Tag Archives: Tax cuts

Inflation with higher Consumer prices returns to America ….Interest rates to rise…

Both haven’t been around for some time…

Butr they are both on the rise….

Tax cuts and Federal increase in spending aren’t gonna make things better….

America and the world could be walking into a hole,while Donald Trump and Republicans cash out…..

Oh, and Trump is working to make things worst be looking to raise trade barriers that will increase imports prices …..

Consumer prices increased at a higher than expected pace in January, according to data released Wednesday, fueling investor fears about rising inflation.

The Consumer Price Index increased 0.5 percent in January, and 2.1 percent over the past twelve months, the Bureau of Labor Statistics reported Wednesday.

The index for all goods minus food and energy rose 0.3 percent, though economists had predicted a 0.2 percent increase.

The unexpected price increases are expected to take a toll on the stock market. Traders fear that rising inflation could spur the Federal Reserve to raise interest rates at a quicker pace in 2018…..

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Open Thread for Dec. 22, 2017…Tax Cuts?…Don’t forget Kansas…

The Republicans are falling all over themselves after passing a tax cut that REALLY is a giveaway to rich people (Including Trump) and corporations (A LOT don’t pay any taxes at ALL)…..

Most Americans think that the Law will let the government transfer money from them to those who don’t need it….

I just wanted to go back and remind people about  2012 when  Kansas  Republican Governor Sam Brownback told people he was giving them a tax cut….

Great Republicans stuff, eh?

Reality Check people…..

Last year those tax cuts where rolled back and now Kansas is looking for almost a BILLION Dollars it doesn’t have because of the TAX CUT….

The forecast for the United States of America from the 2017 Republican Taz Cut?

One Point Five TRILLON DOLLARS in shortfall DEBT…..

….The theory of the plan — supply-side or trickle-down economics — is a divisive one. For decades, Republicans have touted the economic theory, which seeks to create growth through lowering taxes and decreasing regulation.

“Any serious model tells you that economic growth always leads to increases in revenues, not reductions in revenue,” says Arthur Laffer, an economist who advised President Ronald Reagan and the Trump campaign, among others. He helped create the Kansas tax plan and is considered by many to be the father of supply-side economics.

But when the tax cuts went into effect in 2014, their failure was seen almost instantly. State revenues plummeted by almost $700 million, Kriz says.

“To put it in context, the state general fund budget is about $6 billion, and so that’s 10 percent revenue loss in one year,” he says. “That’s a lot for any government to have to make [up].”

State lawmakers tried to balance the budget by tapping into reserves and the highway fund. They put construction projects on hold; pension contributions dropped; and Medicaid was cut.

The state also refashioned the school funding formula and closed and consolidated several school districts. School funding consumes about half of Kansas’ budget.

Loomis says the Kansas experiment occurred after a shift in the state Legislature.

Since the 1970s, the state government had been moderately conservative and “pretty much reflected the nature of Kansans,” he says. Then during the Tea Party wave in 2010 — when hundreds of congressional and state government seats were won by Republicans — the Kansas Legislature moved further right. Brownback, who had served 14 years in the U.S. Senate, was also elected as governor.

Because of the state’s deficit problems, Brownback did not run for president in 2012, and he barely won re-election in 2014. Republicans in the Legislature voted to overturn his tax cuts with the support of Democrats, who helped override the governor’s veto.

 

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Trump tweets before meeting with Dem’s….’I don’t see a deal’….

Donald Trump will sit down with the top leaders of the House and Senate in an hour or so to try work out a way to go forward with his and Republicans tax cut and immigration, while signing off on budget for next year….They ‘technically’ have until Dec 8 to get this done….But Congress isn’t good at deadlines….

Trump wants a tax give away for rich people…Democrats don’t….

Trump wants Southern Border Wall money….Democrats and Republicans don’t…

Democrats are now saying they will move to withold their votes unless something is done for Dreamers, who where promised a stay in this country by Democratic and Republicans up until Trump and his chief of staff John Kelly arrived in the White House….

Image result for schumer/trump/pelosi

Caution….

Donald Trump has STILL NOT made one major ‘deal’ since he got his present day job….

Oh, and he doesn’t have the votes right now for his tax give aways….

And?

He needs the Democrats…

President Trump on Tuesday cast doubt on Washington’s ability to avoid a government shutdown, writing on Twitter that he didn’t believe a deal could be reached with Democrats.

The tweet came hours before Trump is to meet at the White House with GOP congressional leaders as well as Senate Minority Leader Charles Schumer (D-N.Y.) and House Minority Leader Nancy Pelosi (D-Calif.).

“Meeting with “Chuck and Nancy” today about keeping government open and working,” Trump tweeted.

“Problem is they want illegal immigrants flooding into our Country unchecked, are weak on Crime and want to substantially RAISE Taxes. I don’t see a deal!”…

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Note….

Every-time he THINKS he has a deal with Democrats?

The Republicans get pissed and scold him to ask for more, thus wrecking anything he thought he had…

image..abcnews.go.com

Republicans do NOIT have the votes on a tax cut for the rich…

There IS a good chance that the Trump and the Republicans could see their tax cut efforts for the rich and companies go the same way as the healthcare repeal efforts…

Down….

Tax  the poor and middle class and give to the RICH.’!…

Steven Mnuchin (left) and Gary Cohn are pictured here. | Getty Images

Politico does a piece on the rich Trump guys who are fronting the sell out to their fellow rich. guys..

“If you asked us to put together a photo shoot to show this is a taxpayer-funded giveaway to millionaires and billionaires, I don’t think we could do a better job of this,” said Tim Hogan, a spokesman for the anti-tax reform activist group Not One Penny. The group made a Facebook ad featuring the photograph that it says led to thousands of calls to lawmakers from constituents, telling members to vote “no” on the tax bill.

Mnuchin’s money shot underscored the awkwardness for the White House of selecting multi-millionaires as the principal salesmen for a tax bill it claims will boost workers’ wages and cut taxes for the average middle-class family. Mnuchin, along with fellow Goldman Sachs alum Gary Cohn, have consistently fumbled that pitch, in part due to their own backgrounds, said both Democrats and Republicans watching the effort.

While the House passed the bill earlier this month, Republicans who see final passage as a make-or-break moment for the party are worried about potential turbulence in the Senate, which is expected to vote on its own version this week.

Six Senate Republicans are still withholding their support for the tax cut package — enough to tank it — and others in the party said they don’t want the difference-maker to be a lack of good messengers from the White House. And so far, the pitches don’t appear to be helping. A recent Quinnipiac University Poll found that 52 percent of voters oppose the GOP tax plans, and only 25 percent support them.

“If this thing does fall all apart on the shoals,” said one former top Hill aide, “maybe the difference is the lack of good messengers. On a nailbiter, you don’t want any margin of error.”…..

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image of Secretary of the Treasury Steven Mnuchin (left) listens as Director of the National Economic Council Gary Cohn speaks during a meeting with members of the Senate Finance Committee on Nov. 9, 2017. ……| Alex Wong/Getty Images

Warning…Tax cuts for the Middle Class expire a few years in the proposed tax cut bill…

The cuts for the rich and corporations mostly do not….

If there is just 3 GOP Senators against the tax bill ?

It’s a goner…

Congressional Republicans have implanted nearly 50 expiring provisions in their tax-cut bills that, if left unaddressed, would transform what Republicans promised would be middle-class tax relief into a law that raises taxes for tens of millions of Americans.

More than 80 percent of the tax breaks set to go away would be taken from households. The perks for corporations are generally permanent, including the biggest single benefit in the bill: a permanent reduction of the corporate tax rate from 35 percent to 20 percent.

Democrats have accused the GOP of offering only illusory benefits for families, but White House and Republican leaders in recent days have repeatedly insisted that lawmakers in future sessions of Congress would extend the cuts or make them permanent. Future lawmakers, they argue, would be unwilling to let large-scale tax increases targeting the middle class take effect.

“We have a lot of confidence that Congress will do the right thing,” Treasury Secretary Steven Mnuchin told Fox News. “And, again, the priority for the moment is middle-income tax cuts.”

But in Congress’s current polarized state, no congressional action can be guaranteed, even if both parties agree on its merits. And if Congress were to let the cuts expire, the total bills aimed at individuals would be massive.

The issue, since it came to light a week ago, is causing consternation with Sen. Jeff Flake (R-Ariz.), who thinks the party has designed the bill to get around Senate rules but in a way that could add much more to nation’s debt in the future.

Because of these concerns, Flake told Fox News Radio on Wednesday that he is undecided on whether he will support the bill….

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The House narrowly passes a 2018 Budget PLAN….

The vote was 216 to 212…..

New York, New Jersey and California REPUBLICAN House memebers voted AGAINST the outline of what a possible final budget would end up being….

Why?

Because in the plan’s tax cut part?

People in those states would LOSE tax advantages and the budget would actually INCREASE the nations budget deficit by as much as $2  TRILLON. over the next 10 years…

To say the whole thing is crazyily unbalanced  is a understatement ….

The final product is unlikely to look anything like what they voted on today….

The Republican ‘s now will have to try to CUT hundreds of billions from programs benefiting poor and middel class Americans to give to the rich 1% and their businesses…

Final approval of the budget measure clears the way for House leaders to unveil their tax plan next Wednesday, with a formal bill drafting expected by mid-November. The high-stakes legislative sprint could affect households in every state and businesses in every industry, with enormous political consequences for President Trump and Republicans in Congress.

The budget measure would allow for a tax bill that adds as much as $1.5 trillion to federal deficits over a decade, at a time when the federal government is already piling up more and more debt, which has now topped $20 trillion. The deficit for the 2017 fiscal year, which ended Sept. 30, totaled $666 billion, an increase of $80 billion from the previous year.

The outline of a tax plan unveiled in September would cut the corporate income tax rate to 20 percent, from 35 percent, collapse individual income tax brackets from seven to three, with tax rates of 12 percent, 25 percent and 35 percent, and double the standard deduction to $12,000 for individuals and to $24,000 for married couples filing jointly. But the hardest decisions on how to mitigate the costs of the proposal have yet to be made.

The blueprint, as unveiled, would cost the Treasury more than $2 trillion over a decade, according to estimates by tax-writing experts. Now Congress must now find a way to force those proposals into a $1.5 trillion budget hole.

Disagreements on how to do that have begun spilling into public view. In addition to the dispute over the deduction for state and local taxes, Mr. Trump and the House’s chief tax writer, Representative Kevin Brady of Texas, have collided over the issue of retirement savings, another delicate issue.

Republicans hope that by the end of the year, they will be able to deliver to Mr. Trump the first significant revamping of the tax code since the Reagan administration, a feat that would show that unified Republican government can take on a big challenge and produce success.

But overhauling the tax code is an exceedingly difficult task, as evidenced by the decades that have passed since it was last achieved….

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Please NOTE….

Republicans are using the same procedure, called reconciliation, to avoid having to win the eight Democratic votes they would likely need to pass the bill with a 60-vote super-majority in the 100-member Senate. Reconciliation is a procedural mechanism originally intended to quickly clean up minor differences in the spending plans proposed by the Senate and the House by setting aside rules that slow the process. Lawmakers quickly learned that, with carefully written legislation, they could also move controversial legislation, like massive tax cuts or an overhaul of the health-care system, through reconciliation.

Didn’t the attempts to repeal health care with reconciliation fail?

Indeed they did. Republicans only have a two-vote margin in the Senate (effectively three, if you include vice president Mike Pence’s ability to cast the tie-breaking vote). If they lose just three votes, they still can’t pass anything. It’s possible the same thing will happen with this tax bill—except that cutting taxes is a far easier sell to Republicans, of course. It’s why they put up with Donald Trump….

What’s left to find out?

Everything, really. Like most preliminary documents, both the unified framework and the budget resolution kick the most critical decisions down the road. Republicans face a tightrope wire between who benefits from the tax cuts, and how much of the cuts get paid for versus how much the public will borrow. The more debt in the plan, the harder it will be to win critical votes in the Senate. But paying for the tax cuts by reducing loopholes—such as the deductions for state and local taxes, charitable giving or retirement savings—could alienate lawmakers whose constituents benefit. It’s a very difficult line to walk…

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Donald Trrump, as usual, is all over the place on a Tax Bill….

It has been passed around that Donald Trump’s memory is so bad that you can only count on what the last person to see him ?….Tells him…..

Back before he got his day job at 1600 Pennsylvania Ave?…..When his OWN lawyers sat down to discuss legal stuff with him ?…There had to be TWO present so Trump could ‘change his mind’ on what was said to him and what he made up….

While people in the media make up all these clever reasons for Trump trying to work ‘deals’?

It appears that isn’t the case…..

Donald J. Trump really IS ALL OVER THE PLACE….

He has no ideology…

He has to repeat to Republicans that he’s one of them and often says one thing that might make Democrats happy, only to backtrack when his adopted party people voice displeasure at his utterances….

This has been the case in just about EVERYTHING the guy says out loud….

Republicans law makers admit in private what Sen. Bob Corker and Sec of State Rex Tillerson have said in public…..

The President of the United States doesn’t know what he doing…..

The problem is a LOT of Republicans supporters (Hardly anyone else) don’t care if their guy doesn’t have a strong grip on reality….

He’s THEIR Guy…..

So we have a point in time right now where his party people in the Senate and House say they want to do one thing?….And Donald Trump says another….

This isn’t a deliberate want to create chaos …..

One has to conclude that Trump talks to different people or reads something online and just changes direction…..

As with Healthcare ?

Trump’s odds of passing a tax cut bill may never cross the finish line because as usual?

A big problem is Republicans themselves are SOOOOO desperate to get a mjor piece of legislation done on their cmapiagn promise to cut taxes that they rushing around throwing things up in the air that they want to do….Most of their cuts will be impossible to get political support from Trump and other Republicans who are running next year in the midterm elections….

Just about EVERYTHING he touches?

Turns to SHIT.….

Now Republican negotiators are looking at cutting back on many of the deductions families and businesses use to limit their taxes to offset the lower rates, but Republicans and the White House are under pressure to back away from some of the demands.

One of the changes Republicans had floated was simplifying the tax benefits tied to retirement benefits, fueling concerns that they could make changes to 401(k) plans. Americans are allowed to contribute up to $18,000 pretax into their 401(k) plans each year as a way to incentivize saving for retirement. Lowering that pretax threshold could raise more revenue but face a backlash from many Americans who use the accounts to save for retirement.

After several news reports in recent days saying the changes were possible, Trump weighed in on Monday and said no changes would occur. Now the tax writers must look for other areas where they can raise money, and their options appear to be dwindling.

“You are trying to stuff a $4 trillion or $5 trillion tax cut in a $1.5 trillion box,” said Steve Moore, who was one of President Trump’s top economic advisers during the 2016 campaign. “That means something has to give here.”

Senate rules will prevent Republicans from passing a tax bill with a simple majority if it adds to the deficit after 2027. Republicans have already promised not to jettison Americans’ ability to deduct their mortgage interest, charitable contributions, and now income for 401(k) contributions, limiting the number of other changes they could make to raise revenue….

Negotiators have run into huge problems sorting out several of the White House’s promises.

The biggest one is Trump’s insistence on lowering the rate for millions of businesses that pay taxes through the individual income side of the code….

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Trump’s corporate tax plan will add trillions to US debt….

Don’t Conservative Republicans believe in ‘balanced budget’s’?

Forget THAT….

In REALITY?

Most large American companies that Trump and Republican Speaker Ryan are trying to help tax wise?

DON NOT EVEN PAY TAXES NOW….

Giving them more breaks would cost the Government TRILLIONS of dollars in additional debt from what it has now….

Donald Trump’s plans to reduce the corporate tax rate from 35% to 20% will result in a revenue loss of $3tn to $7tn for the federal government over a decade and are unlikely to create the promised boom in jobs, according to a new report from the non-partisan Committee for a Responsible Federal Budget.

Trump and Paul Ryan, Speaker of the House of Representatives, have been pushing hard for the plan. The president travels to Missouri on Wednesday to promote the plan and Ryan has taken to the road to venues including Boeing’s headquarters, where Ryan pledged to make the cuts by the end of the year.

But the Washington thinktank found that the cuts were unnecessary as well as exorbitantly costly. The study looked at 92 publicly-traded corporations that reported consistent profitability between 2008 and 2015, and found that they already benefitted from low effective tax rates, paying less than 20% of that net income to the federal government in tax.

Ryan and Trump have argued that a lower tax burden will help create more jobs, but the study argues that these companies are already paying the lower level of taxes and have not created more jobs. In fact, while the total rate of job creation among the US private sector as a whole was 6%, these 92 companies saw a 1% decline in employment. They are creating jobs at a slower rate than the economy, in spite of having precisely this “Goldilocks” tax rate.

The report follows on from another by the Institute on Tax and Economic Policy, which studied 258 consistently profitable Fortune 500 companies and found that their effective tax rate was 21.2%. In at least one year, 100 paid paid no tax at all. From 2008 until 2015, 30 companies paid an effective rate of 6.9%, and eight paid almost nothing. Those in specific industries (retailing) fared significantly worse than others (utilities), while some companies (McDonald’s) paid vastly more than their rivals. It’s fair to say that the corporate tax code is a mess….

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Trump’s Tax plan due out tomorrow…

A Tax cut for EVERYBODY?

Sound familiar?

Trump will announce the proposed reforms at a press conference at Trump Tower in New York City.
“Essentially, the plan is a major tax reduction for almost all citizens and corporations, in particular, those in the middle and lower income classes,” the Trump campaign said in a statement.

“Likewise, a major beneficiary will be corporations and job producers, with an emphasis on businesses in the United States and bringing money back into the United States, which is locked in other countries (Corporate Inversion).”

Trump’s rivals for the GOP nomination have accused him of running on platitudes, rather than specific policy proposals….

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Jeb Bush…Tax cuts…And Knocking Wall Street…

A little something for everyone?

“It’s easy for politicians and academics to go on and on about this ‘new normal’ in America, and how we all might just have to get used to it. They talk as if it is the best our country can do, when in truth it is just the best the progressive liberals can do,” Bush said Wednesday, unveiling his plan in North Carolina.
“My plan works whether you’re on Main Street or Wall Street,” he added. “No special favors. No special breaks. Fixing the tax code will take constant attention and effort.”

Broadly speaking, Bush keeps the template from the last successful tax reform effort in 1986, proposing to roll back a number of tax breaks while lowering individual and corporate rates.

But while Bush falls in line with previous Republican proposals on tax reform, he also breaks from GOP orthodoxy in other key areas. Other Republican reformers have also challenged the long-standing GOP concentration on slashing tax rates, and urged the party to focus more on helping families….

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President Obama gets his groove on the State of the Union….

Better  Economy…..

Income inequity…..

What I did for the last 6 years…..

Good Times……

That’s what this Dog saw……

President Obama delivered a State of the Union address Tuesday night focused on helping the middle class, highlighting his tax proposals targeting the wealthy and big banks even as Republicans voiced opposition.

“Will we accept an economy where only a few of us do spectacularly well?’’ the president asked a joint session of Congress. “Or will we commit ourselves to an economy that generates rising incomes and chances for everyone who makes the effort?”

“That’s what middle-class economics is — the idea that this country does best when everyone gets their fair shot, everyone does their fair share, and everyone plays by the same set of rules,” Obama said in a reprise of one of the key themes that animated his reelection campaign in 2012.

In a wide-ranging address, the president called for tax reform that eliminates corporate-friendly loopholes, highlighted his earlier proposal for free community college and delivered a forceful zinger aimed at conservatives and other critics of his plans to tackle global warming.

The Washington Post looks back at some of the top issues of 2014…..

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The American Economy HAS improved DESPITE the Republicans….

Remember when THEY wanted to cut the balls out of Government, Unions and Everything ELSE EXCEPT Defense Spending?

Remember how they said the Healthcare Law would make the Economy WORST?

Remember when President Obama was the Bad Guy?

attribution: CBPP/Perrspectives

As 2014 comes to a close, the American economy is finally starting to take off. The U.S. gross domestic product (GDP) surged by five percent in the third quarter, the best performance since 2003. Employers hired 321,000 more workers in November, marking the 57th consecutive month of private sector job gains. With unemployment down to 5.8 percent, long-stagnant wages are now showing signs of edging up. Plummeting gas prices and record stock prices are putting more money in Americans’ pockets and bank accounts. Meanwhile, federal tax revenues have exceeded forecasts even as spending is flat (as it has been throughout the Obama presidency), resulting in shrinking deficits. It’s no wonder consumer confidence is at its highest level in seven years.But with Barack Obama’s approval numbers on the upswing, the new Republican majorities in the House and Senate have a simple message for the president and his Democratic allies: Nice economy you have there; it would be a shame if anything happened to it.

That’s right. With their toxic combination of bad budgeting, bad math and bad faith, Republicans are once again threatening to cripple the federal government and derail the American economy in 2015 in three different ways…..

For an in-depth look at this...Here.….

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