Trump's Tax Plan

[zoogs]

No.

[TGHusker]

4 minutes ago, BigRedBuster said:

 

A serious question.

 

I'm wondering if there is a way to cut corporate taxes that would guarantee the cut would go to raising wages of the lower paid employees.

tie it to payroll taxes

[BigRedBuster]

19 minutes ago, zoogs said:

No.

 

Wow,.....that’s thinking outside the box. 

[zoogs]

If I answered "no" to "I wonder if there is a way to improve health outcomes for the impoverished by removing healthcare guarantees", would that be similarly not thinking outside the box?

 

Cutting corporate taxes does not lead to wage increases. This should guide policy directions as long as the actual goal is wage increases for workers, and not cutting corporate taxes first and then trying to finagle a way to make that palatable.

[BigRedBuster]

4 minutes ago, zoogs said:

If I answered "no" to "I wonder if there is a way to improve health outcomes for the impoverished by removing healthcare guarantees", would that be similarly not thinking outside the box?

 

Cutting corporate taxes does not lead to wage increases. This should guide policy directions as long as the actual goal is wage increases for workers, and not cutting corporate taxes first and then trying to finagle a way to make that palatable.

 

Thanks gor proving you didn’t understand my question. 

[zoogs]

What's your question, and why do you dismiss "no" as an answer?

[BigRedBuster]

59 minutes ago, zoogs said:

What's your question, and why do you dismiss "no" as an answer?

Because it proves you only thought about your preconceived notion that corporate tax cuts are horrible and never ever can be done in a way to ever benefit the employees.

 

Just because something hasn't been done before, doesn't mean it can't be looked at differently.  

 

Your political views on the subject is no different than a Republican instantly saying NO to gun control even though there might be gun regulations that are reasonable beneficial to everyone....even gun owners.

 

The question was, is there a way to cut corporate taxes and make sure it goes to increasing wages?  You instantly shut off your brain from even conceiving an option that might accomplish that due to a paradigm.

[zoogs]

I guess I now return to my initial response, and await your "out of box" thinking on this matter in the face of old-fashioned "empiricism".

 

"Minds shut off to the idea of gun control stopping gun violence" is a strangely backwards analogy to draw here. 

 

This feels similar to "there must be SOME way other than single payer". What it reveals is a strong a priori preference and the desire to insist that this preference can be validated. Corporate tax cuts can do a number of things, but guaranteeing that the cuts go to lowest-earning employees' wages is not one of them.

 

 

[RedDenver]

2 hours ago, BigRedBuster said:

 

A serious question.

 

I'm wondering if there is a way to cut corporate taxes that would guarantee the cut would go to raising wages of the lower paid employees.

Tie it to the minimum wage? I'm not sure how to write a law to do that though.

[Danny Bateman]

Here's the Economist's take.

 

Will corporate tax cuts boost workers’ wages?

 

A: Maybe, but probably not a whole lot. The WH relied on a pretty flawed analysis in their projection their cuts would lead to an extra $4-9K in wages per household. 

 

Maybe it's possible to significantly boost worker wages by cutting corporate taxes. But it would likely need to be coupled with other government regulation elsewhere, which given the Republican party's current mantra of blanket deregulation, seems unrealistic. Furthermore, if raising middle class wages is the real goal they want to accomplish, all the plans so far seem to be pretty poor at accomplishing that goal. 

I don't think that is their goal. 

[Danny Bateman]

Again, I'm not knowledgeable guy about taxes whatsoever - but just to the layperson, this seems like a really stupid way to do tax "reform" if you want to help wages/workers.

 

 

Edited November 15, 2017 by dudeguyy

[NM11046]

Shocker - it's crap for the bottom 99% of people.  Make your voices heard folks!

 

 

[TGHusker]

Sen Johnson opposing the tax bill because it unfairly priortizes corporations over 'pass through' entities like sole proprietorships, partnerships. LLCs

 

Since it is the smaller companies that hire the bulk of the workers, I think the tax break would have a greater affect being extended to the smaller pass through companies.  It is there that I would think it would be passed on through higher wages or expansion of businesses.   Big corp will use it in other ways and most likely not pass it through to workers. 

Workers with expanded incomes will have more money to spend and drive the economy more.   The Trickle Up option of economic growth I guess.

 

https://www.wsj.com/articles/republican-sen-ron-johnson-opposes-gop-senate-tax-package-1510777290

 

In addition to his concern about the details of the Republican proposal, he also complained about a process that he said has been closed to his input and also misleads the public about the nature of the tax overhaul.

“I don’t like that process,” Mr. Johnson said. “I find it pretty offensive, personally.”

Mr. Johnson said Republican plans prioritize corporations over “pass-through” entities—sole proprietorships, partnerships, limited liability companies and S Corporations—whose owners pay taxes through individual returns and at individual income-tax rates, rather than corporate rates. The Senate plan, like the House plan, proposes to cut the corporate rate from 35% to 20%.

Top rates for pass-through filers would remain over 30% in the Senate version of the bill and the House bill substantially constrains how much pass-through income could be taxed at a new 25% rate.

 

The Senate bill would provide $1.3 trillion in gross tax rate cuts to corporations, according to the Joint Committee on Taxation. That compares with $362 billion in gross tax cuts for pass-through entities. Both types of businesses also would lose some tax breaks.

More companies are organized as pass-through businesses than as corporations. Many pass-through filers are small businesses. Overall U.S. business income is split roughly evenly between the pass-through businesses and corporate income.

“I have no problems in making all American businesses competitive globally,” Mr. Johnson said. “This isn’t anti-big corporation at all. When you’re going to do a tax reform, you have to treat them equitably so they can maintain their competitive position here at home as we’re making them competitive globally.”

Finding the right rate for pass-through businesses is a challenge in part because they file their tax returns as individual filers. Cutting the rates for the wealthiest pass-through filers could be tagged as a giveaway to the rich. More than half of pass-through business income goes to the top 1% of households, according to the Tax Policy Center.

Mr. Johnson said many small-business owners he speaks with think they will receive a new top tax rate of 25%. That was the goal laid out months ago by Republican leaders and it is in the House bill, but narrowly constrained to a small portion of pass-through income.

“That is still buffaloing people, pass-throughs that think they’re getting a 25% rate,” Mr. Johnson said. “It’s still lost on a lot of people.”

Mr. Johnson said he has been working at this issue for months and trying to get a hearing for his ideas, only to be rebuffed at every turn by his party leaders. He said he has repeatedly sought a hearing from leaders of the Senate Finance Committee and the House Ways and Means Committee and spoken to high-level officials in the Trump administration.

 

[QMany]

 

[BigRedBuster]