The Trump administration's $1.5 trillion cut tax package appeared to have no major impact on businesses' capital investment or hiring plans, according to a survey released a year after the biggest overhaul of the U.S. tax code in more than 30 years.
RT @JesseCharlesLee: When Obama spent $800B to stave off another Great Depression and spark the longest job growth streak in history, Republicans treated it the like the Alamo.
When Trump spent $2T to reward donors with no significant effect on the economy whatsoever, they lined up around the block. https://t.co/wsY6Fys1QQ
This article follows a survey by the National Association of Business Economics’ (NABE), on what companies in the US intend to do with the tax cuts that have been passed by the Trump administration. The findings show that contrary to the assertions of the Trump administration, most companies do not intend to invest in capital expenses.
That's because the idea that tax cuts promote capital investment and job creation is a myth. Businesses create enough facilities and hire enough people to handle the amount of business they're doing. That's all. They don't build more factories or hire more people because their taxes got cut. They do it because they're doing more business, or expect to soon.
What does an increase in business mean? It means customers spending more money. That's what creates jobs. Customers spending more money makes businesses hire more employees to handle the amount of business they're doing.
If you want to stimulate consumer spending, give tax cuts to consumers who are likely to spend 100% of that tax cut, not to wealthy people whose spending habits will be unaffected.
>If you want to stimulate consumer spending, give tax cuts to consumers who are likely to spend 100% of that tax cut, not to wealthy people whose spending habits will be unaffected.
This is both absolutely true and far far too complex for the rich and their lapdogs in government to understand.
If you aren't giving money DIRECTLY to to them, you are just wasting it on the poors.
Where I work they sent out emails in one week that went: “No more OT, We aren’t hiring new people to help with workload, and we are buying back $600M of our own stock. Also no cost of living adjustments”
No! What they did with that windfall is mostly buybacks of their stocks, nothing meaningful came out of it! With that being said considering how these companies showed the American people that their only agenda was to further enrich themselves, then they should be good with the new green deal that’s about to happen..
You mean like mine? I got nice big tax break last year on my rental properties. It came to $6000. Woo hoo! thanks, Trump! Do you know how many jobs I created with that money? NONE! Not even one, and I didn't pay any raises either. I just got a tax break, and raised some people's rent, and now I'm richer than ever! Yay Trump. Do you know what I am doing with that money? It's sitting in cash, waiting for a big market crash so I can scoop up some equity bargains. Whooee, it's great to be rich. It's all benefit for me, and it's all suffering for everybody else.
Disclaimer: the above story is completely true, except the part about being happy about it. I feed people every weekend and support the community in a personal effort to give it back. I did not need a tax break this year and I am disgusted that I got this windfall when Americans are hungry.
Okay, you are right. I checked with the accountant. The $6000 is what the tax break was worth last year. It is worth slightly more than that to me this year and this year I will actually be getting it. My husband handles this and I feel slightly dumb for not noticing which year the benefit applied to, but it just goes to show you, this kind of money means NOTHING to rich people. Specifically, it meant nothing at all to me. It's just numbers on a page to me. My life did not change at all except for a feeling of guilt at living well while others in my community were suffering. So I help, every weekend.
I have both a personal return and a business return. I have a lot of accounts, and a good accountant who know exactly how much I am coming out ahead. He sent me a statement last year and he already has the information for this year. But it doesn't matter what I, personally, am paying in taxes. Who cares about a single example.
The problem with the new tax law is, it redistributed wealth from the lower earners to the higher earners in an unfair way. America did not benefit from the new tax law. Only rich people benefited, and they did not share that benefit with anybody except each other.
The Republican tax break stole our nation's wealth away from the people and gave it to rich greedy billionaires who stash it in offshore accounts.
We the People hate that. We the People elected a new congress to do something about it. So far, We the People have not been disappointed by Nancy Pelosi's performance. Hopefully, she can reverse the tragic idiocy that the Republicans foisted on us in this tax bill, and I'd be fine if we tax the hell out of the rich next year to make up for the tax revenue we are missing this year. Sounds fair to me, and let's make it permanent.
An idiot believes the last 8 years of 100 Million plus Americans o unemployed was good for America.
After Five Years Of Obamanomics, A Record 100 Million Americans Not Working
"Do you still claim that 95.5 million Americans are unemployed?"
No, under Trump we have the lowest unemployment since 1969, the lowest black and Hispanic unemployment in history.
INVESTORS BUSINESS DAILY
Thanks To Tax Cuts, Companies' Overseas Profits Now Flooding Back To U.S.
All told, the Bureau of Economic Analysis (BEA) reported, some $305.6 billion returned to the U.S. from overseas accounts. That's a $1.2 trillion annual rate, and far more than the $35 billion one year before.
The BEA's analysts explain why this happened: "The large magnitudes (of inward capital flows) ... reflect the repatriation of accumulated earnings by foreign affiliates of U.S. multinational enterprises and their parent companies in the United States in response to the 2017 Tax Cuts and Jobs Act."
>When Obama let there were over 100 Million Americans unemployed .
Did you claim this to be true?
>"Do you still claim that 95.5 million Americans are unemployed?"
>No, under Trump we have the lowest unemployment since 1969, the lowest black and Hispanic unemployment in history.
>INVESTORS BUSINESS DAILY
>Thanks To Tax Cuts, Companies' Overseas Profits Now Flooding Back To U.S.
>All told, the Bureau of Economic Analysis (BEA) reported, some $305.6 billion returned to the U.S. from overseas accounts. That's a $1.2 trillion annual rate, and far more than the $35 billion one year before.
>The BEA's analysts explain why this happened: "The large magnitudes (of inward capital flows) ... reflect the repatriation of accumulated earnings by foreign affiliates of U.S. multinational enterprises and their parent companies in the United States in response to the 2017 Tax Cuts and Jobs Act."
What does this have to do with you previous claim?
Tax cuts and jobs act was supposed to raise wages, which rose 1% over inflation rates. As for the so called "repatriated" capital, that is a pile of cash that was stashed abroad in order to not pay taxes on it, and once taxes were lowered sufficiently enough, corporations started bring it back into the country, that doesn't mean that anybody other than shareholders will benefit.
"> Tax cuts and jobs act was supposed to raise wages,"
No, the tax cuts were to bring back millions of jobs , expand and re tool corporations to rep up US production and they have. Employment raises the standard of living from the Obama unemployed to employed. It takes Americans off the government welfare and allows them to step up onto the capitalist ladder. There are now more job opportunity than people. This allows the worker to leave the lower paying job and pick a higher paying job. This is what capitalism is all about. The freedom to chose.
Giving up? You cant tax companies that don't exist here. You cant tax people that don't have any money. We gave it up when we raised taxes so all the job providers moved off shore. NAFTA and GAT. All of our manufacturing , the auto industry left. When you get rid of all the job providers, you have no place to go to work!
The lowering of corprorate taxes is what is causing them to all come back. Just ask Jeep.
You have to understand the economic activity is the engine that pays into and for all of the social programs. It funds everything. Trump brought back the economic engines. Something the last four Globalist Progressive presidents refused to do.
I feel bad for you, if you really believe in what you are saying. Trump did not repeal NAFTA, nor did he create millions of jobs. The employment growth is a continuation of the trend from Obama administration. Deficit under Trump administration has grown 116$ billion, or 168 billion if you account for shift in some payments, larger than previous year, so much for being fiscally conservative. The tax cuts have only gaven corporations more money to give back to their shareholders through stock buy backs. And the supposed increase in tax revenue has only amounted to 1%, in other words lower than GDP growth, so much for trickle down effect.
Of course... that is what congress’s own modelling said it would. But it did not matter.
As an outsider i just don’t understand how anyone outside the top 10% of wealth holders would vote for the republicans. The party of watergate, Iran contra and the Iraq war and yet people are surprised they elected Trump and continue to lie!
I don't know the percentage of people but I've seen countless comments over the years that single issue voters who hate that abortion is legal, primarily vote (R) because the party promises that it will fight that fight for them.
They’ve become the party of single issue voters.
The anti choice crowd votes to overturn Roe.
The gun fetishists vote to broaden the second amendment.
The ultra wealthy vote for tax cuts.
Fossil Fuel workers vote for their jobs.
Racists vote to screw over brown folks.
The working poor vote to fuck over peioke who can’t work.
Trumpists vote to own the libs.
That’s the coalition they’ve built.
Because they turned capitalism into a religion so the poor Republicans think it's "the right thing to do" to give massive tax cuts to the wealthy while they continue to pick away at the poor and middle class.
Company I work for said they were going to use the tax cut money on annual bonuses for employees. Ended up being a shitty year that they blamed on China tariffs and they spent most of the money on overseas expansion.
I'm pretty sure that was specific to Disneyland not Disney.
And that was due to increased pressure from local activists because Orange County has a homelessness crisis so bad that even full employed people can't afford to live. There were hundreds of Disneyland employees who were homeless or living in their cars.
Personally - California's housing crisis is our own personal hell and the solution isn't a higher minimum wage. That will be completely eradicated by higher rents. We don't have enough housing and we must build more before we talk about a wage hike in CA. If there is a severe shortage of housing in CA than any wage hikes will simply result in higher rents as people fight each other for the few units that are available.
> Personally - California's housing crisis is our own personal hell and the solution isn't a higher minimum wage.
Wrong. The minimum wage in any area should be MORE THAN enough to live on and feed a family.
Landlords increasing rents should be faced with the ability of people to buy instead of rent.
That requires that people make enough from a single job to be able to buy a house.
> In my Inaugural I laid down the simple proposition that nobody is going to starve in this country. It seems to me to be equally plain that no business which depends for existence on paying less than living wages to its workers has any right to continue in this country. By "business" I mean the whole of commerce as well as the whole of industry; by workers I mean all workers, the white collar class as well as the men in overalls; and by living wages I mean more than a bare subsistence level-I mean the wages of decent living.
>Throughout industry, the change from starvation wages and starvation employment to living wages and sustained employment can, in large part, be made by an industrial covenant to which all employers shall subscribe. It is greatly to their interest to do this because decent living, widely spread among our 125, 000,000 people, eventually means the opening up to industry of the richest market which the world has known. It is the only way to utilize the so-called excess capacity of our industrial plants. This is the principle that makes this one of the most important laws that ever has come from Congress because, before the passage of this Act, no such industrial covenant was possible.
Just because employers are greedy and not properly taxed on that greed does not make their actions right.
The problem is the market for housing in California is broken.
Prop 13 makes it so that nobody ever wants to sell their homes and municipalities have prevented developers from building medium, high or mixed density in the name of neighborhood character.
Disneyland's minimum annual salary for a full time employee could be $1 million bucks and a unicorn and a 2 bedroom apartment would cost $400,000 & the horn. It is impossible for a living minimum wage to exist when there is such an extreme shortage of housing - the price for housing isn't and should not be controlled by some central planner and therefore it is dictated by the market - real people bidding for units.
It's Economics 101. Supply & Demand. Government Regulations are fucking over California. This is not on the employers.
I'm not familiar with their specifics, but I'm guessing the majority of their employees are in California? where the minimum wage is $15.65 in the city I work in already, and I think will be increasing yearly to be at least $15.00 statewide in the next year or 2 anyways. They're just barely staying above or ahead of the law.
I literally received a 1 cent raise at one of my jobs and nothing at the other, which also cut my hours. I was actually pissed off more about the one cent than the cut. One fucking lousey penny the same year they had record, billion dollar earnings.
Wow. You mean, experts have been right for decades? I cannot believe this. So, nothing trickled down? Just, wow... Only the rich benefitted from this tax cut? Who would've thought? What a crazy world we live in...