Why did the corporate tax cuts fail?

[The Original Tree]

Those of us living in reality can now say that the corporate tax cuts were a failure that hurt revenue and did nothing for the economy. So the question is why? I think it likely has to do with the fact so many of our corporations are near monopolies. Curious what others think.

Trump handed big business a massive tax cut, and all he got in return was embarrassment

Two years after his administration passed a massive tax cut for corporations meant to spur economic growth, the verdict is in, and the results are embarrassing. The tax cuts did not "unleash animal spirits" (as the business media is so fond of saying). And it did not usher in a period of 3% GDP growth(as Trump's administration was so fond of echoing).

The plan did not — by any stretch of the imagination — "pay for itself with growth and reduced deductions," as Treasury Secretary Steve Mnuchin said it would back in 2017. In fact, the US budget deficit has grown by 50% since Trump took office.

Corporations didn’t need the cash. Tax cuts work if corporations need capital to pay for equipment or expansion. Corporations have awash with cash since W was in office. Profits from offshoring production.

A capitalist economy exists on supply and demand. There is a lot of pent up demand due to stagnant wages and a shrinking middle class. But not cash amongst workers and middle class to act on it.

Thank you for actually giving an answer to the question. I think it's definitely on the right track. With so many of our corporations being near monopolies I think they already had tons of cash.

Do you even know what a corporation is?

Waiting for you to explain why a huge tax cut for corporations lead to decreased gdp growth.

 

[Brain357]

Those of us living in reality can now say that the corporate tax cuts were a failure that hurt revenue and did nothing for the economy. So the question is why? I think it likely has to do with the fact so many of our corporations are near monopolies. Curious what others think.

Trump handed big business a massive tax cut, and all he got in return was embarrassment

Two years after his administration passed a massive tax cut for corporations meant to spur economic growth, the verdict is in, and the results are embarrassing. The tax cuts did not "unleash animal spirits" (as the business media is so fond of saying). And it did not usher in a period of 3% GDP growth(as Trump's administration was so fond of echoing).

The plan did not — by any stretch of the imagination — "pay for itself with growth and reduced deductions," as Treasury Secretary Steve Mnuchin said it would back in 2017. In fact, the US budget deficit has grown by 50% since Trump took office.

Corporations didn’t need the cash. Tax cuts work if corporations need capital to pay for equipment or expansion. Corporations have awash with cash since W was in office. Profits from offshoring production.

A capitalist economy exists on supply and demand. There is a lot of pent up demand due to stagnant wages and a shrinking middle class. But not cash amongst workers and middle class to act on it.

Corporations didn’t need the cash. Tax cuts work if corporations need capital to pay for equipment or expansion.

What do they do with unneeded capital?

You haven't yet tried to explain why gdp growth is shrinking. Go for it.

 

[Toddsterpatriot]

Pretty sure it’s currently below 3.

View attachment 304625

Wage Growth Tracker - Federal Reserve Bank of Atlanta

This source seems to say above 3% since March 2018.

3 is weak.

Stronger than Obama's.

Hardly.

Hardly.

View attachment 304666

Durr

You are talking about an increase of .nothing. So what? It's historically quite low while deficits are historically huge.

You are talking about an increase of .nothing.

Obama's numbers were very low.

Trump's are higher.

 

[Toddsterpatriot]

Those of us living in reality can now say that the corporate tax cuts were a failure that hurt revenue and did nothing for the economy. So the question is why? I think it likely has to do with the fact so many of our corporations are near monopolies. Curious what others think.

Trump handed big business a massive tax cut, and all he got in return was embarrassment

Two years after his administration passed a massive tax cut for corporations meant to spur economic growth, the verdict is in, and the results are embarrassing. The tax cuts did not "unleash animal spirits" (as the business media is so fond of saying). And it did not usher in a period of 3% GDP growth(as Trump's administration was so fond of echoing).

The plan did not — by any stretch of the imagination — "pay for itself with growth and reduced deductions," as Treasury Secretary Steve Mnuchin said it would back in 2017. In fact, the US budget deficit has grown by 50% since Trump took office.

Corporations didn’t need the cash. Tax cuts work if corporations need capital to pay for equipment or expansion. Corporations have awash with cash since W was in office. Profits from offshoring production.

A capitalist economy exists on supply and demand. There is a lot of pent up demand due to stagnant wages and a shrinking middle class. But not cash amongst workers and middle class to act on it.

Corporations didn’t need the cash. Tax cuts work if corporations need capital to pay for equipment or expansion.

What do they do with unneeded capital?

You haven't yet tried to explain why gdp growth is shrinking. Go for it.

I explained upthread.
Forget already?

 

[Brain357]

Trump promised the tax cuts would pay for themselves and we would get 4-6% growth. Instead we have trillion dollar deficits and slower growth. Why is that? Something clearly went wrong.

 

[Brain357]

3 is weak.

Stronger than Obama's.

Hardly.

Hardly.

View attachment 304666

Durr

You are talking about an increase of .nothing. So what? It's historically quite low while deficits are historically huge.

You are talking about an increase of .nothing.

Obama's numbers were very low.

Trump's are higher.

Trumps are very low with trillion dollar deficits his policy created.

 

[Brain357]

Those of us living in reality can now say that the corporate tax cuts were a failure that hurt revenue and did nothing for the economy. So the question is why? I think it likely has to do with the fact so many of our corporations are near monopolies. Curious what others think.

Trump handed big business a massive tax cut, and all he got in return was embarrassment

Two years after his administration passed a massive tax cut for corporations meant to spur economic growth, the verdict is in, and the results are embarrassing. The tax cuts did not "unleash animal spirits" (as the business media is so fond of saying). And it did not usher in a period of 3% GDP growth(as Trump's administration was so fond of echoing).

The plan did not — by any stretch of the imagination — "pay for itself with growth and reduced deductions," as Treasury Secretary Steve Mnuchin said it would back in 2017. In fact, the US budget deficit has grown by 50% since Trump took office.

Corporations didn’t need the cash. Tax cuts work if corporations need capital to pay for equipment or expansion. Corporations have awash with cash since W was in office. Profits from offshoring production.

A capitalist economy exists on supply and demand. There is a lot of pent up demand due to stagnant wages and a shrinking middle class. But not cash amongst workers and middle class to act on it.

Corporations didn’t need the cash. Tax cuts work if corporations need capital to pay for equipment or expansion.

What do they do with unneeded capital?

You haven't yet tried to explain why gdp growth is shrinking. Go for it.

I explained upthread.
Forget already?

So trumps policy has no real effect on the economy? He lied to us?

 

[Dragonlady]

Those of us living in reality can now say that the corporate tax cuts were a failure that hurt revenue and did nothing for the economy. So the question is why? I think it likely has to do with the fact so many of our corporations are near monopolies. Curious what others think.

Trump handed big business a massive tax cut, and all he got in return was embarrassment

Two years after his administration passed a massive tax cut for corporations meant to spur economic growth, the verdict is in, and the results are embarrassing. The tax cuts did not "unleash animal spirits" (as the business media is so fond of saying). And it did not usher in a period of 3% GDP growth(as Trump's administration was so fond of echoing).

The plan did not — by any stretch of the imagination — "pay for itself with growth and reduced deductions," as Treasury Secretary Steve Mnuchin said it would back in 2017. In fact, the US budget deficit has grown by 50% since Trump took office.

Corporations didn’t need the cash. Tax cuts work if corporations need capital to pay for equipment or expansion. Corporations have awash with cash since W was in office. Profits from offshoring production.

A capitalist economy exists on supply and demand. There is a lot of pent up demand due to stagnant wages and a shrinking middle class. But not cash amongst workers and middle class to act on it.

Corporations didn’t need the cash. Tax cuts work if corporations need capital to pay for equipment or expansion.

What do they do with unneeded capital?

Stock buy backs. 2018 saw the highest rate of corporate stock buy backs in history, and 2019 was higher than 2018.

This has the added benefit of raising stock prices, without increasing production or sales, as well.

Neither does anything positive for the overall economy or growth though, which was supposedly the point of the tax cuts.

 

[Toddsterpatriot]

Stronger than Obama's.

Hardly.

Hardly.

View attachment 304666

Durr

You are talking about an increase of .nothing. So what? It's historically quite low while deficits are historically huge.

You are talking about an increase of .nothing.

Obama's numbers were very low.

Trump's are higher.

Trumps are very low with trillion dollar deficits his policy created.

Obama's were much lower, for much longer, with even higher deficits.

 

[Toddsterpatriot]

Those of us living in reality can now say that the corporate tax cuts were a failure that hurt revenue and did nothing for the economy. So the question is why? I think it likely has to do with the fact so many of our corporations are near monopolies. Curious what others think.

Trump handed big business a massive tax cut, and all he got in return was embarrassment

Two years after his administration passed a massive tax cut for corporations meant to spur economic growth, the verdict is in, and the results are embarrassing. The tax cuts did not "unleash animal spirits" (as the business media is so fond of saying). And it did not usher in a period of 3% GDP growth(as Trump's administration was so fond of echoing).

The plan did not — by any stretch of the imagination — "pay for itself with growth and reduced deductions," as Treasury Secretary Steve Mnuchin said it would back in 2017. In fact, the US budget deficit has grown by 50% since Trump took office.

Corporations didn’t need the cash. Tax cuts work if corporations need capital to pay for equipment or expansion. Corporations have awash with cash since W was in office. Profits from offshoring production.

A capitalist economy exists on supply and demand. There is a lot of pent up demand due to stagnant wages and a shrinking middle class. But not cash amongst workers and middle class to act on it.

Corporations didn’t need the cash. Tax cuts work if corporations need capital to pay for equipment or expansion.

What do they do with unneeded capital?

You haven't yet tried to explain why gdp growth is shrinking. Go for it.

I explained upthread.
Forget already?

So trumps policy has no real effect on the economy? He lied to us?

So trumps policy has no real effect on the economy?

Your feelings are very interesting.

 

[Toddsterpatriot]

Those of us living in reality can now say that the corporate tax cuts were a failure that hurt revenue and did nothing for the economy. So the question is why? I think it likely has to do with the fact so many of our corporations are near monopolies. Curious what others think.

Trump handed big business a massive tax cut, and all he got in return was embarrassment

Two years after his administration passed a massive tax cut for corporations meant to spur economic growth, the verdict is in, and the results are embarrassing. The tax cuts did not "unleash animal spirits" (as the business media is so fond of saying). And it did not usher in a period of 3% GDP growth(as Trump's administration was so fond of echoing).

The plan did not — by any stretch of the imagination — "pay for itself with growth and reduced deductions," as Treasury Secretary Steve Mnuchin said it would back in 2017. In fact, the US budget deficit has grown by 50% since Trump took office.

Corporations didn’t need the cash. Tax cuts work if corporations need capital to pay for equipment or expansion. Corporations have awash with cash since W was in office. Profits from offshoring production.

A capitalist economy exists on supply and demand. There is a lot of pent up demand due to stagnant wages and a shrinking middle class. But not cash amongst workers and middle class to act on it.

Corporations didn’t need the cash. Tax cuts work if corporations need capital to pay for equipment or expansion.

What do they do with unneeded capital?

Stock buy backs. 2018 saw the highest rate of corporate stock buy backs in history, and 2019 was higher than 2018.

This has the added benefit of raising stock prices, without increasing production or sales, as well.

Neither does anything positive for the overall economy or growth though, which was supposedly the point of the tax cuts.

Stock buy backs. 2018 saw the highest rate of corporate stock buy backs in history, and 2019 was higher than 2018.

What do the sellers do with all their extra cash?

​

This has the added benefit of raising stock prices, without increasing production or sales, as well. ​

Yeah, that's awful!!!
I hate it when my stocks go up ​

​

Neither does anything positive for the overall economy or growth though,​

When I have more cash and higher net-worth, that does wonderful things for my economy.
Ever hear of the wealth effect?​

 

[BrokeLoser]

Those of us living in reality can now say that the corporate tax cuts were a failure that hurt revenue and did nothing for the economy. So the question is why? I think it likely has to do with the fact so many of our corporations are near monopolies. Curious what others think.

Trump handed big business a massive tax cut, and all he got in return was embarrassment

Two years after his administration passed a massive tax cut for corporations meant to spur economic growth, the verdict is in, and the results are embarrassing. The tax cuts did not "unleash animal spirits" (as the business media is so fond of saying). And it did not usher in a period of 3% GDP growth(as Trump's administration was so fond of echoing).

The plan did not — by any stretch of the imagination — "pay for itself with growth and reduced deductions," as Treasury Secretary Steve Mnuchin said it would back in 2017. In fact, the US budget deficit has grown by 50% since Trump took office.

How did the tax cuts “fail”?
You realize your fellow citizen Americans own these evil corporations you hate...right?
Your fellow Americans ended with more and your corrupt government ended up with less...how is that a bad thing?
Why would you want your government to take more from your neighbor?

 

[Fang]

Those of us living in reality can now say that the corporate tax cuts were a failure that hurt revenue and did nothing for the economy. So the question is why? I think it likely has to do with the fact so many of our corporations are near monopolies. Curious what others think.

Trump handed big business a massive tax cut, and all he got in return was embarrassment

Two years after his administration passed a massive tax cut for corporations meant to spur economic growth, the verdict is in, and the results are embarrassing. The tax cuts did not "unleash animal spirits" (as the business media is so fond of saying). And it did not usher in a period of 3% GDP growth(as Trump's administration was so fond of echoing).

The plan did not — by any stretch of the imagination — "pay for itself with growth and reduced deductions," as Treasury Secretary Steve Mnuchin said it would back in 2017. In fact, the US budget deficit has grown by 50% since Trump took office.

They didn't fail. My company gave me a huge raise and bonus saying they had the money to do it now (after the cuts).

 

[Mike473]

If you are self employed or run a small business, you know how much the tax cut helped. 20% deduction off net income for those making under 250K. Not to bad,

 

[Brain357]

Hardly.

Hardly.

View attachment 304666

Durr

You are talking about an increase of .nothing. So what? It's historically quite low while deficits are historically huge.

You are talking about an increase of .nothing.

Obama's numbers were very low.

Trump's are higher.

Trumps are very low with trillion dollar deficits his policy created.

Obama's were much lower, for much longer, with even higher deficits.

It was trending up during Obama. I see no bump from the corporate tax cuts.

 

[Brain357]

Corporations didn’t need the cash. Tax cuts work if corporations need capital to pay for equipment or expansion. Corporations have awash with cash since W was in office. Profits from offshoring production.

A capitalist economy exists on supply and demand. There is a lot of pent up demand due to stagnant wages and a shrinking middle class. But not cash amongst workers and middle class to act on it.

Corporations didn’t need the cash. Tax cuts work if corporations need capital to pay for equipment or expansion.

What do they do with unneeded capital?

You haven't yet tried to explain why gdp growth is shrinking. Go for it.

I explained upthread.
Forget already?

So trumps policy has no real effect on the economy? He lied to us?

So trumps policy has no real effect on the economy?

Your feelings are very interesting.

And backed up by facts. Like the fact trump promised the tax cuts would pay for themselves and increase growth to 4-6%. His policy was a complete failure.

 

[Brain357]

If you are self employed or run a small business, you know how much the tax cut helped. 20% deduction off net income for those making under 250K. Not to bad,

Trump promised it would help the economy, it hasn't. He also promised it wouldn't add to deficits, but they have increased drastically.

 

[Mac1958]

Those of us living in reality can now say that the corporate tax cuts were a failure that hurt revenue and did nothing for the economy. So the question is why? I think it likely has to do with the fact so many of our corporations are near monopolies. Curious what others think.

Trump handed big business a massive tax cut, and all he got in return was embarrassment

Two years after his administration passed a massive tax cut for corporations meant to spur economic growth, the verdict is in, and the results are embarrassing. The tax cuts did not "unleash animal spirits" (as the business media is so fond of saying). And it did not usher in a period of 3% GDP growth(as Trump's administration was so fond of echoing).

The plan did not — by any stretch of the imagination — "pay for itself with growth and reduced deductions," as Treasury Secretary Steve Mnuchin said it would back in 2017. In fact, the US budget deficit has grown by 50% since Trump took office.

It didn't fail. There were a lot of capital expenditures with the windfall. It was just implemented inefficiently.

The problem is that it wasn't targeted. A lot of the money went to stock buybacks and other internal spends. Since we don't like to do anything more than simplistic band aids to please the bases, we didn't provide guardrails for the cuts. So the corporations just did what they're chartered to do as fiduciaries: Act in the best (usually short-term) interests of their stockholders.

The Trumpsters don't drill down more than about half an inch on anything, so they don't understand that part. And the left wingers will only look at the the inefficiencies and ignore the extra capital expenditures.

Just another good example of why we so desperately need to find a way to stop the nutters from controlling the conversation.
.

 

[sparky]

Column: Trickle-down theory is a monstrous lie intended to justify the rich getting richer

~S~

 

[Flash]

Stupid Moon Bats, who don't know anymore about Economics as they do History, Climate Science, Biology, Ethics, Ethics or the Constitution, are too ignorant to know that corporations don't really pay taxes. All they do is pass along the tax revenue from the consumers of the corporate good and services to the government.

When the filthy Liberals raise corporate taxes they are taxing the Americans that buy the goods and services made by the corporations.