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Old 08-13-2018, 01:42 PM   #1
SomeBlackDude
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Thumbs down SHOCKER- Tax Cuts Benefited Mostly the Wealthy

i know, i know. just as surprised as you are. could've sworn that trickle down was finally coming. set your face to 'stunned'...

Quote:
You Know Who the Tax Cuts Helped? Rich People

When Republicans were pitching a massive tax cut for corporations and wealthy families last year, they promised voters many benefits: increased investment, higher wages and a tax cut that pays for itself. The tax plan, congressional leaders said, would turbocharge the American economy and provide a much-needed helping hand to working-class families.

“Most people, half the people in this country, live paycheck to paycheck, so there’s a lot of economic anxiety,” the House speaker, Paul Ryan, told The Times in November. “And I think just one of the key solutions is faster economic growth, more jobs. And I think the best thing we could do to deliver that is tax reform.”

So, more than six months since President Trump signed the tax cut into law, is it delivering on the promises Mr. Ryan and other leaders made?

Buybacks Reach New Heights




The most notable outcome of the tax law is one that few Republicans talked about: Companies are buying back their own stock — a lot of it. Stock buybacks are expected to reach a record $1 trillion this year. After Congress reduced the top federal corporate tax rate from 35 percent to 21 percent, businesses are flush with cash. Lawmakers also let companies repatriate foreign earnings that they have been amassing at a rate of 15.5 percent for cash and 8 percent for other assets.

By spending a big chunk of their tax windfall on buying back shares, businesses are boosting demand for and, thus, the price of their stock. It is no wonder then that the S&P 500 stock index is trading near its high.

By far, Apple conducted the largest buybacks, totalling nearly $45 billion in the first six months of the year.



Share buybacks have an understandable appeal to executives, many of whom are compensated with stock themselves, and to investors. But buybacks do little for workers, most of whom own little or no stock. It is not even clear that it is in the best long-term interest of companies when they could be using that money to expand or invest in technology that would make them more productive and profitable in the future.

These buybacks amount to a huge wasted opportunity. They also weren’t unexpected. In 2004, Republicans temporarily cut the tax rate on foreign corporate profits, promising that would spur economic growth and increase wages. Instead, many corporations bought record amounts of their own shares.

Investments Have Flatlined



With so much of firms’ focus on buying back stock, a key Republican prediction — that tax cuts would encourage spending on equipment and factories — has not come to fruition. There has been a modest increase in investment this year compared to recent quarters. Companies in the S&P 500 had spent around $147 billion through the end of March. A recent modest uptick began in early 2017, long before the tax cut.

Investment as a percentage of economic output climbed in the first quarter but fell to 17.5 percent in the second, far below the nearly 20 percent it reached in 2006 before the recession. Growth in productivity — which ought to accelerate when businesses invest — was just 0.4 percent in the first quarter.

Real Wages Have Declined



And what happened to that promise of a big raise for workers? No sign of it yet.

The typical family would earn $3,000 to $7,000 more a year, the White House Council of Economic Advisers said. In fact, real wages are down, largely thanks to the rising price of oil, which has more than offset any modest increase in income.

Even ignoring inflation, wages are up only 2.7 percent over the last 12 months. Even with the unemployment rate at a low 3.9 percent, businesses are not offering higher pay yet.

The idea that the tax cuts were going to line workers’ pockets was always a mirage. Most people will enjoy only a modest and temporary tax cut — families earning $25,000 or less will save on average just $60 on their federal tax this year, and those making between $48,600 and $86,100 will save $930, according to the Urban-Brookings Tax Policy Center. Families in the top 1 percent, on the other hand, will save an average of $51,140.

Tax Cuts Don't Pay For Themselves



“Not only will this tax plan pay for itself, but it will pay down debt,” Steven Mnuchin, the Treasury secretary, said. This statement was absurd when Mr. Mnuchin made it, but it looks even more ridiculous now. The deficit and the federal debt are growing — and at a stunning pace. In the current fiscal year, the federal government will spend $912 billion more than it collects in revenue, an increase of 39 percent from the 2017 fiscal year, according to the Congressional Budget Office.

Thanks to the tax cut, the government will take in about 1 percent less in the 2018 fiscal year than it did the year before. Corporate tax revenue is plummeting — the C.B.O. predicts a drop of 27 percent this year. At the same time, the federal government will spend nearly 5 percent more, due, in large part, to Mr. Trump’s insistence on more defense spending.

Over the coming decades, the federal debt could nearly triple as a share of the gross domestic product if Congress makes the Trump tax cut and spending increase permanent, according to the Committee for a Responsible Federal Budget. Lawmakers have talked about extending the cuts in last year’s law beyond the next 10 years — something they did with some of the cuts passed during the George W. Bush administration. “I don’t know why we wouldn’t want to do that,” the Senate majority leader, Mitch McConnell, said in April.

Today, many Republicans seem to realize that the tax cut has become a political liability, which is why they aren’t talking about it ahead of the November election. Even they realize that it doesn’t do any of what they promised.

the failing ny times
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Old 08-13-2018, 02:17 PM   #2
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Default Re: SHOCKER- Tax Cuts Benefited Mostly the Wealthy

Quote:
The idea that the tax cuts were going to line workers’ pockets was always a mirage. Most people will enjoy only a modest and temporary tax cut — families earning $25,000 or less will save on average just $60 on their federal tax this year, and those making between $48,600 and $86,100 will save $930, according to the Urban-Brookings Tax Policy Center. Families in the top 1 percent, on the other hand, will save an average of $51,140.

This is really terrible journalism. First they take the top line of the bottom earning bracket so it looks like people earning $25,000 will only save $60. Then they don't even give the average income who will save those $51,140. I guess so that people with little education will look at this and get enraged at the gap.
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Old 08-13-2018, 03:12 PM   #3
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Default Re: SHOCKER- Tax Cuts Benefited Mostly the Wealthy

Quote:
Originally Posted by iamgine
This is really terrible journalism. First they take the top line of the bottom earning bracket so it looks like people earning $25,000 will only save $60. Then they don't even give the average income who will save those $51,140. I guess so that people with little education will look at this and get enraged at the gap.

This is what you call fake news.

Besides, how much taxes do you expect to save if you are a low income earner, or someone that doesn't even pay taxes.
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Old 08-13-2018, 04:15 PM   #4
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Default Re: SHOCKER- Tax Cuts Benefited Mostly the Wealthy

The biggest mistake for me was the lie that the tax cuts would pay for themselves when there was no evidence or likelihood that it would. A drop in revenue now without proportional spending cuts just means bigger deficit later... and that means more taxes in the future. Any shot of benefit that came from these tax cuts will have to be paid later by further tax increases, which actually sounds like the norm in the age of bubble propping we are in.

Furthermore, Trump even threw around the idea that revenue from tariffs would somehow be used to relieve the deficit. Guess who ends up paying for the tariffs? American consumers! American consumers going to get completely screwed over in the future, if not already.
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Old 08-13-2018, 04:45 PM   #5
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Default Re: SHOCKER- Tax Cuts Benefited Mostly the Wealthy

Well, considering that a tax cut allows you to keep more of what you earn, it's only common sense that those who paid the most in taxes (highest earners) are the ones who'd benefit the most.

But then again, it's DumbDodda here, who'll probably take his own life if Trump got re-elected in 24 months.
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Old 08-13-2018, 04:58 PM   #6
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Default Re: SHOCKER- Tax Cuts Benefited Mostly the Wealthy

you look surprised, richie. can't blame you.

we all thought this would pay for itself and it'd be trickling down golden coin showers in 'murrica.

instead, we get this.

Quote:
U.S. budget deficit this year already 21% higher than last year

The federal government racked up a $76.9 billion deficit in July, with increased government spending and tax cuts keeping the country on track to record its biggest annual deficit in six years.

The Treasury Department reported Friday that in the first 10 months of this budget year:

The deficit totaled $684 billion, up 20.8 percent from the same period last year.

Revenues are up only 1 percent this year, the increase held back by a big drop in corporate tax payments.

Spending is up 4.4 percent, reflecting a big boost Congress approved earlier this year for domestic and military programs and the rising costs of financing the debt.

The Trump administration last month sharply revised upward its deficit estimates, projecting annual deficits will once again top $1 trillion in the 2019 budget year, climbing to $1.1 trillion, and remaining above $1 trillion for three years.

For the current budget year, which ends Sept. 30, the administration is now projecting a deficit of $890 billion. That would be up 33.7 percent from last year's deficit of $665.8 billion.

Quote:
In U.S., wage growth is being wiped out entirely by inflation

Rising prices have erased U.S. workers’ meager wage gains, the latest sign strong economic growth has not translated into greater prosperity for the middle and working classes.

Cost of living was up 2.9 percent from July 2017 to July 2018, the Labor Department reported Friday, an inflation rate that outstripped a 2.7 percent increase in wages over the same period. The average U.S. “real wage,” a federal measure of pay that takes inflation into account, fell to $10.76 an hour last month, 2 cents down from where it was a year ago.

https://chartable-images.edapps.nile...3907767.670501

https://www.washingtonpost.com/busin...=.617a1584303d

why didn't anyone warn us, rich?
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Old 08-13-2018, 05:00 PM   #7
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Default Re: SHOCKER- Tax Cuts Benefited Mostly the Wealthy

So much for "the economic growth spurt will account for revenue lost" baloney.. People bought it as well.. Where are those people now?? Republicans don't seem to understand trickle-down economics is a farce after so many attempts each decade that a Republican president has been in power since 1980.

The money does not trickle down to the actual workers. Most companies usually pump it right back into the company's stocks rather than invest it into the economy/factories/building upgrades/pay increases for workers/etc. That means you don't get the economic growth you expected/projected to make up for the massive tax-cuts.

While Corporations and the rich are laughing their way to the bank, the middle-class and the poor are left crying. As deficit continues to pile up. We were reining in the deficit under Obama's 2nd term then Trump throws it back into wackiness..

What will it be next? Massive gutting of medicare/medicaid/social security to pay for the tax cuts?? The rich don't use any of those 3 programs or most social programs for that matter so why not gut them too while we are at it??
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Old 08-13-2018, 05:09 PM   #8
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Default Re: SHOCKER- Tax Cuts Benefited Mostly the Wealthy

None of this should be a surprise to anyone. You'll notice that Republicans are generally not running on the tax cut nor promoting its benefits for the average worker or blue-collar employee. They are also holding off on discussions around entitlement cuts and modifications intended to offset the deficit increases from the tax cuts until after the midterms.
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Old 08-13-2018, 05:29 PM   #9
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Default Re: SHOCKER- Tax Cuts Benefited Mostly the Wealthy

And the Inside Hoops Trump Cult saw none of this money.
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Old 08-13-2018, 10:57 PM   #10
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Default Re: SHOCKER- Tax Cuts Benefited Mostly the Wealthy

Right now 50% of the country pays about 100% of the income taxes and 1% of the country pays 40% of the income taxes.

How much more would you like the American people to pay Donald Trump and the Federal Gov't? What would your income tax brackets look like? It seems like you REALLY want more money for Trump and Co. to spend.




The income tax should be abolished. It was created to pay for taxes lost during prohibition. But when prohibition ended, the income tax stuck around because the government is made of thieves who have convinced DumbDadda, DumbDumbass, and the rest of the leftist crew, that we need more money to go to Trump and Co. because they spend our money better than we do.

For example, in the 1-party state of California, Gov' (thief) Jerry Brown has stolen $100,000,000,000+ from the taxpayers for an invisible train (and money for himself and his friends). Why do you argue for Jerry Brown and his friends to steal MORE money?!
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Old 08-13-2018, 11:06 PM   #11
Cleverness
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Default Re: SHOCKER- Tax Cuts Benefited Mostly the Wealthy

SHOCKER - taxes benefit mostly the crooked lying scam artist politicians and their friends

But no worries, keep believing the politicians want to help you.. all they need is more money!
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Old 08-13-2018, 11:18 PM   #12
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Default Re: SHOCKER- Tax Cuts Benefited Mostly the Wealthy

Tax cuts benefit the people who pay the most taxes. Well, yeah of course.
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Old 08-13-2018, 11:20 PM   #13
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Default Re: SHOCKER- Tax Cuts Benefited Mostly the Wealthy

Quote:
Originally Posted by falc39
The biggest mistake for me was the lie that the tax cuts would pay for themselves when there was no evidence or likelihood that it would. A drop in revenue now without proportional spending cuts just means bigger deficit later... and that means more taxes in the future. Any shot of benefit that came from these tax cuts will have to be paid later by further tax increases, which actually sounds like the norm in the age of bubble propping we are in.

Furthermore, Trump even threw around the idea that revenue from tariffs would somehow be used to relieve the deficit. Guess who ends up paying for the tariffs? American consumers! American consumers going to get completely screwed over in the future, if not already.

I guess millennials will have to make better decisions in life instead of listening to their baby boomer guidance counselors and professors telling them to take out $70k student loans and how they can pay them back in a years worth of work right out of college. Don't worry... Gen X that doesn't hide in safe spaces all day will just have to make all the important decisions and pave the way of making America great again as we pay off the burden of this tax cut.
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Old 08-13-2018, 11:47 PM   #14
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Default Re: SHOCKER- Tax Cuts Benefited Mostly the Wealthy

no surprise there. no need for a story, numbers, graphs, or whatever. you're a damn fool if u think this administration gives a flying **** about the little guy, or any past administration for that matter.
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Old 08-14-2018, 02:32 AM   #15
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Default Re: SHOCKER- Tax Cuts Benefited Mostly the Wealthy

Quote:
Originally Posted by NumberSix
Tax cuts benefit the people who pay the most taxes. Well, yeah of course.

The left convinces themselves that gov really has money so that they don't have to feel guilty for the handouts they take.
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