A devastating analysis of the tax cut shows it’s done virtually no economic good

[OILERMAN]

https://www.latimes.com/business/hiltzik/la-fi-hiltzik-tax-cut-effects-20190529-story.html?fbclid=IwAR3qu3ZJN5b7FK4qcMg_pw72Xte9nt3al2_5aLeNrKkrKcsgXL4ScUXfSPI

 

You may remember all the glowing predictions made for the December 2017 tax cuts by congressional Republicans and the Trump administration: Wages would soar for the rank-and-file, corporate investments would surge, and the cuts would pay for themselves.

 

The nonpartisan Congressional Research Service has just published a deep dive into the economic impact of the cuts in their first year, and emerges from the water with a different picture. The CRS finds that the cuts have had virtually no effect on wages, haven’t contributed to a surge in investment, and haven’t come close to paying for themselves. Nor have they delivered a cut to the average taxpayer.

 

“Much of the tax cut was directed at businesses and higher-income individuals who are less likely to spend,” its analysts write. “Fiscal stimulus is limited in an economy that is at or near full employment.”

 

Overall revenue fell in 2018, largely because of a $40-billion decline in corporate tax revenue. Individuals, particularly working- and middle-class individuals, haven’t been so fortunate. Although the legislation increased the standard deduction and child credit, whatever tax reductions those would produce for families were “largely offset” by the elimination of personal exemptions, and limitations on itemized deductions such as those for state and local taxes.

 

 

The bottom line, then, is becoming clearer with every quarter. The tax cuts did almost nothing for ordinary Americans and may even have cost them money. The apparent gains in their income were negligible and short-lived. Wealthy Americans reaped the benefits of lower taxes and higher dividends. The cuts had a negligible effect on U.S. economic growth while depriving the government of revenue.

 

Put it all together and this massive restructuring of the U.S. tax system should prompt average Americans to ask Republicans in Congress and the White House that age-old question: Who are you really working for?

[Starkiller]

21 minutes ago, Rolltide said:

The LA Times that is an unbiased source. Interpreted by Cliff Clavin Ph.D in postage. . 

 

Obama and your hero economists like Paul Krugman said that 3% growth was a pipe dream. 1.5% is the new normal. So where did the 3% growth come from? Oh yeah cash for clunkers. 

The LA Times isn’t the source, dumbass...

[begooode]

56 minutes ago, OILERMAN said:

“Much of the tax cut was directed at businesses and higher-income individuals who are less likely to spend,” its analysts write. “Fiscal stimulus is limited in an economy that is at or near full employment.”

This is one of the pieces that made no sense.  Okay I get that the tax cut wasn't considered a traditional stimulus, but just how much it would drive benefits considering the economy was already doing very well.  Then when you looked at the primary beneficiaries (top 1%) who had been spending for most of the last decade -- there was very little pent up demand.  And the corporations were on record saying that they would be very cautious with new investments; choosing instead to return windfall profits to their shareholders (many of whom are in the aforementioned upper echelon).  

 

But of course the repubs knew this after their extensive, comprehensive hearings on the matter.  or not.  The biggest rewrite of the tax code in 30 years, done in this fashion is inexcusable.

[Starkiller]

21 minutes ago, Rolltide said:

I like the line that there is "no surge in wage growth relative to history or GDP growth.".. 

 

So wages are only rising 3% not the 1.5% Libtard economists predicted?

Wage growth was higher from 2014-2016 than it has been under Trump, dumbass...

[Starkiller]

1 minute ago, Rolltide said:

The corporate tax cut is something that should help our economy over a long period of time. It makes our companies more competitive and hopefully helps to keep some jobs in this country. 

 

Trump's tax plan was not a stimulus designed to get us out a recession in 6 months. 

More dumbassery. This has been disproven both times it has been tried in the last 2 decades.

 

How do tax cuts make our companies more competitive? They just give most of that money to executives and shareholders. They spend some of it buying up their competition and lowering competition. They are not using a significant amount of that money to either hire more employees or paying higher wages for current employees. 

[tgo]

Trickle Down economics is a proven myth. 

 

There's a reason that deficits decrease and the economy soars when Democrats are in office and vice versa when Republicans are in office. This has been the trend dating back to Bush Sr. 

 

Trump is riding the coattails of the strong Obama-Biden economy, yet he's actually holding it back with extreme tariffs and tax cuts for the wealthy. 

[IsntLifeFunny]

4 hours ago, Rolltide said:

The LA Times that is an unbiased source. Interpreted by Cliff Clavin Ph.D in postage. . 

 

Obama and your hero economists like Paul Krugman said that 3% growth was a pipe dream. 1.5% is the new normal. So where did the 3% growth come from? Oh yeah cash for clunkers. 

Congressional Research Service...is not the LA Times. It’s really hard to be this stupid. 

[Number9]

The repubs are the party of the rich.  R-I-C-H.  Trumps biggest changes benefited who?  More that the 1% benefited.  The people who own stocks benefited, too.

So, real republicans benefited.

 

6 hours ago, OILERMAN said:

The tax cuts did almost nothing for ordinary Americans and may even have cost them money. The apparent gains in their income were negligible and short-lived. Wealthy Americans reaped the benefits of lower taxes and higher dividends

https://www.investopedia.com/financial-edge/0912/which-income-class-are-you.aspx

 

The middle class constitutes a slim majority of the U.S. population (52%), but that's still less than it has been in nearly half a century.

The share of income captured by the middle class has fallen from 60% in 1970 to 43% in 2014.

The middle class is shrinking due to an increase in population at the extreme bottom and top of the economic spectrum.

 

 Increases in the number of immigrants, for example, push down median incomes because immigrants on average make less money.*

 

REPUBS

The top 20% includes the lawyers and the doctors and the managers, all the way up to the CEOs and beyond. They marry later, are better educated and have larger and richer social networks. They're healthier, too – they have statistically lower rates of heart disease and obesity.

 

These are excerpts from the article based on Pew research.  So @Rolltide @Little Earl @TennesseeTuxedo @TitanDuckFan@ben4titans and a few others on my ig list have benefited greatly.  I received some divi increases.

 

 

Edited May 30, 2019 by Number9

[Tull]

770.00 less federal tax than last year, that helped me a lot.

[MadMax]

1 hour ago, JakePA_Titan said:

The poor stayed poor under 8 Obama years. 

And are still poor today you fucking milk dud.

[MadMax]

3 minutes ago, JakePA_Titan said:

Obama best ever!

 

- Liberals 

Trump is a real president!

 

-Repugnants

[WG53]

40 minutes ago, JakePA_Titan said:

@scine09 would be so proud to see you proving my point. Two posts in a row without me provoking you in the same manner. 

 

It truly is funny that in your attempted trashing, you use something that is, well, truth. 

 

I mean, Trump is a real President. Maybe had you switched real with better or great, your ignorant attempt at sarcastic bashing might have been more effective.

 Without provoking him in the same manner? Really? Are you really that fucking stupid that you can't see you just did the exact same thing you accuse him of?

[Dollop]

Ahhh tiny poster is trying to hold closer.

[OILERMAN]

 

 

 

[WG53]

31 minutes ago, Soxcat said:

The tax plan was approved by the Senate Dec 20th of 2017 and we actually have economic retards now concluding it was a failure.  While some aspects of the tax plan might have immediate effects the real results will be seen over the next few years. 

Voodoo economics does not work.