While conservative think tanks are promising workers a few bucks per week in “relief” a few years down the line, corporations could walk away with just over 1.5 trillion dollars in tax cut profits over the next decade.
Yes, they may. But by bringing that point to the forefront, you’re either lying about the point to corporate tax reform, or you’re not aware of why it was enacted.
The US had at, or close to, the highest corporate tax rate in the world. Since money flows to where it can be used the most efficiently, this caused (for decades!) a net movement of jobs and investment overseas, as the information revolution made it easier and easier to manage remote operations. That resulted in a dearth of middle class jobs, with a heavy hit on the manufacturing sector.
It should be pointed out that this had been going on for about 50 years, and nobody did shit about it. Not Republican, not Democrat. So let’s not try to spin this as a partisan issue. It was a bipartisan atrocity.
The obvious solution was to lower the corporate tax rate, which is why Mr. Obama first suggested it. Mr. Obama had a higher tax rate than the Trump bill, but otherwise was similar in structure. It also would have caused a net increase in corporate profits, just not as large.
It is nonsensical to argue that Mr. Obama’s package was “good”, and Mr. Trump’s was “bad”, simply because there was seven percentage points difference in the bill’s corporate marginal rates. This is again an example of how economically, there is very little difference between the policies of the two political parties; the politicos and media get us worked up over minor differences.
At any rate: the goal of corporate tax reform was to decrease the pressure on US corporations to move production overseas. Yes, SOME large corporations made out like bandits (not all, by any means) but that’s a small price to pay for more good jobs for the middle class.
How does that work? Two ways. First, the multinationals now have incentive to leave workload in the US, and in some cases, to repatriate that workload. We’ve seen some of that occur already.
Second, and more importantly, it was small business (where most jobs are created) that were getting screwed the most by those high income tax rates. So, instead of wetting your pants because some (again, not all) large corporations are getting a windfall, you should be happy that the small business person now has more money to expand and add jobs.
That’s money that should be going toward healthcare and education and infrastructure, but which will instead pay out to shareholders and CEOs.
Hm. Education and most infrastructure and paid by your local taxes. Same with most healthcare. But let’s not digress.
The shareholders who are getting payouts are us, and the CEO’s really don’t get any of it (they’re already maxed out legally). So, the Treasury will recoup a load of that money from us, when we pay our own personal income taxes. So it’s all good.
And remember, Trump’s promises that those corporate profits will trickle down to you in the form of higher wages haven’t come true so far.
Just to be clear, you’re kind of lying. Well, not kind of. Here are Heritage’s findings:
ONE: The average American household can expect about $26,000 more in take-home pay over the next 10 years thanks to the tax reform that Congress passed last year.
That’s about 4.75%. Not bad.
TWO: Since tax reform passed, more than 600 companies have announced more jobs, more bonuses, higher wages, charitable giving, and new investments in the U.S.
That’s all good.
THREE. If the tax cuts are made permanent, our estimates suggest take-home pay after 2025 would be about 1 percent higher.
What Heritage is referring to here is an ADDITIONAL 1% over the 4.75% above. So, think in terms of (quick math) an additional $550 a year.
Sounds bigger when you actually calculate the total, eh?
At some point, this stops becoming a scam and starts becoming outright robbery.
Nah. Here’s the newest scam artist. She spouts slogans without knowing what they mean, and trumpets about social infrastructure she has no idea what the cost of is.