Fundamentality I cannot see how cutting tax for business will stimulate wage growth. “Trickle down” seems oxymoronic to me and if I put the scenario in terms of my business then I fail to see how it can work.
We pay our Staff well above the industry standards, as we want to keep them and ensure they are happy and satisfied. To keep paying them well, we need to be profitable and grow our business, and based on our turnover of about $5M and this year estimated gross profit of about $285,000, we will pay $85,000 company tax. A deduction in this rate to say 25% would give us an extra $14,000 which would probably go straight into my pocket.
What would stimulate my business would be an expansion of our markets and hence bigger growth giving more profit and more tax to be paid, and to handle larger turn-over I would have to employ more people. Some friends have taken their manufacturing offshore to cut costs and to make more profit, but it add nothing to local wages and actually less jobs.
Re-building a massive manufacturering base with extra taxes would perhaps be a better policy.
Except all the Republican forecasts assumed timelines where the investment would need to be in the pipeline now. If they occur but are delayed a few years, that gap in time period means the tax plan blows a huge hole in the budget (and of course if nothing occurs, that’s a huge problem). There are ways of tracking what companies are planning, and the tax plan hasn’t moved the dial one iota.
There is a blogger I follow (an economist) who points out that most companies don’t plan inventory and investment around the cost per se, but what the economy is doing. If you’re company is consistently running out of X, or starting to, then you plan to invest so you can produce more of X. You react to the market. The problem with the theory behind the tax plan is it assumes there is a lot of investments companies could do right now, but are putting off due to price. And that the tax plan will make the difference. In real life, this is likely to be only a very marginal proportion of investment that is subject to this equation. He is very doubtful (as most economists were) of the plan having the positive impact on the economy that the Republicans were selling.
So the main headache is that Republicans have argued that the changes will drive investment (rather than demand doing so) that will start up now (as in planning etc, not the spending). The fact it hasn’t moved companies investment dials at all indicates its failing.
Im not sure if this has been mentioned before. But their is a fantastic podcast called Pod Save America which is hosted by some guys who worked in communications and foreign affairs for Obama. Smart, funny, progressive, excellent pod. Highly recommend.
Trump has faced worldwide criticism for his lavish praise of Kim, which came after a contentious Group of Seven summit during which he ripped U.S. allies.
After meeting with Kim, Trump called him a “very talented man” who is a “funny guy” and “loves his people.”
Truly terrifying. Who goes out of their way to deliberately antagonise long term allies, then sucks up to long term adversaries and thinks it is a normal day. Everything Trump does further reinforces my belief that he is a moron by the medical definition. He talks like an illiterate teenager, pouts like a five year old and in general acts like a child. Maybe he was born with it, maybe it’s senility. The unfortunate thing is that it appears many of those that support him are of similar mental acuity.
While it is warm and fuzzy to think that North Korea can somehow change it evil empire ways, this has only ever happened with a change of regime and death of the Dictator. Somehow do not see Kim going anywhere, especially now he has a new best friend in Donny.
Well Gaddafi gave up his nuclear program and he ended up being sodomised with a pipe by American financed “rebels”. So if Kim gives them up he would be more of a lunatic than the West portrays him.
Yep and he could only hope of getting a deal with NKorea as solid as the Iran deal. It’s all become so outrageously partisan, fuelled by Murdoch’s propaganda arm - fox. I don’t see an end to it unfortunately, we are certainly more balanced in this country.
One of the charges/evidence is that a presentation cheque had a difference in the recipients name to the actual cheque.
The other evidence against Trump that really made me laugh is that 12 years ago he erected an oversize flag pole 2000 km away in another state.
Barbara Underwood, the prefect example of why NYC is so far down the crapper it doesn’t matter.
TDS
Wow - TDS in full flight on this board at the moment.
Some have it so bad, they are almost willing it all to fail so North Korea can keep its nuclear capability.
To those sufferers, please seek medical assistance as soon as possible as effects are likely to persist for another six years.
James Comey has done a masterful job of rehabilitating his reputation, selling a book, and appearing statesman like. However nothing should detract from what was at best a very ham-handed approach in terms of publicly giving Hillary hell while not releasing what the FBI knew about Russian attempts to sway the election…
