Silly Tax Cut Tricks Are For Kids?
Once again, not to be mistaken for Tuesday's With Morrie, it's Tuesdays With Trump...
But what about the two recent boosts? $300B from Harvey and Irma, then the TCJA with $300B in corporate tax savings and "repatriation" to buybacks and bonus.
The former, insurance money to rebuild was transitory and has passed. The latter, false hope in the corporate and 1% spoils, and another transitory blip which provides an equity boost, but will amount to less than nothing economically.
Both boosting transitory "PCE" (mostly the former) and "GDP", causing MSM sycophants, econo morons and the clueless to bellow about impending wage and inflation hysteria.
Contrary to common belief based in false doctrine, the tax cuts on "repatriated" dollars drove dollar (initially) and bond prices lower, while pushing cost of loan funds higher.
The "repatriated" money was used for buybacks and bonus. Individual tax breaks only benefited the rich, who did not spend the money, nor invest it in economic endeavor.
TCJA was a complete bust which with it's increasing the twin deficits, budget and trade, and the resulting cuts in spending for services, will only hanker future efforts. C'est la vie.
Once again, the party line and MSM narrative were swallowed hook, line and sinker, so deeply by the ignorant electorate, that you would have to gut em to get it out.
See silly rabbits, econometric tricks are for kids.... and here's what happens when those getting all the Trix, don't share.
Required reading:
Deemed Repatriation?
Rubio's Ignorant Regrets?
Colloquially known as the Tax Cuts and Jobs Act of 2017 (TCJA), it was widely celebrated by economists (factoring partisan affiliation).
The White House predictably lauded its passage and has since produced a vanilla, vague list of what administration Economists expect from it. It "will help spur more business growth and job creation, benefiting American workers." There isn't a tax or economic package that isn't described in exactly this way by any administration of whatever party in history.
In just consumer spending, we have the dual deficiency of fewer workers working and then what workers are fortunate enough to maintain employment they spend much less as a proportion of what they make. As an economic concept, the TCJA isn't even a drop in the bucket.
We should not be at all surprised, then, that retail sales so far in the initial period fail to register even a slight uptick.
In a spot of irony, Harvey and Irma practically demonstrated this very condition. It was massive destruction on a broad scale that finally jolted US consumers to life, if only briefly before the costs of broken windows started to add up. Compared to that, these tax cuts shouldn't even register. So far, they haven't. - Tax Cuts And (Less) Spending - Jeffrey SniderNattering - We tried to explain to some who really don't understand how macro works, how there would be no real wage inflation or escape velocity for our chronic economic condition coming.
But what about the two recent boosts? $300B from Harvey and Irma, then the TCJA with $300B in corporate tax savings and "repatriation" to buybacks and bonus.
The former, insurance money to rebuild was transitory and has passed. The latter, false hope in the corporate and 1% spoils, and another transitory blip which provides an equity boost, but will amount to less than nothing economically.
Both boosting transitory "PCE" (mostly the former) and "GDP", causing MSM sycophants, econo morons and the clueless to bellow about impending wage and inflation hysteria.
Contrary to common belief based in false doctrine, the tax cuts on "repatriated" dollars drove dollar (initially) and bond prices lower, while pushing cost of loan funds higher.
The "repatriated" money was used for buybacks and bonus. Individual tax breaks only benefited the rich, who did not spend the money, nor invest it in economic endeavor.
TCJA was a complete bust which with it's increasing the twin deficits, budget and trade, and the resulting cuts in spending for services, will only hanker future efforts. C'est la vie.
Once again, the party line and MSM narrative were swallowed hook, line and sinker, so deeply by the ignorant electorate, that you would have to gut em to get it out.
See silly rabbits, econometric tricks are for kids.... and here's what happens when those getting all the Trix, don't share.
Required reading:
Deemed Repatriation?
Rubio's Ignorant Regrets?
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