Author Topic: Half of Trump Tax Cuts Go To Top 1/2 of 1%  (Read 1393 times)

Solon

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Re: Half of Trump Tax Cuts Go To Top 1/2 of 1%
« Reply #45 on: November 22, 2017, 11:52:34 AM »
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    Republicans continue to tell the lie that tax cuts will grow the economy and pay for themselves. That has been disproved repeatedly since the 1980's beginning with its first iteration in the Reagan administration. Then came Bush...ditto. Then came Brownback...and Kansas is still mired in budgetary failure that has stunted the education of children in public schools among other horrors. That they continue to make this absurd claim demonstrates their contempt for the intelligence and knowledge of the American people.

    37 of 38 economists said the GOP tax plans would grow the debt. The 38th misread the question.
    https://www.washingtonpost.com/news/wonk/wp/2017/11/22/37-of-38-economists-said-the-gop-tax-plans-would-grow-the-debt-the-38th-misread-the-question/?hpid=hp_hp-cards_hp-card-politics%3Ahomepage%2Fcard&utm_term=.03eea41528ac

    On some great and glorious day, the plain folks of the land will reach their heart’s 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 #46 on: November 27, 2017, 11:05:42 AM »
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  • The Congressional Budget Office released a report Sunday, Nov 26, that points out how the Republican tax cut for the rich actually harms the "poor" (most Americans) more than previously revealed.

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    The Senate Republican tax plan gives substantial tax cuts and benefits to Americans earning more than $100,000 a year, while the nation’s poorest would be worse off, according to a report released Sunday by the nonpartisan Congressional Budget Office.

    Republicans are aiming to have the full Senate vote on the tax plan as early as this week, but the new CBO analysis showing large, harmful effects on the poor may complicate those plans. The CBO also said the bill would add $1.4 trillion to the deficit over the next decade, a potential problem for Republican lawmakers worried about America’s growing debt.

    By 2019, Americans earning less than $30,000 a year would be worse off under the Senate bill, CBO found. By 2021, Americans earning $40,000 or less would be net losers, and by 2027, most people earning less than $75,000 a year would be worse off. On the flip side, millionaires and those earning $100,000 to $500,000 would be big beneficiaries, according to the CBO’s calculations.

    In the CBO table below, negative signs mean people in those income brackets pay less in taxes


    In the America of the Republican party, the rich get richer and the "poor" (people earning less than $100,000, that is, a majority of Americans) pay higher taxes.

    Senate GOP tax bill hurts the poor more than originally thought, CBO finds
    https://www.washingtonpost.com/news/wonk/wp/2017/11/26/senate-gop-tax-bill-hurts-the-poor-more-than-originally-thought-cbo-finds/?hpid=hp_hp-top-table-main_cbo-tax-915pm%3Ahomepage%2Fstory&utm_term=.04ae43a66eaa
    « Last Edit: November 27, 2017, 11:09:07 AM by Solon »
    On some great and glorious day, the plain folks of the land will reach their heart’s 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 #47 on: December 12, 2017, 01:41:59 AM »
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  • Today the Secretary of the Treasury embarrassed himself, his department, the Trump administration and the entire US government. He produced a ONE PAGE paper defending Republican tax cuts for the rich that purported to show, with fanciful assumptions, that the tax cut for the rich will pay for itself.  He told us recently that there were hundreds of Treasury department staff members working on the analysis and THIS is all they could produce?

    I guess if you can lie like Trump and get elected president, his minions assume you just make up your numbers to justify whatever tax policy you want to pursue. I expect to read next week that cuts to Medicare will extend the lifespan of seniors and poor people will be healthier if they don't visit doctors. Children's Health Insurance Program? Whoever thought children need health insurance? They don't deserve it unless they enter the workforce and earn it like the rest of us should. That's the real problem. These child labor laws are keeping 6 year olds out of the labor market. Stifling regulations are holding them back from making productive contributions to our economy. The little folk are wasting time sitting around classrooms when they could be earning cash and building an employment resume. Besides we can get rid of those drones who teach but can't do. We could save a mint in tax dollars that we could give to the job creators if we abolish these ridiculous compulsory public education attendance laws.

    I could go on about all the great things that can flow from fantasizing like the Secretary of the Treasury, but that would divert us from examining the ONE PAGE gem he put out today.

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    The Treasury Department released a one-page analysis of the nearly 500-page Senate tax bill on Monday that suggested the $1.5 trillion plan would more than pay for itself, assuming the economy grows much faster than any independent analysis of the bill has projected.

    The Treasury acknowledged that its analysis was based on optimistic economic forecasts that assumed a host of policy changes yet to be enacted, including increased infrastructure spending, further loosening of business regulations and changes to welfare programs.

    The analysis left many tax experts scratching their heads...

    “The report does not appear to be a projection of the economic effects of a tax bill,” said Scott Greenberg, a tax analyst at the conservative Tax Foundation. “It appears, on the other hand, to be a thought experiment on how federal revenues would vary under different economic effects of overall government policies. Which is, needless to say, an odd way to analyze a tax bill.”

    Treasury has come under criticism for failing to produce a full assessment of the $1.5 trillion tax plan moving swiftly through Congress. 

     
    https://www.nytimes.com/2017/12/11/us/politics/treasury-tax.html

    To sum up the view of another expert:

    Quote
    Nobody could have predicted that the Trump Treasury would fail to produce a serious economic analysis of tax cuts

    I’m just seeing this ridiculous piece of paper from Treasury. Do they think we — members of Congress, analysts, reporters, the American people — are that stupid?

    https://twitter.com/paulkrugman
    « Last Edit: December 12, 2017, 01:43:55 AM by Solon »
    On some great and glorious day, the plain folks of the land will reach their heart’s 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 #48 on: December 16, 2017, 11:33:44 AM »
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  • The chart below illustrates how the Republican tax cut for the rich bill rips off the average American tax player.

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    The bill starts by repealing something that was unpopular to start with: the requirement under the Affordable Care Act that Americans have health insurance or pay a fine. The elimination of this provision will increase federal revenues by $53.3 billion in 2027. (If people do not sign up for health insurance, they won’t get federal subsidies available under the ACA.)

    It’s easy math for Republicans. Wipe an unpopular rule off the books and get a chunk of change toward corporate tax cuts.

    The next move is a little fuzzier but also far-reaching. The bill changes the way tax brackets are indexed to inflation. The bill adopts an inflation measure that economists regard as more accurate, but as the Wall Street Journal’s Greg Ip recently explained, it’s one that doesn’t increase as quickly.

    That effectively means people will enter higher brackets faster. Consider a hypothetical: If a tax bracket for a married couple had topped out at $45,000 in 2000, it would be about $64,300 under the current system, but only $61,350 under the new inflation measure. That means any family earning between $61,350 and $64,400 would have found themselves in a higher tax bracket under the new measure, even if their income had grown at the same rate.

    Over time, this effect grows in ways that hit the lower and middle class harder. The wealthy don’t jump brackets as often because there aren’t as many income breakpoints up in that rarefied air. In fact, once they’re in the top bracket, it’s no longer even a concern.



    Of course, if low income Americans still purchase health insurance through the exchanges and continue to qualify for subsidies, the Republicans won't save as much money as they plan. The real money is only captured if people who qualify for subsidies are convinced not to sign up for insurance at all. That's why Trump cut the enrollment period in 2017 drastically and terminated advertising. The enrollment period ended yesterday on Dec. 15. Enrollments were running higher than in previous years, but with the shortened period, there will be fewer total enrollments. It's human nature to procrastinate. 

    The essential tradeoff in the Republican tax bill, in one chart
    https://www.washingtonpost.com/news/wonk/wp/2017/12/16/the-essential-tradeoff-in-the-republican-tax-bill-in-one-chart/?hpid=hp_hp-top-table-main_wb-tradeoff-938am%3Ahomepage%2Fstory&utm_term=.e618475e219e
    On some great and glorious day, the plain folks of the land will reach their heart’s 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 #49 on: December 17, 2017, 05:33:08 PM »
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  • One of Trump's core promises was to end the exodus of jobs to overseas markets. The tax bill appears to make the export of jobs more attractive rather than less. That would be typical of Trump's betrayal of the working class. His effort to take their health insurance, his roll back of regulations that protect workers, his support for a permanent tax cut for the very rich and higher taxes for lower incomes, his failure to push an infrastructure bill to add jobs are all evidence of a betrayal of historic proportions. 

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    The legislation fails to eliminate long-standing incentives for companies to move overseas and, in some cases, may even increase them, they say.

    [Despite Trump’s ire, Ireland expects to avoid any pain from U.S. tax overhaul]

    “This bill is potentially more dangerous than our current system,” said Stephen Shay, a senior lecturer at Harvard Law School and former Treasury Department international tax expert in the Obama administration. “It creates a real incentive to shift real activity offshore.”

    ...In the future, corporations would be required to pay about a 10 percent minimum tax on overseas income above a certain level. The provision is billed as a way to discourage the movement of jobs and profit overseas. But the fine print of the new global minimum tax would make the problem worse, several tax specialists said.

    There are three reasons, according to nonpartisan tax experts. First, a corporation would pay that global minimum tax only on profit above a “routine” rate of return on the tangible assets — such as factories — it has overseas. So the more equipment a corporation has in other countries, the more tax-free income it can earn. The legislation thus offers corporations “a perverse incentive” to shift assembly lines abroad, said Steve Rosenthal of the Tax Policy Center.

    Second, the bill sets the “routine” return at 10 percent — far more generous than would typically be the case. Such allowances are normally fixed a couple of percentage points above risk-free Treasury yields, which are currently around 2.4 percent.

    As a result, a U.S. corporation that builds a $100 million plant in another country and makes a foreign profit of $20 million would pay roughly $1 million in tax versus $4 million on the same profit if earned in the United States, said Rosenthal, who has been a tax lawyer for 25 years and drafted tax legislation as a staffer for the Joint Committee on Taxation.

    Finally, the minimum levy would be calculated on a global average rather than for individual countries where a corporation operates. So a U.S. multinational could lower its tax bill by shifting profit from U.S. locations to tax havens such as the Cayman Islands.

    Trump promised ‘America First’ would keep jobs here. But the tax plan might push them overseas.
    https://www.washingtonpost.com/business/economy/trump-promised-america-first-would-keep-jobs-here-but-the-tax-plan-might-not/2017/12/15/7b8ed60e-df93-11e7-bbd0-9dfb2e37492a_story.html?stream=top-stories&utm_campaign=newsletter_axiosam&utm_medium=email&utm_source=newsletter&utm_term=.a368fd6bcc65
    On some great and glorious day, the plain folks of the land will reach their heart’s 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 #50 on: December 19, 2017, 11:45:50 AM »
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  • It looks like I will get my tax cut today, so why am I not celebrating? If you are comfortable does that mean you have to be greedy for even higher tax benefits when there is so much that needs to be done in the public sphere that is being neglected by Congress?

    Take one broad issue that I had an extensive thread on in a previous iteration of the forum--growing inequality. This tax bill is an annual steroid injection. It accelerates and expands income and wealth inequality on a trajectory as far into the future as anyone can project. I could post more charts, but what's the point. The new ones are the same as the old ones. Capital gets rewarded, labor gets the tax bill and America becomes a plutocracy with increasing political dysfunction. Why? Because the billionaires are able to buy the politicians and secure passage of legislation that has a 26% approval (the tax cut for the rich) and refuse to pass legislation that has 90% approval (background checks for all gun purchases). That is the tip of the iceberg, but emblematic of how democracy at the basic level is being eroded by foolish decision-making at every level, from the voting booth to the oval office.

    The US was master of the universe in the post WWII era and received a boost with the collapse of the Soviet Union. Yet, we have squandered our opportunities in a turn to the right that has continually reduced benefits for average income people to the advantage of the wealthy. A good example is the Amtrak wreck from just yesterday. A safety device was left off the tracks on the approach to the curve where the accident occurred. Officials were warned about the danger in a public hearing. Budget constraints won out. Now several people are dead, many injured and the costs are severe. Rest assured the real lesson will not be learned. A first class public infrastructure requires generous PUBLIC funding and oversight. Could anyone believe today that a Conservative Republican president, Dwight Eisenhower, promoted the construction of a nationwide interstate highway system? Forget that. Trump and Corker want a real estate tax windfall and that is just a sampling of the warped philosophy that guides our public policy.

    Ayn Rand has triumphed and the rest of us will suffer the consequences while Paul Ryan walks away with his soon to be announced gig of public speaking and Fox News commentary. He plans to build his personal wealth in readiness for a White House run. May this tax bill forever hang from his neck like the proverbial albatross.   
    « Last Edit: December 19, 2017, 12:04:10 PM by Solon »
    On some great and glorious day, the plain folks of the land will reach their heart’s 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 #51 on: December 19, 2017, 07:21:30 PM »
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  • Several measures (not specified in my reading) in the House tax cut for the rich bill violate the rules of reconciliation according to the Senate arbiter which means they were stripped out of the Senate bill. After the Senate passes their version of the tax cut for the rich, the House will have to reconvene tomorrow to pass it one more time. Then the joyous season of taking can begin.

    The perfect Biblical quotation for this Christmas: "Again I tell you it is easier for a camel to go through the eye of a needle than for a rich man to enter the kingdom of God." Matthew 19:24
    On some great and glorious day, the plain folks of the land will reach their heart’s 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 #52 on: December 19, 2017, 07:32:34 PM »
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  • Here are a few charts to spread the Christmas cheer. This tax cut for the rich has become even more regressive than
    its original.

    Because of the budget reconciliation rules, the bill deals with a ten year interval.  In 2025 more tax cuts for the average guy must be scaled back to pay for the rich guys to get their big cuts. In fact the low income people must begin to pay more.  By 2027, more of the lower income groups begin to pay higher taxes.



    « Last Edit: December 20, 2017, 01:54:18 AM by Solon »
    On some great and glorious day, the plain folks of the land will reach their heart’s 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 #53 on: December 23, 2017, 04:23:24 PM »
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  • « Last Edit: December 23, 2017, 04:25:11 PM by Solon »
    On some great and glorious day, the plain folks of the land will reach their heart’s desire at last, and the White House will be occupied by a downright fool and a complete narcissistic moron.
    ...H. L. Mencken

    Common Sense

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    Re: Half of Trump Tax Cuts Go To Top 1/2 of 1%
    « Reply #54 on: December 26, 2017, 06:29:23 PM »
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  • The rich get richer from the government. And us...well...we just stay the exactly the same.

    (Unless youre the guy from Figsboro got potted $1 million from VA lotto! A big ole congrats.)
    "It is common sense to take a method and try it. If it fails, admit it frankly and try another. But above all, try something." - POTUS #32

    Solon

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    Re: Half of Trump Tax Cuts Go To Top 1/2 of 1%
    « Reply #55 on: December 27, 2017, 07:14:20 PM »
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  • Warren Buffett on the Republican tax cut for the rich.

    On some great and glorious day, the plain folks of the land will reach their heart’s 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 #56 on: January 03, 2018, 05:18:59 PM »
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  • It doesn't take a genius to look at this graph and wonder what idiot could possibly think that the richest people in the US need a tax cut. When you consider just how much wealthier the US is today than it was in 1959, the shift of wealth to the top is staggering. And yet, they need more? It's obviously absurd. Even Ayn Rand would be embarrassed.


    On some great and glorious day, the plain folks of the land will reach their heart’s 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 #57 on: January 13, 2018, 04:02:19 PM »
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  • There will be a lot of revelations about the errors, misprints, loopholes and deceptions that characterize the new tax cut for the rich in the coming year. You don't pass a thousand-page bill written in a few days with no hearings without a bunch of snafus. Here is one.

    Corporations may dodge billions in U.S. taxes through new loophole: experts

    Quote
    A loophole in the new U.S. tax law could allow multinational corporations like Apple Inc to avoid paying billions of dollars in taxes on profits stashed overseas, according to experts.

    Stemming from a Republican overhaul of international business taxes, the loophole involves the tax rates - 15.5 percent or 8 percent - that companies must pay on $2.6 trillion in profits they are holding abroad.

    By manipulating their foreign cash positions, a determining factor under the new law, a U.S. multinational could potentially save money by shifting profits to the lower rate from the higher one, according to Stephen Shay, a senior lecturer at Harvard Law School.

    The savings could amount to more than $4 billion in Apple's case alone, he said.
    http://www.businessinsider.com/r-corporations-may-dodge-billions-in-us-taxes-through-new-loophole-experts-2018-1?r=UK&IR=T

    The hit to federal tax receipts will be greater than anticipated and the rip off of the average tax payer all the greater as a consequence.

    « Last Edit: January 13, 2018, 04:09:05 PM by Solon »
    On some great and glorious day, the plain folks of the land will reach their heart’s desire at last, and the White House will be occupied by a downright fool and a complete narcissistic moron.
    ...H. L. Mencken