What you economic illiterates don't comprehend!

Discussion in 'Politics' started by healthmyths, Nov 10, 2017.

  1. healthmyths
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    healthmyths Gold Member Supporting Member

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    Part of the tax reform is reducing corporate taxes to 20%.
    Many of you truly economic illiterates don't understand the gigantic economic benefit of this one single change.
    A new report finds that around the world the extremely wealthy have accumulated at least $21 trillion in secretive offshore accounts. Super Rich Hide $21 Trillion Offshore, Study Says

    So if the USA by lowering corporate taxes is able to repatriate just 10% or $2 trillion back to the USA what would be
    the effect?
    Let's assume of the $2 trillion it breaks down this way:
    $1 trillion is re-invested in the stock market, bank accounts US treasuries you name it.
    Leaves $1 trillion.
    Let's assume then $500 billion is used to hire people for 10 years at $50,000 per year.
    Well as most of the economic illiterates don't know, an employer pays an equal % for SS/Medicare 6.2%
    So let's add to the $50,000 another $3,000 and round up to $60,000 for benefits,SS/Medicare,etc.
    That means of the $500 billion divided by 10 years $50 billion a year or divided by $60,000 or total of 800,000 jobs.
    That $50 billion in payroll means in Federal taxes: 12.4% SS/Medicare/income taxes: $18.7 billion to Federal govt.
    Now the multiplier effect comes in to play:http://www2.econ.iastate.edu/research/webpapers/paper_13143.pdf
    "Every $1 million spent is multiplied by 1.18 or $50 billion spent by employees: $60 billion back into the GDP.
    Now this is JUST from hiring 800,000 people for 10 years.
    Net gains therefore to the Federal government:

    $187 billion in tax revenue alone in 10 years.
    GDP increasing over $600 billion in 10 years.

    AND this is just from 1/4th left of the $2 trillion repatriated.

    Now if you economic illiterates want some further validation for what this means from the other 3/4ths of
    the $2 trillion repatriated please ask as it gets EVEN better i.e. the multiplier EFFECT!!!

    Prove me wrong .... PLEASE!!!
     
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  2. NightFox
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    NightFox Wildling

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    How is that possible when all you've provided is assumptions based on hypotheticals?

    We don't even know what the final GOP tax "reform" legislation will look like, let alone what the provisions (if any) for corporate profit repatriation will be, then you're citing an article talking about wealthy individuals and them repatriating overseas money, which is a whole new can of worms that hasn't even been opened in the tax reform debate (yet).
     
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  3. Kondor3
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    Kondor3 Cafeteria Centrist

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    Trickle-Down is dead, as a marketable political strategy... long-since discredited... been there... done that... no sale.

    ---------------------

    It's time to spank corporations which shift their assets and operations offshore, yet continue to do business in the United States.

    We can start with canceling and denying government contracts to those corporations who continue to do so after fair warning.

    And, we can stop giving tax-breaks to the rich, arranged by their Red Minions in Congress.
     
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    Last edited: Nov 10, 2017
  4. Dekster
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    Dekster Gold Member

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    Offshore money would be used to pay dividends which would drive up the price of other investments but never trickle down. Apple is not starving for money and is not constrained by taxes. They do what they do because they can. If they wanted to expand, they already would have.

    There is no public benefit to cutting corporate rates, only public cost of increased federal debt.
     
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  5. WinterBorn
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    WinterBorn Gold Member

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    All corporate tax is a game of smoke & mirrors. Raising the corporate tax gives the politician something to brag about to his constituents. But they should know he is not doing anything to help them.

    Taxes paid by any business are considered part of the cost of doing business. If the costs rise so do the prices. No sane business owner will take less profit out of the goodness of his heart.

    So any taxes on corporations and businesses is passed on to the customer. Corporations do not pay taxes. Their customers do.

    Now look at what international corporations have said about a consumption tax (ie, the Fair Tax).
     
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  6. Toro
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    Toro Diamond Member

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    We need to lower corporate taxes. They are too high. 20% seems like a good number.
     
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  7. Meathead
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    Meathead Gold Member

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    In truth, taxes are essentially a success penalty.
     
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  8. NightFox
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    NightFox Wildling

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    Nobody is trying to sell you anything, the GOP doesn't give a damn what you think about their tax reform package since it's clear you're not going to support 'em no matter what they do, they're out to please their base, their corporate & special interest masters and a plurality of the folks in the middle.

    That's the problem with being a one-trick "we oppose everything you do no matter what" political opposition, eventually the other side stops giving a fuck what you think, do or say and so does everybody else.

    It's odd though since a lot of the stupid bullshit that the GOP has proposed so far in their tax "reform" packages looks awfully similar to what the Democrats espouse, might have something to do with Cohn being an integral part of it's development.....
     
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  9. antontoo
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    antontoo Gold Member

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    Effective rate is around 18% avg. with all the write offs.

    With this this give away it will be around 10% - too damn low.
     
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  10. healthmyths
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    healthmyths Gold Member Supporting Member

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    PROOF??? Not one shred of PROOF!
    Now here is the Federal budget deficits from Carter ON and you idiots don't seem to comprehend that the negative steps that Carter/Clinton/Obama took AFTER the economy had been righted by Reagan/ Bush and now Trump is what you idiots complain about "trickle down being dead"!
    YOU DUMMIES have NO idea of what happens when the economy LIKE a gigantic oil tanker takes TIME to turn around!
    So too with Carter. He created 21% prime borrowing ...16% US treasuries in 1980s! Carter created unemployment wasn't felt till 10.4% under Reagan which he had to fix!
    You economic dummies seem to forget that the ship of state and economy takes time to damage and then time to correct!
    Obama signed 40% fewer Federal oil leases then Bush but you idiots don't know that and that is the one direct affect on gas prices.
    - "I prefer higher gas prices". (And how did it go about doing that? Obama signed 40% fewer Federal oil lease exploration then Bush).
    - Obama tells "Brazil to develop oil and so that the USA will be DEPENDENT on foreign oil....will be their best customer"!
    - "Under my plan of a cap and trade system, electricity rates would necessarily skyrocket."
    According to a research paper from Frost and Sullivan, 60-70 percent of new car leads will come from a digital platform by 2020. It can be tempting to disregard the idea of digitization affecting auto sales, but the reality is that no industry is immune from being affected by digitization (even the grocery industry!) – and 2020 is approaching quickly. As of February 2017, Frost and Sullivan estimates that 65% of car purchases start on a smart phone, and over 90% of buyers go online to perform research. By the year 2022, Frost and Sullivan estimates that over 70% of all new car leads will originate online.
    If You Think 70% of Your New Car Leads Coming From the Digital Space is Outrageous, Then Read This - CarsDirect Connect

    natldebtpresidentsObama.png
     
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