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Author Topic: Tax Policy  (Read 156709 times)
DougMacG
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« Reply #750 on: November 06, 2017, 12:12:53 PM »

Doug,
They may as well as just cut the corporate rate to 20 % and ditch the rest of it if you ask me.
The rest is switching things all around with in the end minimal tax cuts for some and tax increases for others.

Cut the corporate tax rate by more than a third and do nothing for the middle class?  
ccp, I will keep you as my doctor but fire you as my political strategist!   )



« Last Edit: November 06, 2017, 01:39:27 PM by DougMacG » Logged
ccp
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« Reply #751 on: November 06, 2017, 06:21:13 PM »

" Cut the corporate tax rate by more than a third and do nothing for the middle class? 
ccp, I will keep you as my doctor but fire you as my political strategist!   )  "

Quite the contrary Doug,

I don't know how I could do much worse then the Republicans as a political strategist.

I think it worse to promise tax cuts for everyone then  change it so there are no or minimal tax cuts in the final product

Not Trump's fault in my opinion

but then who am I?

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DougMacG
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« Reply #752 on: November 07, 2017, 10:44:56 AM »

"but then who am I?" (ccp)

Besides that I still owe you on a prediction bet, you correctly called from the beginning the political issue, illegal immigration, that the whole last election turned on.  I, on the other hand, am a contrary indicator.  The more sure I am about anything political, the more likely we are to turn in an opposite direction.
-----------
On taxes, I am waiting and waiting for some ammunition on which to sell this proposal.   For example that 87% of middle earners will pay in less under the plan or something like that.  Not finding it.

Sen Lankford (R-OK) will vote against it if "it raises the debt too much".  Static or dynamic, Senator?  Concerned with what went wrong in Kansas.  This is not Kansas. 

From his website:  "It is time to simplify and flatten the code."  http://jameslankford.com/taxes
   - Good.  Do it. 
"Our nation should promote economic growth so more people can move out of poverty and into work."
 - Good Senator, do it.
"we should eliminate the wasteful spending in government."
  - Find 50 more Senators and do it!

What are they waiting for, and why do they think it is Donald Trump with no experience and little aptitude in this area should lead?  In the last campaign we had nearly every Senator thinking they should be President.  How about they act like a leader first.

Marco Rubio writes in the NYT that the child tax credit increase isn't enough.  Great, but exactly the kind of provision Scott Grannis points out that does nothing with incentives to grow the economy.  If Rubio and Lee get what they want, Lankford will be out because it all comes with a price of opening the static deficit and making the economy static.

The WSJ editorialists don't like (neither do I) the bubble tax rate of 45.6% that applies to tax-filing couples who make between $1.2 million and $1.6 million.  And the bill keeps the 3.8% ObamaCare surcharge making a top marginal rate of 49.4%, federal alone, plus 9-10% state and local and 60% goes to taxes at the top.  "They can afford it" is right out of the Bernie playbook.  Yet you drop that and lose people like Lankford, Collins, Murkowski.

Let's see. We can't cut spending.  We can't count the dynamic effect of growth in a growth-based policy.  We can't add a fictitious 1.5T to the debt over 10 years when they just added 10T in 10 years.  We can't call it a tax cut when it raises some and lowers others.  We can't simplify when everyone screams when they lose their deduction even if they end up paying less.  If you're Jeff Flake or Bob Corker, you can't support anything that Trump might get credit for.  We can't seem to get a single damn Democratic vote even if Trump won their state by 40 points.  We can't get blue state Republicans because of the state and local fix.  We can't lower individual rates or eliminate the inflation tax on capital gains.  But we all know the status quo is the worst possible tax code holding back what should be the greatest country on earth causing our greatest companies to flee and preventing our future greatest companies from getting started.

We've had a full year to build a consensus or at least get the very best plan on the table that can pass and move us in the right direction.  Were they busy accomplishing something else, healthcare, entitlement reform, a wall??

Screw this up now and we will have (President) Bernie Sanders' tax plan and the economic 'growth' of Venezuela.
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ccp
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« Reply #753 on: November 07, 2017, 12:14:40 PM »

https://www.wsj.com/articles/n-j-voters-worry-about-taxes-as-they-elect-a-new-governor-1510005451

"New Jersey resident Kathy Loughran, 58, said she plans to vote for Ms. Guadagno because she fears her taxes will go up if Mr. Murphy is elected.“The only way he can pay for what he wants to do is to raise our taxes,” said Ms. Loughran, a real-estate appraiser. Michael Jorgensen, a 65-year-old woodworker from Essex County, agreed that taxes “just eat us alive,” but said he believes Mr. Murphy would seek to raise the tax burden on the wealthy to pay for education initiatives"

Typical NJ democrat ,  this guy Jorgensen, taxes "just eat us alive"  but then his answer which is always the Democrat way :   the rich should pay more........

Highest property taxes in the nation with schools and hospitals filled with illegals. 

http://www.newsmax.com/FastFeatures/illegal-immigration-New-Jersey/2015/09/24/id/693109/

The WSJ can publish this article but in the end we will get another crat who will protect the unions who have signed on to him .   

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ccp
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« Reply #754 on: November 07, 2017, 06:07:59 PM »

woopti do!  Oh I am all in folks ...................... undecided  since what 90 % of citizens are employees few are gong to relate to this and say thank Trump Thanks Republicans

"  Trump is currently using much of his political capital to ram a controversial tax reform bill through Congress by year’s end. But the Journal/NBC poll finds that almost half of adults in those key counties have no opinion of the current bill — suggesting a hard-fought tax reform may do little to create an upswing in Trump’s political fortunes in 2017 "

suggesting the people in the counties that Trump won over don't believe a tax bull for business is going to do jack for them:

http://www.breitbart.com/big-government/2017/11/07/polls-donald-trump-losing-support-among-his-base-but-few-gains-for-democrats/

« Last Edit: November 07, 2017, 06:29:41 PM by ccp » Logged
DougMacG
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« Reply #755 on: November 09, 2017, 11:55:17 AM »

Rules like these are why the rates cannot be cut across the board:

https://www.nytimes.com/2017/11/09/us/politics/facing-math-trouble-house-panel-races-to-adjust-tax-bill.html

Cannot have more than 1.5T of static loss over 10 years no matter how great the expected dynamic gain .

Where is the constitution does it give one congress the power to bind a future congress?  I thought limits to the powers of Congress were set out IN the constitution.
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DougMacG
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« Reply #756 on: November 10, 2017, 12:09:09 PM »

As documented often in this thread, Greg Mankiw, Chair of the Harvard Economics Dept quantifies it.

"if the tax rate is one third, then every dollar of tax cut to capital (on a static basis) raises wages by $1.50"

http://gregmankiw.blogspot.com/2017/10/an-exercise-for-my-readers.html?m=1
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DougMacG
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« Reply #757 on: November 10, 2017, 12:22:18 PM »

To overcome the discrepancy between pass through and individual rates and to stimulate the economy far more, "cut personal income tax [rates] at the same time."

https://www.nytimes.com/2017/11/03/business/how-to-improve-the-trump-tax-plan.html

He closes with:  "Mr. Trump is right that the current system is in desperate need of repair and that sensible reform could simplify our lives, promote economic growth and benefit all Americans. But I fear that what he is offering, while attractive in some ways, is not bold enough to get the job done."
-------

Given the budget rules, Mankiw offers two ideas ("nonstarters") to make up the lost static revenue as required by Senate rules, a carbon tax and a consumption tax. 

Here are a couple of rocket science level ideas to consider in place of his nonstarters: 
CUT SPENDING, and
MAKE BUDGET CALCULATIONS DYNAMIC
rather than deny the  role incentives play in economics.
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ccp
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« Reply #758 on: November 13, 2017, 10:46:15 AM »

https://www.yahoo.com/news/house-gop-tax-plan-soaks-234317128.html

I don't understand this.  Is this article saying that students can deduct these waivers from taxes?

Or the school gives them "free or discounted tuition" then the school uses that as a  deduction?

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DougMacG
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« Reply #759 on: November 13, 2017, 01:30:14 PM »

https://www.yahoo.com/news/house-gop-tax-plan-soaks-234317128.html
I don't understand this.  Is this article saying that students can deduct these waivers from taxes?
Or the school gives them "free or discounted tuition" then the school uses that as a  deduction?

Businesses create and people take perks as a way of getting around the nasty tax code with other compensation.  Health care for example and in this case, tuition.

Then when we simplify, someone screams to support every item in a 75,000 page tax code. 

The article presents and avoids a number of points.  Should people be able to take benefits under the table that other people in other industries cannot?

When they say, lose their deduction, they in all cases had their standard deduction doubled and something like 85% of people in these tax brackets do not itemize, so in most cases they did not lose a deduction.

Mostly it begs the need for higher education reform.  My daughter's college was roughly a quarter million.  They can throw that in free for a janitor and it costs them nothing?  Amazing.  And how often is this happening?   Believe it or not, I too would like perks outside of the tax system.  Better for everyone would be to get the tax penalty down and compliance up so everything is within the tax system.

From the article:  "the income tax on the tuition waiver would tax the “full sticker price of tuition” rather than the discounted rate universities provide for most students."

A college similar to my daughter's has a local billboard saying 97% of the students receive some kind of assistance.  What a racket they run, charging everybody a different amount for the same product.  Instead of illegal or unconstitutional, our government encourages it, mandates it? 

Third party pay IS what screwed up higher ed just like healthcare.  Looks like they got caught.

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ccp
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« Reply #760 on: November 13, 2017, 05:54:23 PM »

"Mostly it begs the need for higher education reform"

The education lobby which is a giant force to be reckoned with at all levels is asking for reform too!

But alas the reform is for more wealth confiscation to pay for more and more "free" education



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Crafty_Dog
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« Reply #761 on: November 14, 2017, 09:49:11 AM »

The Great Progressive Tax Escape
IRS data show an accelerating flight from high-tax states.
Opinion Journal: Blue-State Republican Blues
Opinion Journal Video: Former CBO Director Doug Holtz-Eakin on the politics of tax reform in states like New York and California. Photo Credit: Getty Images.
By The Editorial Board
Nov. 13, 2017 6:11 p.m. ET
512 COMMENTS

Democrats contend that marginal tax rates don’t matter to investment and growth, and even some conservative intellectuals are conceding the point. But the evidence from wealth fleeing high-tax states shows how sensitive the affluent are to rate increases.

The liberal tax model is to fleece the rich to finance spending on entitlements and government programs that invariably grow faster than the economy and revenues. IRS data on tax migration show this model is now breaking down in progressive states as the affluent run for cover and the middle class is left paying the bills.

Between 2012 and 2015 (the most recent data), a net $8.5 billion in adjusted gross income left New Jersey while $6.2 billion poured out of Connecticut—4% of the latter state’s total income. Illinois lost $13.6 billion. During that period, Florida with no income tax gained $39.3 billion in AGI. (See the nearby table.)

–– ADVERTISEMENT ––
The Great Progressive Tax Escape

Not surprisingly, income flows down the tax gradient. In 2015 New York (where the combined state and local top rate is 12.7%) lost a net $850 million in AGI to New Jersey (8.97%) and Connecticut (6.99%). At the same time, the Garden State gave up $335 million to Pennsylvania (3.07%), and $60 million left Connecticut for the state formerly known as Taxachusetts (5.1%). Taxpayers from New York, New Jersey and Connecticut escaped to Florida with $3.2 billion in income. Florida Gov. Rick Scott ought to pay these states a commission.

The affluent account for a disproportionate share of the income migration. For instance, individuals reporting more than $200,000 in AGI in 2015 made up 57% of the income outflow from Connecticut (compared to 48% of total state AGI) and 57% of the inflow to Florida.

Snowbird flight isn’t new, but migration has accelerated as taxes have increased. Income outflow from Connecticut averaged $500 million between 2003 and 2007. Then in 2009 GOP Gov. Jodi Rell raised the top tax rate to 6.5% from 5%, which her Democratic successor Dannel Malloy lifted a few years later to 6.7% and again two years ago to 6.99%. AGI outflow between 2012 and 2015 averaged $1.6 billion.

In 2004 Democrats raised New Jersey’s top rate on individuals earning more than $500,000 to 8.97% from 6.37%. Between 2012 and 2015, annual income outflow from New Jersey averaged $2.1 billion—twice as much as between 2000 and 2003 after adjusting for inflation.

Republican Gov. Chris Christie blocked his Democratic legislature’s attempts to reimpose a millionaire’s tax that lapsed in 2009. But Democratic Governor-elect won the election this month by promising to soak the rich even more, and his legislature will oblige.

The prospect of future tax hikes appears to have propelled an exodus of high earners from Illinois, which has a relatively low and flat 4.99% income tax. Democrats raised the rate from 3% in 2010, but the tax hike lapsed in 2015 after Bruce Rauner became Governor. House Speaker Michael Madigan finally this summer secured GOP legislative support to override the Governor’s veto and reinstate the higher rate.

But the tax increase won’t raise enough money to finance the state’s $250 billion unfunded pension liability, and the long-time goal of unions has been to enact a graduated income tax. The affluent know they’ll get soaked eventually and are seeking shelter. Top earners made up 47% of Illinois’s income flight in 2015 compared to 33% four years earlier. Income taxes from the 306 Cook County denizens who decamped to Palm Beach in 2015 with $258 million of income could have paid 200 teacher salaries. Alas.

This millionaires’ diaspora has harmed income and economic growth. Real GDP between 2011 and 2016 grew annually at a paltry 0.2% in Connecticut, 1% in Illinois and 1.2% in New Jersey, according to the Bureau of Economic Analysis. These states were the slowest growing in their respective geographic regions, though other high tax states in the Northeast didn’t fare much better.

As a result, revenues have repeatedly fallen short of projections in New Jersey, Illinois and Connecticut while budget deficits have ballooned. Democratic lawmakers have cut public services and funds to local governments, which have responded by raising property taxes.

The Tax Foundation says New Jersey, Connecticut, Vermont, New York and Illinois have the highest property taxes in the country. Over the last two years, the average Chicago homeowner’s property taxes have risen by roughly $1,000. Higher property taxes hit middle-class earners especially hard and are another incentive to leave a state.
***

As these state laboratories of Democratic governance show, dunning the rich ultimately hurts people of all incomes by repressing the growth needed to create jobs, boost wages and raise government revenues that fund public services. If the Republican House and Senate tax-reform bills follow through with eliminating all or part of the state and local tax deduction, progressive states will have an even harder time hiding the damage. They should be the next candidates for reform.
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ccp
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« Reply #762 on: November 14, 2017, 10:21:26 AM »

"   The Great Progressive Tax Escape  "
I doubt the liberal leaving blue states are turning conservative.  They are bringing their lib dogma with them to red states turning them blue .

" Republican Gov. Chris Christie blocked his Democratic legislature’s attempts to reimpose a millionaire’s tax that lapsed in 2009. But Democratic Governor-elect won the election this month by promising to soak the rich even more, and his legislature will oblige.  "

like i pointed out before Christie's achievement was to hold the line on taxes.  Bow that he is gone working class (except government employees) will be strangled for cash to pay pensions of those that were supposed to work for them.   And since many in NJ pay nothing anyway that share of the electorate will cheer or not care.

Levin on tax shell game:
agreed great for some business on our (my ) backs :

https://soundcloud.com/conservativereview/levin-gop-dunderheads-have-screwed-up-tax-reform
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ccp
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« Reply #763 on: November 19, 2017, 03:56:02 PM »

The thinking form the left  moved over from another thread:



how the LEFT thinks they  are entitled to confiscate money and hand out to others of their choosing rather then lifting all boats:

https://www.newsmax.com/newsfront/salt-local-tax-deduction-blue-states-cities/2017/11/19/id/827019/

Margaret Thatcher is smiling in heaven about now:

watching the Left panic fearing they will run out of OTHER people's money.
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Crafty_Dog
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« Reply #764 on: November 27, 2017, 09:33:15 AM »

http://dailysignal.com/2017/11/22/in-charts-how-these-7-taxpayers-bills-would-change-if-tax-reform-was-enacted/?utm_source=TDS_Email&utm_medium=email&utm_campaign=MorningBell%22&mkt_tok=eyJpIjoiWldWaU9HVXhNRFV5WTJZNCIsInQiOiJvUWtUZVwvWVwveEJQYWlLUzhhNWVXbnZRa3o4cXVxK1FZazhodWdqUUV5aHhvdXc1MnZ0UzBlRXdJMjJpNjFOZjRKcFZiMldCNzZIV2IzYythYVlSRjRTT09idGtlRWtJMVRwSlwvMVRcL1Z4V21LOU9qNktQbmw3SllNNGhmOG41NFMifQ%3D%3D
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DougMacG
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« Reply #765 on: November 27, 2017, 11:01:31 AM »


They need this type of analysis to come out okay in order to pass it but success in the longer term will be measured in economic growth, not just how static income is taxed.

There is a little bit of Nancy Pelosi-itis going on here too, we will need to pass the (final) bill to know what is in it.
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DougMacG
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« Reply #766 on: November 30, 2017, 04:55:55 PM »

WSJ rips Marco Rubio and Mike Lee today for trying to kill the bill with a child tax credit amendment.

Nonetheless, expectations are for a vote tomorrow.  Like healthcare, they will probably cancel vote if they don't have the numbers.

We still won't know what is in the final legislation because of differences with the House to be decided in conference.

This will not be a perfect bill, but it must be good enough to do two things, pass and grow the economy.  If it is successful, really successful, it will be easy or at least possible to re-open the issue with further reforms and rate cuts.
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DougMacG
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« Reply #767 on: December 01, 2017, 08:25:43 AM »

Maybe it will pass without this idiot's support.  Corker 'refuses' to support an increase in the deficit, so he wants to "trigger" tax rate increases if the revenues they hope for do not materialize.

Hugh Hewitt is calling the market reaction to no bill passed, the "Corker Christmas Crash".  Meanwhile, Ron Johnson is reportedly back on board.  This is a developing story, but the bill SHOULD pass today.  Getting a conference bill that can satisfy both chambers will be harder.

A 'trillion dollar' static deficit increase (over 10 years) is equal to something like 0.4% of economic growth.  If you don't believe our existing humongous tax code is inhibiting at least 0.4% of growth (it is inhibiting at least 4% of growth, ten times the Corker concern) and you don't believe a "Republican tax cut" will fix it and you believe a tax rate increase might be a better path to greater revenues, then maybe your party affiliation is really Democrat.  And if so, why didn't you tell the voters of Tennessee that when THEY had a say in it?  If your tax reform package cannot generate 0.4% of economic growth, there is something wrong with the reform bill, not a need for a tax increase trigger!

In what foreseeable circumstance is a tax rate increase the best policy for America??  Deficits, FYI, are caused by spending and lack of economic growth when your tax rates are already so high they are constraining revenues.

This bill already has a mechanism for a trigger - called the constitution and the legislative process.  Future congresses with more up to date information could conceivably be just as smart in years to follow as Bob Corker is now (a depressing thought) and can set future tax rates up, down or sideways as needed in the future, kind of like the Founders envisioned (minus the 16th amendment).
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ccp
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« Reply #768 on: December 01, 2017, 09:30:28 AM »

odd that Corker is now , trying to amend the tax reductions when not long ago he was making a "rational" point about the phony yearly budget process that does NOTHING  to 70% of the mandatory SPENDING (side of the equation we have in place:

https://www.vanityfair.com/news/2017/10/bob-corker-budget-hoax

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DougMacG
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« Reply #769 on: December 01, 2017, 11:04:03 AM »

Exhibit A, The Grannis GDP Gap.  Something, namely over-taxation and over-regulation, is keeping the US economy from growing at historic rates, and it has cost us $12-15 trillion dollars over the last decade.


B.  Panic over deficits:  According to the CBO, every 0.1 percent increase in the gross domestic product adds over $250 billion in revenue over 10 years.
http://www.foxnews.com/opinion/2017/11/30/tax-reform-is-on-track-and-democrats-want-to-derail-it-dont-believe-these-myths-about-senate-s-bill.html
https://www.wsj.com/articles/tax-reform-growth-and-the-deficit-1511730170?mod=wsj_review_&_outlook

C. Deficits if we don't pass this:  Economic stagnation will make permanent the epidemic of working age people living outside of the workforce.  The demand of these people on spending services like food, clothing, shelter and healthcare is boundless.  Capped revenues and exploding expenditures is not how you close the deficit.
A U.S. growth rate of 1.9% will never balance the federal budget.
https://www.wsj.com/articles/tax-reform-growth-and-the-deficit-1511730170?mod=wsj_review_&_outlook

D.  Nine prominent economists write to support the package writing that the corporate reform alone will grow the economy by at least 2% annually, economics professors from Harvard, Stanford and former chairs of the council of economic advisers:
https://www.wsj.com/articles/how-tax-reform-will-lift-the-economy-1511729894

E.  100 Economists (including our own Brian Wesbury) signed a letter urging congress to pass the bill and watch the economy roar.
http://www.businessinsider.com/trump-tax-reform-opinion-congress-pass-2017-11

F.  Other economists, deniers of science and history who sound the deficit alarm, say that repairing all these disincentives will only will only grow the economy by 0.8% over 10 years.
https://www.nytimes.com/2017/11/30/us/politics/tax-overhaul-senate-debate.html
http://www.businessinsider.com/trump-gop-tax-reform-plan-economic-growth-2017-11

G. If we had reformed the corporate tax code sooner we could have prevented 4600 companies and hundreds of billions of dollars from leaving the US.
https://www.bloomberg.com/news/articles/2017-09-19/tax-code-hurts-u-s-firms-in-m-a-market-roundtable-study-finds

More so than the wall or Hillary's emails, economic stagnation of the Democrats is what brought Republican control of the House, Senate and Presidency.  There is only one way to determine who is right and who is wrong on this important economic debate.  Pass the bill!
« Last Edit: December 01, 2017, 11:32:42 AM by DougMacG » Logged
DougMacG
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« Reply #770 on: December 04, 2017, 09:18:15 AM »

They all say it goes to conference now, but why not instead have the House just pass the Senate bill and take away the opportunity for some of those Flakes to screw it up.  Lock this in and then bring up anew bill to improve it.

Heritage shows details and differences in a chart:
http://www.heritage.org/taxes/commentary/1-chart-the-differences-between-the-house-and-senate-tax-reform-bills-0

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DougMacG
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« Reply #771 on: December 05, 2017, 09:25:22 AM »

Michael Barone is a voice of sanity in this case.  It looks like he has been reading the forum.

http://www.washingtonexaminer.com/michael-barone-hurtling-gop-tax-bills-are-actually-serious/article/2642056

Michael Barone: 'Hurtling' GOP tax bills are actually serious
by Michael Barone | Nov 30, 2017

The Republican tax bills are something more serious and responsible than "hurtling" missiles "tilting" the tax code toward the "wealthy." (AP Photo/J. Scott Applewhite)

“The Republican tax bill hurtling through Congress is increasingly tilting the United States tax code to benefit wealthy Americans.” That’s the beginning of the 37-word first sentence in the New York Times’s stage-setting front page story on the tax bill under consideration in the Senate this week.

It’s a nice illustration of creatively phrased advocacy journalism. “Hurtling” suggests irrational, uncontrolled, threatening movement; “tilting” suggests abandoning upstanding fairness; spelling out “the United States tax code” suggests an ominous attack on a respected national institution. And all this “to benefit wealthy Americans.”

This is less reportage than advocacy journalism, written to advance the argument, with which many people agree, that Republican tax bills are harmful because they make federal taxation less progressive. But it’s also an argument against any tax cut at any time. After all, if you start off with a progressive system that imposes higher rates on high earners and doesn’t tax low earners at all — as the current federal income tax does -- then every tax cut takes that shape.

Missing from the arguments of Republicans’ critics is acknowledgement that we already have what is, by most measures, the most progressive national tax system in the world. Other advanced countries tend to rely more heavily on regressive sales (value-added) taxes and many have less steeply graduated income taxes.

Currently, the top one percent of U.S. earners pays about 40 percent of federal income tax revenue; the next 9 percent about 30 percent more. You could make the system even more progressive with more progressive income tax rates or by raising the amount of income subject to the payroll tax, but only at the risk of redirecting high earners’ attention from productivity to tax avoidance. Such changes tend to reduce economic growth, just as tax cuts tend to increase it.

In fact, this year, Republican tax writers have devoted much less attention to cutting income tax rates for high earners than their predecessors did in 1981 or 2003 or their presidential nominees in 2008 or 2012. Instead, they increase the child tax credit and double the standard deduction. That reduces taxes for many modest earners and gets the government—and Congress—out of the business of encouraging some behaviors and therefore discouraging others. This could reduce the scope for lobbyists to lard up the tax code with special exemptions and favors.

The Republican bills attack two of the three largest “tax expenditures,” by limiting or eliminating the deductions for home mortgage interest and state and local taxes. The dollar benefits of those deductions are hugely concentrated on “wealthy Americans,” especially in high-tax, high-housing-cost states where people vote heavily Democratic. These progressive changes could only be made by Republicans, who have few House members and zero senators from such constituencies.

Sophisticated critics of the Republicans’ bills, like former Treasury Secretary Lawrence Summers, avoid arguing against any tax cut ever, but instead say that, with low unemployment and increasing growth, this is the wrong time. Economic policy should depend on the economic not the political calendar.

The problem with this argument is that the biggest cuts in the Republican bills are to the corporate income tax—from 35 to 20 percent. Today’s corporate rate is the highest of any advanced nation. It encourages multinational firms to park billions of dollars abroad rather than invest them here, or to be merged into a foreign-based rival.

Moreover, economists of just about every stripe agree that the economic burden of the corporate tax falls not just on stockholders, but also and perhaps largely on employees and consumers. The only disagreement is on who bears how much.

So there’s a widespread consensus for a corporate rate cut. Former President Barack Obama proposed one in February 2012, but never got around to negotiating seriously with congressional Republicans. Republicans today are only acting responsibly, at the political risk of demagogic charges that rate cuts for corporations and unincorporated businesses paying as individuals are aiding “wealthy Americans.”

Some critics focus on provisions fashioned to take advantage of budget procedures and Congressional Budget Office scoring rules mostly set in the 1970s. Both parties are guilty of gaming this increasingly dysfunctional system, especially CBO’s wildly oscillating cost estimates of the Obamacare mandate.

...the Republican tax bills are something more serious and responsible than “hurtling” missiles “tilting” the tax code toward the “wealthy.”
« Last Edit: December 05, 2017, 10:25:10 AM by DougMacG » Logged
ccp
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« Reply #772 on: December 05, 2017, 09:49:18 AM »

I propose a NYT tax
let *them* pay for everything they propose

not a peep from the communist rag about Obama running up the deficit. 

but of course that is an issue now.



« Last Edit: December 05, 2017, 10:10:44 AM by ccp » Logged
ccp
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« Reply #773 on: December 06, 2017, 06:31:03 AM »

while most individuals get chump change.  These polls should EXCLUDE all those in the lowest brackets who pay nothing though those who pay noting who do so because of deductions can be included first of all. 

I am all for business tax cuts and for cuts for the "rich" since they pay most .
But don't expect the rest of the country to cheer for this as Larry Kudlow with 75 mill in investments:

https://www.cnbc.com/2017/12/05/the-gop-isnt-getting-a-political-payoff-from-its-tax-plan.html

I don't believe it is because many people simply do not understand this bill and how good it is for everyone.  sorry we are not all that dumb....
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