soulflower

Tax Cuts in search of a problem

108 posts in this topic

US News:

...since the collapse of the GOP's effort to repeal Obamacare, the party has been desperate to get something, anything, of consequence across the finish line. Since the only thing the party's disparate factions can really agree on is tax cuts, tax cuts it shall be, whether they're needed or not.

Of course, the story Republicans will tell is that the bill will juice the economy, turbocharging economic growth and job creation. (And even though Republicans spent the eight years of the Obama administration saying any economic stimulus measure was too expensive, they're now perfectly fine putting at least $1.5 trillion on the national credit card in the name of tax cuts.) There's little reason to think that said juicing will actually happen, though.

After all, as I noted recently, we've tried all this before. The Bush tax cuts didn't unleash the economic nirvana they were supposed to, while both the Clinton and Obama tax increases didn't cause the economic devastation conservatives claimed they would. Overall, the evidence that cutting federal taxes unleashes growth is thin to nonexistent. And with unemployment already at 4 percent, how much lower do Republicans think it's going to go?

https://www.usnews.com/opinion/thomas-jefferson-street/articles/2017-11-02/the-republican-tax-cut-bill-doesnt-solve-any-real-problems

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Corporate tax cut from 35% to 20% and no loopholes closed.

Bravo. Blow that debt up.

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Guess we can finally kill the myth that the GOP cares about the deficit.

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With cuts to the Mortgage Interest and Student Loan interest Deductions, it’s seems like a tax hike for the Middle Class

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Bill has to be revenue-neutral to pass the Senate through reconciliation and that one's a non-starter. 

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Absolutely no reason for people to get to keep more of their hard earned money ......

Government knows what's best for all of us and they spend it wisely .....

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6 minutes ago, Eastside Terp said:

Absolutely no reason for people to get to keep more of their hard earned money ......

Government knows what's best for all of us and they spend it wisely .....

No reason we shouldn't party now and let our children pay the bill, right?

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24 minutes ago, soulflower said:

With cuts to the Mortgage Interest and Student Loan interest Deductions, it’s seems like a tax hike for the Middle Class

Don't be disingenuous. The mortgage interest is only on property > $500,000. I think we can agree that those in a half a million dollar house are probably going to land on their feet.

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27 minutes ago, soulflower said:

With cuts to the Mortgage Interest and Student Loan interest Deductions, it’s seems like a tax hike for the Middle Class

The mortgage interest cut goes from 1 million to $500,000.   That's hardly middle class territory.  If you can afford a $700,000 house, you can afford not to get a write off on $200,000 of it.  

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5 minutes ago, Rael said:

Don't be disingenuous. The mortgage interest is only on property > $500,000. I think we can agree that those in a half a million dollar house are probably going to land on their feet.

It will hurt middle class people in expensive areas (NYC, LA, DC Suburbs, Baltimore etc) . 

But yeah, in most cases, if you have a > 500k home, you don’t need the deduction 

Edited by soulflower

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1 minute ago, cprenegade said:

The mortgage interest cut goes from 1 million to $500,000.   That's hardly middle class territory.  If you can afford a $700,000 house, you can afford not to get a write off on $200,000 of it.  

Depends on where you live

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22 minutes ago, Eastside Terp said:

Absolutely no reason for people to get to keep more of their hard earned money ......

Government knows what's best for all of us and they spend it wisely .....

Hey I’ve got an idea. Let’s get rid of taxes altogether. Zero taxes for everybody! That’ll be fun! Woo-hoo!

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12 minutes ago, soulflower said:

It will hurt middle class people in expensive areas (NYC, LA, DC Suburbs, Baltimore etc) . 

But yeah, in most cases, if you have a > 500k home, you don’t need the deduction 

Generally, if housing costs more, wages are also higher. The article (or a related one in USA Today) I linked in another thread discussed the difficulty in defining middle class based on just what you alluded to.

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In 2001,10 Senate Democrats voted for the Bush tax cuts. I realize that party lines have hardened even more since then but there must be some D votes for reasonable tax cuts. They might not be the biggest, baddest, cuttiest cuts ever but it’ll be something.

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8 minutes ago, Jimmy Jazz said:

In 2001,10 Senate Democrats voted for the Bush tax cuts. I realize that party lines have hardened even more since then but there must be some D votes for reasonable tax cuts. They might not be the biggest, baddest, cuttiest cuts ever but it’ll be something.

There’s nothing reasonable about 1.5 Trillion dollars worth of deficit spending on tax cuts

Why is this Tax Bill even necessary?

Edited by soulflower

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6 minutes ago, soulflower said:

There’s nothing reasonable about 1.5 Trillion dollars worth of tax cuts

Why is this Tax Bill even necessary? 

Well yeah, I don’t mean this bill. I mean one the Senate puts together that can get 60 votes.

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3 minutes ago, soulflower said:

There’s nothing reasonable about 1.5 Trillion dollars worth of tax cuts

Why is this Tax Bill even necessary? 

First, he did promise them on the campaign trail.  It might be one of the few things he said that he actually follows through on.  Second, lower taxes are part of the conservative ideology.  Some people vote republican primarily in the hopes of less taxes.   There is nothing wrong with people getting to keep more of the money they earn.  Problem is republicans never follow through with spending cuts.  Unless those tax cuts generate more revenue, spending cuts are needed to offset the lost revenue.  That is were republicans fall painfully short of conservative ideals.  

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42 minutes ago, Rael said:

No reason we shouldn't party now and let our children pay the bill, right?

It's not a revenue issue ......

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16 minutes ago, cprenegade said:

First, he did promise them on the campaign trail.  It might be one of the few things he said that he actually follows through on.  Second, lower taxes are part of the conservative ideology.  Some people vote republican primarily in the hopes of less taxes.   There is nothing wrong with people getting to keep more of the money they earn.  Problem is republicans never follow through with spending cuts.  Unless those tax cuts generate more revenue, spending cuts are needed to offset the lost revenue.  That is were republicans fall painfully short of conservative ideals.  

And then, of course, this bill RAISES some people's taxes

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1 hour ago, michiganjoe said:

Guess we can finally kill the myth that the GOP cares about the deficit.

Wasn't it like 5 trillion a couple weeks ago. Look, its headed in the right direction.

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1 hour ago, Rael said:

Don't be disingenuous. The mortgage interest is only on property > $500,000. I think we can agree that those in a half a million dollar house are probably going to land on their feet.

It will hurt the housing industry.

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The problem is apparently that a middle class is still hanging on by its fingernails, but a few more rounds of costly tax cuts should stomp them off.

It's very intentional.

Edited by Calamari

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1 minute ago, hst2 said:

It will hurt the housing industry.

It's why I support the fair tax and have had that as my signature on here for more than a decade .....

Taxes are intended to raise revenue but are used to social engineer and reward special interest groups .....

They trade tax breaks for votes and just pit one special interest against another special interest ......

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54 minutes ago, cprenegade said:

First, he did promise them on the campaign trail.  It might be one of the few things he said that he actually follows through on.  Second, lower taxes are part of the conservative ideology.  Some people vote republican primarily in the hopes of less taxes.   There is nothing wrong with people getting to keep more of the money they earn.  Problem is republicans never follow through with spending cuts.  Unless those tax cuts generate more revenue, spending cuts are needed to offset the lost revenue.  That is were republicans fall painfully short of conservative ideals.  

What’s wrong with keeping tax rates the same? The economy is growing. The stock market is soaring. 

Its not like we have a Balanced Budget

Where’s the fiscal responsibility?

 

Edited by soulflower

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