Question to all on corporate tax cut?

How will the economy expand with lower taxes, and has it ever happened before?

With regard to doubling the standard deduction. More lies...

Trump tax plan: 'Doubled standard deduction' is misleading - Business Insider
"
Meanwhile, taxpayers who itemize their tax deductions for things like mortgage interest and state and local taxes would pay tax on more of their income under the Republican plan. The proposal says "most" itemized deductions would be abolished anyway, but those for mortgage interest and charitable giving would be retained.

Currently, you get to take the personal exemption even if you also itemize deductions, but you get to take the standard deduction only if you forego itemized deductions. Combining these provisions into a single, standard deduction would mean itemizers lose their personal exemption and get nothing back — meaning they'll typically pay tax on an extra $4,050 of income if they're single, or $8,100 if they're married."

C R O I X said:

I have worked in McDonald's in Germany and what you say is not their reality. Actually, in Germany most McDonald's restaurants fire most of their workers before they have two years working there, because after that the company has to pay more benefits and so on. So they prefer firing people and get fresh new workers, no matter how dedicate and good is the worker.

Ireland that has a very low corporation tax, only have high minimal wages because the Gov. forced it by law, because before people where being paid low wages while companies and top jobs professionals were getting richer.

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So do any of the McDonald's workers in Germany stay past the two year mark?

independentusa said:

First I am not asking if there is going to be one as both parties say there will be on. What I am asking about is if the selling point by the administration that it will increase workers salaries is true and believable? I was listening to the talking heads this morning and some were questioning if that would actually happen. Myself, I don't think so. In fact I think the run up of the stock market is due to the fact that those who are stock holders believe that most if not all of the tax cut will end up in their pockets. SO do you think that the tax cut wil go most or all to the stockholders, or will a substantial amount go to the employees?

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It depends on the shape of the functions. But it does seem pretty straight forward to assume that lower taxation of companies will make the country look like a better place to invest and attract new investment. Labor is a factor of production. When there is new investment, there are probably more jobs. So, yes. Lower taxes on corporations will probably increase the number of jobs and the level of wages.

Floridafan said:

How will the economy expand with lower taxes, and has it ever happened before?

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In Brazil there is no dividend tax, none the less the economy is far from expanding. But on the other hand it has double taxes when on groceries.

Ireland wit its low corporation tax had a huge economic boom before 2008. But the economy expansion actually happened when the country joined the EU. But taxes on groceries are very high as well as income taxes.

What I hardly see is the opposite. That would be cut taxes on groceries next to zero, which would tend to lower products prices and theoretically improve the consumption rate (or companies sales), and than tax properly corporation and investors dividend.

Because if you think about, when everyone pay the same percentage on grocery price tax (%20 for example), it means that the people who earns $1000 month is paying more percentage of their income in taxes than people who earn $2500 when they go shopping, who also pay more percentage of their income in taxes than those who earn more so on. Also reminding that the poor the person the more of his earning goes on shopping.

So when there is talks about cutting taxes, on the fairness point of view and probably economic as well, the cut should be first on sale taxes. Business earn more not only paying less on sale taxes but also on being able to lower their prices to attract more consumers.

Fair tax is only on income and dividend percentage as well as corporation tax, since a lot of government investment in the urban structure is to help corporation and seeking economy improvement.

RabidAlpaca said:

Texas boomed because it found out it had a metric **** ton of natural gas, and even despite that boom wages in Texas still aren't keeping up with inflation and more and more jobs are becoming part time, low wage jobs. You still haven't explained what is going to motivate corporations across America to redirect their tax cuts into the salaries of their workers. History has shown they won't and that trickle-down-economics is a sham.

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You complaint can be answered by the democrats open border policies designed to keep the wage supply high and wages low. Wages are based on supply and demand for talent. Mexico has pharmacists, brick masons, clerks, data entry, engineers, too. It's just that the economics are better on this side of the border. For them. Not you.

We were speaking of Federal taxes, grocery taxes are state taxes, and as it is many states already do not tax food.

longview said:

So do any of the McDonald's workers in Germany stay past the two year mark?

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As I said, usually not.
The few that remains are managers, managers assistants and some people that usually work on the counter and often are managers friends.

There are two types of McDonald's, the one that is direct administrated by McDonald's itself and the franchising. What I am describing is usually seen in franchising (that is most of McDonald's restaurants because it is more profitable for McDonald's).

Floridafan said:

We were speaking of Federal taxes, grocery taxes are state taxes, and as it is many states already do not tax food.

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Thanks for the info. I didn't know that.
But anyway, I was just talking about how groceries taxes cut more from poor people earnings (but sorry for the off-topic mistake).

C R O I X said:

As I said, usually not.
The few that remains are managers, managers assistants and some people that usually work on the counter and often are managers friends.

There are two types of McDonald's, the one that is direct administrated by McDonald's itself and the franchising. What I am describing is usually seen in franchising (that is most of McDonald's restaurants because it is more profitable for McDonald's).

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It sounds like the difference between the two year benefits and pay, is greater than the cost of training new workers.
It seems that situation would create a permanent underclass, that can never get past the two year rate.

longview said:

It sounds like the difference between the two year benefits and pay, is greater than the cost of training new workers.
It seems that situation would create a permanent underclass, that can never get past the two year rate.

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Usually, people working in what they call "underclass" jobs in America, they earn enough to have a living in Germany, where many people choose to work in supermarket counter as a career (just an example).

And a lot of people live working on part time jobs (Minijob) that has no income tax.

There is a lot of downsides too but anyway, this talk is already an off-topic.

Going back to the topic, Corporation would rather keep the profit than share it with their workers. Reason why there is minimum wage.

C R O I X said:

Usually, people working in what they call "underclass" jobs in America, they earn enough to have a living in Germany, where many people choose to work in supermarket counter as a career (just an example).

And a lot of people live working on part time jobs (Minijob) that has no income tax.

There is a lot of downsides too but anyway, this talk is already an off-topic.

Going back to the topic, Corporation would rather keep the profit than share it with their workers. Reason why there is minimum wage.

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I think some of the rules designed to help workers, may end up hurting them.
When business is expanding, there are opportunities for motivated people to move beyond the boundaries.

beancounter said:

Because it is being sold/promoted as benefiting the workers, which is not true.

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I support it mainly on the idea that the owners get more return. labor is a commodity and the market controls the proper cost of labor-with the idiotic minimum wage playing a role

longview said:

I think some of the rules designed to help workers, may end up hurting them.
When business is expanding, there are opportunities for motivated people to move beyond the boundaries.

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It is true but not every workplace has room to grow up further. Working in McDonald's restaurant there is no where to go up. A part from the managers and managers asssistent everyone is pretty much the same doing a bit of everything and earning the same. But if the worker want be a manager assistant and try later on to become a manager he can become a apprentice earning half of the minimum wage or less for at least 3 years if they have parents able to financially support them. This is how it works in Germany. Private and public companies don't promote people to much higher position without you doing apprenticeship earning ridiculous wage for at least 3 years.

In America would be much easier to just become a manager only with the years of experience working in the restaurant I guess. But restaurantes don't need as many managers as they need people making burgers, working on counters and cleaning.