NBC: Tax cuts don't spur economic growth


mentalfloss
#1
Republicans don't understand: Tax cuts don't spur economic growth

In decades past, there was bipartisan support for policies that laid the basis for a long period of broadly shared prosperity. Unfortunately, this consensus seems to have been replaced by the narrow-minded greed of the very rich and, insofar as they can continue to get their way, the story is not likely to end well.

Take, for instance, the Republican tax plan, which passed in December and contained a potpourri of tax breaks for special interest groups and high-income households. Its centerpiece was a large cut in the corporate income tax; the plan lowered the rate from 35 percent to 21 percent.

The Trump administration claimed that this cut, coupled with various sweeteners like full expensing of new investments, would set off an investment boom. According to the administration, U.S. companies would bring back factories from overseas and foreign companies would rush to take advantage of low U.S. taxes, and this surge in investment would lead to more jobs and higher productivity growth, eventually translating into higher wages for workers.

It’s a nice story, but there is little reason to believe that things will pan out as advertised.

Republicans don't understand: Tax cuts don't spur economic growth
 
White_Unifier
#2
Too simplistic. Cut taxes to zero, society collapses. raise taxes to 100%, society collapses. There exists an optimum tax rate. It's a matter of finding that optimum rate.
 
Tecumsehsbones
+1
#3
Jacking up the deficit and debt in economic good times is weakening the country for the sake of popularity.
 
Danbones
Free Thinker
+5
#4  Top Rated Post
Funny, the US just had tax cuts, record tax collections, record employment ( especially amoungst some minorities) and GDP appears to be on the RISE

So, this is just another fake nudes thread.. no naked truth exposed here.
 
Walter
+2
#5
Another fake news thread.
 
White_Unifier
#6
Quote: Originally Posted by Danbones View Post

Funny, the US just had tax cuts, record tax collections, record employment ( especially amoungst some minorities) and GDP appears to be on the RISE

So, this is just another fake nudes thread.. no naked truth exposed here.

Mostly debt-driven though.
 
Cannuck
No Party Affiliation
#7
Trumpites love debt
 
White_Unifier
#8
Quote: Originally Posted by Cannuck View Post

Trumpites love debt

Debt makes the economy look good in the short term. If the government plays its debt cards right, it can lower taxes, increase spending, keep inflation down, and create full employment in the short term with only high interest rates and growing debt as a side effect. As the debt grows, they can just pass the mess on to their successor.
 
Cannuck
No Party Affiliation
#9
Quote: Originally Posted by White_Unifier View Post

Debt makes the economy look good in the short term. If the government plays its debt cards right, it can lower taxes, increase spending, keep inflation down, and create full employment in the short term with only high interest rates and growing debt as a side effect. As the debt grows, they can just pass the mess on to their successor.

That's exactly what our senior population did. Now they still think we owe them something.
 
White_Unifier
+1
#10
Quote: Originally Posted by Cannuck View Post

That's exactly what our senior population did. Now they still think we owe them something.

Unfortunately, our younger population is just as bad across all generations.
 
Cannuck
No Party Affiliation
#11
Quote: Originally Posted by White_Unifier View Post

Unfortunately, our younger population is just as bad across all generations.

I don't see it that way at all. Most people I know under 30 (that are in the workforce) want lower taxes and less government. The seniors and students are the ones demanding services. Both are on the government tit.
Last edited by Cannuck; Apr 19th, 2018 at 06:06 PM..
 
White_Unifier
#12
Quote: Originally Posted by Cannuck View Post

I don't see it that way at all. Most people I know under 30 (that are in the workforce) want lower taxes and less government. The seniors are the ones demanding services.

But what's the proportion? Some people I know favour reducing spending, but they still see lowering taxes as conditional on lowering the debt. Other people I know, though they want to reduce spending, also want to cut taxes independently of that and so would support lowering taxes even at the expense of the debt. I haven't counted heads though so i couldn't say who's in the majority between these.
 
Cannuck
No Party Affiliation
#13
Quote: Originally Posted by White_Unifier View Post

But what's the proportion? Some people I know favour reducing spending, but they still see lowering taxes as conditional on lowering the debt. Other people I know, though they want to reduce spending, also want to cut taxes independently of that and so would support lowering taxes even at the expense of the debt. I haven't counted heads though so i couldn't say who's in the majority between these.

People at the trough want the services. People filling the trough want fewer services.
 
White_Unifier
#14
Quote: Originally Posted by Cannuck View Post

People at the trough want the services. People filling the trough want fewer services.

Not all of the money goes to serving us. Much of it goes to servicing the debt. This means that when lowering taxes, we need to consider not only the cost of services but the cost of interest on debt too.
 
Durry
#15
Quote: Originally Posted by White_Unifier View Post

Not all of the money goes to serving us. Much of it goes to servicing the debt. This means that when lowering taxes, we need to consider not only the cost of services but the cost of interest on debt too.

It's a good thing that you told us, without your knowledge of economics we would never have known this???
 
White_Unifier
+1
#16
Quote: Originally Posted by Durry View Post

It's a good thing that you told us, without your knowledge of economics we would never have known this???

Unfortunately many Canadians support cutting taxes come hell or high waters. Yes, I favour lowering taxes in principle, but only conditionally on paying the debt.
 
Tecumsehsbones
#17
Quote: Originally Posted by White_Unifier View Post

Unfortunately many Canadians support cutting taxes come hell or high waters. Yes, I favour lowering taxes in principle, but only conditionally on paying the debt.

Lest you become like the U.S. Debt at 100% of GDP.

And rising.
 
Durry
#18
Quote: Originally Posted by White_Unifier View Post

Unfortunately many Canadians support cutting taxes come hell or high waters. Yes, I favour lowering taxes in principle, but only conditionally on paying the debt.

And conditional on providing basic government services so that the country doesn't stop operating.
 
White_Unifier
#19
Quote: Originally Posted by Tecumsehsbones View Post

Lest you become like the U.S. Debt at 100% of GDP.

And rising.

That's one way to spend on national defense. A strong military as a first line of defense so the enemy would struggle to overpower you. High debt and bankruptcy as a second line of defense so even if the enemy could overpower you, it wouldn't want to touch your social and economic problems with a ten-foot pole.

Unfortunately, Canada'd debt is growing by leaps and bounds too.

Quote: Originally Posted by Durry View Post

And conditional on providing basic government services so that the country doesn't stop operating.

And that too yes. That's why I tend to favour politicians that promise reducing government spending but tend to shy away from those who promise to cut taxes. I'd prefer those who expressed a desire to cut taxes as an aspirational goal, not a promise set in stone.
Last edited by White_Unifier; Apr 19th, 2018 at 07:38 PM..
 
Tecumsehsbones
#20
Quote: Originally Posted by White_Unifier View Post

That's one way to spend on national defense. strong military as a first line of defense so the enemy would struggle to overpower you.

Meanwhile Russia, with 1/8th the GDP, is rolling over us.

Shootin' wars ain't the only way to dominate.
 
White_Unifier
#21
Quote: Originally Posted by Tecumsehsbones View Post

Meanwhile Russia, with 1/8th the GDP, is rolling over us.

Shootin' wars ain't the only way to dominate.

And look at little Singapore. A country should rely on trade and soft power as much as military clout to protect itself. it's kind of hard for an enemy to bomb you when much of its own population is living and thriving within your borders. I can't imagine the family back home would be thrilled to learn than your compatriots are being bombed abroad.

Given how so many countries are so debt-ridden now, why not reduce redundancies and create an international police force of a maximum of a hundred thousand well-trained and equipped men. Maybe structure it as a kind of marine corps with access to small-scale nuclear weapons too.

If any country wants to supplement it with its own national force, by all means. But many countries in the world (and especially much poorer ones) would probably be happy to pay into such a force as a way to save money for their people.
 
Tecumsehsbones
+1
#22
Quote: Originally Posted by White_Unifier View Post

And look at little Singapore. A country should rely on trade and soft power as much as military clout to protect itself. it's kind of hard for an enemy to bomb you when much of its own population is living and thriving within your borders. I can't imagine the family back home would be thrilled to learn than your compatriots are being bombed abroad.

Given how so many countries are so debt-ridden now, why not reduce redundancies and create an international police force of a maximum of a hundred thousand well-trained and equipped men. Maybe structure it as a kind of marine corps with access to small-scale nuclear weapons too.

If any country wants to supplement it with its own national force, by all means. But many countries in the world (and especially much poorer ones) would probably be happy to pay into such a force as a way to save money for their people.

Nice idea, and one I used to believe in. Now I realize it'd be useless, mired in politics, and either never deployed (hence worthless) or tainted by the "when, where, and why" of deployment.
 
White_Unifier
#23
Quote: Originally Posted by Tecumsehsbones View Post

Nice idea, and one I used to believe in. Now I realize it'd be useless, mired in politics, and either never deployed (hence worthless) or tainted by the "when, where, and why" of deployment.

Of course its rules would need to be clearly defined. For example, it might be set to automatically attack any government that violates international law but would not deploy for any other purpose. For that, a state would need to establish its own force.
 
Cannuck
No Party Affiliation
#24
Quote: Originally Posted by White_Unifier View Post

Not all of the money goes to serving us. Much of it goes to servicing the debt. This means that when lowering taxes, we need to consider not only the cost of services but the cost of interest on debt too.

You can't cut debt repayment. You can cut services. You just have to be willing to put up with the whining from the pigs at the trough.
 
mentalfloss
#25
Quote: Originally Posted by Danbones View Post

Funny, the US just had tax cuts, record tax collections, record employment ( especially amoungst some minorities) and GDP appears to be on the RISE

So, this is just another fake nudes thread.. no naked truth exposed here.


My apologies for bursting your fragile conbot bubble but GDP growth has been lower under Trump than Obama.

And he wasn't handed a recession by the previous, incompetent, Republican government.
 
mentalfloss
#26
Why the Trump tax cuts are flopping

https://finance.yahoo.com/news/trump...181953692.html
 
taxslave
Free Thinker
+1
#27
Quote: Originally Posted by mentalfloss View Post

Republicans don't understand: Tax cuts don't spur economic growth

In decades past, there was bipartisan support for policies that laid the basis for a long period of broadly shared prosperity. Unfortunately, this consensus seems to have been replaced by the narrow-minded greed of the very rich and, insofar as they can continue to get their way, the story is not likely to end well.

Take, for instance, the Republican tax plan, which passed in December and contained a potpourri of tax breaks for special interest groups and high-income households. Its centerpiece was a large cut in the corporate income tax; the plan lowered the rate from 35 percent to 21 percent.

The Trump administration claimed that this cut, coupled with various sweeteners like full expensing of new investments, would set off an investment boom. According to the administration, U.S. companies would bring back factories from overseas and foreign companies would rush to take advantage of low U.S. taxes, and this surge in investment would lead to more jobs and higher productivity growth, eventually translating into higher wages for workers.

It’s a nice story, but there is little reason to believe that things will pan out as advertised.

Republicans don't understand: Tax cuts don't spur economic growth

Some leftard makes a stupid comment, another stupid leftard quotes him so it becomes fact. In the real world of course we know this is not true. Lower taxes means more descretionary spending in the hands of consumers which creates more employment and more taxpayers. The key of course is to cut government spending and force governments to live within their revenues.
 
Cannuck
No Party Affiliation
#28
Quote: Originally Posted by taxslave View Post

Some leftard makes a stupid comment, another stupid leftard quotes him so it becomes fact.

You mean like, Trump's gonna build a wall and Mexico will pay for it?
 
mentalfloss
#29
Or how tax cuts would balance the budget but instead, landed us in a recession under Harper?
 
pgs
Free Thinker
+1
#30
Quote: Originally Posted by mentalfloss View Post

Or how tax cuts would balance the budget but instead, landed us in a recession under Harper?

Yes we know budgets balance themselves , our illustrious PM told us so .
 

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