President Rumpelstiltskin

[Thinker101]

The White House doesn’t have much good economic news to report these days, so sometimes it pretends that the straw it’s selling is really gold. That was the case Friday when President Biden and his economic advisers claimed that a $1.4 trillion budget deficit for fiscal 2022 was a great fiscal and economic success.

A few details conveniently omitted:
Biden didn’t stress that the biggest savings came not from spending restraint but from the expiration of pandemic emergency programs—some of which he wants to extend forever.

Biden also neglected to give any credit to the hard-pressed American taxpayers who kicked in an additional $850 billion in revenue in fiscal 2022.

Biden said “we’re starting to see some of the good news on the economy. Gas prices are down sharply in 46 of the 50 states because of what I’ve been doing. We’re moving in the right direction, and there’s more to come.” He didn’t say over what time period he is measuring that decline in gas prices, and that’s also understandable. It can’t be from the start of his Administration when the national average was $2.49 a gallon. It’s now $3.82.

Opinion | President Rumpelstiltskin

 

[Baron Von Murderpaws]

And obviously and "conveniently forgot" the 80 BILLION dollars printed and sent over to Zelenskyy for their little money laundering schemes.

And obviously did not take into consideration Americans having to pay 3-5 times MORE for food items, healthcare, and rent.

 

[johngaltshrugged]

The White House doesn’t have much good economic news to report these days, so sometimes it pretends that the straw it’s selling is really gold. That was the case Friday when President Biden and his economic advisers claimed that a $1.4 trillion budget deficit for fiscal 2022 was a great fiscal and economic success.

A few details conveniently omitted:
Biden didn’t stress that the biggest savings came not from spending restraint but from the expiration of pandemic emergency programs—some of which he wants to extend forever.

Biden also neglected to give any credit to the hard-pressed American taxpayers who kicked in an additional $850 billion in revenue in fiscal 2022.

Biden said “we’re starting to see some of the good news on the economy. Gas prices are down sharply in 46 of the 50 states because of what I’ve been doing. We’re moving in the right direction, and there’s more to come.” He didn’t say over what time period he is measuring that decline in gas prices, and that’s also understandable. It can’t be from the start of his Administration when the national average was $2.49 a gallon. It’s now $3.82.

Opinion | President Rumpelstiltskin

I thought he had nothing to do with fuel prices but now he claims credit?
Besides, prices are rising again, OPEC has cut production & told him to go have sex with himself.

Now cue the progbots to come on & tell us all what a great job the meat puppet dementia victim is doing despite what our eyes & bank accounts say

 

[two_iron]

Don't believe your empty wallet. Believe their stuttering bullshit.

I know, I know.... not one of them can form a coherent sentence, but that's part of the charm of being thrown into poverty.

 

[Maxdeath]

I always get a kick out of crazy people. We need to tax corporations more. But fail to see that means higher prices. Those that claim the president has no control over fuel prices then crow about him dropping prices.

 

[1srelluc]

I always get a kick out of crazy people. We need to tax corporations more. But fail to see that means higher prices. Those that claim the president has no control over fuel prices then crow about him dropping prices.

I've noticed that too.....Tater did that the other day.

 

[Winston]

The White House doesn’t have much good economic news to report these days, so sometimes it pretends that the straw it’s selling is really gold. That was the case Friday when President Biden and his economic advisers claimed that a $1.4 trillion budget deficit for fiscal 2022 was a great fiscal and economic success.

A few details conveniently omitted:
Biden didn’t stress that the biggest savings came not from spending restraint but from the expiration of pandemic emergency programs—some of which he wants to extend forever.

Biden also neglected to give any credit to the hard-pressed American taxpayers who kicked in an additional $850 billion in revenue in fiscal 2022.

Biden said “we’re starting to see some of the good news on the economy. Gas prices are down sharply in 46 of the 50 states because of what I’ve been doing. We’re moving in the right direction, and there’s more to come.” He didn’t say over what time period he is measuring that decline in gas prices, and that’s also understandable. It can’t be from the start of his Administration when the national average was $2.49 a gallon. It’s now $3.82.

Opinion | President Rumpelstiltskin

The WSJ is becoming a shit rag. I mean if Donald Trump would have ever got the deficit that low they would be screaming his praises for the first three pages. First,

the biggest savings came not from spending restraint but from the expiration of pandemic emergency programs—some of which he wants to extend forever.

That is correct, except I am not aware of any pandemic emergency programs anyone has proposed to extend forever. But what that means is that most of those dollars out there fueling inflation, THEY FLIPPIN CAME FROM THE TRUMP ADMINISTRATION. I mean it is down right STUPID to claim that passage of a bill that spends two trillion dollars over TEN FLIPPIN DAMN YEARS, suddenly spurred inflation. But then there is this,

Biden also neglected to give any credit to the hard-pressed American taxpayers who kicked in an additional $850 billion in revenue in fiscal 2022.

Oh my God, stop the presses. People paid more in taxes, CAUSE THEY MADE MORE DAMN MONEY. The economy is smoking hot right now because people are going back to work. And those that never left work and still got all that stimulus money, they are started to let go of some of it. I mean this ain't rocket science, it is common damn sense.

 

[Winston]

I always get a kick out of crazy people. We need to tax corporations more. But fail to see that means higher prices

It doesn't mean higher prices

http://oregonconsumerleague.org/wp-content/uploads/Side-by-Side-Shopping-Cart-Study.pdf

 

[Thinker101]

It doesn't mean higher prices

http://oregonconsumerleague.org/wp-content/uploads/Side-by-Side-Shopping-Cart-Study.pdf

So you're suggesting if corporate profit margins go down they should just suck it up? Guessing that logic holds true at your household, when inflation drives prices up you always buy the same quantity as before.

 

[Winston]

So you're suggesting if corporate profit margins go down they should just suck it up? Guessing that logic holds true at your household, when inflation drives prices up you always buy the same quantity as before.

Corporate tax changes to not effect the profit margin. Corporate taxes are ten percent. Your cost to produce and sell a product is fifty cents. You sell it for a dollar. Your profit margin is 100%. Now corporate taxes are eighty percent, cost to produce and sell stay the same, your selling price stays the same. What is the profit margin?

Now, per your example. I might not buy the same amount, but I will pay the same in income taxes.

 

[Thinker101]

Corporate tax changes to not effect the profit margin. Corporate taxes are ten percent. Your cost to produce and sell a product is fifty cents. You sell it for a dollar. Your profit margin is 100%. Now corporate taxes are eighty percent, cost to produce and sell stay the same, your selling price stays the same. What is the profit margin?

Now, per your example. I might not buy the same amount, but I will pay the same in income taxes.

Reviewing the Impact of Taxes on Economic Growth

 

[Winston]

Reviewing the Impact of Taxes on Economic Growth

The Tax Foundation? Seriously, they never found a tax cut they didn't like. "Not a reliable source" to quote Krugman. But just a few takeaways from the studies they listed,

Zidar, 2019

Additionally, some may go further and argue that this paper shows that tax cuts for top earners have no impact on growth

Great, let's increase the taxes on top earners, there is no impact on growth.

Ljungvist and Smolyansky.

They find that a 1 percentage-point cut in statutory corporate tax rates leads to a 0.2 percent increase in employment and a 0.3 percent increase in wages.

Not really impressed with those kinds of numbers and nothing as to the effect of a corporate tax increase.

Look, the internet is absolutely full of all kinds of articles concerning the effects of the corporate income tax. It is hard to sift through the bullshit so it is time to just lay out some facts that cannot be denied. First

The WACC is inversely related to the marginal tax rate.

WACC stands for weighted average cost of capital. Capital, from borrowed funds, costs more when tax rates are low. And the WACC is an important number for capital management. It is the number plugged into Monte Carlo stimulations that evaluate capital expenditures. When it is higher it lowers the number of acceptable investments.

And this is intuitive. If nothing else, the corporate tax rate is the "cost" of pulling money out of the business. As demonstrated, the corporate tax rate has no bearing whatsoever on profit margins. It only comes into play once a profit has been achieved. Then companies are faced with a decision. We have these profit dollars, we can take them out and pay the taxes, or we can reinvest them back into the business, maybe make some more pie. Taking it is done by paying dividends or buying back shares. Putting back in takes the form of increased salaries, additional capital investments, and research funding.

The results speak for themselves. The Trump corporate tax cut resulted in very little wage growth, no increase in capital investments, and a whole bunch of stock buybacks.

Itâs official: The Trump tax cuts were a bust

Lower taxes helped goose profits and stocks, but did little for jobs or the economy.

www.marketwatch.com

We need higher wages. We need more capital investments. We need more products in order to combat inflation. We need corporations to reinvest their profits, not cash out. The answer is clear, raise corporate income taxes, at least back to the original level before the Trump tax cut. Increase the cost of cashing out.

 

[Thinker101]

The Tax Foundation? Seriously, they never found a tax cut they didn't like. "Not a reliable source" to quote Krugman. But just a few takeaways from the studies they listed,

Zidar, 2019

Additionally, some may go further and argue that this paper shows that tax cuts for top earners have no impact on growth

Great, let's increase the taxes on top earners, there is no impact on growth.

Ljungvist and Smolyansky.

They find that a 1 percentage-point cut in statutory corporate tax rates leads to a 0.2 percent increase in employment and a 0.3 percent increase in wages.

Not really impressed with those kinds of numbers and nothing as to the effect of a corporate tax increase.

Look, the internet is absolutely full of all kinds of articles concerning the effects of the corporate income tax. It is hard to sift through the bullshit so it is time to just lay out some facts that cannot be denied. First

The WACC is inversely related to the marginal tax rate.

WACC stands for weighted average cost of capital. Capital, from borrowed funds, costs more when tax rates are low. And the WACC is an important number for capital management. It is the number plugged into Monte Carlo stimulations that evaluate capital expenditures. When it is higher it lowers the number of acceptable investments.

And this is intuitive. If nothing else, the corporate tax rate is the "cost" of pulling money out of the business. As demonstrated, the corporate tax rate has no bearing whatsoever on profit margins. It only comes into play once a profit has been achieved. Then companies are faced with a decision. We have these profit dollars, we can take them out and pay the taxes, or we can reinvest them back into the business, maybe make some more pie. Taking it is done by paying dividends or buying back shares. Putting back in takes the form of increased salaries, additional capital investments, and research funding.

The results speak for themselves. The Trump corporate tax cut resulted in very little wage growth, no increase in capital investments, and a whole bunch of stock buybacks.

Itâs official: The Trump tax cuts were a bust

Lower taxes helped goose profits and stocks, but did little for jobs or the economy.

www.marketwatch.com

We need higher wages. We need more capital investments. We need more products in order to combat inflation. We need corporations to reinvest their profits, not cash out. The answer is clear, raise corporate income taxes, at least back to the original level before the Trump tax cut. Increase the cost of cashing out.

Yep, best to rely on some lefty wacko site from Oregon.

 

[Winston]

Yep, best to rely on some lefty wacko site from Oregon.

You can bitch about the source all you want. But riddle me this, if corporate tax rates really do have a bearing on price, how come North Dakota doesn't have the most expensive prices and Oregon the cheapest?

 

[Dragonlady]

The White House doesn’t have much good economic news to report these days, so sometimes it pretends that the straw it’s selling is really gold. That was the case Friday when President Biden and his economic advisers claimed that a $1.4 trillion budget deficit for fiscal 2022 was a great fiscal and economic success.

A few details conveniently omitted:
Biden didn’t stress that the biggest savings came not from spending restraint but from the expiration of pandemic emergency programs—some of which he wants to extend forever.

Biden also neglected to give any credit to the hard-pressed American taxpayers who kicked in an additional $850 billion in revenue in fiscal 2022.

Biden said “we’re starting to see some of the good news on the economy. Gas prices are down sharply in 46 of the 50 states because of what I’ve been doing. We’re moving in the right direction, and there’s more to come.” He didn’t say over what time period he is measuring that decline in gas prices, and that’s also understandable. It can’t be from the start of his Administration when the national average was $2.49 a gallon. It’s now $3.82.

Opinion | President Rumpelstiltskin

Given the amount of the spending cut, if he pulls back too quickly, he'll plunge the nation into a recession.

The "hard pressed American taxpayers" all went back to work, thereby once again starting to pay taxes once again, instead of collecting benefits. You complained when they were at home, and now you're complaining that they're back at work. Talk about never happy.

You seem desperate to discredit Biden's accomplishments on the economy: full employment; deficit reduction, lower rates of disease and death from covid. Life in America returning to normal.

 

[Maxdeath]

It doesn't mean higher prices

http://oregonconsumerleague.org/wp-content/uploads/Side-by-Side-Shopping-Cart-Study.pdf

First off you seem to be under a few misconceptions.
one is most companies are not making large profits off of a single item they are selling millions at a very small profit margin.
Two to think that not only will a company be happy to see profit reduced by a higher tax but that share holders in companies will be happy to see their profits dwindle.
Third you seem to think that state and federal tax are one and the same.
Four that a company will increase prices because a state tax goes up is wrong. If they increase prices then people in other states will be put off and either stop buying the product all to get her or they will purchase less and buy the rest from the competition. The fact is that most companies are global any more. So a small loss in profits in one state is but a drop in the bucket. But you do it on a federal level and you are putting a big dent in profits and what is paid out to the shareholders.

 

[Thinker101]

Given the amount of the spending cut, if he pulls back too quickly, he'll plunge the nation into a recession.

The "hard pressed American taxpayers" all went back to work, thereby once again starting to pay taxes once again, instead of collecting benefits. You complained when they were at home, and now you're complaining that they're back at work. Talk about never happy.

You seem desperate to discredit Biden's accomplishments on the economy: full employment; deficit reduction, lower rates of disease and death from covid. Life in America returning to normal.

LOL, Biden's accomplishments!!! STFU you Canadian loon, do you even know where America is.

 

[Winston]

First off you seem to be under a few misconceptions.
one is most companies are not making large profits off of a single item they are selling millions at a very small profit margin.

That has nothing to do with anything.

Two to think that not only will a company be happy to see profit reduced by a higher tax but that share holders in companies will be happy to see their profits dwindle.

Again, profits have nothing to do with taxes. You pay taxes on profit. As to shareholders, most of the time those shareholders are looking for growth, not dividends. And corporations don't grow by paying out dividends or buying back stock.

Third you seem to think that state and federal tax are one and the same.
Four that a company will increase prices because a state tax goes up is wrong. If they increase prices then people in other states will be put off and either stop buying the product all to get her or they will purchase less and buy the rest from the competition. The fact is that most companies are global any more. So a small loss in profits in one state is but a drop in the bucket. But you do it on a federal level and you are putting a big dent in profits and what is paid out to the shareholders.
.

What about the other side of the equation. If a state lowers the corporate tax would not a company want to lower their prices and gain market share from neighboring states? Why does that not happen?

The reality of the matter is taxes don't have a damn thing to with profit, or cost of production for that matter. Taxes come off in the end. Furthermore, price is not related to cost, not by a long shot. If a company can sell out inventory at a fifty percent markup, and their cost drops, they are still going to sell that inventory at the current price. As I was told by the top executive at Procter and Gamble more than forty years ago. "Son, we charge whatever the hell we can get, cost isn't even part of the equation".

 

[Maxdeath]

That has nothing to do with anything.

Again, profits have nothing to do with taxes. You pay taxes on profit. As to shareholders, most of the time those shareholders are looking for growth, not dividends. And corporations don't grow by paying out dividends or buying back stock.

What about the other side of the equation. If a state lowers the corporate tax would not a company want to lower their prices and gain market share from neighboring states? Why does that not happen?

The reality of the matter is taxes don't have a damn thing to with profit, or cost of production for that matter. Taxes come off in the end. Furthermore, price is not related to cost, not by a long shot. If a company can sell out inventory at a fifty percent markup, and their cost drops, they are still going to sell that inventory at the current price. As I was told by the top executive at Procter and Gamble more than forty years ago. "Son, we charge whatever the hell we can get, cost isn't even part of the equation".

Profits have nothing to do with taxes? What then are you taxing? How many screws a toothpaste company has in the toothpaste making machine?
I have to laugh at your idea that profits are not responsible for growth. Where do you think that growth comes from? Companies grow because they are watered or do you think they do it by going broke? Companies grow because of profit. They turn that profit into growth. Taxes do have everything to do with profit. To put it in simple terms for you. If a small company makes a yearly profit of $1000.00 and you tax them $1100.00 at the end of the year how much profit have they made? How long can they sustain themselves on that business model? Where is their growth potential? If they raise their prices to cover the extra $100.00 needed to cover the taxes how much profit have they made? If they raise Their price to not only cover the taxes but make a profit then taxes go up because they made a profit.
Now imagine that there is another company that is more diversified and can more easily handle the tax burden. If they can sell the same product for a few cents less which company is going to make the most?
How do you think Walmart got to be so big? It was not by selling items at the same or higher prices then other stores.