"Looking at the chart above prompted JPM's Michael Cembalest to ask, rightfully, "what happened to all the fiscal conservatives in the GOP?" What indeed."
Source.
Fiscal conservatives died when you doubled the national debt. They also died when Obama frankly started printing money to inject directly into the stock market. So all of you media can just fuck off. And honestly - Zero Hedge is trying to convince people that "investing money" leads to the velocity of money going down. Seriously?! And that people in this magical range of 100-500 thousand dollars a year are just going to sit on that money now that they can actually spend it on things like.... not health care. Investing was the thing that caused money to stop flowing!? That is a fascinating new fact that I've never seen in my lifetime.
Now I've fucking seen everything. This is propaganda at it's best!
I suspect I'm actually going to be worse off because I own real estate. And I'm not happy about it unlike all those really rich people who say they don't mind paying extra taxes. I DO MIND. But it pisses me off more that the government uses the tax code to get people to do what they want instead of what people would want to do naturally. And it also incentivizes crony capitalism.
So unlike democrats who want the government to take care of every single need they have - I am willing to give for the greater good because I'm sick of Californians voting yes on every single tax proposal. The only way to get people to stop doing that is to make the people who pay these taxes MAD. You don't get mad if you can just write the money off on your taxes.
"Which brings us to what is the biggest problem with the Tax Cut and Jobs Act: the people it benefits the most. Here, the broad conesnsus is that TCJA tax cuts are primarily channeled to taxpayer with incomes between $100K and $500K, i.e., the upper middle class and self-employed Americans.
Shown another way, the biggest winners in terms of after-tax income increases are the top quintile and decile of taxpayers, i.e., the top 10% of American wage earners.
And herein lies the rub, because while the TCJA tax cuts is indeed sizable, amounting to over $1 trillion in tax cuts to individuals, those individuals and households who get to benefit the most, are also the ones with the lowest propensities to spend!
This means that just like QE made the rich richer, the reason why the velocity of money crashed to all time lows, is because the same rich did not spend the money, but instead invested it or otherwise saved it, resulting in a slowdown in monetary velocity, and thus, GDP.
And now, it appears that the GOP tax cuts will achieve the same result, and instead of growing the economy, they will simply grow the stock market and the various on and offshore bank accounts of America's richest 1%."
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Wrong.
ReplyDeleteImmediately after the bill passed:
200,000 AT@T employees getting a $1,000 bonus
Wells Fargo and Fifth Third Bancorp hiking minimum wage pay.
This is just IMMWDIATELY after the cuts.
https://taxfoundation.org/corporate-income-tax-rates-around-world-2016/
Read that.
AT&T had previously said it would invest $1 billion in the U.S. if "competitive" tax reform legislation was passed, and has said that tax reform framework could increase demand for AT&T's services. The new tax laws are expected to drop the corporate tax rate to 21 percent from the current 35 percent and includes other measures that Republicans say will spur businesses to invest domestically.
Worker good will is Now critical - they, the corporations, have leaned out the "System". With the expanding economy and little replacement staff avalible, retention is survival.
Its the side of low unemployment in an expanding economy we haven't seen in thirty odd years.
Corporate taxes reflect who will be hired. Companies hire people. People who own businesses hire people. Unions that have turned cancerous, incentives to actually move our companies overseas....
Fritz from Sonora
We will just have to see what happens.
ReplyDeleteA lot of the federal government should be shutdown or cutback starting with the military.
Self employed people may have done well for themselves but they are not necessarily rich. Self employment has gone down a lot with Obama.
Because the intent was never to let anyone work for themselves. I'm not even sure if self employed people can buy houses yet. That universal income shit was not an accident.
ReplyDeleteI'm usually a hawk, but I'm tired of helping people who don't want to fight for their own shit. (like say South Korea. Yeah I said it. They are constantly protesting our base there. If they don't want it.... let's go) If it's not important to them, then it's not important to me. But I"m still totally fine with just blowing shit up. Just say'in.
----
Fritz.... so we are getting close to a first name basis now huh? (smile) Companies can pay more now because they don't have to fill a black hole of money for Obamacare. There is no possible way to forecast for the cost so they just had to hoard money because every year it changes. I totally agree with the unions though. And I think if Trump wasn't a union guy they would have sold us out yet again. The nurses union is the worst right now.
Reply to "Because the intent was never to let anyone work for themselves. I'm not even sure if self employed people can buy houses yet. That universal income shit was not an accident."
ReplyDeleteWhen utilities like water, electricity, etc go up a third to even triple, the poor get poorer and the lower middle class to, even middle middle class become unable to make home payments by a few hundred. THUS, by only a few hundred and instead are paying ALMOST that amount to only rent.
This is a catastrophic waste and, in my intent, EVIL.
A nation of renters instead of owners. NO STAKE in investments and pride in nation through denial of ownership.
Just a few hundred dollars makes the difference.
Cheap gasoline, lower prices for water and electricity...etc.
This makes a LARGE difference.
States like Commiefornia go the reverse way. The REAL intent for these thinly veiled socialist IS welfaire. Generational welfaire.
Fritz from Sonora
Anonymous A Texan said...
ReplyDeleteWe will just have to see what happens.
A lot of the federal government should be shutdown or cutback starting with the military.
Texan, The military has been cut back way more than it should have. The past liberal policies have gutted the military and also destroyed our shipbuilding capability. Think about having OTHER countries building our ships. Yes, some of our military ships are being built by NZ and Australia. This is a travesty.
We MUST be able to fight two small actions and ONE large at any time.
We MUST have capable officers and capable enlisted also.
Right now we do not have this. We need it.
Ships that are hit be freighters is not a good thing.
You know how clinton got our nation out of debt? He destroyed half our bases and ships. He GUTTED our national defense. Then we had Obama. He finished the job.
He forced a majority of career military out of the military and left us with inexeperience PC cowardly political generals and admirals who were and ARE lickspittle quislings.
https://www.nationalreview.com/magazine/2017-01-23-0000/barack-obama-military-administration
Fritz from Sonora
USN retired
Merry Christmas She Said,
ReplyDelete“The reasonable [wo]man adapts [her]self to the world: the unreasonable one persists in trying to adapt the world to [her]self. Therefore all progress depends on the unreasonable [wo]man.”
― George Bernard Shaw
you are correct, your anger can be constructive and your blog a good venue to spread the word. still, hopefully, your blog is also a side business for you, deducting the cost of your internet and your home office. also a portion of your car, the mileage for all your investigations for blog reports and your camera equipment (cell phone and service?) used also for those blog reports. as long as they are throwing money around, please get some.
jeff
Merry Christmas to you Jeff. Once they start paying you - you lose your freedom to a great degree.
ReplyDelete