- Sep 19, 2011
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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!!!
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!!!