Forum Thread

The result of the tax cuts

Reply to ThreadDisplaying 31 - 36 of 36 Prev 1 2 3
  • Are you sure you want to delete this post?
        

    I still don't understand why Republicans think that tax cuts and tax credits are the solution.

    This morning's Arizona Republic that tracked $600 million in tax credits that the state gave out in fiscal year 2018.

    Since the legislature is controlled by Republicans, it should not be a surprise that the committee responsible for the oversight of the tax credits has not met since 2015.

    To a very large degree, the Arizona Commerce Authority could not name ANY benefits that the tax credits had produced. Worse, though, is that it would take a super majority in the legislature to reverse any of the credits. Since very few people in the legislature would be willing to vote on what would be an effective tax INCREASE, things are not likely going to improve in the near future.

    http://arizonarepublic.az.newsmemory.com/?publink=16c4db036

  • Are you sure you want to delete this post?
        
    It will certainly lead to a huge recession like always. Republicans will blame it on everything and everyone who's not them.
  • Are you sure you want to delete this post?
        
    Taxes are an excellent tool for stealing money. Not by the government but to steal from the government. Legislative capture is real especially when combined with rigid ideology and effective agitprop.
  • Are you sure you want to delete this post?
        

    I read yesterday that the 2017 American Jobs and Tax Cur Act of 2017 would cost $1.8 billion, but (over time) the true cost could be as high as $5.5 trillion.

    Did the tax cut bill really help the economy?

    The answer if "yes and no".

    During the second quarter of 2018, companies used $437 billon of their tax cut money t o buy back their own stock. In the first quarter of 2018, they spent $241.1 billion for stock purchases.

    Overall, companies used 57% of their tax savings on stock purchases. 7% on workers, 8% on customers, 6% on products, 3% on communities, and 19% on jobs.

    https://money.cnn.com/2018/07/10/investing/stock-buybacks-record-tax-cuts/index.html

    In 2019, the oil and gas industry had revenue of $181 billion, and profits of $28 billion. The airline industry had revenues of $240 billion, and profits of $28 billion. The largest cruise line, Carnival, has a net profit of $3 billion.

    In addition, the oil and gas industry received government subsidies of $20 billion. 80% went to the oil and gas industry, and 20% to the coal industry. The airline industry received subsidies of $279 million, most of which went to subsidize airports in smaller cities.

    Due to lost revenue caused by the COVID-19 crisis, the airline industry just asked the government to give them $50 billion to tide them over.

    The tax cut bill, naturally, triggered some huge deficits in the budget.

    • Cumulative FY20 Deficit through February 2020: $625 billion
    • Cumulative Budget Deficit over same period in FY19: $544 billion

    The largest expense item in the budget is Social Security, at roughly $450 billion. The second largest item is Medicare, at roughly $280 billion.

    https://www.pgpf.org/the-current-federal-budget-deficit

    On February 10, 2020, Trump vowed not to cut Social Security and Medicate.

    On March 9, 2020, Trump said that he will cut Social Security, Medicare, and Medicaid.

    "The White House proposes to cut spending by $4.4 trillion over a decade. Of that, it targets $2 trillion in savings from mandatory spending programs, including $130 billion from changes to Medicare prescription-drug pricing, $292 billion from safety-net cuts – such as work requirements for Medicaid and food stamps – and $70 billion from tightening eligibility access to federal disability benefits."

    https://www.azcentral.com/story/opinion/op-ed/ej-montini/2020/03/09/trump-says-cut-social-security-medicare-medicaid-believe-him/4978568002/

    Who pays for all these programs that Trump wants to cut"

    We do.

    For FY 2020, Federal Revenues from individual tax returns is $671 billion, a 7% increase from the year before.

    Payroll taxes are the next largest source of revenue, at $511 billion, an increase of 5% from the year before.

    Corporate taxes are the third largest source of income, at $74 billion, which is actually a 25% increase from the year before.

    The CBO projects that debt held by the public could rise to 180 percent of gross domestic product (GDP) by 2050 if no changes are made to current laws. That level of debt would far exceed the 50-year historical average of approximately 40 percent of GDP.

    None of the dollar amounts shown above, of course, show the amount that will be spent for the coronavirus relief bill that Trump signed this week.

    The Treasury Department outlined the administration's proposal for the third phase of the response. In a memo, the administration asks for two rounds of direct cash payments to taxpayers, worth $250 billion each. The first payment would be made April 6, and the second would come on May 18.

    The administration's request also includes $300 billion in small business loans, $50 billion for the airline industry and $150 billion for other "severely distressed" industries. The document outlining the request was first reported by The Washington Post, and a senior administration official confirmed its authenticity to CBS News.

    If you're good at math, that adds up to $1 trillion.

    https://news.yahoo.com/senate-vote-phase-2-coronavirus-023336453.html

  • Are you sure you want to delete this post?
        

    My guess is that the "deficit" will be even higher than as you described; Please add the cost of having this President and his family; it is the most costly guy we ever had; put that also in the history books.

    Furthermore the tariff thing he created will put the brakes on trade, this will hamper growth. Also don't forget the total waste on the military front and the huge budget he gave them.

    So things don't look rosy for the future, also if the Trump Party "stays" and refuses to become the "real" GOP again, then an Biden's hands (if he wins) will be tied and the recovery of this country will be very slow or not progress at all..

    Also the world after the "virus" debacle will not be the same; "blocks" of countries will have chosen other partners in the meantime. The US will not be seen as "reliable" or as an "leader" in the world. China will take that role from now on.

  • Are you sure you want to delete this post?
        

    Obamacare recipients also need to watch out for IRS Form 8962 when they file their taxes this year too, because it'll be a whammy when you think you're going to get the money back as a refund. When I did our tax filing on Turbo tax, I chose to skip the reconciliation form and as a result, not only was my refund delayed, I had to pay an accountant $50 to help me straighten out the mess and found we're not going to receive the refund amount we thought we were going to get back. What else makes this bad is that Turbo tax doesn't allow you to go back and fill out the form which would have probably calculated the amount you owe or get back. Turbo Tax should warn users of their free service that they should NOT ignore any forms pertaining to the ACA.

    So Trump's new tax law which was probably made up by his minion Mnuchin actually hurt people with lower incomes, that, along with rolling back some of the provisions and protections of the ACA (Affordable Care Act).