Replies to post #374309 on Simply Politics & News (GOV)

[Long2Retire]

Tax Plan Is a Cut for Everyone

https://www.creators.com/read/stephen-moore/12/17/tax-plan-is-a-cut-for-everyone

Whenever I'm asked if the Trump tax cut is for the rich, I say yes. It is a tax cut for the rich. It is a tax cut for the middle class. It is a tax cut for small businesses. It is a tax cut for the Fortune 100. If you pay federal income taxes, you will, in almost all cases, be getting more take-home pay come Jan. 1.

One of the ironies of the left's "these are tax cuts for the rich" mantra is that many upper-income people I know in states such as California, New Jersey and New York complain to me they are getting a sizable tax increase. The lower income-tax rates don't compensate for the loss of the state and local tax deductions.

Well, yes, under the Trump tax plan we are no longer going to subsidize big government in blue states. Now those who choose to live in blue states are going to have to join with their neighbors, collect their pitchforks and demand tax and spending cuts from city hall and the state capital.

Here's some advice to blue state pols: Pare the hyper-extravagant pensions, and stop paying your government employees 30 percent more than comparable private-sector workers get.

Liberals from blue states argue that red states tend to get more money from the feds and pay less in taxes. But here again, blue state voters are the ones responsible for these inequities. Blue staters tend to send liberal politicians to office, who then vote for bigger federal spending — even though a greater share of the money goes to the red states. Maybe somebody needs to write a book called: "What's the Matter With Massachusetts."

What is not true is that the rich get all the benefits of the tax cut and middle-income families pay more.

Cato scholar Chris Edwards recently put the lie to that claim. He examined the impact of the tax bill on the average tax filer in every income group with an income above $40,000. He didn't include people who make less than that because very few in that income range have any income tax liability — and you can't cut taxes on people who don't pay taxes.

Edwards' remarkable analysis showed that as family income levels go up, the percentage reduction in tax burden goes down: Lower-middle-class people — who make between $40,000 and $50,000 a year — will see a 46 percent reduction in taxes paid; people who make more than $1 million will see roughly a 7 percent reduction in taxes (again, the exact rate depends on what state they live in).

By the way, the left also leaves out another impact of the tax cut that helps the middle class: a higher stock market. Some 54 million Americans have 401(k) plans. At least another 40 million have IRAs or pension plans. Where do you think that money is invested? Americans should look at their 401(k) accounts right now. They are surging in value in anticipation of the tax cut.

This has contributed to a surge of economic optimism and Christmas shopping and spending. You want to kill the economy — and Christmas? Follow Chuck Schumer and Nancy Pelosi's advice and kill the tax cut.

That's not likely to happen. There is a high likelihood this tax cut will be enacted before Christmas. My friend Arthur Laffer says that he hopes taxes go up for everyone next year — because Americans are going to be making a lot more money as prosperity spreads to every state. Talk about a happy New Year.

Stephen Moore is a senior fellow in economics at the Heritage Foundation. His latest book is "Fueling Freedom: Exposing the Mad War on Energy." He served as an economic adviser to the Trump campaign. To find out more about Stephen Moore and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate webpage at www.creators.com.

[Long2Retire]

The president’s Christmas gift to America

https://www.washingtontimes.com/news/2017/dec/4/donald-trumps-christmas-gift-to-america-is-tax-bil/

Everyone looks at a tax bill through his own individual prism. But to judge it more accurately, we need to consider how it will affect others, too.

After all, tax reform won’t apply to just one segment of the population. Directly or indirectly, all of us will feel it — some of us quite profoundly.

Most Americans would receive a significant cut under the Republican tax plan now before Congress. An analysis from the Joint Committee on Taxation shows that all income groups would see immediate dividends.
Many tax-cut opponents are crying foul because those in the top-income brackets would see a greater savings under the tax plan. But we have to remember that they pay much more than those in other income groups. In fact, as a percentage of their income, they see the smallest benefits.

Internal Revenue Service figures show that the top 5 percent of earners took in 34 percent of the national income in 2011, but paid 56 percent of all federal income taxes that year. Meanwhile, the bottom half of all earners took in 12 percent of the income — and paid only 3 percent of the taxes.

With such a sharply progressive tax system, this is only natural. But it does show how ludicrous it is for tax-cut foes to point to the higher savings that the wealthy would realize under the current bills as evidence of how “unfair” they allegedly are. (And as it turns out, some who make a larger salary won’t see that much benefit — indeed, some will even see their tax bills go up.)

[Long2Retire]

WTAS: Praise for President Trump's Tax Reform Speech in Missouri

https://www.whitehouse.gov/the-press-office/2017/11/30/wtas-praise-president-trumps-tax-reform-speech-missouri?utm_source=twitter&utm_medium=social&utm_campaign=wh_20171130_na

Cabinet Members and Elected Officials

Secretary of the Treasury Steven Mnuchin: “Today the President returned to Missouri to speak to hardworking men and women and small business owners, who are the engines of job creation in our country, about how tax cuts and reform will bring better-paying jobs to Main Street in America. We have the highest business tax rates in the developed world, and they have driven jobs and opportunities overseas. That is why we are working with Congress to pass historic tax reform that will not only cut taxes for families, it will make our businesses more competitive and spur sustained economic growth that will benefit all Americans.”

Secretary of Agriculture Sonny Perdue: “Too much time, effort, and expense has gone into complying with the onerous tax code and people need relief. As Congress works towards a final package of tax cuts and reforms, I am hopeful that we can get this done to benefit agriculture and the entire American economy.”

Secretary of Labor Alexander Acosta: “Tax reform is about job creation. President Trump is working to revitalize America’s main streets by reducing taxes, and making the tax code simpler and fairer. With nearly 1.5 million jobs created since January and two consecutive quarters of GDP growth above 3 percent, the President has unleashed a spirit of economic optimism—but our work is not done. Lowering taxes for job creators will help them grow and hire more Americans for good, family-sustaining jobs.”

Administrator of the Small Business Administration Linda McMahon: “America was built on the backs of our entrepreneurs….reforming the tax-code will help to revive that entrepreneurial spirit and spur further economic growth. I want to commend the President and Congressional leadership for their efforts and vision, and look forward to seeing tax reform cross the finish line.”

Sen. Roy Blunt (R-MO): “As President Trump made clear today, fixing our broken tax code is about two things: helping hardworking Missouri families keep more of what they earn and ensuring there are more opportunities and better-paying jobs for every American. I’ve heard from countless Missouri families, small business owners, and manufacturers about the challenges they face with our outdated tax code. They need relief, and I appreciate President Trump’s push to make sure they get it.”

Rep. Blaine Luetkemeyer (R-MO): “Americans work too hard and produce too many great products to have our economy weighed down by outdated laws and elected officials who lack the courage to make tough decisions. It is incredible to have President Trump visit the 3rd Congressional District during this historic week. With all eyes on the Senate now, it is my sincere hope they join the House in passing meaningful reform so we can soon deliver a bill to the President’s desk.”

Rep. Billy Long (R-MO): “It was great to have @POTUS back in #Missouri today to talk about #TaxReform!”

Rep. Sam Graves (R-MO): “The House Republican tax bill will ease the compliance and tax burdens small businesses will face and ensure that they are allowed to grow, create jobs, and build a stronger economy. During our trip, President Trump and I saw and heard the necessity of making sure that tax reform becomes a reality and I look forward to joining him and bringing much-needed relief to small business owners across the country.”

Rep. Vicky Hartzler (R-MO): “It’s an honor to accompany President Trump on his trip and welcome him to my home state. Americans are ready for a change in the tax code that allows them to flourish instead of just ‘get by.’ The Tax Cuts & Jobs Act would do just that by roughly doubling the standard deduction, which seventy-one percent of Missourians currently use. I look forward to continuing to work with President Trump and my colleagues in the Senate to bring Missourians and the American people much-needed relief.”

Rep. Jason Smith (R-MO): “President Trump knows that tax cuts for the folks in Missouri will unleash the economy and are [for] the people that he’s trying to help the most, and it’s nice to have him back in our state.”

Rep. Ann Wagner (R-MO): “The people of the 2nd District sent me to Washington to secure their jobs and fight to keep more of their hard earned money. Now—with the President’s continued support—Congress is finally on the verge of doing just that. The Tax Cuts and Jobs Act will reignite the American economy, it will make every day a little bit easier for that single mother of two, that firefighter, or that small-business owner.”

Media Outlets

The Associated Press: “During his second visit to the state to build support for the plan, Trump made a populist appeal for the Republican tax package, saying it would ‘bring Main Street rolling back.’”

Fox News: “President Trump on Wednesday traveled to Missouri to rally support for the tax overhaul making its way through Congress, as senators gear up to vote on the White House’s top legislative priority in the coming days. ‘The eyes of the world now turn to the United States Senate,’ the president said during a rally in St. Louis.”

The Hill: “President Trump on Wednesday rallied the public on tax cuts ahead of a key Senate vote. Standing in front of American flags and Christmas trees in Missouri, Trump told the crowd he came to the state ‘to help push our plan for historic tax cuts right across the finish line.’”

The Washington Times: “The president said that the tax cuts would help unleash an economic revival that he said was already underway because of his policies….He said of the Senate vote [expected] by week’s end, ‘Now comes the moment of truth. In the coming days, the American people will learn which politicians are part of the swamp, and which politicians want to drain the swamp.’”

Washington Examiner: “President Trump highlighted congressional Republicans’ progress toward passing a tax reform bill and touted the success of the economy on his watch during a wide-ranging speech in Missouri on Wednesday….Trump stressed that the reduction in rates contained in Republicans’ tax plan will benefit the middle class and not high-income households, as Democrats have alleged.”

Newsmax: “President Donald Trump touted the Republican Party’s efforts to pass tax reform Wednesday, saying it will help the United States win again….Trump's campaign-style speech drew several rounds of applause as he made the case for passing tax cuts and rattled off statistics that he said demonstrated his accomplishments.”

St. Louis Post-Dispatch: “In a speech to about 1,000 invited supporters at the St. Charles Convention Center, Trump hammered at the message that the Republican tax plan is the best way to offer relief to the American people. Trump hearkened back to St. Charles’ past as a frontier city, saying America could rediscover the pioneer spirit, and he praised the city’s Main Street corridor.”

The Kansas City Star: “Trump, who spoke on a stage filled with Christmas trees, said that the tax cuts would be a present for the nation. He also promised that he would return to his promise to repeal the Affordable Care Act, former President Barack Obama’s signature policy, after the Senate passes tax cuts.”

St. Louis Public Radio: “Speaking before a packed audience at the St. Charles Convention Center today, Trump delivered a speech laced with a callbacks to history, promising to return the United States to a more prosperous time….He lauded benefits in the legislation for individuals and married couples, and he promised that companies would receive benefits that would let them offer more jobs.”

KMOV 4 St. Louis: “This was President Trump's second visit to the state to build support for the plan. In his speech at a local convention center, Trump made a populist appeal for the Republican tax package, saying it would ‘bring Main Street rolling back.’”

[Mariner*]

Why Economists Are Warning That The Trump Tax Plan Will Be An Epic Disaster

http://talkingpointsmemo.com/dc/political-pressure-trumped-fiscal-responsibility-in-gop-tax-cut-crusade

"But Bruce Bartlett, an economic adviser to President Ronald Reagan who helped craft the 1986 tax bill, said such comparisons are extremely misleading.
“There is no historical evidence that any tax cut in history comes anywhere near paying for itself,” he said bluntly. “At the most you get back a third of the revenue you lose, but that might be overly optimistic.”
Bartlett, who also served as a Treasury Department official under George H.W. Bush, added that most previous tax cuts were enacted during economic downturns with high unemployment, and argued this bill will have far less positive impact because the economy is already doing well.
“When there is more slack in the economy, you get more bang for the buck,” he explained. “But there’s no reason to think that now, when we’re at a cyclical peak, that we’ll see any stimulative effect at all. If I were a corporate executive, I wouldn’t be building new factories for all the new sales I’m going to get.”

Stan Collender, a former top staffer on the House and Senate Budget Committees, who worked under both Republican and Democratic administrations, said not only will the current bill fail to help the country, it will cause significant harm.
“Unless the laws of economics have been repealed, and not even Trump can do that, this has the potential for being one of the biggest disasters in American history,” he told TPM. “The deficit hawks who for the last few months have been in a witness protection program are going to emerge with a vengeance to demand the deficit they just increased exponentially is a problem, and the pressure on Social Security and Medicaid is going to be pretty intense.”

[ONEBGG]

It's a fir plan, all get some cuts, we must all suffer some to to try and fix things.