Who Will Pay for the GOP Tax Plan?

Dec 2015
15,918
14,813
Arizona
#1
It looks like (but not a certainty) that the GOP tax plan WILL pass. McCain is on board. Corker is coming around. Collins is smiling--just a little. Our broker says that the Claras will benefit and so will LOTS of Baby Boomers, but it's gonna cost someone. So who will pay for the plan? Gen X and Millenials.

Here's why. The baby boom is being evicted from the penthouse of American politics. And on the way out, it has decided to trash the place.

That’s probably the best way to understand the generational implications of the tax legislation Republicans are driving through Congress.

The House and Senate measures shower enormous benefits on households at the top of the economic ladder, a group that by all indications is older and whiter than the population overall. Then it hands the bill for those benefits largely to younger generations, who will pay through more federal debt; less spending on programs that could benefit them; and, eventually, higher taxes.

The baby-boom generation, which has voted reliably Republican in recent years, has been the largest generation of eligible voters since 1978. But in 2018, for the first time, slightly more Millennials than baby boomers will be eligible to vote, according to forecasts from the Center for American Progress’s States of Change project. Higher turnout rates among baby boomers will preserve their advantage among actual voters for a while. But sometime around 2024, Millennials will likely surpass them. The post-Millennials, Americans born after 2000 who’ll enter the electorate starting in 2020, will widen the advantage. This generational shift will trigger a profound racial change: While about 80 percent of the baby boom is white, over two-fifths of Millennials and nearly half of the post-Millennials are not.

People who own corporate stock and/or their own businesses will gain the most from the plans’ cuts in business taxes. Fed data again show that whites are twice as likely as non-whites to own one or the other—and that older adults are more likely to do so than younger people. Overall, the tax bills reward wealth, and wealth accumulates with age: Households headed by people between 55 and 64 years old have an average net worth that’s 15 times that of households headed by people younger than 35, the data show.

One thing we know for sure. This tax plan will add to our deficit and surprisingly the GOP doesn't seem to care----after YEARS and YEARS of wringing their hands over a rising deficit. I don't get it, but evidently, anything that Donald Trump does (even if it's been considered horrendous in the past) is OKEY DOKEY with them. This tax plan is a really big deal AND it's a really big risk for the GOP. So roll the dice, guys. Let's see what happens. Reminder: Midterms! November 6, 2018!

https://www.theatlantic.com/politic...l-foot-the-bill-for-the-gops-tax-plan/547097/
 
Likes: 1 person
Apr 2013
37,122
25,325
La La Land North
#2
From everything I have read about it, a large part of it will be paid for by your children and grandchildren.

Republicans only worry about deficits and debt when they aren't in power.
 
Likes: 3 people
Mar 2013
9,570
10,282
Middle Tennessee
#3
Here's the simple truth of the matter.

The corporate tax cuts are PERMANENT and MASSIVE, a full 15% drop !!!!!

The personal tax cuts are relatively small for the average earner 1% TO 3% AND THEY EXPIRE IN TEN YEARS !!!!

The Republicans are selling what's left of our republic to the corporations and the investor class. Trump and family could see as much as ONE BILLION DOLLARS in tax relief while the rest of us will be lucky to see more than a couple hundred dollars difference.

30 years ago 30% of federal revenue was from corporate taxes. Today that figure is just 10%. After this bill passes it will be even smaller. American companies reap MASSIVE benefits from a stable government, good infrastructure, lack of crime and a well educated population. Yet their goal is to give as little back to the society that supports them as possible.

Companies are NOT going to just "raise wages", they're going to bank all that extra cash. They aren't going to invest in growth when no one can afford their products and services. Few companies are seeing any substantial market growth. MOST of their rising profits have come from reducing structural costs. MOSTLY LABOR. If anyone thinks they're simply going to turn around and give that extra cash to the very same workers they've spent that last three decades downsizing, outsourcing and offshoring, You're completely delusional !!! They'll pump up investor dividends and upper management bonuses.

The investor class DOES NOT CREATE JOBS. There may be a few real entrepreneurs that'll take some of their windfall and invest in a few start ups, but that's a pretty small percentage of that class. Naaaaaah most will either bank it or use it to buy more stock in existing companies. Very little of that cash will get pumped back into the economy.
 
Likes: 3 people
Mar 2013
9,570
10,282
Middle Tennessee
#5
From everything I have read about it, a large part of it will be paid for by your children and grandchildren.

Republicans only worry about deficits and debt when they aren't in power.
And what they aren't talking about is the deficit !!!!! It's already going to be nearly $700 billion this year. Now they're going to ADD another $150 billion or so to that figure for the next 10 years. And that's IF their very optimistic growth estimates hold true. If we don't see the growth the annual deficit will be far more. If the economy slows even a little we'll see massive deficits and an explosive rise in the national debt.

At the current pace, Trump and the repubs are on track to add as much to the national debt as Obama and the repubs (for 6 years) did.
 
Likes: 1 person
Jun 2013
28,864
15,446
Ohio
#7
Reducing the corporate tax rate is going to super charge the economy. Growth is going to pay for the rax cuts.
Yeah, that is what Brownback said about his “experiment” in Kansas. The opposite happened in reality if reality is your thing.
 
Dec 2015
15,918
14,813
Arizona
#10
Reducing the corporate tax rate is going to super charge the economy. Growth is going to pay for the rax cuts.


Well, first of all, our economy is doing great. The Dow Jones is up 347pts today-- hitting another record high of 24,250.

Secondly, GROWTH? GROWTH of what??

Third, our unemployment rate is the lowest in history. Everyone who wants to work---IS WORKING.

Last--The Center on Budget and Policy disagrees with you. Corporate Tax Cuts Mainly Benefit Shareholders and CEOs, Not Workers.

https://www.cbpp.org/research/feder...nly-benefit-shareholders-and-ceos-not-workers