GOP Tax Proposal To Hit MU Boosters

[rocket surgeon]

 honest question-

    if the decrease in the corp. tax rate from 35% to 20% becomes law, will that bring corp. money from overseas?  and if so, would that not affect the deficit?  some of the money coming back would be taxed at differing rates i believe.  there may be windows, incentives, etc. also, if this were to occur regardless, there will be a flood of money back circulation which should indirectly affect the deficit, no?

would have been really really nice to see the corp. rate be retroactive cuz daddy's got a sweet tooth tonight

[GGGG]

honest question-

    if the decrease in the corp. tax rate from 35% to 20% becomes law, will that bring corp. money from overseas?  and if so, would that not affect the deficit?  some of the money coming back would be taxed at differing rates i believe.  there may be windows, incentives, etc. also, if this were to occur regardless, there will be a flood of money back circulation which should indirectly affect the deficit, no?

would have been really really nice to see the corp. rate be retroactive cuz daddy's got a sweet tooth tonight

https://www.cnbc.com/2017/04/26/what-happened-the-last-time-companies-got-a-break-on-overseas-profits.html

"Back in 2004, Congress approved a plan to "repatriate" such overseas funds that companies could bring back home at a reduced rate.

The program was part of the American Jobs Creation Act. The hope then, as now, was that companies would shovel that money back into the economy in the form of investment and job creation.

It didn't quite work out that way.

Contrary to the intent, the benefits skewed toward a select few companies in a select few industries. Rather than use the money for hiring and capital purchases, companies plowed the cash into share buybacks and dividends, and many of the biggest beneficiaries actually cut American jobs in the years after the repatriation.

"While empirical evidence is clear that this provision resulted in a significant increase in repatriated earnings, empirical evidence is unable to show a corresponding increase in domestic investment or employment," the Congressional Research Service, Congress' nonpartisan think tank, said in a report.

The CRS cited a series of reports into the benefits of repatriation, with a common theme that the 2004 program was "an ineffective means of increasing economic growth."

[jesmu84]

https://www.cnbc.com/2017/04/26/what-happened-the-last-time-companies-got-a-break-on-overseas-profits.html

"Back in 2004, Congress approved a plan to "repatriate" such overseas funds that companies could bring back home at a reduced rate.

The program was part of the American Jobs Creation Act. The hope then, as now, was that companies would shovel that money back into the economy in the form of investment and job creation.

It didn't quite work out that way.

Contrary to the intent, the benefits skewed toward a select few companies in a select few industries. Rather than use the money for hiring and capital purchases, companies plowed the cash into share buybacks and dividends, and many of the biggest beneficiaries actually cut American jobs in the years after the repatriation.

"While empirical evidence is clear that this provision resulted in a significant increase in repatriated earnings, empirical evidence is unable to show a corresponding increase in domestic investment or employment," the Congressional Research Service, Congress' nonpartisan think tank, said in a report.

The CRS cited a series of reports into the benefits of repatriation, with a common theme that the 2004 program was "an ineffective means of increasing economic growth."

Corporations are not evil.  They do exactly what they are supposed to do - look out for their own self-interest.

But they're also rarely going to be benevolent.

I'm done being shocked when they are given a break by our government and turn around and stab those same people in the back.

[rocket surgeon]

Corporations are not evil.  They do exactly what they are supposed to do - look out for their own self-interest.

But they're also rarely going to be benevolent.

I'm done being shocked when they are given a break by our government and turn around and stab those same people in the back.

yes

they do sponsor A LOT of events that encourage a beneficence that would not otherwise happen.  yes, there is a tax benefit as well, but hey, ya gotta feed the beast, ein'er?

the government ain't no enemy of corporations and vicey versey.  with enemies like those...

[jesmu84]

It's a convenient talking point when you want to say no to something....otherwise it's just inconvenient.

I have little doubt that after this is passed, they'll do a about-face and claim they need to gut services (Medicare, etc) to try and control the deficit again.

[rocket surgeon]

I have little doubt that after this is passed, they'll do a about-face and claim they need to gut services (Medicare, etc) to try and control the deficit again.

  little doubt? really?

 who is they?  only if they hate their day job-one of the 3rd rails of politics.  but i'd love to see a little more
                         pragmatism and discipline(ok, excuse me while i catch my breath from laughing)

 

[MU82]

So much for the hard-line stance on not increasing deficit, eh?

One truth about American politics: Only the party out of power whines about increasing the deficit.

[rocket surgeon]

One truth about American politics: Only the party out of power whines about increasing the deficit.

i had to look twice to see if that was you MU.  you sure one of your kids ain't messing around on your computer? 

  funny thing, well not LOL funny, but have we ever made a payment off of our debt?  like we have to with ours?  i realize we can run an occasional deficit, but debt?  try not paying your taxes for a few years.  just ask mr. capone

[Jockey]

I have little doubt that after this is passed, they'll do a about-face and claim they need to gut services (Medicare, etc) to try and control the deficit again.

Completely correct, Jes. Except it won't be an "about-face". This has long been Ryan's goal. Medicare, Social Security, and Medicaid will be 1st on the chopping block.

Priority #1 is feeding the billionaire donors so that the $$$ keep flowing in. Those who use the government's social services are not handing money out to politicians, so ......

[jesmu84]

  little doubt? really?

 who is they?  only if they hate their day job-one of the 3rd rails of politics.  but i'd love to see a little more
                         pragmatism and discipline(ok, excuse me while i catch my breath from laughing)

....

https://twitter.com/washingtonpost/status/936658792904822784

[TSmith34, Inc.]

I have little doubt that after this is passed, they'll do a about-face and claim they need to gut services (Medicare, etc) to try and control the deficit again.

Rubio admitted it two days ago.

“I analyze this very differently than most,” Rubio told the crowd. “Many argue that you can’t cut taxes because it will drive up the deficit. But we have to do two things. We have to generate economic growth which generates revenue, while reducing spending. That will mean instituting structural changes to Social Security and Medicare for the future,” the senator said.

https://www.fa-mag.com/news/rubio--offset-tax-cuts-by-reducing-social-security--medicare-benefits-35928.html

[TSmith34, Inc.]

  funny thing, well not LOL funny, but have we ever made a payment off of our debt?  like we have to with ours?  i realize we can run an occasional deficit, but debt?  try not paying your taxes for a few years.  just ask mr. capone

It depends on which accounting rules you use, but Clinton kinda sorta did. 
http://www.politifact.com/truth-o-meter/statements/2010/sep/23/bill-clinton/bill-clinton-says-his-administration-paid-down-deb/

He did run a $236B budget surplus his final year in office. 
http://www.factcheck.org/2008/02/the-budget-and-deficit-under-clinton/
He did it by raising taxes (and pretty slow increases in spending), and contrary to Republican orthodoxy it didn't crash the economy.

Bush then cut taxes and blew up the deficit again.

[MU82]

i had to look twice to see if that was you MU.  you sure one of your kids ain't messing around on your computer? 

I don't understand this. Seriously.

Then again, I often don't know what you're saying.

[jesmu84]

Then there's this.
Maybe it needs to go in the Daily Dose of Doom Thread?


I’m a Depression historian. The GOP tax bill is straight out of 1929.

https://www.washingtonpost.com/news/posteverything/wp/2017/11/30/im-a-depression-historian-the-gop-tax-bill-is-straight-out-of-1929/?utm_term=.16d5fdb8b50a

I thought this was a good article.

It is pretty incredible how many times "trickle down" is tried and repeatedly fails to succeed

[GGGG]

Trickle down isn’t meant to succeed. It’s meant to be an excuse to cut the taxes of the upper class. I doubt most of the supporters of this plan truly think it will spur economic activity.

[brewcity77]

My wife's response was "well, this is exactly what everyone who wanted Trump voted for, might as well let them have it."

[Eldon]

I thought this was a good article.

It is pretty incredible how many times "trickle down" is tried and repeatedly fails to succeed

What was good about it?

[GooooMarquette]

My wife's response was "well, this is exactly what everyone who wanted Trump voted for, might as well let them have it."

I guess that's true.  In the long run though, it's gonna end up being a cold, hard slap in the face for the unemployed factory workers in the rust belt and coal miners in Appalachia....

[Vander Blue Man Group]

The passing of the bill and the circumstances it was passed under are shameful.

[jesmu84]

Don't forget these things that were snuck in the "tax plan":

-Life is considered to have begun at conception

-Churches can publicly endorse candidates

-Phd students must pay taxes on waived tuition

-ACA mandate pulled, 13 million people will lose insurance, premiums up 10%

[Hards Alumni]

I don't understand this. Seriously.

Then again, I often don't know what you're saying.

His assumption is that all liberals are the same.

[MU82]

Don't forget these things that were snuck in the "tax plan":

-Life is considered to have begun at conception

-Churches can publicly endorse candidates

-Phd students must pay taxes on waived tuition

-ACA mandate pulled, 13 million people will lose insurance, premiums up 10%

Yep. It's a con job that the Con Master will not just appreciate but celebrate. Hell, I'd celebrate if I were him, too. This tax scam added hundreds of millions to his coffers, if not billions.

It's still the Dems' fault, though, and I tell this to my most liberal friends all the time when they start whining.

All they had to do was come out to vote for their presidential candidate instead of bickering amongst themselves. If they got out the vote as they did in 2008 and 2012, or even if they simply voted for the Dem candidate instead of pouting that Bernie wasn't on the ballot and/or wasting votes on Stein, they would have saved America a lot of grief now. Maybe they learned a lesson for 2020 (though probably not), but even so, it will be very difficult to get this genie back in the bottle.

[TSmith34, Inc.]

Kim Jong Un Fears That G.O.P. Tax Bill Makes His Plan to Destroy U.S. Redundant

PYONGYANG (The Borowitz Report)—Kim Jong Un is concerned that his long-standing plan to destroy the United States has been made totally irrelevant by the Republican tax bill moving through the Senate, a source close to the North Korean dictator said on Friday.

The source, who spoke on the condition of anonymity, said that Kim fears that his scheme to turn the United States into an uninhabitable hellhole has been to a large extent upstaged by a similar proposal from congressional Republicans.

“You have to understand, destroying America is something that Kim and his family have been plotting for decades,” the source said. “To see the Republicans swoop in at the last second and basically steal that idea—it’s got to hurt.”

According to the source, Kim has been watching C-span non-stop, praying that the Republicans’ plan to end life as Americans know it might come undone at the last moment, but he is “not getting his hopes up.”

https://www.newyorker.com/humor/borowitz-report/kim-jong-un-fears-that-gop-tax-bill-makes-his-plan-to-destroy-us-redundant