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We now know the real winners of the Trump tax cuts


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Less than a month before the midterm elections, government data shows that business tax payments plunged in fiscal 2018, which ended in September—while individual taxpayers paid more.

President Trump and Congressional Republicans who passed the tax cuts late last year, without any Democratic support, figured voters would thank them for the extra spending money, come Election Day. But that may not happen. More people oppose the tax cuts than favor them, and 64% say they’ve seen no change in their take-home pay on account of the tax cuts.

It’s party time in the corporate sector, however, with tax cuts generating an earnings boom and keeping a shaky stock-market rally intact. Corporate profits jumped 15.4% year-over year in the first half of 2018, compared with a rise of just 6.1% in the first half of 2017, before the tax cuts went into effect. That’s the biggest semi-annual jump in profits since 2012.

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Louise Linton and her husband, Treasury Secretary Steve Mnuchin, in Nov. 15 with a sheet of new $1 bills. (AP Foto/Jacquelyn Martin)

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Income gains for ordinary workers have been more muted, averaging just 2.8% so far this year. And while corporate profits have soared to new record highs, household earnings have only recently recovered years of losses, leaving many families feeling like they’re barely getting ahead.

The Trump tax cuts are unpopular because many people feel they benefit businesses and high earners more than middle-class workers. This year’s tax-receipt numbers back that up. Individual income-tax receipts rose from $1.587 trillion in fiscal 2017 to $1.684 trillion in 2018. That’s a 6.1% increase. Much of that is due to a growing economy and population growth.

Cut in corporate tax rate

Business-tax receipts, by contrast, plunged from $297 billion in 2017 to $206 billion in 2018, a 31% decline driven by the cut in the corporate tax rate from 35% to 21%. The portion of federal revenue that comes from business taxes has been dropping for years, and it fell from 7.5% in 2017 to 5% in 2018. Individual income-tax payments account for 41% of federal revenue.

The annual deficit rose from $666 billion in 2017 to $779 billion in 2018. And that’s with the tax cuts in effect for just eight of 12 months. The deficit could top $1 trillion in fiscal 2019, and stay above that for the foreseeable future.

Trump and his economic advisers insist that ballooning budget deficits aren’t a problem, because the tax cuts are stimulating economic growth in a way that will eventually boost federal revenues through higher incomes. But many economists say this supply-side theory has never occurred, in reality. And it’s plain in the numbers that the Trump tax cuts, so far, are adding to government debt, not reducing it.

Another worrying sign in the 2018 budget numbers is the amount spent on interest payments, which jumped 24%, from $263 billion in 2017 to $325 billion in 2018. The U.S. government has been able to borrow very cheaply during the last several years, because of super-low rates on U.S. Treasury securities. But rates are going up, which will force taxpayers to spend more on interest and, eventually, less on everything else.

“It’s an unsustainable fiscal course,” Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said in a statement. “Those elected to Congress this year will face stark and difficult choices to put the debt on a downward path.” Voters may have that in mind as they decide who those people will be.

https://finance.yahoo.com/news/business-tax-payments-plunged-2018-203650862.html

 

 

Well that's a buzz kill...

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Edited by bostonangler
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Trump Considers Tax-Cut Sweetener Days Before Crucial Midterms

(Bloomberg) -- President Donald Trump said he’s considering a “major tax cut” for middle-income earners that he may announce just days before crucial midterm elections that will determine control of Congress.

The president offered no details on the proposal, which would follow a landmark tax overhaul last year that Republicans had hoped would ensure they’d keep control of Congress after the midterms.

The 2017 overhaul, which has been criticized for mainly benefiting the wealthy and corporations and for increasing the federal budget deficit, hasn’t helped GOP candidates as much as Republicans thought it would. Many forecasters believe Democrats are likely to take the House in November.

“We’re looking at a major tax cut for middle income people,” the president told reporters on Saturday after a rally in Elko, Nevada -- the final leg of a three-state swing through the West to bolster support for Republican House, Senate and gubernatorial candidates. “Not for business at all; for middle-income people.”

Treasury Secretary Steven Mnuchin also said the intention is not to have anything broader than a middle-income tax cut.

“We want to be careful in balancing the financial issues with making sure we get appropriate tax cuts to the middle income,” Mnuchin said Sunday in an interview in Jerusalem, the first stop of a six-country tour of the Middle East this week.

Trump’s tax overhaul has also been faulted for adding significantly to the government’s budget deficit. It’s possible that a second round of tax cuts could even face resistance from some Republicans concerned about increasing the deficit even more.

No Democrats supported last year’s tax bill, and they’ve been critical of plans for second round of tax cuts since they were first discussed by Republicans. Unless offset by spending reductions, any new tax cut would further add to the deficit, which reached $779 billion, a six-year high, in Trump’s first full year in office.

Trump said Representative Kevin Brady, chairman of the House Ways and Means Committee, and House Speaker Paul Ryan were working on the possible legislation. He added that the plan could be announced as soon as Nov. 1. Elections that will decide the control of Congress will be held on Nov. 6. Mnuchin said, “We hope to have something soon.”

“There is continued interest in building on the success of the Tax Cuts and Jobs Act and constantly improving the tax code for hardworking families and America’s small businesses,” said Rob Damschen, a spokesman for Brady.

The Republican-led House passed legislation in September that would make permanent the 2017 tax cuts for individuals and pass-through businesses which otherwise would expire at the end of 2025. That measure is unlikely to be taken up in the Senate anytime soon, though, as party leaders are hesitant to push a bill they don’t expect could garner the 60 votes needed to pass.

https://finance.yahoo.com/news/trump-says-tax-cut-plan-204847532.html

 

That a baby!!!

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The true winners of Trumps tax cuts are We The People.

We have magic wand jobs coming back to the U.S.A record number of people  off unemployment, food stamps.

America has had it's eyes opened to the lefts desire to destroy America and the terrorist tactics of the Democrats.

He has also shown that the swamps claim that every issue is so complicated that it takes decades to solve.

He has done more for the American people in two years then the last three Presidents combined.

We keep winning you keep losing. Get over it or get out there are plenty of people that love freedom and the right to succeed waiting to take your place in the Greatest Country In The World.

People like you are nothing but a drag on this great Nation 

 

 

                              No Surrender No Retreat and No Compromise    

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24 minutes ago, Sentinel7 said:

The true winners of Trumps tax cuts are We The People.

We have magic wand jobs coming back to the U.S.A record number of people  off unemployment, food stamps.

America has had it's eyes opened to the lefts desire to destroy America and the terrorist tactics of the Democrats.

He has also shown that the swamps claim that every issue is so complicated that it takes decades to solve.

He has done more for the American people in two years then the last three Presidents combined.

We keep winning you keep losing. Get over it or get out there are plenty of people that love freedom and the right to succeed waiting to take your place in the Greatest Country In The World.

People like you are nothing but a drag on this great Nation 

 

 

                              No Surrender No Retreat and No Compromise    

Our President Trump saved us, the American citizens and ultimately the world. All it took was 1 non politition that could not be paid off. Sadly, we can quickly return to the abyss once Trump is out of office and the deep state swamp things drag us down into the abyss once more. At least by then hopefully we have some RV money to help us along. Go America, Go RV, keep America Great, keep our pesident Trump safe.

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4 minutes ago, nstoolman1 said:

 

I believe he is referring to when Obama made the crazy statement about how was Trump going to get more jobs.

With a magic wand?

Well he is using something. 

Wit? Love for his country? Something obamma did not have.

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1 hour ago, nstoolman1 said:

 

I believe he is referring to when Obama made the crazy statement about how was Trump going to get more jobs.

With a magic wand?

Well he is using something. 

 

You do realize the economy has been on an upswing for 10 years? It's not like it's only been 2 years since things started improve. But don't believe me go look at the chart of your 401K it's been going up for a while. Now when it starts going down next year, who will get the credit for that?

 

B/A

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9 hours ago, bostonangler said:

 

You do realize the economy has been on an upswing for 10 years? It's not like it's only been 2 years since things started improve. But don't believe me go look at the chart of your 401K it's been going up for a while. Now when it starts going down next year, who will get the credit for that?

 

B/A

And you keep deflecting the discussion with another. You are like a ricochet. You bounce off a discussion and go in another direction. I can't have a discussion that way. My man brain likes to stay on one topic and not bounce around. 

My wife says I need a woman's brain to do that. She also said there is maybe a 1/1024 of a chance I have a feminine side. 

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