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Those following "tax reform" or better described as tax cuts know that the GOP and our President are selling the bill as a big boost for the middle class and reform that would drive tremendous economic growth. Trump has gone as far as to claim that he will personally pay much more under the plan and that his wealthy friends are not happy with him. GOP Senators and House members are claiming that the middle class will see savings near $2k on average.
It's a big fat lie.
First, let's look at what some CEOs are saying about tax cuts and what their plans are for investment.
https://www.washingtonpost.com/news...doing-what-hed-expect/?utm_term=.389a909865b2
Out of a group of CEOs only a handful raised their hands when asked if they will utilize tax cuts on capital expenditures. Not the result Cohn was looking for (embarrassing).
Here is a piece that illustrates many CEOs intend to repurchase shares of stock or distribute to shareholders.
https://www.accountingtoday.com/art...mises-undercut-by-ceo-plans-to-help-investors
Are there companies that will hire and invest in equipment? Yes. As a result of tax cuts? Very unlikely that is a significant number of companies.
Here are the distributive effects of the plan put out by the JCT:
https://www.cbpp.org/research/feder...-bill-skewed-to-top-hurts-many-low-and-middle
Yesterday Senators talked about adding a tax trigger which is not reflected since details have been withheld from the public, but that would only eliminate any of the economic benefits the GOP is claiming would be gained from the bill. It will be interesting to see who's taxes will go up as a result of the trigger.
From that piece analysis shows that many after-tax incomes for middle and low income earners will actually rise by 2021, and many more by 2027 due to sunsets of certain tax benefits and the way the brackets are now indexed (change made in bill).
Naturally incomes at the top brackets see the biggest gains which continue to be enjoyed after taxes rise on regular folks. The idea that this is a middle class cut is the biggest lie of all.
Finally, let's also acknowledge these guys ninja added repeal of the individual mandate to offset cuts. CBO analysis shows that many young healthy folks will forgo insurance, raising prices on people who want insurance and pricing out many people as well. There is some analysis that shows the tax savings is overstated by the GOP, but stay tuned if you're into this stuff.
There is a lot more analysis that backs up the small amount of stuff shared here and there is a lot of fault in this bill. But the big thing to know is the GOP is fucking lying about the effects of their plan, people know it and it's unpopular and they don't give a shit. Satisfying donors through a regressive plan that distributes wealth upwards is the only goal and they think you're too dumb to know the difference.
It's also worth mentioning the process is the GOP is going through to pass this thing is completely incompetent. This bill is enormous and far reaching. It will touch every individual and every business and have a large impact on healthcare. To do this in 6 weeks is completely absurd. Experts with large complicated models cannot run them fast enough to keep up the changes, never mind deeply understand the impacts this will have on our economy.
A vote is coming up so we need a thread on this! Discuss!
It's a big fat lie.
First, let's look at what some CEOs are saying about tax cuts and what their plans are for investment.
https://www.washingtonpost.com/news...doing-what-hed-expect/?utm_term=.389a909865b2
Out of a group of CEOs only a handful raised their hands when asked if they will utilize tax cuts on capital expenditures. Not the result Cohn was looking for (embarrassing).
Here is a piece that illustrates many CEOs intend to repurchase shares of stock or distribute to shareholders.
https://www.accountingtoday.com/art...mises-undercut-by-ceo-plans-to-help-investors
Are there companies that will hire and invest in equipment? Yes. As a result of tax cuts? Very unlikely that is a significant number of companies.
Here are the distributive effects of the plan put out by the JCT:
https://www.cbpp.org/research/feder...-bill-skewed-to-top-hurts-many-low-and-middle
Yesterday Senators talked about adding a tax trigger which is not reflected since details have been withheld from the public, but that would only eliminate any of the economic benefits the GOP is claiming would be gained from the bill. It will be interesting to see who's taxes will go up as a result of the trigger.
From that piece analysis shows that many after-tax incomes for middle and low income earners will actually rise by 2021, and many more by 2027 due to sunsets of certain tax benefits and the way the brackets are now indexed (change made in bill).
Naturally incomes at the top brackets see the biggest gains which continue to be enjoyed after taxes rise on regular folks. The idea that this is a middle class cut is the biggest lie of all.
Finally, let's also acknowledge these guys ninja added repeal of the individual mandate to offset cuts. CBO analysis shows that many young healthy folks will forgo insurance, raising prices on people who want insurance and pricing out many people as well. There is some analysis that shows the tax savings is overstated by the GOP, but stay tuned if you're into this stuff.
There is a lot more analysis that backs up the small amount of stuff shared here and there is a lot of fault in this bill. But the big thing to know is the GOP is fucking lying about the effects of their plan, people know it and it's unpopular and they don't give a shit. Satisfying donors through a regressive plan that distributes wealth upwards is the only goal and they think you're too dumb to know the difference.
It's also worth mentioning the process is the GOP is going through to pass this thing is completely incompetent. This bill is enormous and far reaching. It will touch every individual and every business and have a large impact on healthcare. To do this in 6 weeks is completely absurd. Experts with large complicated models cannot run them fast enough to keep up the changes, never mind deeply understand the impacts this will have on our economy.
A vote is coming up so we need a thread on this! Discuss!
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