I just don't see the logic behind it. Say a middle-class business saves $10,000 do to the new tax reform. That would be awesome! But guess what? As part of "simplifying the tax code", many expenses are not deductible anymore. For example, entertainment expenses are no longer 50% deductible. Let's just say conservatively for a company that amounts to $3,000 a year. Savings are now down to $7,000. What do you think that business owner is going to do with the rest of the money? Give out raises or bonuses? Maybe, but not likely. Depending on the size of the company that raise/bonus may deplete the rest of those savings. More likely is the owner of that business is pocketing that $7,000 and placing it into his bank account or savings where he/she MAY buy something in the future. This is an enormous tax-cut....where do you think the money is coming from to get this budget even close to balancing? I understand the thought behind trickle-down economics, but I don't think it's going to apply or have a large enough impact to spur the growth needed to make up for this cut.
Let us get to the simple logic. The US had the second, maybe third highest business tax in the world. Then look at the list of US companies that have moved elsewhere. The list is very long, and then look at those that remain but no longer manufacture here. Now if your hypothetical company owner takes his saving of $7000 and stays here because it is not worth it to relocate operations, then we win. Year after year. When he spends the $7000, we win some more. If we also stop flooding the labor force with more people than we can employ, then wages will be force up and workers win. When this same owner gets sick of the high payroll, and automates the shit out of his company, we win, or some of our countrymen do, because the business was here to automate. More wins.
You invalidate your post by contradiction alone. Those of us that voted for him will do so again in 2020. Odds are that he is a two term President.
This is not the result of taxes, primarily. This is the result of lower labor costs elsewhere. Except that then the wage disparity is even bigger, so the owner is more likely to offshore his company. Automation equipment can be imported or exported. It's a win if the automation equipment is made here, not so much if it is installed here. barfo
Gosh barf! I think you are getting it! Multiple factors involved, but only if you have the business here. You have to keep up.
If Trump is a two term president, it will have nothing to do with him being a good president. As he's had over a year, and I've yet to see anything different from the previous administrations. It will be for a couple reasons. 1. The opposition party puts up another candidate like Clinton... Or even Clinton herself again. 2. Both parties continue with the one-ups man ship. Which forces young people to tune out, as we have zero interest in playing 'whos more corrupt'. Some people have figured out how to keep young people from showing up to elections, and the last election both parties did a prime job of it. They've also figured out young people would rather make a difference in their immediate communities. Than deal with adults acting like children.
I respect your opinion, and agree with much. Where I differ is that the administration, by design, has perused a far different path than we were traveling down. The success that this has brought about to this point should continue through his first term if he continues in the same direction. In my opinion, that should be what earns him the next election. Of course, if the Dems promote some clown, it would be a given.
Bonuses suck. Tell that to the MILLIONS of people getting them. In the meantime, Walmart (and many other companies) have raised wages, directly tied to the new tax law. Walmart raised the starting pay of all hourly workers to $11/hour and for full time workers to ~$14.50. Starbucks announced pay raises yesterday. JP Morgan Chase raised the pay by 10% for its tellers/customer service/reps/frontline workers. FedEx today committed $3.2 BILLION to hiking worker pay and funding additionally to the workers' pension plan. Companies like Apple and Verizon are giving employees stock, which is an asset that should grow over time. Trickle down government clearly failed. All it did was run up massive debts and discourage people from working. I'd rather have a nation of well paid workers than one of people living off food stamps. I did not vote for Trump. I voted for Gary Johnson.
Walmart successfully gutted small business in Eugene that had thrived downtown and ..turned it into a ghost town for the locals once they opened the first one on the outskirts of the downtown area....I'm not a fan of the Walmart plan. Corvalis protected their small business community by not allowing Walmart in.
Hey, Denny, We know that you did not vote for The Donald. If things continue, would you consider voting for him based upon policy?
