Saturday, November 11, 2017

Guess what?

The GOP tax plan isn't geared toward the middle class.
White House economic adviser Gary Cohn nearly quit the administration over President Trump’s equivocations about a Nazi rally in Charlottesville, and then was denied his dream of becoming the chairman of the Federal Reserve. Now all that remains of his political dreams is a gigantic tax cut for owners of capital.

[...]

In a new interview with John Harwood, Cohn is forced into a series of admissions he probably should not be making.

[...]
When you take a corporate tax rate at 35% and move it to 20%, and you see what’s happened over the last two decades to businesses migrating out of the United States, migrating profits out of the United States, migrating domicile out of the United States, and hiring workers out of the United States, it’s hard for me to not imagine that they’re not going to bring businesses back to the United States. We create wage inflation, which means the workers get paid more, the workers have more disposable income, the workers spend more. And we see the whole trickle-down through the economy, and that’s good for the economy.
  NY Magazine
Calling the ghost of Reagan.  Is there anyone on the planet who doesn't know this has already been tried and it didn't work?
JOHN HARWOOD: You’re not saying, as you did a few weeks ago, that the wealthy do not get a tax cut under your plan?
GARY COHN: No. I’m saying there’s unique situations to everyone out there. Everyone has their own story. it’s not our intention to give the wealthy a tax cut.
JOHN HARWOOD: But they’re getting one.
GARY COHN: I don’t believe that we’ve set out to create a tax cut for the wealthy. If someone’s getting a tax cut, I’m not upset that they’re getting a tax cut. I’m really not upset.

[...]

The most excited group out there are big CEOs, about our tax plan.
Shocker.
“They all tell me how excited they are to get a tax plan that makes the United States competitive, makes it so they can grow their business domestically, makes it so they can actually pay wages here.”

  The Hill
They "can".
“They borrow money at home to expand if they want to expand at home, but their real earnings are trapped offshore," Cohn said. “If companies were making that money onshore, they'd be paying their labor, they'd be paying their workers more money.”
No, they wouldn't. They'd sock away more profits for the owners.
“So, our biggest supporters are really the Business Roundtable,” said Cohn, referring to the powerful group of major U.S. executives that’s thrown millions of dollars behind ads supporting the GOP tax bill.
And why would they do that? To pay Joe Worker a better wage? Where's that bridge I can buy, Mr. ex-Goldman-Sachs?

...but hey, do what you want...you will anyway.

No comments: