Ernest S. Christian:
By gaining quick congressional enactment of the tax reforms in the Ryan-Brady GOP blueprint, “A Better Way for Tax Reform,” President Trump can in months accomplish historic reforms that have for decades eluded other presidents and Congresses. Furthermore, the economic burden of the blueprint’s roughly $1 trillion import-tax adjustment will for a combination of reasons fall partly on foreign companies that export into the U.S. market. If President Trump uses that $1 trillion of import-tax revenue to finance a big cut in U.S. income-tax rates, he can, in effect, require foreigners indirectly to help pay for the reduced income taxes on Americans. A good deal for America.
In addition to facilitating “tax shifting” (we get the money, others bear the economic burden), border tax adjustments provide a double-whammy boost to American jobs and income growth. That is because excluding exports from tax while taxing imports interacts powerfully with other vital reforms — such as low, newly reduced U.S. tax rates and first-year expensing of U.S. plant and equipment. Together, these reforms will help make America the predominant manufacturing and headquarters hub for doing business in the global economy. The Tax Foundation projects that within ten years, GDP will be 9.1 percent higher, wages will be 7.7 percent higher, and there will be 1.7 million more jobs than under current law.
The logic is impeccable. Instead of building plants abroad and having to absorb the new U.S. import-tax adjustment when they sell back into the U.S. market, American companies will invest in U.S. plants built here at home. Tax rates will be low on their income from products sold into the ever more prosperous U.S. market. In addition, the tax rate will be zero when they export American-made goods from U.S. factories. For the same reasons, foreign-owned companies will flock to the U.S. — bringing with them new jobs and purchasing U.S. equipment for doing business here and around the world. (If they stay abroad and sell their foreign-made goods into the U.S. markets, they will be hit by the import-tax adjustment set out in the Ryan-Brady plan.)
Because the GOP blueprint allows U.S. companies for the first time to stay home and export products tax-free, it also allows them the option of building factories abroad when necessary — but only for the purpose of gaining a beachhead for American exports and so that they may compete directly in foreign markets they cannot otherwise reach. If, on the other hand, they sell back into the U.S. market, they will be hit by the import-tax adjustment.
Indeed, it is possible that under President Trump’s version of the GOP tax-reform, a truly “runaway” U.S. company might be hit with an extra-large import tax when it manufactures abroad for the purpose of selling back into the U.S.
In a January op-ed in the Wall Street Journal, distinguished economist Martin Feldstein observed that induced changes in currency exchange rates can cause the entire economic burden of the import-tax adjustment to fall on foreign labor and capital. It’s uncertain whether exchange-rate changes always occur that quickly and powerfully. But in a more prosaic way, Economics 101 tells us that even with no exchange-rate changes at all, all or part of the economic burden of the import tax will fall on would-be foreign sellers into the U.S. market. They must lower their prices to absorb import taxes in those cases where there is (or quickly can be) a comparable American-made product.
Who was the fool who called Tax Cuts as Racsisit? Hey blacks are forced to pay taxes as much as whites and we need a good tax reform as well as reforming the IRS(Infernal Revenue Service)after all Obama turned them loose on conservatives as easly as Hitler did with his SS on his critics
Liberals never understand economic growth to drive revenues and only view confiscation as the only means of collecting revenue.
They dont want to repeal the Obamacare taxes, no shock, and they want some carbon tax redistribution of wealth scam. We shall have to wait and see if the congress will allow any real reform.
https://www.bloomberg.com/politics/articles/2017-02-08/prominent-republicans-begin-push-to-tax-carbon-cut-regulations
So, we’re headed back to tariffs, trade restrictions, and government coercion of American private sector enterprises, forcing them to fall in line or suffer the consequences. Republicans are making a U-turn, abandoning everything they’ve been saying for years about free unregulated markets, where prices are determined by supply and demand.
Has no one noticed?
@Greg: There have always been tariffs, why veggies are so expensive. Before income tax that was the governments main revenue.
I wait to see what tax reforms are in the pipeline. These liberal idiot carbon tax ideas need to be flushed.
And does this article seem like no one noticed dont be dense.
The bit that asserts The GOP blueprint, including its border tax adjustment, will boost free trade?
The claim is an assertion that Free trade will be boosted by making it less free. That’s right up there with The more you cut taxes, the more you raise revenue.
What no one seems to notice is the position reversal. Tariffs imposed to manipulate the free market trade are not a free market policy, any more than a carbon tax is a free market policy. Both are regulatory interventions intended to override or moderate free market forces.
Maybe tariffs are a good idea. A free market is what has allowed corporate America to boost their profits enormously by moving millions of American manufacturing jobs overseas, without regard for its effect on American workers and the the long-term health of the American economy. I’m withholding judgement on that until I see what happens. My concern is that when manufacturing facilities are relocated back within our borders, we’ll see a much higher level of factory automation. How many workers are replaceable by robotic equipment and computerization in the manufacturing, service, and retail industries? In 10 years we’ll begin to see robotized warehouse and distribution centers and robotic semi-trucks taking the place of human drivers.
The US currently has 12,000 tariffs in place. A return to Smoot-Hawley is not in the best interest of the US.
@July 4th American: Those that fail to learn from History are doomed to repeat it.
There are programs from the depression era still operating never updated or repealed.
Trump’s Cabinet picks have more personal wealth than the entire bottom third of American households combined—but, rest assured, their most compelling concern is looking out for the interests of the average American family, and those struggling just to get by. After all, we all know that’s how they became billionaires in the first place. Right?
Corporate taxes as a share of GDP, by nation.
Taxes collected at all levels of government as a share of GDP, by nation.
We don’t pay the highest taxes of any nation, as Donald Trump has asserted. Far from it.
Something to keep in mind, as he looks for a way to permanently get rid of the national debt ceiling. If that happens, and he also gets his tax cuts, all bets are of as to how long it will be before the dollar crashes. Of course, he has commented on a number of occasions that the dollar is too strong. I’m guessing he doesn’t have his own life savings in a bank account.
Trump Says Debt Ceiling Is ‘Not Necessary.’ Is He Right?
Obviously he isn’t. Congress shows little enough restraint already, and it hasn’t really mattered whether it’s been controlled by republicans or democrats. We shouldn’t trust any of these people with a national credit card having no spending limit.
Apparently Trump will work either side of the aisle to get what he wants. One of the other things he wants is “tax reform”—the details of which a majority of analysts and watchdog groups, both conservative and liberal-leaning, have warned translates to massive high-end tax cuts and additional trillions in federal debt over the next decade. The projected figures run as high as $7 trillion in additional debt. $5.5 trillion is the middle-of-the-road projection.
Put those two things together, and you’ve got the recipe for national financial catastrophe. You might as well flush your dollars down the toilet. Anyone who tells you the combination is a cure for whatever ails us is pedaling another load of horse manure.
Explain to me how this is in any way an example of traditional conservative thinking about fiscal responsibility.
@Greg: Says he who thought Obama did a good job on the economy. Tax cuts stimulates the economy. Bush’s tax cuts added $785 billion to the Treasury (as opposed to reducing revenue, as Obama did). Trump’s plan will repatriate trillions of dollars kept off shore, avoiding punitive taxes. Jobs will be created.
Yeah, unlike Obama, Trump is willing to work with people, even whiny crybabies that pout, stomp their feet and call him a racist. One day, these sore losers will get on board the American train instead of supporting our adversaries.
Winners and losers in the GOP tax plan
@Greg: Notice how the WaPo doesn’t mention the DOUBLING of the standard deduction until the very end? This will held the blue state crybabies that have been shuffling off some of their punitively high taxes onto the rest of the nation that are losing PART of their deduction.
Funny WaPo should lament any reduction in charitable deductions due to this plan (they are reaching) when the Obama administration had proposed cutting deductions for charitable donations altogether. The was also no liberal blowback when a major feature of Obamacare was the loss of the pre-tax benefit of employer-provided health care.
Sorry, Greg, but Trump is about to turn the economy loose and it is going to be a benefit for ALL Americans, something that will be a factor in the next elections.
Ouch.
It’s interesting how you steadfastly defend a pack of weasels who are preparing tax legislation designed to pick America’s pockets, and turn the trillion-dollar proceeds over to the wealthiest citizens and the biggest corporations.
The average American family will receive only a minuscule reduction in federal taxes. The wealthiest individuals and families—the billionaires, like Donald Trump—will receive huge personal tax cuts, while corporate America will get a permanent rate cut to 20 percent—in addition to keeping many of their loopholes.
This is the Bush tax cuts all over again. We’ll see yet another acceleration in the upward redistribution of American income and wealth, just as before, because that’s precisely what the cuts are designed to do. There will be a short-term over-stimulation of an economy that was previously stabilized at great expense, and has been seeking it’s natural level. We’ll be very lucky to avoid another disastrous economic downturn that tends to follow such economic binges.
More tax cuts at this point is totally irresponsible. We’re not paying our bills already.
@Greg:
As I provided, even the WaPo could not overlook the enormous dimensions of that lie, as told by your liberal representatives.
Cutting the capital gains tax will be instrumental in creating an economic boom and financial benefit for all Americans, just as it did when Kennedy did it. Your class warfare arguments and blatant jealousy of anyone successful is not what makes business move, creates jobs or benefits anyone. Obama’s oppressive and regressive economic policies were a disaster. As I have said, the worst fear of liberals is Trump’s success, but I don’t think you have the power to prevent it.
The Bush tax cuts added an additional $750 billion to the treasury and resulted in deficit reductions every year from 2004 to 2008, when the recession caused by the liberal Community Reinvestment Act devastated our economy.
The only reason we have deficits is because we spend too much, not tax too little.
Donald Trump lies like a dog. He lies constantly, utterly shamelessly, and without the least apparent concern for self contradiction.
Recognize and deal with that frickin’ plank, before going off on a partisan rant about the speck in your brother’s eye.
The Community Reinvestment Act devastated nothing. That’s just the simple-minded, bullshit, blame-shifting story republicans constantly peddle. The real story if far more complex. Low-income loans didn’t cause the financial crisis
So taxing less will remedy the situation? They’re setting us up for additional debt, on top of what’s already accumulating, because they can’t pass legislation that cuts expenses. Wait until they throw some enormously expensive, open-ended war in on top of that, which they show every sign of doing.
@Greg: Whine, whine, whine. Having supported Hillary and Obama, you either cannot recognize a lie or lies do not bother you at all.
The CRA provided the recession. That’s the fact. Bush’s tax cuts stimulated the economy and increased revenues, decreasing deficits. That’s the fact. Democrat leadership have been called out for their lies about the tax reforms. That’s the fact.
You’ve supported lies and liars, excused corruption and failure and oppose any attempts at economic growth and widespread prosperity because these are liberal tenets. Your concerns SHOULD be the exposure of the widespread and generally accepted corruption within your own party; you have put yourself in the position that making the opposition look WORSE than your own party is no longer humanly possible!
Sure it did. And the fact that the financial industry pushed risky adjustable rate mortgages, incentivized extending them to people who didn’t qualify to boost volume and profits, and then knowingly hid them by bundling them into retirement investment vehicles for which they deliberately falsified the risk level, didn’t have a damn thing to do with it.
—
Here are some facts about the GOP’s tax reform proposals. 11 Things You Should Know About the House Tax Plan I’m sure Trump & Co really like the provision that totally eliminates estate taxes as of 2023—as if we weren’t turning into a plutocracy quickly enough already.
@Greg:
Greg, really. Some have said so, but I don’t think you are that dense. Are you?
OF COURSE those had a LOT to do with it. And, they were all the result of the CRA. They were necessary to make the CRA work. But, without the CRA, you would not have had the economically stupid support mechanisms you mentioned and you would not have had the economic meltdown.
Oh, and those risky loans to people that didn’t qualify (without the variable rate loans) were not pushed for profits… they were MANDATED by Carter and Clinton.
They were the result of greed, and of a lack of sufficient regulatory oversight. And now the people you’ve elected are putting the foxes in charge of the hen houses, everywhere the opportunity arises. Foxes being what they are, there will be hell to pay.
There’s actually been a serious proposal to privatize the war in Afghanistan—to contract out a war like we’ve handed parts of the penal system over to corporations.
@Greg:
Clinton mandaded that 10% of mortgages had to be to people who, essentially, could not afford them. That was failed liberal social engineering. Lack of oversight? Remember what happened when Bush tried to get Bawney Fwank to allow oversight of his corrupt organization?
And Obama wanted to do the same thing again!!! Did he want to intentionally destroy the US economy or was he just that stupid?
From Fortune, November 3, 2017: Trump’s Tax Cuts Are the Biggest Wealth Grab in Modern History
Listen to the accompanying videos. These republican tools are real pros. They not really lying about rate cuts. Not lying by definition. They’re just seriously misdirecting people about the actual dollars-and-cents consequences, which is the only way in hell this tax reform scam could ever stand a chance of being passed. It’s an exhibition of skillful deception.
@Greg: The plan includes weakening and then eliminating the federal estate tax, a levy paid only by the wealthiest households in the country—it only kicks in on estates worth over $5.5 million for individuals and $11 million for couples.
Lies The uber wealthy already know how to get the money to the kids, this kills generational farms. Why should the government be entited to taxing a man all his life and if he gains the American dream snatch it away from the family.
Many farms were miles from town the towns became cities and grew out to the edge of his farm causing the value per acre to go up dramatically as developers lust after the acreage his great-grandpa cleared. The kids work the farm his wife works the farm the taxes fully paid, suddenly dad dies and the taxman commeth and says that will be 3 million or else, not many farmers have that kinda bucks stashed away. bye bye to the farm or construction business or car dealership ect.
Its an evil tax only a$$holes cant see how evil it is.
If Liberals were not so short sided and jealous of gains from hard work they could get more taxes from those willing to work for the American dream.
The Cutting of taxes has worked everytime it is tried, the Clinton admin rode high on Reagan cuts and regulation control, there was surplus, which the government quickly found ways to waste.
I still wait for you to answer how many depts the federal government supports. How many Intelligence agencies are there and could 1 or 2 be combined or eliminated?
The government has a spending problem, it gets worse every year, If congress did not fund Obamacare(they didnt) where did the funds get unlawfully stolen from?
Could you imagine if Trump diverted funds from any program to his wall what would happen?
https://needtoknow.news/2017/03/400/
Is there any real chance someone will reform this?
Paradise Papers: Everything you need to know about the leak
You’ve got to wonder sometimes if the Us vs. Them paradigm promoted by our politicians is all just a cover to hide who the actual us and them really are.
@Greg: No not a chance in the world. The pigs keep taking and promising the sheep little rewards, til they have taken so much for themselves there is nothing left. Its called socialism and communism. Its also one world order, war profiteers making money on both sides of the conflicts they start.
Yeah, right. Let’s wait to see how many socialists and communists turn up on the Paradise Papers who’s who list.
@Greg: Will you be surprised if a few old Democrats from congress show up, I woudnt be surprised if old RINOs make the list.
Nope, I wouldn’t be surprised.
Nov. 16 – House and Senate Panel Pass Tax Bill in Major Step Toward Overhaul
Who needs hearings?
Especially when stuff like that might come up for discussion.
Yeah, they could—by telling the public what the consequences of the republican legislation are projected to be. This could become a problem.
Listened to a show that had CPAs interviewed, IF whats in the bill is actually what they say its a screwing for some.
From Business Insider, Nov. 23, 2017 – The GOP tax plan got a triple whammy of brutal reviews
That the bill has “significant underlying problems” might be a bit of an understatement.
A super rich guy stating what should be totally obvious: The Super Rich Don’t Need a Tax Cut.
Nick Hanauer has a net worth in excess of $6 billion. The economic that made him super wealthy isn’t driven by the spending of the super wealthy.
November 27, 2017; three hours ago: CBO: Senate tax plan would increase deficit by $1.4T over 10 years
So, the $1.5 trillion tax reform package is calculated to result in $1.44 trillion in additional debt.
Essentially, it takes the taxpayers’ debit card to an ATM, makes a $1.5 trillion withdrawal, and passes the proceeds out over a 10-year period, with those on the top end getting far bigger handouts.
To achieve these stellar results, the bill also eliminates the Obamacare mandate, which taxes those who refuse to purchase health insurance. The projected result of that elimination is a 10% per year increase in health insurance premiums for all those who buy their health insurance outside of a group market for each year of the next decade. (That is, their health insurance premiums will more than double over the following 10 years.)
Will they get away with it?
@Greg:
If Obamacare were repealed altogether, it would save the $2 trillion the CBO scored it would cost (while leaving 30 million uninsured). Of course, no liberals believed THAT, did they?
The Free Beacon isn’t fit to line the bottom of a bird cage. It’s anything but unbiased, and it’s journalistic practices are only marginally ethical. The study they quote is from the Tax Foundation, which has a publicly stated conservative anti-tax agenda.
The fact that you can save money by doing something doesn’t mean it should be done. We could save a bundle by halving our military budget, couldn’t we? Or by abandoning all social programs, without consideration of the suffering that would result. What the CBO can be relied on for is accurate arithmetic and best efforts in the matter of accurate predictions. They don’t take the wisdom or foolishness of the proposals under consideration into account, or try to put a partisan spin on things. That’s not their job.
@Greg: Except saving trillions by getting rid of the law that is driving up healthcare costs and making it less available would be a win all around.
So where’s that promised republican replacement that was supposed to be better, cheaper, and available to everybody?
The truth is that the people you elected didn’t have one, couldn’t come up with one, and couldn’t even agree to repeal the thing they’ve claimed for the last 7 years is worse than useless. But you still can’t figure out that they’re lying to you.
@Greg:
The truth is, they had several and could not agree on one. Republicans don’t do socialism well, you see.
They haven’t told me I can keep my insurance if I like it yet…. so no GIGANTIC, ENORMOUS, BOLD-FACE lies.
Trump’s Lies – A list, with linked documentation for each, as of July 21, 2017.
@Greg: But… but… but you LIKE lies. You VOTED for lies. You DEFENDED lies.
1,027 Obama lies
Obama’s lies
http://freedomoutpost.com/1063-documented-examples-of-barack-obamas
I’ve seen your list of petty, nit-picky crap. Yet, as I show, you really don’t mind lies. In fact, you love the liar and are currently all butt-hurt because perhaps the BIGGEST liar ever to run for the office was defeated.
You still haven’t explained how if only the 1% is getting a tax cut and the rest of America will be paying MORE taxes, how do we wind up with a deficit? (another lie you embrace and love)
@Bill… Deplorable Me, #41:
I think ol’ Dan is probably main squirrel on his particular hill. He says he’s presenting a list of Obama lies, and then begins with this:
Apparently he doesn’t even grasp the concept of what the list of Trump lies is about: that is, clear, unambiguous statements the man has made that are demonstrably false.
The second list is only a repetition of Dan’s bizarre ramblings, presented on a different webpage.
@Greg: But the fact is, you SUPPORT the most prolific liars in American history. So, why make such an issue over a list of things you WANT to BELIEVE are untrue? None reach the level of “If you like your insurance, you can keep your insurance. If you like your doctor, you can keep your doctor. PERIOD.” Or, of course, “the video”. Or, perhaps THIS is the biggest lie in history:
Senate Budget Committee Approves Tax Bill
The latest analysis of the Senate tax bill, from the Wall Street Journal: New Analysis Shows Senate Bill’s Tax Benefits Shift Over Time
So, the republican base would get some tax cuts over the next few years, while corporations and the wealthiest get much bigger reductions. Then, 10 years on, more than half of all U.S. households would find themselves paying even more taxes than at present, while corporations and 98% of the wealthiest retain cuts that are permanent. Between now and then, we would run up $1.4 trillion more in national debt than is presently projected.
How’s that for a tax reform plan?
@Greg: You still haven’t explained how if only the 1% is getting a tax cut and the rest of America will be paying MORE taxes, how do we wind up with a deficit? (another lie you embrace and love)
https://townhall.com/tipsheet/guybenson/2017/11/28/no-the-gop-tax-plan-doesnt-raise-taxes-on-the-middle-class-in-a-few-years-n2414790?utm_source=thdailypm&utm_medium=email&utm_campaign=nl_pm&newsletterad=
The only way taxes are increased in 2027 is if Democrats vote for it. This is sunset
is necessary to keep the Democrats from filibustering THESE tax cuts. If the Democrats would actually participate in governing, the prospect of taxes going up in 2027 (allowed by the Democrats) would not exist.
You’re being lied to, Greg. You accept it willingly because you like the lies.
@Bill… Deplorable Me, #45:
It’s because the cuts aren’t evenly distributed.
The distribution chart halfway down this recent Forbes article is helpful.
The segment of the taxpaying population having annual income of $143,100 or more will receive 77% of the total of all tax cuts. The segment consisting of all taxpayers with lower annual income—which, of course, is far more numerous—will share only 23% of the total among themselves. The 23% portion of the total cut will be gone by 2027, but the 77% portion of the total cut continues.
The sell is a sort of bait-and-switch scam, with the switch part of the scam taking place in 2027—and continuing on thereafter. It is, in fact, a scam.
@Greg: @Greg:
So, $143K a year is “the 1%”? Since when?
Apparently, by your own admission here, the people that PAY the taxes get the most benefit from tax cuts while those who generally receive more in refunds than they pay in will not benefit as much. Hmmm…. How unfair?
Sounds like you have moved away from the “tax cuts for the rich” lie. That’s improvement, Greg. Growth. Very good.
Jeeze how can they be experts and know it alls when it hasnt rolled out to be voted on yet?
Anyone that pays income tax at all is getting screwed .
On April 8, 1895, the Supreme Court declared that the federal income tax was unconstitutional, and the wealthy were off the hook…At least for a while. The Supreme Court’s unpopular decision eventually led to the ratification of the Sixteenth Amendment in 1913, which in no uncertain terms gave Uncle Sam the power to tax incomes “from whatever source derived.” Progressives have only given us misery why would anyone want to be one?
@Bill… Deplorable Me, #48:
No one suggested those earning $143K a year or more are the 1%, other than yourself. $143,100 represents the annual income a person must have to be counted among the upper 20% of U.S. earners.
That’s what the chart shows: that annual income of greater than $143,100 puts an earner somewhere in the top 80%–100% range of all workers; that this group as a whole would divide up 77% of the total amount of all the proposed tax cuts; and that, as a group, their taxes would be reduced by 6.6% per year, the highest overall percentage. In comparison, taxpayers having income levels falling into the lowest 20% would see annual reductions of only 8-tenths of one percent—and even those would be lost by 2027.
Like I said, it’s a scam. The biggest cuts go to the highest earners, both total dollar and percentage-wise. If you are in the top 1% of earners, the benefits are very heavily weighted in your favor. And they cleverly don’t evaporate by 2027, as they do for everyone else.