Tax-cut Boom -- Trump & GOP were right, Democrats and media flat wrong

[Mountainmanbob]

Alfredo Ortiz: The tax-cut boom — Trump and GOP were right, Democrats and media flat out wrong

This week marks the second anniversary of President Trump's tax cuts, and their results are a vindication of Trump and his Republican colleagues who passed them over hysterical liberal opposition.

Before they passed, Speaker Nancy Pelosi called the tax cuts “Armageddon” and “the worst bill in the history of the United States Congress.” Senate Minority Leader Chuck Schumer said, “Republicans will rue the day they passed.” Democratic presidential candidates Cory Booker, Bernie Sanders and Elizabeth Warren called them “cruel,” “highway robbery” and “a heist,” respectively.

So how did these predictions turn out? Average wages have risen by 3 percent or more for the last 16 straight months — roughly 50 percent faster than the Obama-era average. Real disposable personal income per household has risen by $6,000 since the tax cuts passed, shattering expectations.

Wage growth has been especially strong for less-skilled employees, growing by 7 percent over the last year

the median income of $60,000 pays no federal income tax at all.

 

[GOD Shines Forth!]

Before they passed, Speaker Nancy Pelosi called the tax cuts “Armageddon” and “the worst bill in the history of the United States Congress.” Senate Minority Leader Chuck Schumer said, “Republicans will rue the day they passed.” Democratic presidential candidates Cory Booker, Bernie Sanders and Elizabeth Warren called them “cruel,” “highway robbery” and “a heist,” respectively.

Anything that offers the serfs a path to freedom is anathema to them.

 

[FenderTL5]

Average wages have risen by 3 percent or more for the last 16 straight months..
..Real disposable personal income per household has risen by $6,000 since the tax cuts passed, shattering expectations.

For wages to have risen 3% resulting in $6000 more annually, the the starting household income would have to be 200K.
(200K x 3% = 6k)

The math suggests that the author of the piece is delusional as to what constitutes household incomes in the United States. According to the U.S. Census, the median was $63,179 for Americans in 2018.
A 3% raise in total income would be a raise of $1,895.37.
That would be the increase in total income, but the article says "disposable income." That would mean what is being discussed (6k in disposable income) in this article must be households with much higher incomes than the median or typical.

Anything that offers the serfs a path to freedom is anathema to them.

Let them eat cake.

 

[bekkilyn]

the median income of $60,000 pays no federal income tax at all.

In what world does someone making $60,000 not pay any federal income tax? In 2019, a person making $60,000 would owe $6,374.50 federal tax.

$60k Salary Example | US Tax Calculator 2019

 

[Speedwell]

Alfredo Ortiz: The tax-cut boom — Trump and GOP were right, Democrats and media flat out wrong

This week marks the second anniversary of President Trump's tax cuts, and their results are a vindication of Trump and his Republican colleagues who passed them over hysterical liberal opposition.

Before they passed, Speaker Nancy Pelosi called the tax cuts “Armageddon” and “the worst bill in the history of the United States Congress.” Senate Minority Leader Chuck Schumer said, “Republicans will rue the day they passed.” Democratic presidential candidates Cory Booker, Bernie Sanders and Elizabeth Warren called them “cruel,” “highway robbery” and “a heist,” respectively.

So how did these predictions turn out? Average wages have risen by 3 percent or more for the last 16 straight months — roughly 50 percent faster than the Obama-era average. Real disposable personal income per household has risen by $6,000 since the tax cuts passed, shattering expectations.

Wage growth has been especially strong for less-skilled employees, growing by 7 percent over the last year

the median income of $60,000 pays no federal income tax at all.

In the meantime we are continuing to pile up government debt at a staggering rate (an inexcusable thing for a government to do in times of relative prosperity) and the other economic parameters which contribute to the boom--like interest rates--are adjust so fine that there will be nothing left to squeeze out of them if, as it inevitably will, a downturn occurs.

 

[FreeinChrist]

In the meantime we are continuing to pile up government debt at a staggering rate (an inexcusable thing for a government to do in times of relative prosperity) and the other economic parameters which contribute to the boom--like interest rates--are adjust so fine that there will be nothing left to squeeze out of them if, as it inevitably will, a downturn occurs.

One has to wonder why, if the economy is so great and booming, is the deficit so high, debt so high, and the Fed is printing money (2.5 billion in 2 years) to add liquidity to banks. Printing money is what the Fed does to help turn around an economy in a recession.

 

[RocksInMyHead]

the median income of $60,000 pays no federal income tax at all.

Oh really? Then tell me why I've paid federal income taxes for my entire career (2018 and 2019 included) despite making significantly less than $60k/year.

 

[iluvatar5150]

Oh really? Then tell me why I've paid federal income taxes for my entire career (2018 and 2019 included) despite making significantly less than $60k/year.

The article says that the $60k figure refers to the household income of a family of 4.

 

[Cimorene]

OK if that's true then that's even more of a reason for the US to do something about student loan forgiveness, lowering tuition at public colleges & fixing a ton of other things while the economy is strong. I mean a family of 4 living on $60,000 would have to rely on a TON of financial aid & loans to send their kids to college. It costs more than that for a single year's tuition at a lot of schools in the US. Even at the cheaper schools a huge portion of the income would be eaten by tuition.

 

[Goonie]

Trump's holiday menu: handouts for billionaires, hunger for the poor | Bernie Sanders and Rashida Tlaib

 

[RocksInMyHead]

The article says that the $60k figure refers to the household income of a family of 4.

Ah, okay, that makes more sense.

 

[ruthiesea]

The national debt and the deficit keep climbing. Trump was wrong about economic growth making up for the tax cuts. It hasn’t happened nor is it likely to.

 

[rjs330]

In the meantime we are continuing to pile up government debt at a staggering rate (an inexcusable thing for a government to do in times of relative prosperity) and the other economic parameters which contribute to the boom--like interest rates--are adjust so fine that there will be nothing left to squeeze out of them if, as it inevitably will, a downturn occurs.

Very few people worry about the debt any more. The Dems never worried about it before, and now the Republicans have jumped on the "who cares* bandwagon. When are the chickens going to come home to roost?

 

[FireDragon76]

One has to wonder why, if the economy is so great and booming, is the deficit so high, debt so high, and the Fed is printing money (2.5 billion in 2 years) to add liquidity to banks. Printing money is what the Fed does to help turn around an economy in a recession.

The Fed is inflating our currency as a fig leaf for Donald's lack of sound policies. But that can only go on so long.

 

[FreeinChrist]

Very few people worry about the debt any more. The Dems never worried about it before, and now the Republicans have jumped on the "who cares* bandwagon. When are the chickens going to come home to roost?

The Dems always did care. The last time we had a balanced budget was with Clinton.
Carter was dealing with inflation and recession.
Roosevelt and Truman had war debt and depression to deal with.
Only Kennedy had a good economy.

 

[Mountainmanbob]

Oh really? Then tell me why I've paid federal income taxes for my entire career (2018 and 2019 included) despite making significantly less than $60k/year.

We used to pay a couple of thousand in taxes each year. Got a different tax man and have been receiving a refund of prox 1,500 to 2 thousand.

Maybe it's time for a change.

M-Bob

 

[KCfromNC]

For wages to have risen 3% resulting in $6000 more annually, the the starting household income would have to be 200K.
(200K x 3% = 6k)

The math suggests that the author of the piece is delusional as to what constitutes household incomes in the United States. According to the U.S. Census, the median was $63,179 for Americans in 2018.
A 3% raise in total income would be a raise of $1,895.37.

Hmm, wonder if this is a case where large benefits to a small handful of multi-millionaires averaged with basically no change for the vast majority of people averaged out to an impressive-sounding number.

 

[Fantine]

--

 

[essentialsaltes]

A contrary view from Michael Linden "executive director of the Groundwork Collaborative and a fellow at the Roosevelt Institute."

Let's start with jobs. Has the Tax Cuts and Jobs Act created millions of new jobs, as was promised? In a word, no. In the four years prior to the passage of the GOP tax law, the economy added an average of 213,000 jobs each month, according to data from the US Bureau of Labor Statistics. In the nearly two years since the law passed, average job creation has actually declined by an average of 11,000 per month.

The White House promised that the tax cuts would result in an annual wage increase of $4,000 per household. Again, not even close. In the two years since the law passed, wage growth, after accounting for inflation, rose only slightly, from 1% to just under 1.4% per year for nonsupervisory workers, according to data from the US Bureau of Labor Statistics.

In the last two years, the growth rate of private direct investment has substantially declined. In the four years before the law passed, private direct investment grew by about 3.3% annually, according to data compiled by the Federal Reserve Bank of St. Louis. In the two years since the law was enacted, that rate is down to 2.5%.

And of course, we were told that these tax cuts would 'pay for themselves'. They would make the pie so much higher that tax revenues would not be harmed. Back in reality land, deficits have exploded.

In fact, more than 60% of the tax savings went to people in the top 20% of the income ladder, according to the nonpartisan Tax Policy Center. The measure also slashed the corporate tax rate by 40%.

"It will be rocket fuel for our economy," Trump promised.

Boosters of the tax cut insisted the economy would grow so fast, it would more than make up for the revenue lost to lower rates.

"The tax plan will pay for itself with economic growth," Treasury Secretary Steven Mnuchin said.

It hasn't worked out that way.

 

[TLK Valentine]

Another non-FoxNews dissent:

After 2 Years, Trump Tax Cuts Have Failed To Deliver On GOP's Promises