Trump's Tax Plan

[regent]

Won't be long before Trump announces, if elected, "no-taxes for anybody." I'm going to hold out a little longer because it won't be long before Trump promises that if elected every one will get 40 acres and a mule. Sounds like America is on its way.

 

[sealybobo]

So, what you're saying is that Japan, China, the UK, Germany, France etc bought our debt out of the goodness of their heart and they can never cash in the Treasury notes they bought?

No, I said you haven't a clue what you're talking about.

T-bills can't be redeemed on demand. They have a specified maturation date, no greater than six months. When someone buys a Treasury Bill, they have only two options: 1) Wait for it to mature to collect the matured amount, or 2) Sell it to someone else, who will collect the matured amount. Now, the moment that those puppies mature, you can bet your bottom dollar that China et al are redeeming them. They don't let them just sit and serve as an interest free cash loan to the US. As you point out, they're not buying them out of the goodness of their hearts.

So, your contention is absolutely bogus. Even if China were sitting on $1 trillion of T-bills at any given moment, they could not simply redeem them on a moment's notice just to engage in a tit-for-tat over tariffs.

Furthermore, the contention that they would change their investment behaviors in order to engage in a tit-for-tat over tariffs is itself ridiculous on its face. Again, I point out your own contention that they do not engage in these investment behaviors out of the goodness of their hearts. These are investment decisions, and they are made for the sole purpose of enhancing their own welfare and wealth. Investing in US debt is an exceptionally solid and safe investment, with a very strong return potential. When you can get an 8% APR with virtually zero risk involved, I dare anyone to back away from that.

So, the Chinese will simply let us slap a tariff on their imports, and do nothing. Nice of them.

Meanwhile back in the real world, they will use every tool in their arsenal to keep the trade balance favorable for themselves. I know they will threaten it at the very least. Given our market-based economy and that the stock market rises or falls based on confidence/worry as much as any other factor...how far do you think the market would drop if China threatened to stop sponsoring our debt (or Japan or India or X Country)?

We saw what happened last week when there were whiffs of recession in China. Can't wait until they start playing hardball.

This is the immaturity of the Trump position coupled with the idiocy of the Trump supporters. Don't you think that our leaders would have done this by now if they could have done it in a worry free, cost free, way?

Thomas Friedman wrote about it in The Lexus and the Olive Tree. And it isn't only currency at stake that would lead to inflation and our interest rates rising. I doubt if we start placing tariffs on Japan, they'll be okay with our military bases remaining there.

Good then we have one less military base to pay for.

 

[TyroneSlothrop]

 

[TyroneSlothrop]

I'm harboring a seething, white-hot burning loathing of republicans right now...better light up...

 

[TyroneSlothrop]

T-Rump dump

 

[TyroneSlothrop]

The Planned Parenthood videos are not meant to inform...they are meant to create an emotional reaction to make it seem as though not hating Planned Parenthood is immoral...

 

[candycorn]

If you all don't like trumps plan or Bernie's, who do you like?

Don't know if you saw my post on it....there sounds like there is some good stuff in the plan. I'd be interested to see what the projected revenues would be if the plan were implemented tomorrow. From what I have seen of plans like this in the past; they often assume that the economy will be growing by a % it is currently not or some other hypothetical. Do you know the numbers and how they compare to 2015 outlays?

 

[candycorn]

So, what you're saying is that Japan, China, the UK, Germany, France etc bought our debt out of the goodness of their heart and they can never cash in the Treasury notes they bought?

No, I said you haven't a clue what you're talking about.

T-bills can't be redeemed on demand. They have a specified maturation date, no greater than six months. When someone buys a Treasury Bill, they have only two options: 1) Wait for it to mature to collect the matured amount, or 2) Sell it to someone else, who will collect the matured amount. Now, the moment that those puppies mature, you can bet your bottom dollar that China et al are redeeming them. They don't let them just sit and serve as an interest free cash loan to the US. As you point out, they're not buying them out of the goodness of their hearts.

So, your contention is absolutely bogus. Even if China were sitting on $1 trillion of T-bills at any given moment, they could not simply redeem them on a moment's notice just to engage in a tit-for-tat over tariffs.

Furthermore, the contention that they would change their investment behaviors in order to engage in a tit-for-tat over tariffs is itself ridiculous on its face. Again, I point out your own contention that they do not engage in these investment behaviors out of the goodness of their hearts. These are investment decisions, and they are made for the sole purpose of enhancing their own welfare and wealth. Investing in US debt is an exceptionally solid and safe investment, with a very strong return potential. When you can get an 8% APR with virtually zero risk involved, I dare anyone to back away from that.

So, the Chinese will simply let us slap a tariff on their imports, and do nothing. Nice of them.

Meanwhile back in the real world, they will use every tool in their arsenal to keep the trade balance favorable for themselves. I know they will threaten it at the very least. Given our market-based economy and that the stock market rises or falls based on confidence/worry as much as any other factor...how far do you think the market would drop if China threatened to stop sponsoring our debt (or Japan or India or X Country)?

We saw what happened last week when there were whiffs of recession in China. Can't wait until they start playing hardball.

This is the immaturity of the Trump position coupled with the idiocy of the Trump supporters. Don't you think that our leaders would have done this by now if they could have done it in a worry free, cost free, way?

Thomas Friedman wrote about it in The Lexus and the Olive Tree. And it isn't only currency at stake that would lead to inflation and our interest rates rising. I doubt if we start placing tariffs on Japan, they'll be okay with our military bases remaining there.

Good then we have one less military base to pay for.

Child please.

 

[bendog]

Trump Plan Cuts Taxes for Millions

Under the Trump plan, no federal income tax would be levied against individuals earning less than $25,000 and married couples earning less than $50,000. The Trump campaign estimates that would reduce taxes to zero for 31 million households that currently pay at least some income tax. The highest individual income-tax rate would be 25%, compared with the current 39.6% rate.

To pay for the proposed tax benefits, the Trump plan would eliminate or reduce deductions and loopholes to high-income taxpayers, and would curb some deductions and other breaks for middle-class taxpayers by capping the level of individual deductions, a politically dicey proposition.

I hate it when specifics are not given. What deductions and "loopholes" would be eliminated? This is the most important thing to know about any tax plan in order to determine the total effect on taxpayers and revenues.

Mr. Trump also would end the “carried interest” tax break, which allows many investment-fund managers to pay lower taxes on much of their compensation.

Eliminating the carried interest tax break will probably only bring in an extra two billion dollars a year.

A significant revenue gain would come from a one-time tax on overseas profits that could encourage U.S. multinational corporations to return an estimated $2.1 trillion in cash now sitting offshore, largely to avoid U.S. taxes. His proposal would impose a mandatory 10% tax on all of that money

A one-time gain.

Mr. Trump also would impose an immediate tax on overseas earnings of American corporations; currently, such tax payments can be deferred.

All told, the campaign says the plan would be revenue neutral—neither raising nor lowering federal revenues—by the third year and then begin adding revenue.

On the individual side, Mr. Trump would consolidate the current seven rates to four, of 0%, 10%, 20% and 25%. Those changes alone would exempt all married couples making $50,000 or less from the income tax, as well as singles making $25,000 or less.

The 10% bracket would apply to incomes from $50,000 to $100,000 for a married couple; the current 10% bracket has a ceiling of $18,450. The new 25% top bracket would apply to married couples’ incomes in excess of $300,000, which currently are subject to rates as high as 39.6%. Mr. Trump also would cut the top capital gains rate to 20%, from the current 23.8%. And he would eliminate the alternative minimum tax.

Discuss.

for what it's worth, I saw this

Donald Trump's $10.8 Trillion Tax Cut | CTJReports

And this
Don’t believe the hype. Donald Trump wants massive tax cuts for the rich.

 

[sealybobo]

If you all don't like trumps plan or Bernie's, who do you like?

Don't know if you saw my post on it....there sounds like there is some good stuff in the plan. I'd be interested to see what the projected revenues would be if the plan were implemented tomorrow. From what I have seen of plans like this in the past; they often assume that the economy will be growing by a % it is currently not or some other hypothetical. Do you know the numbers and how they compare to 2015 outlays?

Everyone's attacking trumps tax plan. I'm thinking this is one thing he will have to bend on. Maybe cut taxes on middle class but don't lower corporate taxes. They're already low enough.