Why don’t republicans seem to understand the consequences of tax cuts?

[LeftofLeft]

As noted above in other responses, Reagan, Bush II, and Trump all had tax cuts that led to record or milestone net gains at the Treasury in those years. Why and how? Because the income earners at all levels kept more of their paychecks and were able to spend more on goods and services which the Treasury captured in consumption taxes. Liberals and Democrats know this but they don’t like it because they don’t get their class warfare angle nor do they get to take money “upfront” with payroll taxes.

 

[Godboy]

And Reagan was right, because he was one of the biggest, if not the biggest, culprits.
Until Trump came a long and took his title.

Ah, the ole "yer a poopy pants" technique. No need to present any facts to support your claim, just make a claim and you instantly win!!! BRILLIANT!!!.

 

[Smokin' OP]

The consequences are that we end up making more money because it encourages investment. When are you democrats goign to understand that? When are you democrats EVER going to understand anything about economics? Your party has done nothing but fail at economics for my entire life.

That's only because it's a LIE.
That's what republicans have claimed since Reagan, who lied.

April 4 2019
Companies in the S&P 500 spent $806 billion on stock buybacks in 2018, blowing away the previous record of nearly $590 billion set in 2007. The information technology and financial service sectors were the biggest spenders, with Apple leading the pack. When share prices plunged in the fourth quarter it only encouraged companies to spend more, setting a fourth consecutive quarterly record for buybacks.

On February 10, 2016, Carrier Air Conditioner, a division of United Technologies, announced that it was moving its manufacturing operations to Mexico.
The practice has come under scrutiny by members of Congress, who criticized companies for using their extra tax benefits to boost the value of their own shares instead of investing in outside growth or their workers.

Shortly after becoming President-elect, Trump and Vice-President elect Mike Pence announced a deal with Carrier to keep some of the manufacturing jobs in Indiana, while others would still move to Mexico, in exchange for large tax credits granted to the corporation.

May 23 2019

Recent evidence suggests that workers aren't getting much benefit from 2017's corporate tax cuts, and Harley-Davidson (HOG) looks like a prime example of employees getting left out in the cold.

The Republican tax law slashed the corporate rate to 21 percent from 35 percent, leading proponents to contend companies would use the windfall to increase their investments in labor or business expansions. That playbook isn't panning out so far.

After getting its taxes lowered, Harley-Davidson has announced a plant closing with the loss of 800 jobs, and it's buying back hundreds of millions of dollars worth of its outstanding shares.

The Wisconsin motorcycle manufacturer illustrates a pattern across Corporate America since tax cuts were enacted: Companies and shareholders profit, but workers see little gain.

 

[Smokin' OP]

Ah, the ole "yer a poopy pants" technique. No need to present any facts to support your claim, just make a claim and you instantly win!!! BRILLIANT!!!.

The presidency of Ronald Reagan in the United States was marked by numerous scandals, resulting in the investigation, indictment, or conviction of over 138 administration officials, the largest number for any president in American history.

Savings and loan crisis in which 747 institutions failed and had to be rescued with $160 billion in taxpayer dollars.
Reagan's "elimination of loopholes" in the tax code included the elimination of the "passive loss" provisions that subsidized rental housing.
Because this was removed retroactively, it bankrupted many real estate developments which used this tax break as a premise, which in turn bankrupted 747 Savings and Loans, many of whom were operating more or less as banks, thus requiring the Federal Deposit Insurance Corporation to cover their debts and losses with taxpayer money.
This with some other "deregulation" policies, ultimately led to the largest political and financial scandal in U.S. history to that date, the savings and loan crisis.
The ultimate cost of the crisis is estimated to have totaled around $150 billion, about $125 billion of which was directly subsidized by the U.S. government, which further increased the large budget deficits of the early 1990s.

 

[Flash]

It’s a pretty basic concept. If spending is not adequately cut and taxes are cut (something republicans do), this means that there is less revenue to pay for spending. If bewilders me how republicans think you can cut taxes and think it doesn’t have consequences. We know it has consequences because the deficit blew up under Trump.

Donald Trump Built a National Debt So Big (Even Before the Pandemic) That It’ll Weigh Down the Economy for Years

Oh and news flash: trickle down economics is not a real thing. Why would corporations bother investing in labor when it is easier for them to just keep the huge amount of money they save from tax cuts? After all their profits are already at an all time high.

United States Corporate Profits

Corporate Profits in the United States increased to 2803.20 USD Billion in the fourth quarter of 2023 from 2697.93 USD Billion in the third quarter of 2023. This page provides the latest reported value for - United States Corporate Profits - plus previous releases, historical high and low...

tradingeconomics.com

Why don't you stupid Libtards understand how destructive enormous bloated debt ridden high taxation government is to our economy?

Instead of raising taxes how about lowering spending?

Do you idiots ever think that is the much better fiscal responsible thing to do?

I don't think you morons ever considered that because you are capable of thinking.

 

[LeftofLeft]

It’s bad enough that Liberals only want to talk elimination of tax cuts yet never elimination of spending programs; yet they make it worse when they ignore the positive impact of tax cuts and record net gains to the Treasury that helps pay for Liberals’ egregious spending programs.

 

[Flash]

Only an idiot Libtard thinks it is better for some bureaucrat, whose boss is a Politician elected by special interest groups, to spend the money they earn than it is for them to spend it themselves.

Yea, Libtards are that confused.

 

[Smokin' OP]

Why don't you stupid Libtards understand how destructive enormous bloated debt ridden high taxation government is to our economy?

Instead of raising taxes how about lowering spending?

Do you idiots ever think that is the much better fiscal responsible thing to do?

I don't think you morons ever considered that because you are capable of thinking.

Where was this rhetoric during the Trump term?
No, republican's only come out of their coma, when a democrat is president.

 

[Godboy]

That's only because it's a LIE.
That's what republicans have claimed since Reagan, who lied.

April 4 2019
Companies in the S&P 500 spent $806 billion on stock buybacks in 2018, blowing away the previous record of nearly $590 billion set in 2007. The information technology and financial service sectors were the biggest spenders, with Apple leading the pack. When share prices plunged in the fourth quarter it only encouraged companies to spend more, setting a fourth consecutive quarterly record for buybacks.

On February 10, 2016, Carrier Air Conditioner, a division of United Technologies, announced that it was moving its manufacturing operations to Mexico.
The practice has come under scrutiny by members of Congress, who criticized companies for using their extra tax benefits to boost the value of their own shares instead of investing in outside growth or their workers.

Shortly after becoming President-elect, Trump and Vice-President elect Mike Pence announced a deal with Carrier to keep some of the manufacturing jobs in Indiana, while others would still move to Mexico, in exchange for large tax credits granted to the corporation.

May 23 2019

Recent evidence suggests that workers aren't getting much benefit from 2017's corporate tax cuts, and Harley-Davidson (HOG) looks like a prime example of employees getting left out in the cold.

The Republican tax law slashed the corporate rate to 21 percent from 35 percent, leading proponents to contend companies would use the windfall to increase their investments in labor or business expansions. That playbook isn't panning out so far.

After getting its taxes lowered, Harley-Davidson has announced a plant closing with the loss of 800 jobs, and it's buying back hundreds of millions of dollars worth of its outstanding shares.

The Wisconsin motorcycle manufacturer illustrates a pattern across Corporate America since tax cuts were enacted: Companies and shareholders profit, but workers see little gain.

Oh, you have an article? Well i guess that erases decades of economic theory.

 

[Godboy]

The presidency of Ronald Reagan in the United States was marked by numerous scandals, resulting in the investigation, indictment, or conviction of over 138 administration officials, the largest number for any president in American history.

Savings and loan crisis in which 747 institutions failed and had to be rescued with $160 billion in taxpayer dollars.
Reagan's "elimination of loopholes" in the tax code included the elimination of the "passive loss" provisions that subsidized rental housing.
Because this was removed retroactively, it bankrupted many real estate developments which used this tax break as a premise, which in turn bankrupted 747 Savings and Loans, many of whom were operating more or less as banks, thus requiring the Federal Deposit Insurance Corporation to cover their debts and losses with taxpayer money.
This with some other "deregulation" policies, ultimately led to the largest political and financial scandal in U.S. history to that date, the savings and loan crisis.
The ultimate cost of the crisis is estimated to have totaled around $150 billion, about $125 billion of which was directly subsidized by the U.S. government, which further increased the large budget deficits of the early 1990s.

You should have just stuck with "poopy pants". Way less words to type, yet still just as ineffective as that post.

 

[Flash]

Where was this rhetoric during the Trump term?
No, republican's only come out of their coma, when a democrat is president.

As far as debt goes it is bad no matter who does it.

That is the reason I voted for Ron Paul in several elections instead of RINOs that are almost as fiscally irresponsible as the goddamn Democrats.

There is no such thing as two political parties in the US. It is just one party. The party of Big Government. The Democrats are the bat shit crazy branch and the Republicans are the moderate branch. They both are disastrous.

 

[Cellblock2429]

It’s a pretty basic concept. If spending is not adequately cut and taxes are cut (something republicans do), this means that there is less revenue to pay for spending. If bewilders me how republicans think you can cut taxes and think it doesn’t have consequences. We know it has consequences because the deficit blew up under Trump.

Donald Trump Built a National Debt So Big (Even Before the Pandemic) That It’ll Weigh Down the Economy for Years

Oh and news flash: trickle down economics is not a real thing. Why would corporations bother investing in labor when it is easier for them to just keep the huge amount of money they save from tax cuts? After all their profits are already at an all time high.

United States Corporate Profits

Corporate Profits in the United States increased to 2803.20 USD Billion in the fourth quarter of 2023 from 2697.93 USD Billion in the third quarter of 2023. This page provides the latest reported value for - United States Corporate Profits - plus previous releases, historical high and low...

tradingeconomics.com

/----/ The consequence of tax cuts is people get to keep more of their hard-earned money. Why can't democRATs understand that? Why can't Congress live within its means? Don't spend more than you take in. Why can't you understand that concept?

​

 

[LordBrownTrout]

Why not just chop out 20 percent of govt and lower taxes for everyone. How about the govt does without the excesses and actually budgets the money coming in from working people instead of blasting it all out on worthless social programs and war.

 

[Smokin' OP]

Oh, you have an article? Well i guess that erases decades of economic theory.

Decades of lies, about an economic theory.
Republicans clinging to that thinking one day it will lower the deficit or even the debt.

October 27 2008
Several months before the 2016 election, Trump pledged he would be able to eliminate the national debt – then around $19 trillion – “over a period of eight years.”

On Trump's first day in office (Jan. 20, 2017), the total U.S. debt stood at $19.95 trillion, up from the 11.9 trillion when Barack Obama was sworn in eight years earlier. As of Oct. 14, the debt under Trump had mushroomed to $27.1 trillion.

 

[Smokin' OP]

You should have just stuck with "poopy pants". Way less words to type, yet still just as ineffective as that post.

That's because, just like everything your dear leader does or say's, republicans ignore it, like it never happened.

 

[Dekster]

so how is there more revenue now than there was before?

Stimulus. $2.3T is a lot of extra cash being injected over a very short window.

 

[DGS49]

Democrats' attempts at managing the economy are hampered by a few unfortunate facts:

• Few of them have ever had a real job or run a company, so they have no clue how the private-sector economy works,
• They don't understand that wages in the corporate world are loosely connected with the labor market, but have no connection whatsoever to the corporate tax rate,
• They totally ignore the Constitution's limits on Congressional spending (See Article I, Section 8), and more importantly, they ignore the Tenth Amendment,
• They embrace the "static model" for tax policy, which presumes that taxpayers will not react to changes in the tax code,
• Virtually everything Democrats do in Congress is an attempt to buy votes, one way or another.

And of course, they lie about everything, so when they make pronouncements about taxes, the deficit, and related matters, you never know whether they are speaking out of ignorance, deception, or a combination of the two.

It is often said that "Republicans are just as bad," and there is some truth to that statement, but it is rooted in the other unfortunate fact that once people start sucking at the government's capacious teats, they don't want to hear any politician talk about reducing or eliminating programs. So when Republicans start speaking rationally about the deficit or the National Debt, the Democrats and the Media immediately flog them for wanting to take away cool stuff that people like.

If Congress took the Article I and the Tenth Amendment seriously - as they are sworn to do - the deficit would go to surplus immediately.

 

[DBA]

Approximately 50% of people in the US pay no federal income tax. What percentage of these are Democrats? Just curious as it would stand to reason that these folks are perfectly fine with federal tax increases.

 

[Billy000]

The one in 2017 had tax cuts for poor or middle class that were due to expire in 2025.

The Dems could have made them permanent after Biden took office.
They could introduce a bill now to make them permanent.

Why don't they?

In contrast, Obama was responsible for the biggest middle class tax cut since Reagan.

Which taxes did he cut? Link?

Biden attempted to make the child tax credits permanent and pass a new permanent middle class tax cut for BBB but couldn’t get all the democrats on board. That’s definitely more than I can say for Republicans who didn’t even try.

I’m not giving you a link because I already know how your dumbass is going to react. You’re desperately going to ask new questions about it on the spot that you hope I won’t answer while never providing your own sources. You aren’t clever. Your game is just old. You have nothing intellectual to on offer this board.

Look it up yourself. Not only did the 2009 stimulus include a middle class tax cut, but it cut taxes for small businesses.

 

[Billy000]

It’s bad enough that Liberals only want to talk elimination of tax cuts yet never elimination of spending programs; yet they make it worse when they ignore the positive impact of tax cuts and record net gains to the Treasury that helps pay for Liberals’ egregious spending programs.

Actually I’m all for cutting bloated spending like in our defense budget. I’m just explaining to you the other side of this.