Great Depression, the Republican Congress sequestered the budget under a Democratic president. By imposing an austerity that caused untold pain to American workers by slowing the growth of jobs in the name of reducing the deficit, they now reverse themselves to give tax cuts to the rich. Remember this the next time Republicans pretend to be concerned about the deficit and that especially includes the hypocrites in the Freedom (LOL) Caucus.

As previously noted, cuts to Medicare and Medicaid are already in the plan to free up dollars for Trump and his ilk to enjoy corporate and flow through tax benefits. Rest assured any Freedom (LOL) Caucus plan to mitigate the cost of tax cuts for the rich will be levied on the middle class in some small print clause in an addendum to the budget. One of the biggest hits to tax income will be the end of the Alternative Minimum Tax (AMT). Most of us have not paid that because we don't earn enough to be affected. It is designed to prevent people like Trump from paying no taxes. His one set of returns shows that he was forced to pay somethng because of it. The rich can afford lawyers who circumvent the system, but the AMT prevented that. It is one of the big giveaways to the rich.

On some great and glorious day, the plain folks of the land will reach their heartís desire at last, and the White House will be occupied by a downright fool and a complete narcissistic moron.
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Solon

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Re: Half of Trump Tax Cuts Go To Top 1/2 of 1%
« Reply #17 on: October 22, 2017, 08:52:33 PM »
Some House Republicans are considering the retention of the current top individual tax rate--39.6%--for those who earn over a million dollars. They hope this will offer cover for moderates and some Dems to support the bill. It provides the illusion that the rich are not getting a tax cut while, in reality, eliminating the provisions that force them to pay. The most important is the elimination of the Alternative Minimum Tax. The super rich have tax lawyers to find ways to reduce or eliminate their tax bills. (Remember Trump went an estimated 19 years without paying taxes because of his lousy casino management.) The AMT forces some of them to pay up. I have previously posted info about this.

People who earn between $418,000 and $999,999 will be in the 35% tax bracket that was previously proposed to include all top earners.

Trump is fine with it because the knows there are big juicy plums in this tax plan that is a boon to him and guys like him, but he can claim he is standing against the rich. Only a complete moron would believe that.

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Meanwhile, one administration official told me Trump doesn't really care about this issue.

"He basically thinks they [rich people] are fine and he believes they don't care that much about the individual rate so long as they get all the other goodies, like the corporate rate and expensing," the official said.

Million dollar bracket in the works for GOP tax plan
https://www.axios.com/million-dollar-bracket-in-the-works-for-gop-tax-plan-2499930587.html

Still, there are plenty of Republicans who are not happy with this idea.

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If the Committee Republicans ultimately decide not to cut the income tax rate for million-dollar-earners, much of the Republican donor class and Reaganomics community (including anti-tax activist Grover Norquist) will feel betrayed.

"I understand compromise, but why compromise with the sin of envy?" Norquist told us. "This isn't the dumbest idea I have ever heard of. But it is in the top 20."

Norquist argues this won't placate Democrats ó who inevitably will charge that Trump's tax overhaul is just designed to help the rich ó but will alienate conservatives.

This is an idea that will die a quick death unless Trump sticks with it. It will be interesting to see how it plays out.
On some great and glorious day, the plain folks of the land will reach their heartís desire at last, and the White House will be occupied by a downright fool and a complete narcissistic moron.
...H. L. Mencken

Solon

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Re: Half of Trump Tax Cuts Go To Top 1/2 of 1%
« Reply #18 on: October 23, 2017, 02:37:09 AM »
The 1986 tax reform plan getting so much love from Republicans is supposed to be the genius move of one Ronald Reagan, the icon of contemporary Republicans. While there is a lot of myth-making involved in the Reagan fantasy, we have data to help us view the success of his tax cuts. 

If you look at the post-1986 growth of the economy, you may be surprised to see a less than inspiring result. It's not until that bum, Bill Clinton, takes office and raises taxes that we get solid economic growth.

All this tells us is that tax policy may not be the elixer of economic growth. For sure it tells us that cutting taxes has a poor track record of increasing growth.

Currently Republicans are pushing several absurdities: One is that cutting corporate taxes will be a great benefit to workers. The historical facts indicate that 80% of corporate tax cuts go to the shareholders and management gets a good chunk too. Another myth is that tax cuts increase economic growth. In addition to the Reagan record, check out the benefits of the Bush tax cut in 2001 on our chart. The decline is still going in 2005. The final claim is the most ridiculous: Tax cuts pay for themselves. If that were true we would have no deficit. The Kansas Kalamity brought about by Gov. Sam Brownback's implementation of that very doctrine is the most recent failure of that canard. Of course, Reagan and Bush experienced the same failure. Sorry boys, this is not one of those counter-intuitive results. You cut taxes, revenue falls. Deficits ensue. Tax cuts have not paid for themselves in the past and they do NOT pay for themselves in 2017.

« Last Edit: October 23, 2017, 02:39:11 AM by Solon »
On some great and glorious day, the plain folks of the land will reach their heartís desire at last, and the White House will be occupied by a downright fool and a complete narcissistic moron.
...H. L. Mencken

Solon

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Re: Half of Trump Tax Cuts Go To Top 1/2 of 1%
« Reply #19 on: October 23, 2017, 09:01:04 AM »
Trump's Chairman of the Council of Economic Advisers made an outlandish claim recently that no reputable economist can support. He had the temerity to stand in front of the nation and claim that corporate tax cuts would result in workers increasing their income from $4,000 to $9,000 beginning in four years (or AFTER the reelection of Donald Trump.) Of course, he qualified his absurd report with the typical disclaimer. "But he cautioned that lawmakers would have to fill in the details before any analysis could be completed."

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The report from White House chief economist Kevin Hassett projects that the GOP goal of reducing the corporate tax rate from 35 to 20 percent will result in a windfall for workers. Hassett predicts average U.S. household income would jump at least $4,000 a year but could rise as much as $9,000 annually.

Those benefits, the analysis said, would start kicking in about four years after the tax plan was enacted and reach fruition after seven years. In a call with reporters, Hassett also suggested that the plan could deliver the 3 percent economic growth rate that President Donald Trump has long promised. But he cautioned that lawmakers would have to fill in the details before any analysis could be completed.

Here's how the White House wants the GOP to talk about tax reform
https://www.cnbc.com/2017/10/16/white-house-economic-analysis-of-gop-tax-reform-plan.html

The historical reality for the US is just the opposite as explained by Larry Summers, a former Chairman himself and Treasury Secretary.

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The analysis from Hassett, chief of the White House Council of Economic Advisers (CEA), relies heavily on correlations between corporate tax rates and wages in other countries to argue that a cut in the corporate tax rate would boost returns to labor very substantially. Perhaps unintentionally, the CEA ignores our own historical experience in their analysis. As Frank Lysy noted, the corporate tax cuts of the late 1980s did not result in increased real wages. Actually, real wages fell. The same is true in the United Kingdom, as highlighted by Kimberly Clausing and Edward Kleinbard. These examples feel far more relevant to the corporate tax issue analysis than comparisons to small economies and tax havens like Ireland and Switzerland upon which the CEA relies.

One last time on who benefits from corporate tax cuts
http://larrysummers.com/2017/10/22/one-last-time-on-who-benefits-from-corporate-tax-cuts/

Trump's dishonesty is a viral contagion that has spread across the entire government. The most outrageous lies are spouted from every corner of this administration.
« Last Edit: October 23, 2017, 09:02:52 AM by Solon »
On some great and glorious day, the plain folks of the land will reach their heartís desire at last, and the White House will be occupied by a downright fool and a complete narcissistic moron.
...H. L. Mencken

Solon

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Re: Half of Trump Tax Cuts Go To Top 1/2 of 1%
« Reply #20 on: October 24, 2017, 01:59:49 AM »
Trump just sabotaged one feature of the tax cut for the rich that Congressional Republicans were seriously considering. He tweeted that a reduction on the amount of pretax income workers could sequester from taxation in a 401k plan was not acceptable to him. Of course, there has been some kickback that it could be characterized as a tax increase on the middle class. The bad publicity seemed to have some effect on him. God only knows why.

Of course this only makes it more difficult for Republicans to find a way to pay or, more accurately, pretend to pay for their tax cut for the rich. If Republicans were REALLY concerned about the deficit they would be raising taxes on high earners who have enjoyed a windfall before and since the Great Republican Recession. This is what a true patriotic Republican president, George H. W. Bush did even after he had promised not to raise taxes. The right wing deficit hawks have joined the rest of the party in excoriated him for his concern for America's budget health, making their claims of fiscal probity equivalent to Trump's inauguration crowd estimate.

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President Trump said on Monday that he would oppose any effort to reduce the amount of pretax income that American workers can save in 401(k) retirement accounts, effectively killing an idea that Republicans were mulling as a way to help pay for a $1.5 trillion tax cut.

The directive, issued via Twitter, underscored a growing fear among Republicans and business lobbyists that Mr. Trumpís bully-pulpit whims could undermine the partyís best chance to pass the most sweeping rewrite of the tax code in decades.
Cutting Taxes Is Hard. Trump Is Making It Harder.
https://www.nytimes.com/2017/10/23/us/politics/trump-tax-cuts-reform-retirement-savings.html?hp&action=click&pgtype=Homepage&clickSource=story-heading&module=first-column-region&region=top-news&WT.nav=top-news&_r=0

The irony is that Trump is right if he is going to try to sell this tax cut for the rich as the greatest gift to the middle class since God created the earth. It's the Congressional Republicans who are not worried about the idiots out there in the ether.  They have rich donors who expect those windfalls to continue in the form of tax cuts and the riffraff can just shut up and vote for Trump while they take home the cash.
On some great and glorious day, the plain folks of the land will reach their heartís desire at last, and the White House will be occupied by a downright fool and a complete narcissistic moron.
...H. L. Mencken

RealConservative

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Re: Half of Trump Tax Cuts Go To Top 1/2 of 1%
« Reply #21 on: October 24, 2017, 06:13:51 PM »
Tax cuts have to happen and tax changes to the system have to happen. No 2 ways about it!

Solon

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Re: Half of Trump Tax Cuts Go To Top 1/2 of 1%
« Reply #22 on: October 24, 2017, 11:47:00 PM »
Tax cuts have to happen and tax changes to the system have to happen. No 2 ways about it!

Why, and to do what?
On some great and glorious day, the plain folks of the land will reach their heartís desire at last, and the White House will be occupied by a downright fool and a complete narcissistic moron.
...H. L. Mencken

Solon

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Re: Half of Trump Tax Cuts Go To Top 1/2 of 1%
« Reply #23 on: October 25, 2017, 12:54:01 AM »
David Leonhart says it so well:

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The underlying problem is that Trump and Congress are pushing for enormous tax cuts for the wealthy, by reducing both individual taxes (like the estate tax) and corporate taxes (which disproportionately fall on affluent stock owners). These tax cuts will likely cost the federal government more than $2 trillion over the next decade.

There are only three things that can happen with this $2 trillion hole: The tax plan can try to fill it by by raising taxes on middle-class and low-income families; the plan can try to fill the hole by cutting government spending, which tends to benefit those same families; or, Trump and Congress can allow the deficit to soar.

All three of those options are politically problematic, which explains days like yesterday. Of course, Trump and Congress could make many of their political troubles go away ó if only they didnít care so much about cutting taxes on the wealthy.

Trump Plays Whack-a-Tax
https://www.nytimes.com/2017/10/24/opinion/trump-tax-plan.html?rref=collection%2Fsectioncollection%2Fopinion-columnists

Not to forget, the reason Republicans wanted to start the legislative agenda with repeal and replace was to add the taxes from the ACA to the cuts they planned in the current tax code. That would be a tremendous boost to Trump's bottom line.

If there are any true deficit hawks in the Republican party, they will vote against this tax cut for the rich plan.
On some great and glorious day, the plain folks of the land will reach their heartís desire at last, and the White House will be occupied by a downright fool and a complete narcissistic moron.
...H. L. Mencken

Solon

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Re: Half of Trump Tax Cuts Go To Top 1/2 of 1%
« Reply #24 on: October 26, 2017, 08:48:33 AM »
Trump's corporate tax cut will be a windfall for foreign investors. Rather than creating jobs in the US, the Republican tax cut for the rich will make foreigners $70 billion richer...annually! Why bother immigrating when you can stay home and collect the cash!

So, get this. By slashing the corporate tax rate, not only do we give away $70 billion we collect from foreigners EACH year in taxes, but we increase the tax burden on our children in the future to pay for the $1.5 trillion we ADD to the deficit IN ADDITION to the $10 trillion we are going to add because of previous tax cuts and spending commitments.

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The Trump Administration and congressional Republican leaders (the Big Six) have proposed a $70 billion-a-year tax cut for foreign investors.  It stems from the cut in statutory corporate income tax rate from 35 percent to 20 percent (and repeal of the corporate AMT), which would reduce corporate taxes by an average of $200 billion a year, or $2 trillion over 10 years.  While economists debate who gains from corporate tax cuts over the long run, they generally agree that owners of U.S. corporate stock would reap the short-term benefits.

In a new article, I look closely at who holds outstanding U.S. corporate stockóand calculate foreigners now own about 35 percent. So, in the short run, foreigners would reap about 35 percent of the benefits of the cut in corporate taxes, which translates to around $70 billion a year.

...Importantly, in the short run the Big Six is proposing to cut taxes for investments that have already been made, providing a windfall to existing investors, including foreign shareholders.  Ideally, policymakers would cut taxes only for new investments, because those are the only ones that are sensitive to tax incentives. But that's not what slashing the corporate income tax rate would do.

The recently passed Senate Budget Resolution would allow Congress to borrow $1.5 trillion to pay for coming tax cuts. Future generations of U.S. taxpayers will bear the burden of that shortfall, which could prove especially onerous on top of the $10 trillion of deficits CBO projects under current law.

Foreigners Would Win Big from A Corporate Tax Cut
http://www.taxpolicycenter.org/taxvox/foreigners-would-win-big-corporate-tax-cut
On some great and glorious day, the plain folks of the land will reach their heartís desire at last, and the White House will be occupied by a downright fool and a complete narcissistic moron.
...H. L. Mencken

Solon

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Re: Half of Trump Tax Cuts Go To Top 1/2 of 1%
« Reply #25 on: October 27, 2017, 03:49:46 AM »
Republicans voted for a budget today that gives them the opportunity to pass a tax cut for the rich bill that blows up the deficit with only Republican votes. Fifty-one will get the job done in the Senate.

There remain a few sticking points on the tax deal, however. Reps from high tax states are strongly opposed to the elimination of the deduction for state and local taxes (SALT). This, of course, is a way of raising taxes on the middle class which is the only way Republicans can avoid blowing up the deficit when they shovel billions into the pockets of the rich guys. Also, they ignored Trump's pledge to remove the proposed reduction of 401k funds you can claim for pretax earnings.

The real fun begins on Nov. 1 when the full proposal will be introduced to the public. It should be a hoot watching them claim with a straight face that it is a boon to the middle class.
« Last Edit: October 30, 2017, 03:13:49 AM by Solon »
On some great and glorious day, the plain folks of the land will reach their heartís desire at last, and the White House will be occupied by a downright fool and a complete narcissistic moron.
...H. L. Mencken

Solon

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Re: Half of Trump Tax Cuts Go To Top 1/2 of 1%
« Reply #26 on: October 30, 2017, 03:32:17 AM »
Republicans got a nasty kick in the face from national home builders over their tax cut scheme. The builders association determined that the plan would eliminate the desirability for most Americans to itemize taxes and thus terminate the value of the home mortgage deduction. Add to that the elimination of deductions for state and local taxes and you have removed tax incentives to buy a house and made it more expensive to own one.

The builders organization is very angry and, today, openly and vehemently announced its opposition to the bill. 

This is why Republicans who developed the legislation have kept the deductions and cuts they want to eliminate to help pay for their tax cut for the rich have been kept under wraps until the last minute. We are due for a full revelation on Nov. 1. At that point, the lobbyists are expect to descend on Congress like locusts.

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They are incensed about proposed changes to tax law that, they believe, would eliminate the need for almost all Americans to itemize their tax deductions, an adjustment they think would nullify the need for middle-class Americans to deduct their mortgage interest from their taxes. They are also incensed that the bill would strip away the ability of Americans to deduct their state and local property taxes from their federal taxable income. Both these changes, NAHB argues, would raise the cost of buying and owning a home.

The home builders had worked with Brady to create a homeownership tax credit that would give people a 12 percent credit on the amount of mortgage interest and property taxes paid, capped at a certain level and phased out for upper-income Americans.

After working to design the tax credit, Brady told Howard on Friday that the changes would not be included.

Howardís group believes that the tax bill could have destabilizing effects for the economy, and they are pointing to the impact of the 1986 tax overhaul for precedent. They argue that this law, which the Trump administration often cites as a model for its current effort, led to the savings and loan crisis because it changed the tax benefits for real estate investment. When people started to dump their real estate holdings, real estate prices fell sharply, particularly in Texas and Oklahoma, fueling a collapse of banks and savings and loans.

Home builders raise hammer, try to smash GOP tax bill
https://www.washingtonpost.com/business/economy/home-builders-raise-hammer-try-to-smash-gop-tax-bill/2017/10/29/7c473cce-bce0-11e7-97d9-bdab5a0ab381_story.html?hpid=hp_hp-top-table-main_homebuilders-5pm%3Ahomepage%2Fstory&utm_term=.50b5a6526c0c
On some great and glorious day, the plain folks of the land will reach their heartís desire at last, and the White House will be occupied by a downright fool and a complete narcissistic moron.
...H. L. Mencken

Solon

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Re: Half of Trump Tax Cuts Go To Top 1/2 of 1%
« Reply #27 on: October 30, 2017, 03:56:37 AM »
Republicans are openly lying about the benefits that will come from their big tax cut for the rich. One of the biggest is the supposed economic growth that comes from cutting taxes on the rich. That's one way they claim they won't be increasing the deficit, when in fact they will. The graph below puts the lie to that. Guess which president had the best growth? The president who RAISED taxes (Clinton). Who had the worst growth? The one with the biggest tax cuts for the rich (Bush). The economy is a complicated mechanism and many factors contribute to any given result, but politicians, many of whom are as clueless as anyone, assume the rest of us retards can't read a graph and think data is a character on Star Trek. Wait...



On some great and glorious day, the plain folks of the land will reach their heartís desire at last, and the White House will be occupied by a downright fool and a complete narcissistic moron.
...H. L. Mencken

Solon

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Re: Half of Trump Tax Cuts Go To Top 1/2 of 1%
« Reply #28 on: October 31, 2017, 04:01:22 PM »
Paul Krugman asks a question that is worth thinking about. Since there is overwhelming evidence that tax cuts for the rich will increase the deficit, will not pay for themselves, and have never yet led to an increase in worker's pay, then making the rich happy must be the reason for the Republican obsession for tax cuts for the rich. Yet, there is overwhelming evidence that giving the richest Americans a $230,000 tax cut will not make them happier. So why are Republicans prepared to accept criminal or even treasonous behavior from the president just to give them one? Anyone? Anyone? Bueller?

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Republicans in Congress know perfectly well that Trump is utterly unfit for office and has been abusing his position for personal gain. Many of them surely suspected, long before Mondayís indictments, that members of his inner circle, and perhaps he himself, have colluded with a hostile foreign power.

If they nonetheless circle the wagons around Trump ó in particular, if they allow him to fire Robert Mueller, which now seems all too likely ó there will be one main reason: Trump offers their big opportunity to cut taxes for the very wealthy. Indeed, the nonpartisan Tax Policy Center estimates that almost 80 percent of the Trump tax cut would go to people with incomes over $1 million; these people would get an average cut of around $230,000 a year.

But hereís what gets me: The wealthy donors for whom the G.O.P. will apparently do anything, up to and including covering up for possible treason, will get no joy from their tax cuts.

...I mean that a few hundred thousand dollars extra will do little if anything to make the already wealthy more satisfied with their lives.

You might well ask, who cares? Even if tax cuts would make the rich joyful, this shouldnít count against the sheer misery Republicans are trying to impose on the tens of millions of people theyíre trying to deprive of health care, food stamps, disability benefits and more.

Still, for some reason I find it fascinating that all this misery, plus the possible destruction of constitutional government, may happen without even making the intended beneficiaries happy.

...Now, obviously much of the pursuit of wealth is really about status and power ó as Tom Wolfe wrote in 1968, itís about ďseeing íem jump.Ē You can see this in Trumpís personal taste in furnishings, which a Politico article perceptively described as ďdictator chicĒ ó designed not to be comfortable, but to impress and intimidate.

But a tax cut that goes to almost all wealthy Americans doesnít even deliver the kind of status payoff many of the truly rich crave, since the guy in the mansion next door gets the same cut.
Trump Wonít Bring Joy to Moolaville
https://www.nytimes.com/2017/10/30/opinion/trump-tax-cuts-rich.html?action=click&pgtype=Homepage&clickSource=story-heading&module=opinion-c-col-left-region&region=opinion-c-col-left-region&WT.nav=opinion-c-col-left-region

So, what's the point? Is it just about paying off their donors?

On some great and glorious day, the plain folks of the land will reach their heartís desire at last, and the White House will be occupied by a downright fool and a complete narcissistic moron.
...H. L. Mencken

Solon

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On some great and glorious day, the plain folks of the land will reach their heartís desire at last, and the White House will be occupied by a downright fool and a complete narcissistic moron.
...H. L. Mencken