UPDATE: 5-10-18. NBC/WSJ POLE; 53% OF AMERICANS NOW BELIEVE TAX “REFORM” WAS A MISTAKE THAT WILL BALLOON TOTAL U.S. DEBT, AND PRIMARILY BENEFIT THE WEALTHY AND LARGE CORPORATIONS. APRIL, 2018.
Amazing really. Any true tax cut for most of us is almost a gift. The concentrated power and wealth in Washington is sick. Getting anything back from that kingdom spells victory.
Many will tell you that battling to a draw is a win. Most Americans will have more money. That will end in ’25, unlike the corpoarate cut.
It seemed sensible. Fix the stupendously-stupid mash-up we call the “tax code.” Right–think postcard returns. Well, a year from now America will know. What about the middle-class? What about wage increases and job creation? Let’s check in with Kevin Hassett, the Chariman of the president’s Council of Economic Advisers. Once again, this is the president’s Chairman of Economic Advisers assessing the GOP claims for their tax restructure. The question–when if ever might Americans see wage growth flowing out of tax reform?
“If you go to the optimistic view of the literature, it could take three to five years. If you go to the pessimistic side, it would about double that.”
Hum. The air is full of boiling smoke and flak. Beyond the usual confusing spin, we have very clear statements from the GOP itself.
Tom Cole(R-Oklahoma) “It just seems wrong. We’d be better off if there were more populist victories in there.”
Mark Sanford(R-South Carolina): “From a truth-in-advertising standpoint, it would have been a lot simpler if we just acknowledged the reality on this bill, which is, it’s fundamentally a corporate tax reduction and restructuring bill, period.”
Clearly partisanship is not monolithic. Even the bill’s sponsoring party is mixed on it’s likely impact. Yet we have Steve Mnuchin, formerly of Goldman Sachs, to cheer on the fix in a populist tone. What is Steve contending? How is he characterizing the once secret bill?
Mnuchin talking about Trump’s priority “And his priority all along has been fix a broken system.”
O.K. We’re fixing a broken system. Couched in tax terms, fixing a broken system means reducing complexity. That did not happen. Next. Mnuchin continues:
“This is about working families…And this is about hardworking families that are going to see starting in February tax cuts.”
“People are going to see their paychecks go up. People are going to see their wages go up. That’s what this is all about.”
Steve Mnuchin, Treasury Secretary being interviewed by John Dickerson,(CBS News–Face the Nation) posted in Tim Hains from Real Clear Politics.com 12-17-17.
Well, ah what? Is is about “fixing a broken system,” or about “hardworking families?”
Mnuchin knows. He came from Goldman. According to Steve workers will “see the difference…” Soon hardworking American families will shop on this street.
Show of hands; who in America yet believes the proclamations of Wall Street insiders? In’o8-’09 Americans began suffering the extremely ugly world-wide economic back-lash of savagely-reckless Wall St. actions. The investment firms and gigantic banks nearly succeeded in destroying the international financial system. “Reckless” is a kind way of characterizing the scandal we know as the sub-prime mortgage meltdown. Keep in mind that analysis has demonstrated that it was speculative real estate investors who primarily defaulted in the aftermath, not sub-prime borrowers. It was purchasers of second homes, or rental property investors, who walked away or vanished in the sucking muck.
“That’s what this is all about–fixing a broken system.” If so it didn’t happen. And guess what? Nobody really believes that. Second; the economy will improve. How much faster could it be growing? The U.S. economy is a prime example of a “mature” economy. The unavoidable truth remains that no mature economies do not roll at +6% growth. That’s called a sales pitch. When was the last time the U.S. economy grew at 5%? Anyone?
Companies expand and invest when the market displays the opportunity, not simply because they suddenly have more cash.
Let’s be clear. Companies do not expand or hire simply because their tax rate goes down. Companies do not institute wage increases simply because they save on taxes, or because they just have more money. Nor will repatriate of overseas assets change corporate fact. Companies invest in capital goods, increased wages, and expansion, when the market for their products and services shows the opportunity. Do towns with 20 people build Olympic pools?
Towns with twenty people do not build Olympic pools simply because they have the jack.
Thanks for reading. Keep looking.