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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsStudy Finds Trump Tax Cuts Failed to Do Anything But Give Rich People Money
The biggest effect of the Trump tax cuts is obvious: People who own businesses and other sources of concentrated wealth will have a lot more money, and the federal budget will have less. But the advocates of the tax cuts insisted it wasnt about letting the makers keep their hard-earned money rather than handing it over to the takers. It was about incentivizing business to repatriate funds and ramp up its investments, thereby increasing growth and wages.
The Congressional Research Service, a kind of in-house think tank for Congress, has a new paper analyzing the effects of the Trump tax cuts. It finds that none of those secondary effects have materialized. Growth has not increased above the pre-tax-cut trend. Neither have wages. After a brief and much smaller than expected bump, repatriated corporate cash from abroad has leveled off.
Its of course possible that the growth in wages would take longer than the year or so that has passed since the tax cut to show up. If the Trump tax cut had encouraged new business investment, it might take years for the new investment to bear fruit. But the study looks directly at business investment and finds
nothing:
Supporters of the Trump tax cuts insisted not only that they would promote growth, but that they would promote so much growth the measure would pay for itself. Even moderates like Susan Collins repeated assurances by the partys pseudo-economists that the plan would not increase the deficit. So far, the growth feedback from the tax cuts has made up about 5 percent of the plans revenue loss, a mere 95 percent shy of the predictions.
http://nymag.com/intelligencer/2019/05/study-trump-tax-cuts-failed-growth-investment.html
Wellstone ruled
(34,661 posts)Had this discussion with our Trumper Son in Law last week. BTW,this is one of those suckers who is into Bit Coin,Nuf Said. Funny thing,he was bitching about having to pay a few Grand Extra in Income Taxes this year. Being a Manufacturer's Rep and those Per Dieums are now counted as Income,well,Nuf said.
thegoose
(3,115 posts)What do you expect?
Wellstone ruled
(34,661 posts)get their reality Check damn soon. And it is not going to be pretty. Enuf!
panader0
(25,816 posts)I'm so poor that it doesn't affect me much, but we all knew this was
for the rich folks, just like W Bush's cuts.
How I wish the voters would smarten up.
The movement of money to the rich is epic.
I have two pitchforks.
It is very simple economics to know laissez faire, horse and sparrow theory, trickle down, supply side, etc are failures that lead to the rich getting richer and more monopolization.
Plus it has failed so many times going back to the Panic of 1893.
gtar100
(4,192 posts)and see that tax cuts for the wealthy *never* help anyone but the people who are already wealthy. Those offshore bank accounts have virtually unlimited capacity; that money will never trickle down upon them. Yet year after year after year they continually fall for the same story that tax cuts will make everything better.
The way republicans do tax cuts for workers is to lower the amount employers collect from employees, only to have the employees make up the difference when they file their tax returns. Call me cynical but that's just pure evil bullshit.
BigmanPigman
(51,623 posts)Dumber than dirt, in denial, vote against own best interests, stubborn, psycho, purposely ignorant, etc. All of the above!
TheFarseer
(9,323 posts)I dont like taxes! I want to keep MY money!
BigmanPigman
(51,623 posts)in 10 years and now they are paying for him and his family to live like kings....will they ever add two and two and get four? Doubt it.
TheFarseer
(9,323 posts)Because now they cant spend as much on welfare. Some of my friends are on food stamps but thats different. I just wish I was as smart as Trump so I could lose more money than any other human and get out of paying taxes and still ride around in a private jet and golf all day. See, hes smart. Going bankrupt 6 times is good business
JDC
(10,130 posts)That folder is getting pretty full
ooky
(8,926 posts)Cairycat
(1,706 posts)dlk
(11,575 posts)The GOP only exists to redistribute American wealth upward to the very top
MurrayDelph
(5,300 posts)of Noe, Schitt, and Sherloque.
blueinredohio
(6,797 posts)They could have just asked anyone who's not rich.
procon
(15,805 posts)GoCubsGo
(32,086 posts)It's pretty obvious to anyone who has been paying attention.