Trumpeting a $4 Trillion Unpaid Tax Cut | What's Wrong With This Picture?

Every time the Republicans cut corporate taxes, the general population ends up footing more of the tax bill.

If we were smart with our money, we would never elect another Republican president again.

 

We need at the 40 trillion we spend every decade and make some cuts. I disagree with Trump in that I would cut corporate taxes on small and medium businesses to zero and leave the large business taxes unchanged. Large businesses are large enough to be ogopolies. I would then cut taxes for the middle class while raising them on the rich.

We need to change the way we redistribute income because now we pour them into welfare programs or free money and is mostly going to the poor. We need to make them so that we add to the paychecks of the poor and middle class so income inequality is reduced to the level it was in the 70s. This is because 50% of existing jobs will be automated in the future and we will need to cut the work week and make sure the rich don't but wages because there will be more demand for fewer jobs.

I would implement a sin tax on junk food, and raise taxes on fossil fuels and CO2 emission by a lot. The deficit problem can be fixed by cutting out the numerous government programs we have and ending welfare. We should also fix our healthcare system to cost more like Europe and that will be 2 trillion in savings.

 

Agreed. Some of the stuff he said I actually support in principle but could not stomach supporting the remainder of his character and policies that I knew full well were either full blown retarded or at minimum a danger to American National Security. We can see that now taking shape on North Korea.

Free and Fair Trade, is something I supported. However, he never put forth any meat on the bones of his campaign rhetoric about how he would bring about free and fair trade. Now, we see him placing a 24% tariff on Canada! Canada is not nor ever had been our major problem. Lumber from Canda, is not flooding the United States to the point where we are no longer competitive or losing jobs to other countries. Canada's lumber is not the reason why tick flows and trade deficits are headed in the wrong direction.

He throws stuff on the wall just to see what sticks. If it happens to stick, he then proclaims victory and a campaign promise kept.

 

I love the way you talk!

Yet, this is NOT what Trump's two Goldman Sachs Hacks came out and said today. They basically stood in front of the cameras and told the American People that Donald Trump wants to spur the economy into hyper drive GDP by giving the top 1% the biggest tax cut in American history. Goldman Sachs' American Economy Rapists should not be the people out front on such a message from the White House.

It was insulting to have the same people involved in the 2007/2008 economic implosion standing in font of me on my television set telling me about how they sincerely desire to see the average taxpayer benefit from the massive tax cut without associated spending cuts. Every single American who lived through 2007/2008 should have been insulted by having Goldman Sachs Rejects insinuating that they give a damn about the typical American Taxpayer.

This was one of the most insulting days of the Trump Presidency, IMO. I mean, to come at us with former GS a-s-s-h-a-t-s was really ballsy.

 

But you still drive on the roads right? Do you have public water and sewage or do you drink rain water and wash everything into the nearest "crick"? Are your kids in school? Do you enjoy having electricity? Police? A fire department? How about your local hospital, do you think all of its funding comes from private sources?

 

It is not just Republicans. This applies to all Fake Conservative Politicians who are part of the Global System of Economic Slavery around the world. But, it does not stop there because most Liberal Politicians want total and complete control over your entire life, too! Don't forget them! The Liberals want to control every facet of what you are allowed to do or say. Fake Conservatives want to economically enslave you and Ultra Liberals want to legislatively control you. Both of these whacknuts are out of control and need to be shut down.

Putin, enjoys screwing with our government. He's always enjoyed the back and forth and he likes stirring up crap. There is nothing new about that. What is "new" is the fact that we now clearly understand that Trump, was definitely supported by the Russian hacking and subsequent exposure of DNC content. Regardless of how egregious the DNC content might have been or might not have been, it was still Hillary Clinton, who at the end of the day exposed herself as not having enough common sense to know that highly sensitive information about our government is not the domain of a personal mail server. So, she did that to herself.

None of the above about Hillary being of any consequence when it comes to Putin's behavior, the Russian hacking was a direct attack on the United States and its national election process. Yet, it was Trump, who benefited from the hack. It was Trump, not Putin, who stood the gain the most from the hack and that should be well understood by all.

 

Statements like that are useless if even that valuable. Relative spending is far higher today than it ever has been in the history of the country. And, by relative I mean actual impact spending that accounts for interest on the debt, not merely a meaningless face off comparison to GDP. Furthermore, GDP does not account for nor explains the continuing Wealth Gap, where continued deficit spending has a far more disproportionate "impact" on those who can barely afford to keep the lights on at the end of the month. One must also take into account the net/net effect of USD valuation both here at home and against the five other Major Currencies around the world as those currencies are the basis of transactional capacity in many other countries where the United States currently runs trade deficits.

So, this whole idea that we can take a simplistic approach to the claim that we spend less relative to GDP now than we did a decade ago leave much to be desired for the purpose of truly understanding just how wildly out of control our spending is right now. It is the Deficit Spending that is so wildly out of control. Sure, we are producing more in terms of national revenues. However, the United States Congress is spending more than it ever has as well.

Under Obama, the deficit actually shrank more than any other modern President. But, it was so wildly unbalanced to begin with that it still has us pinned to the wall in combination with national debt.

The Omnibus Shell Game must end. That would be one way for us to get on track. The other would be for the average American to start studying Economics beyond what they were never taught in Skool. Sorry, I meant to say Skule. Sorry, Scule. Sorry, Scool. Sorry.

 

I think it comes from state and local taxes. Electricity is funded by taxes? I also get a bill from the water company. If you think federal taxes pay for everything then you must be on welfare.

 

In general I agree with you but .. the odds of getting a 10% cut in total military spending - which accounts for roughly 25% of our 4 Trillion dollar annual spend is next to zero.

Social security - add another trillion that is off the table.

Medicare-medicaid - there is another trillion that is off the table.

On 4.1 Trillion in spending we pay roughtly 450 Billion in debt ( only half of this amount hits the spending as it is offset by interest earned on Social Security - stealing from the fund basically) So 4.1 Trillion - 200 billion interest = roughly 3.9 Trillion.

Subtract 3 Trillion (as per above) and we have 900 Billion available for cuts. Even if we could cut 10% of this - something we both know won't happen - that would amount to 90 Billion in savings.

A 4 Trillion dollar tax cut (over 10 years) = 400 Billion/ year. This results in a net 310 Billion dollar differential.

The current deficit is running around 500 billion/year. Add in the Trump tax cut and we will be running at around 810 Billion per year.

Trump claims that we will make up the difference in economic growth. I doubt it.

Reagan walked into a built in economic windfall as baby boomers hit their peak spending years.
Trump is walking into the reverse as baby boomers hit their low spending years.

In addition this demographic problem is rapidly wiping out the Social Security interest surplus. Hitting zero will remove 200 billion from the table and as the program goes into the red that number will increase.

In addition this demographic problem is rapidly increasing healthcare costs.

Let us not forget that deficit spending was massively increased under Reagan - which contributed to the boom. These deficits did not decrease (despite good economic growth mostly fueled by the demographic effect). Trump's proposed deficit increase is a fraction of the Reagan deficit increase and so at best, will only have a fraction of the economic effect.

 

You cannot cut the Federal budget deficit without strong economic growth.

You cannot have strong economic growth without a very pro growth tax code.

 

This is the claim you are making, in simple math terms:
1,000 x .05 = 50
1,000 x .04 = 40

However, humans are not that simple. They react to stimuli. If you give people more disposable income, they will spend more, and that will lead to additional economic activity that did not exist before. We know this by studying history, in every nation ever.

Therefore, what will really happen is something like this:
1,000 x .05 = 50
1,500 x .04 = 60

This has proven to be true over and over again throughout history. In the US, it happened under Kennedy, Reagan, and Bush 43. All three dramatically cut taxes, and in doing so grew the economic base, resulting in more revenue to the government.

 

Another heist, regular as clockwork.

https://theintercept.com/2017/01/05...ge-on-tax-cuts-trump-claims-will-create-jobs/

 

Government has a proper role to play, but if is half (or 2/3) of what it currently does.

 

many republicans only care about costs when it's the working class, then they say... how ya gonna pay for it

 

Well since all you seem to have is opinion and never data I'll just file this as more of your

 

What data do you need? When was the last time a Republican president actually reduced the deficit?

And now we have Trickledown 2.0: The Global heist incoming. I'm sure that will be revenue neutral...

Trump's Familiar Tax Plan That Would Add Trillions To The Debt

 

WOW

"But you still drive on the roads right?"
Yes

Had to laugh at this one, clearly a city boy LMAO
"Do you have public water and sewage or do you drink rain water and wash everything into the nearest "crick"?
I have a well that supplies WATER, and I have a sceptic tank and a leech field, and we don't have creeks we have streams with aquatic life in them like FISH LMAO!

"How about your local hospital, do you think all of its funding comes from private sources"
We have a county Hospital, yes! But last I read in the paper it was a few months away from faulting on their bond! We have a private hospital that doesn't except Obarrycare or medicare we use it as we carry BC/BS.

You really need to get out of the city man

 

Trump is going to increase the deficit.

nice

 

Except for the largest periods of rapid expansive economic progression when the government was growing increasingly larger... Reagan, Clinton, Obama... etc.

Trickle-down is just a right-wing pipedream whose sole purpose is to consolidate the entirety of the nation's wealth into the hands of a few.

 

Quite the fantasy you have.

Let's see the nuts and bolts of your "plan"

 

Well I guess we will find out in a decade right

 

I gonna hold him to the Obarry rule, as long as he keeps it under 10 trillion and has a few catchy "Blurbs" like, "I guess shove ready jobs weren't so shovel ready" then I'm good

 

Reagan's supply side economics and a military build up strengthened the economy in the 80's.

Clinton benefitted from what Reagan did, and the balanced budgets forced on him, and the tech boom.

Obama's economy limped along for eight years.

 

Can't cut the Federal budget deficit absent strong economic growth?

In 2016, the deficit was $560+ billion. That same fiscal year saw the national debt increase by almost $1.5 trillion. At the very same time the economy was growing at 1.6%, which was the weakest it had been since 2016's 3.5%. Yet, when GDP was running at 4.56% in 2010, the deficit had dropped from $1.413 trillion in 2009 down to $1.294 trillion in 2010, and has been dropping ever since - all with nothing that could be considered truly a "pro growth tax code" and what Republicans have been calling sluggish to slow economic growth during Obama's terms in office.

Can't have strong economic growth absent a very pro growth tax code?

We did not have what Republicans considered a pro-growth tax code during the same periods above, when the economy was producing enough to sustain the very same deficit reductions you just said were not possible. That's a bit of a contradiction. Both cannot be true at the same time.

Sources:
http://www.usgovernmentspending.com/us_federal_deficit.php
http://www.multpl.com/us-gdp-growth-rate/table/by-year
http://www.tradingeconomics.com/united-states/gdp-growth

 

It will likely be sooner than that. I'm guessing two years the light at the end of the Trump Tunnel will go dark.