Forum Thread

The implications of Trump's tax overhaul plan

Reply to ThreadDisplaying 1 - 15 of 26 1 2 Next
  • Liberal Democrat
    Democrat
    Colorado Springs, CO
    Are you sure you want to delete this post?
        

    Neil Irwin, New York Times, Upshot, February 10, 2017: A Tax Overhaul Would Be Great in Theory. Here’s Why It’s So Hard in Practice.

    Budgets and taxes are very complicated. Over the past decades we have tweaked the tax brackets and marginal rates, added a few more loopholes, but otherwise have left the system intact. I suppose Reagan's reductions in taxes across the board could be considered major, but otherwise, politicians make a lot of noise, but in the end the changes have only a marginal effect on the economy. Basically the rich get a bit richer when Republicans are in office and vice versa.

    Trump's budget and tax plan is a true major overhaul. Thus far it has sounded pretty good on the surface for those who would benefit, but digging into the details and looking longer term there will be major global disruptions in trade and economies that are hard to predict.

    Neil Irwin in his NYT article above explains to us laymen the implications of Trump's plan, if indeed it can muster up enough Republican support. Quoting Irwin:

    A short list of the plan’s potential benefits looks awesome: It would give companies more incentive to keep jobs in the United States, less to overextend themselves on borrowed money and provide vast savings by reducing what companies spend on tax lawyers, who help them game the current system.

    Yet these changes could also set off a cascade of more harmful effects. The plan could shift trillions of dollars of wealth from Americans to foreigners; set off an emerging markets financial crisis; wreak havoc in global oil markets; and cause sustained harm to the American higher education and tourism industries (including, as it happens, luxury hotels with President Trump’s name on them).

    Why and how? Read the rest of Irwin's article at the above link. A tax structure built up like a Jenga Giant over decades cannot easily be changed from the bottom up. That's what Trump is trying to do. I'm not casting judgment on the merits of the plan in theory. It's just the reality of making it happen in the real world may be difficult, especially in our political environment where the loudest voice in the room gets noticed more.

  • Independent
    Ft.myers, FL
    Are you sure you want to delete this post?
        
    Schmidt; the way I look at it is that the "persons" in his cabinet are either billionaires or generals or ex bankers; thus you don't have to think far who benefits. Certainly not the voters out of the bible belt, rust belt, or dumb belt. Sorry to say everything the "guy" touches ends up in disaster.
  • Independent
    Ft.myers, FL
    Are you sure you want to delete this post?
        
    I like to add: the guy can't even"calculate" if you look at his own "business". Let alone an "tax" structure, because he even refuses to show his tax returns. He went "bankrupt" a few times as well. Also he's terribly dis-organized. Considering what he wants to do, then only the "deficit" will grow without any benefit for the lower classes or even "infrastructure" Building an "wall" certainly will not benefit anyone. The guy is an "total" loss related to world economics. Ripping off and corruption is his only way of making money.
  • Strongly Liberal
    Independent
    Ohio
    Are you sure you want to delete this post?
        

    Who remembers the sequester ?What the hell was that all about ?

    The Republicans will cut taxes back to Bush era levels, unleash the banks to play on wall Street. That will rash the economy because it's all a mirage anyway. They will most likely steal what is left in the social security trust fund. They already stolen 2.7 trillion dollars of your money . They are going to take the rest now .

  • Are you sure you want to delete this post?
        
    its been passed already ? share link please if not, its NYT guessing and reporting incorrect possibilities
  • Democrat
    Julian, CA
    Are you sure you want to delete this post?
        
    If the 1% and those Global Corporations would pay their fair share of taxes we could at least begin making our tax systems fairer and until they do perhaps the American people should refused to pay their Federal taxes since most of those taxes are being dumped into that bottomless pit called the Military Industrial Complex.
  • Strongly Liberal Democrat
    Democrat
    Portland, OR
    Are you sure you want to delete this post?
        
    conservativecat Wrote: its been passed already ? share link please if not, its NYT guessing and reporting incorrect possibilities
    Do you understand the difference between a news organization reporting on a plan and the passage of that plan into law?
  • Liberal Democrat
    Democrat
    Colorado Springs, CO
    Are you sure you want to delete this post?
        

    Dylan Matthews, Vox, February 27, 2017: The long path President Trump's budget needs to take to become law, explained

    Trump's budget plan is not complete by Spicer's admission. They are working on it, but they have set some things as not negotiable...that is anything that Trump promised in the election is not negotiable. Put those things in first, and then work the discretionary budget for offsets to make it happen.

    Dylan Matthews of Vox explains some of the problems with the Trump budget as we know it from leaks thus far. For those wanting to understand the process and the implications, I recommend reading his article. I see it as a starting point for discussions on this website.

    Call it Budget 101.

  • Are you sure you want to delete this post?
        
    then Trump has released the plan ? no I don't think he has ..... this is all speculation and reported at news
  • Independent
    Washington
    Are you sure you want to delete this post?
        

    During his speech tomorrow, I hope he doubles down on everything he's promised to do, and doubles down on all his attacks on people and organizations that he does not like. It would great if he demands that Hillary Clinton be prosecuted, and once again states the Obama wasn't born in the USA. I encourage him to restate anything, and everything, he said during the campaign.

    He'll either go down in history as one most successful presidents ever, or a president with the biggest failures and scandals.

    If this were the 9th inning in the world series, the game is tied, a man on 3rd base, and Trump comes up to bat (ie Casey at the bat). He's going to hit a home run win the game, or strike out. No way would he settle for a base hit, where the man on 3rd scores to win the game. If he strikes out he can make excuses that umpires made bad calls, and they were conspiring against him and his team.

  • Liberal Democrat
    Democrat
    Colorado Springs, CO
    Are you sure you want to delete this post?
        

    The trouble with Trump's plan, at least the bits we know, is that if Congress gives him his wish list, it will essentially gut all other discretionary spending or balloon the deficits. But for most Republicans, deficits don't matter, except when Democrats are in office. Trump has made many promises to garner votes. The day of reckoning for the con man is approaching.

    Yes Trump plays to win always. He's also a risk taker as long as he's not risking his own money. All he really cares about is himself.

  • Independent
    Are you sure you want to delete this post?
        

    On a tangentially related note I was treated, not that it should be called that, to hearing Paul Ryan say an admiral told him that the military is running out of munitions. So naturally I googled that and discovered something a little different. It appears that there is a supply issue regarding munitions dropped on daesh. They can't seem to keep supply up with demand meaning they are using munitions faster than they can replenish them. And the Air Force chief of staff says that funding needs to be arranged so that there is no problem in the future. Hmmm. How about the air force cut some spending in some areas to move funds around?

    As for tax plans and such the complexity of taxes is shown not just in the danger inherent in the law of unintended consequences but also in allowing legislators who are lobbied by the very people who are impacted by taxes to make those changes especially corporate tax changes. The nonsense of tax cuts resulting in increased revenue has been debunked multiple times yet it still lingers on like the small container of Tupperware in the back of the refrigerator that contains who knows what and never gets thrown out.

  • Independent
    Washington
    Are you sure you want to delete this post?
        
    lonely bird Wrote:

    As for tax plans and such the complexity of taxes is shown not just in the danger inherent in the law of unintended consequences but also in allowing legislators who are lobbied by the very people who are impacted by taxes to make those changes especially corporate tax changes. The nonsense of tax cuts resulting in increased revenue has been debunked multiple times yet it still lingers on like the small container of Tupperware in the back of the refrigerator that contains who knows what and never gets thrown out.

    I am no expert on taxes, economics, etc. I have to wonder if the housing bust in 2000s, and near total collapse of finical market in 2008, is related to continuing to cut taxes and cut regulations, indirectly triggers these events.

    Hopefully everyone has seen "The Smartest guys in the room" where they have actual recordings of brokers shutting down power plants, causing rolling blackouts in California. On those recordings you can hear the brokers laughing as they shut off the power to major cities. "Opps, I guess that city is totally fucked for the next 24 hours! Sucks to be them! HAHAHAHA!"

  • Independent
    Ft.myers, FL
    Are you sure you want to delete this post?
        

    I bet the craziness will continue; look at 2008 then Obama had to cleanup the mess created by the GOP and slowly with lots of obstruction he got the unemployment down and budgets under a bit more control. Now the GOP has the power they start again with the same mistakes as was done with the last GOP reign. Thus this country has become an economic yo yo because of the two party system which is polarized. So how long can such last??? My idea is that only the "debt" will rise and eventually will be the downfall of this country. "Overeating" kills humans; the same applies to "economics".

    If Trump gets his way, that will be economic suicide.

  • Are you sure you want to delete this post?
        
    Trump cannot possibly drive our deficit worse than Obama did in 8 years .... was is 10 trillion added ???