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Study Finds Trump Tax Cuts Failed to Do Anything But Give Rich People Money

MTAtech

MTAtech

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[h=1]Study Finds Trump Tax Cuts Failed to Do Anything But Give Rich People Money[/h]
The biggest effect of the Trump tax cuts is obvious: People who own businesses and other sources of concentrated wealth will have a lot more money, and the federal budget will have less. But the advocates of the tax cuts insisted it wasn’t about letting the makers keep their hard-earned money rather than handing it over to the takers. It was about incentivizing business to repatriate funds and ramp up its investments, thereby increasing growth and wages.

The Congressional Research Service, a kind of in-house think tank for Congress, has a new paper analyzing the effects of the Trump tax cuts. It finds that none of those secondary effects have materialized. Growth has not increased above the pre-tax-cut trend. Neither have wages. After a brief and much smaller than expected bump, repatriated corporate cash from abroad has leveled off.
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Call me not-surprised. The advocates of tax-cuts said that miracles will happen if we passed this. Well, the miracles didn't happen.
 
MTAtech said:
[h=1]Study Finds Trump Tax Cuts Failed to Do Anything But Give Rich People Money[/h]
Call me not-surprised. The advocates of tax-cuts said that miracles will happen if we passed this. Well, the miracles didn't happen.
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If it was worth the time I'd dig up all the other studies that show those tax cuts benefits a huge percentage of all taxpayers. Not worth the effort, facts would be involved and liberals don't do facts. :cool

I'll leave you to your little loony lib circle jerk now.
 
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Voo Doo economics strikes again!!!
 
No one should be surprised, at all.
 
Bullseye said:
If it was worth the time I'd dig up all the other studies that show those tax cuts benefits a huge percentage of all taxpayers. Not worth the effort, facts would be involved and liberals don't do facts. :cool

I'll leave you to your little loony lib circle jerk now.
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Your surrender is noted.
 
Trump Tax Cuts Boosting GDP, Business Confidence | Americans for Tax Reform

found study and analysis that shows the opposite.

The economy grew at 2.9 percent in the last quarter of 2017, according to the Bureau of Economic Analysis. This news proves that President Trump’s tax cuts are working and shows a clear contrast between the sluggish 1.3 percent growth of the Obama years.

Deregulation is also responsible for this economic uptick. For every new regulation put on the books in fiscal year 2017, 22 regulations were slashed. This has saved a combined $8.1 billion in net federal regulatory costs so far. Cutting bureaucratic red tape and making it less costly to do business has been one of Trump’s best economic achievements so far.

Since Trump became president, business confidence in the economy is at an all-time high, according to the RMM US Middle Market Index. Economic growth has neared 3 percent over the past year, resulting in strong wage growth for middle class families.

Foreign investment in the United States is also at a record-breaking $35.5 trillion, according to data from the U.S. Bureau of Economic Analysis. This includes $8.9 trillion in U.S. factory investments and $8 trillion invested in shares of U.S. companies.

Over 90% of Americans have received a tax cut under the new tax code. Between 2018 and 2025, Americans will see a $1.17 trillion tax reduction as a result of the bill. A family of four earning $73,000 will see over $2,000 in tax cuts, a tax reduction of 58% A single parent with one child earning $41,000 per year will see $1,304 in tax cuts, a tax reduction of 73 percent.

looks like success to me.
 
Bullseye said:
If it was worth the time I'd dig up all the other studies that show those tax cuts benefits a huge percentage of all taxpayers. Not worth the effort, facts would be involved and liberals don't do facts. :cool

I'll leave you to your little loony lib circle jerk now.
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Aw, I’m so disappointed.
 
Yikes, that CRS report is pretty devastating.

In 2018, gross domestic product (GDP) grew at 2.9%, about the Congressional Budget Office’s (CBO’s) projected rate published in 2017 before the tax cut. On the whole, the growth effects tend to show a relatively small (if any) first-year effect on the economy.
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Although significant amounts of dividends were repatriated in 2018 compared with previous years, the data do not appear to show a significant increase in investment flows from abroad. While evidence does indicate significant repurchases of shares, either from tax cuts or repatriated revenues, relatively little was directed to paying worker bonuses, which had been announced by some firms.
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Rather, the combination of projections and observed effects for 2018 suggests a feedback effect of 0.3% of GDP or less—5% or less of the growth needed to fully offset the revenue loss from the Act.
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Consumption grew at 2.6% in 2018 in real terms, as shown in Figure 2, about the same as 2017 (which was 2.5%) and below 2014-2016 (although higher than 2013)
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There is no indication of a surge in wages in 2018 either compared to history or relative to GDP growth.

D7qpAABX4AEiQu8.png


The nominal growth rate in wages was 3.2%, but adjusting for the GDP price deflator, real wages increased by 1.2%. This growth is smaller than overall growth in labor compensation and indicates that ordinary workers had very little growth in wage rates.
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ludin said:
Trump Tax Cuts Boosting GDP, Business Confidence | Americans for Tax Reform

found study and analysis that shows the opposite.

The economy grew at 2.9 percent in the last quarter of 2017, according to the Bureau of Economic Analysis. This news proves that President Trump’s tax cuts are working and shows a clear contrast between the sluggish 1.3 percent growth of the Obama years.

Deregulation is also responsible for this economic uptick. For every new regulation put on the books in fiscal year 2017, 22 regulations were slashed. This has saved a combined $8.1 billion in net federal regulatory costs so far. Cutting bureaucratic red tape and making it less costly to do business has been one of Trump’s best economic achievements so far.

Since Trump became president, business confidence in the economy is at an all-time high, according to the RMM US Middle Market Index. Economic growth has neared 3 percent over the past year, resulting in strong wage growth for middle class families.

Foreign investment in the United States is also at a record-breaking $35.5 trillion, according to data from the U.S. Bureau of Economic Analysis. This includes $8.9 trillion in U.S. factory investments and $8 trillion invested in shares of U.S. companies.

Over 90% of Americans have received a tax cut under the new tax code. Between 2018 and 2025, Americans will see a $1.17 trillion tax reduction as a result of the bill. A family of four earning $73,000 will see over $2,000 in tax cuts, a tax reduction of 58% A single parent with one child earning $41,000 per year will see $1,304 in tax cuts, a tax reduction of 73 percent.

looks like success to me.
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Thanks, but I'll believe the Congressional Research Service before a conservative think tank and besides, your link is over a year old.
 
Tax cuts produce long term growth that is mitigated by many factors. They do not produce short term results beyond a temporary and trajectory adjusting "confidence bump".

Economics 101 is required to discuss tax policy.
 
ludin said:
Trump Tax Cuts Boosting GDP, Business Confidence | Americans for Tax Reform

found study and analysis that shows the opposite.

The economy grew at 2.9 percent in the last quarter of 2017, according to the Bureau of Economic Analysis. This news proves that President Trump’s tax cuts are working and shows a clear contrast between the sluggish 1.3 percent growth of the Obama years.

Deregulation is also responsible for this economic uptick. For every new regulation put on the books in fiscal year 2017, 22 regulations were slashed. This has saved a combined $8.1 billion in net federal regulatory costs so far. Cutting bureaucratic red tape and making it less costly to do business has been one of Trump’s best economic achievements so far.

Since Trump became president, business confidence in the economy is at an all-time high, according to the RMM US Middle Market Index. Economic growth has neared 3 percent over the past year, resulting in strong wage growth for middle class families.

Foreign investment in the United States is also at a record-breaking $35.5 trillion, according to data from the U.S. Bureau of Economic Analysis. This includes $8.9 trillion in U.S. factory investments and $8 trillion invested in shares of U.S. companies.

Over 90% of Americans have received a tax cut under the new tax code. Between 2018 and 2025, Americans will see a $1.17 trillion tax reduction as a result of the bill. A family of four earning $73,000 will see over $2,000 in tax cuts, a tax reduction of 58% A single parent with one child earning $41,000 per year will see $1,304 in tax cuts, a tax reduction of 73 percent.

looks like success to me.
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So a 2.9% GDP growth rate in the 4th quarter of 2017 (before the tax-cut went into effect) is "proof" that the tax cuts were working. Really? How then did we get 4.9% growth rate in Q2 2014 and the 5.1% growth rate in Q3 in 2014 without a tax cut? The reality is that there are many periods of high quarterly growth.

Lowering corporate taxes, a key portion of the tax-cut went to buying back stock, not raising worker wages.
 
Rogue Valley said:
Thanks, but I'll believe the Congressional Research Service before a conservative think tank and besides, your link is over a year old.
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So your just going to admit that your decision based on not who's correct. But who pushes the same agenda as you?

Well I'm glad to see you be honest in the very least.
 
MTAtech said:
So a 2.9% GDP growth rate in the 4th quarter of 2017 (before the tax-cut went into effect) is "proof" that the tax cuts were working. Really? How then did we get 4.9% growth rate in Q2 2014 and the 5.1% growth rate in Q3 in 2014 without a tax cut? The reality is that there are many periods of high quarterly growth.

Lowering corporate taxes, a key portion of the tax-cut went to buying back stock, not raising worker wages.
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Omitting information that proves a point and inserting parameters that don't need to be inserted.

Yeah, they were right about letting you stay in your little circle jerk.
 
Study Finds Trump Tax Cuts Failed to Do Anything But Give Rich People Money
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lucy-football.jpg
 
Rogue Valley said:
Thanks, but I'll believe the Congressional Research Service before a conservative think tank and besides, your link is over a year old.
Oborosen said:
So your just going to admit that your decision based on not who's correct. But who pushes the same agenda as you?

Well I'm glad to see you be honest in the very least.
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A source that claims that a growth rate seen many times before, occurring before the tax-cuts went into effect, is proof that the tax-cuts worked, is not a credible source.
 
Rogue Valley said:
Thanks, but I'll believe the Congressional Research Service before a conservative think tank and besides, your link is over a year old.
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Thanks i will believe in actual results in the economy.
and most people will believe results in the economy.

How Well Is the U.S. Economy Doing? Number of Unemployed Americans Close to 50-year Low

something more current.

The monthly average of claims, often thought to be a more reliable indicator of the labor, fell by 4,750, to 220,250.

The latest report from the Department of Labor means jobless claims in the world’s largest economy were close to reaching their lowest level in almost 50 years.

Adding to the positive news, data released earlier this month showed wages were on the rise, while the unemployment rate was at its lowest in 49 years.

Last week, a report from the University of Michigan noted American consumers were at their most confident in 15 years.

The institute’s sentiment index—a gauge of confidence among consumers—rose from 97.2 to 102.4, surprising economists who had expected the reading to remain unchanged.

A Quinnipiac University poll released earlier this week found that 52 percent of respondents said they were better off financially than before Donald Trump became president.

yep real results not studies. i think they need to go back and see where they made their mistake.
 
Yeah, but what does Trump have to say? After all, that’s all his electors care about. Like Gospel...
 
ludin said:
Trump Tax Cuts Boosting GDP, Business Confidence | Americans for Tax Reform

found study and analysis that shows the opposite.
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The first sentence of that report:

The economy grew at 2.9 percent in the last quarter of 2017, according to the Bureau of Economic Analysis. This news proves that President Trump’s tax cuts are working and shows a clear contrast between the sluggish 1.3 percent growth of the Obama years.
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Proves!! I love it when right wing hacks disqualify their analysis as nothing but partisan propaganda that early, because it saves me time. I quit reading right there.

The TCJA passed in December 2017, and was effective for tax years after that, so it's actually impossible for tax cuts NOT YET PASSED to have boosted growth in the 4th quarter of 2017. Any analyst making a claim that growth before a change in the law "proves" !!!! a change in the law is working is either very stupid (and that's not likely) or a worthless partisan paid to spew whatever his paymasters tell him.
 
ecofarm said:
Tax cuts produce long term growth that is mitigated by many factors. They do not produce short term results beyond a temporary and trajectory adjusting "confidence bump".

Economics 101 is required to discuss tax policy.
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That's true, but we've been told again and again that the tax cuts are working.

And the story about tax cuts producing long term growth generally relies on other assumptions, such as that the tax cuts aren't just borrowed money, increasing deficits, which Econ 101 would tell us threatens to diminish growth through crowding out, inflation, leading to higher interest rates that dampen growth. That might be what you're referring to with "mitigated by many factors."

Most of the modeling I've seen, and at least a good bit of the empirical work, assumes/finds that borrowed tax cuts have little impact long term, and as a result cost MORE than the nominal "static" cost. In other words, the feedback, at least for tax revenues, is negative long term, not positive. Or, if positive, is something on the order shown by CRS - a few percentage points.

Another way to look at it is it's unclear how much unfunded tax cuts (with nearly $trillion deficits at full employment) can boost long term growth with the kind of deficits we have currently. If you're doing a 20 year plan for a business, I'm not sure it's fair to assume that current rates are sustainable. Would you as CFO really make a 20 year bet that relied on current tax rates being in place throughout the investment period? I wouldn't.

The evidence appears to be that tax rates have a small impact on long term growth, but for reasons like those above aren't magic bullets. All the other factors - such as labor costs, interest rates, world demand, commodity prices, environmental standards, and more dominate decision making in the long term.
 
JasperL said:
The first sentence of that report:



Proves!! I love it when right wing hacks disqualify their analysis as nothing but partisan propaganda that early, because it saves me time. I quit reading right there.

The TCJA passed in December 2017, and was effective for tax years after that, so it's actually impossible for tax cuts NOT YET PASSED to have boosted growth in the 4th quarter of 2017. Any analyst making a claim that growth before a change in the law "proves" !!!! a change in the law is working is either very stupid (and that's not likely) or a worthless partisan paid to spew whatever his paymasters tell him.
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don't like it take it up with the paper. i found a study and analysis that said it is working.
 
MTAtech said:
So a 2.9% GDP growth rate in the 4th quarter of 2017 (before the tax-cut went into effect) is "proof" that the tax cuts were working. Really? How then did we get 4.9% growth rate in Q2 2014 and the 5.1% growth rate in Q3 in 2014 without a tax cut? The reality is that there are many periods of high quarterly growth.

Lowering corporate taxes, a key portion of the tax-cut went to buying back stock, not raising worker wages.
Click to expand...

It's actually a shame that conservative think tanks like Americans for Tax Reform are such obvious shills and liars. It would be a good thing for public discourse to have a legitimate 'conservative' analysis of tax and regulatory policy, but when a "think tank" starts off a report with a statement so obviously illegitimate, a statement the author must KNOW is a lie, all the rest that follows must be assumed equally dishonest.

So they can add nothing legitimate to the debate. It's just cheerleading for policies that their donors want. OK, noted!
 
MTAtech said:
So.

Lowering corporate taxes, a key portion of the tax-cut went to buying back stock, not raising worker wages.
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Another lw zombie meme, endlessly parroted by by liberal economic illiterates.

It presumes something really stupid. That shareholder who receive the buyback funds do not put the funds they receive to productive use. According to the left, they presumably stuff it into mattresses. {LAFFRIOT}
 
ludin said:
don't like it take it up with the paper. i found a study and analysis that said it is working.
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I did take it up with the paper - it's obvious nonsense, and you shouldn't rely on what they say because they started off their "analysis" with a conclusion that is a lie, dishonest, and the author knows it's a lie.

Even if they didn't include that statement, no legitimate economist would look at results between January 1, 2018 (when the tax cuts were effective) and April, and conclude ANYTHING about the impact of those tax cuts. There's no possible way to capture any impact in the data barely 3 months into the first year.
 
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