Republican Tax Philosophy

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CharminTide

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The Corporate Tax Cuts Will Be Permanent. But Your Tax Cut Will Disappear in 2025

Late Tuesday evening, Senate Republicans released a new version of their tax bill that makes their priorities abundantly clear. Under the newly-revised Tax Cuts and Jobs Act, individuals will lose essentially all of the benefits provided by the bill in 2026, while corporations get a massive, permanent cut. On top of that, about 13 million Americans would lose their health insurance because the bill now repeals Obamacare’s individual mandate.

The updated bill, which the Senate finance committee is expected to approve this week, cuts the corporate tax rate from 35 percent to 20 percent starting in 2019, while providing most individuals with temporary tax relief. If the individual cuts expire, a preliminary estimate from Ernie Tedeschi, a former Treasury Department economist, shows that 38 percent of taxpayers—including 50 percent of people making between $50,000 and $75,000—would pay more taxes in 2027. And that doesn’t include the fact that many Americans would be paying about 10 percent more for health care as a result of getting rid of the Obamacare mandate.

The House Just Voted to Bankrupt Graduate Students

Republicans in the House of Representatives have just passed a tax bill that would devastate graduate research in the United States. Hidden in the Tax Cuts and Jobs Act is a repeal of Section 117(d)(5) of the current tax code, a provision that is vital to all students who pursue master’s degrees or doctorates and are not independently wealthy.

I’m a graduate student at M.I.T., where I study the neurological basis of mental health disorders. My peers and I work between 40 and 80 hours a week as classroom teachers and laboratory researchers, and in return, our universities provide us with a tuition waiver for school. For M.I.T. students, this waiver keeps us from having to pay a bill of about $50,000 every year — a staggering amount, but one that is similar to the fees at many other colleges and universities. No money from the tuition waivers actually ends up in our pockets, so under Section 117(d)(5), it isn’t counted as taxable income.

But under the House’s tax bill, our waivers will be taxed. This means that M.I.T. graduate students would be responsible for paying taxes on an $80,000 annual salary, when we actually earn $33,000 a year. That’s an increase of our tax burden by at least $10,000 annually.

It would make meeting living expenses nearly impossible, barring all but the wealthiest students from pursuing a Ph.D. The law would also decimate American competitiveness.

NBC analysis: GOP tax plan could save Trump and his family more than $1 billion

Trump and his family could stand to save more than $1 billion under a tax proposal passed by House Republicans on Thursday, according to an analysis commissioned by NBC News. Most of the savings Trump and his heirs would see would come from the measure's repeal of the estate tax — the tax levied on property transferred to beneficiaries after an individual dies.

The analysis was based on Trump's estimated net worth and his 2005 tax return, the only such return made public thus far. It found that the president could save more than $20 million himself, while his heirs could save $1.1 billion.

Based on the analysis of Trump's 2005 return, the president would also save a considerable amount of money under the House bill's repeal of the Alternative Minimum Tax.

CBO: GOP tax bill would add $1.7 trillion to debt

The GOP’s tax bill would add $1.7 trillion to the national debt over the course of a decade, and increase the country’s debt-to-GDP ratio by 5.9 percentage points, according to the Congressional Budget Office.
 

bama_wayne1

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I really like the reduction in debt growth. 1.7 Trillion over a decade sure is better than the almost 8 trillion over the last one.
 

CharminTide

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I really like the reduction in debt growth. 1.7 Trillion over a decade sure is better than the almost 8 trillion over the last one.
No doubt the deficit ballooned at the end of the Bush years and beginning of Obama's first term. But it's since stabilized. The GOP plan represents an increase over the current outlook. Here's the CBO's 10-year projection from 2016:

 

92tide

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No doubt the deficit ballooned at the end of the Bush years and beginning of Obama's first term. But it's since stabilized. The GOP plan represents an increase over the current outlook. Here's the CBO's 10-year projection from 2016:

as mr cheney reminded us several times, when it comes to tax cuts for the wealthiest americans or military adventurism, deficits and debt don't matter.
 

2003TIDE

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If you are lucky enough to be one of the few people that isn't a millionaire and gets a tax break under this current plan, your taxes go up in 10 years anyway. So everyone taxes will go up.

The idea that cutting the corporate tax rates are going to boost employment or jumpstart the economy is laughable. The economy is already strong and unemployment is at a all time low.

The only thing companies will do is return any extra profit to shareholders. I guess that is good for everyone's 401k, but I'm still not sure they aren't going to raid that before I retire anyway.
 

CharminTide

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Those who fail to learn from the mistakes of others...

Oklahoma was a low-tax state even before the 2010 GOP wave crashed over it. But tea-party Republican governor Mary Fallin and her conservative allies weren’t content with the low baseline they’d inherited. Like President Trump and congressional Republicans, Fallin believed that cutting taxes on wealthy individuals and businesses was the way to grow an economy, no matter what level those taxes were currently at, or how novel circumstances might change the government’s budgetary needs.

So, when global oil prices crashed in 2014, and took Oklahoma’s budget down with them, Fallin was unfazed. Faced with giant, annual revenue shortfalls, the governor didn’t just refuse to raise taxes — she cut them even further. Last year, the Sooner State found itself with a $1.3 billion budget gap — and Fallin responded by implementing a $147 million tax cut for Oklahoma’s highest earners, and preserving a $470 million tax break for oil companies that start new horizontal wells.

Instead of asking wealthy citizens and businesses to pay a bit more (or, in the former case, to pay as much as they had been previously), Fallin decided strip resources from the state’s beleaguered public-school system. Between 2008 and 2015, Oklahoma had slashed its per-student education spending by 23.6 percent, more than any other state in the country. But Republicans felt there was still more fat to cut: While rich Sooners collected their tax breaks, Oklahoma schools suffered a 16.5 percent funding cut in the latter half of 2016. Many of the state’s school districts now make due with four-day weeks. Others struggle to find competent teachers, as the state’s refusal to pay competitive salaries has chased talented educators out of state or into other professions. Oklahoma’s health-care and criminal-justice systems are plagued by similarly draconian cuts. Bridges in the state are literally crumbling. Potholes litter roads.

But even this austerity has not been nearly enough to plug the state’s budget holes. Fallin and the GOP have become reliant on raiding emergency reserves to make up the rest.
Link
 

92tide

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If you are lucky enough to be one of the few people that isn't a millionaire and gets a tax break under this current plan, your taxes go up in 10 years anyway. So everyone taxes will go up.

The idea that cutting the corporate tax rates are going to boost employment or jumpstart the economy is laughable. The economy is already strong and unemployment is at a all time low.

The only thing companies will do is return any extra profit to shareholders. I guess that is good for everyone's 401k, but I'm still not sure they aren't going to raid that before I retire anyway.
and companies are already sitting on tons of cash, yet that hasn't trickled down either.
 

CharminTide

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Also, a tax break for golf course owners and takes healthcare away from 13 million people. Really MAGA stuff. You know something, something, the middle class and stuff.
Once you understand that, to the GOP, billionaires and corporations are the only Americans that matter, it's actually a pretty consistent philosophy.
 

Bodhisattva

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The only thing companies will do is return any extra profit to shareholders.
Or lower their prices.
Or raise salaries.
Or hire more employees.
Or invest in better technology.
Etc.

But, if you are so sure you know that only shareholders will benefit, then by all means be a shareholder. Take advantage of that superior knowledge. If you know that extra money is going to be there don't pass it up.
 

pcfixup

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Or lower their prices.
Or raise salaries.
Or hire more employees.
Or invest in better technology.
Etc.

But, if you are so sure you know that only shareholders will benefit, then by all means be a shareholder. Take advantage of that superior knowledge. If you know that extra money is going to be there don't pass it up.
Becoming an owner will be necessary to survive.
 

Bamaro

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Between 'trickle down' and 'starve the beast' the republicans really need to come up with something new. Hasn't worked before and wont work now.
 
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