Sunday, November 10, 2019

How many times will we be duped by Reagan-type tax cuts?

It never seems to fail.
The GOP tax law passed in 2017 was supposed to super charge the economy, but the lack of major impact is spurring critics to renew their attacks against the signature measure from President Trump.

Republicans said the tax law would help the economy through several avenues, including by sending business investment soaring. But just 15 months after it took effect, business investment has actually been contracting, falling 1 percent and 3 percent in the past two quarters.

  The Hill
When has that EVER worked?
Republicans who supported the tax law are blaming Trump's trade war with China as the reason why it failed to have the intended impact.
That's the build-up to doing it again.  Blame thee failure on something else.
“Donald Trump and Republicans justified their massive giveaway to wealthy multinational corporations by claiming that it would boost investment and the benefits would trickle down to workers,” said Sen. Ron Wyden (D-Ore.), the top Democrat on the Senate Finance Committee.

“Two years later, none of their promises have been fulfilled. Investment is flat and workers have not seen the wage increases they were promised,” he added.

[...]

Slashing the corporate tax rate and restructuring the tax code, supporters said, would incentivize businesses to invest their money back into the U.S. economy, buying up equipment, buildings and software to accommodate more workers and make them more productive.
It worked for Reagan. It worked for Bush. There's no reason to think there won't soon come along another Republican administration that says the same exact shit to credulous people who then find - guess what? - it didn't work again!
Democrats have hammered the GOP over the massive spike in stock buybacks that was funded by companies using their tax windfall.
It's the never-ending story. It even happened under Obama. Remember the bank bailout that was supposed to get money into the economy, but the flow somehow didn't make it past the banks?
Stock buybacks, which are not considered a business investment, tend to raise the price of remaining shares for other stockholders rather than spur economic activity.
Ding dong. That's why they do it.

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

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