Why don’t republicans seem to understand the consequences of tax cuts?

[The5thHorseman]

I did undergrad econ and got my MBA at BU.

What did you learn about expanding "potential GDP"?

 

[Oldestyle]

I did undergrad econ and got my MBA at BU.

You got your undergrad degree and your MBA from the same institution?

 

[The5thHorseman]

You got your undergrad degree and your MBA from the same institution?

No.....I did some post grad reprogramming...I went elsewhere for my BA.

 

[Dr.Know]

It’s a pretty basic concept. If spending is not adequately cut and taxes are cut (something republicans do), this means that there is less revenue to pay for spending. If bewilders me how republicans think you can cut taxes and think it doesn’t have consequences. We know it has consequences because the deficit blew up under Trump.

Donald Trump Built a National Debt So Big (Even Before the Pandemic) That It’ll Weigh Down the Economy for Years

www.propublica.org

Oh and news flash: trickle down economics is not a real thing. Why would corporations bother investing in labor when it is easier for them to just keep the huge amount of money they save from tax cuts? After all their profits are already at an all time high.

United States Corporate Profits

Corporate Profits in the United States increased to 2803.20 USD Billion in the fourth quarter of 2023 from 2697.93 USD Billion in the third quarter of 2023. This page provides the latest reported value for - United States Corporate Profits - plus previous releases, historical high and low...

tradingeconomics.com

because corporate tax cuts BROUGHT FACTORIES BACK TO THE USA and THE MORE WE CUT TAXES, THE LESS MONEY THE DEMOCRATS HAVE TO FLOOD THE USA WITH ILLEGALS. Many illegals ARE LIVING LARGE ! When I go into Walmart, most of the people are illegals and IM IN DETROIT AREA !. They have NEW CLOTHES, CARS, LOTS OF FOOD while we have Senior citizens living in their car and having to go back to work.

 

[The5thHorseman]

because corporate tax cuts BROUGHT FACTORIES BACK TO THE USA and THE MORE WE CUT TAXES, THE LESS MONEY THE DEMOCRATS HAVE TO FLOOD THE USA WITH ILLEGALS. Many illegals ARE LIVING LARGE ! When I go into Walmart, most of the people are illegals and IM IN DETROIT AREA !. They have NEW CLOTHES, CARS, LOTS OF FOOD while we have Senior citizens living in their car and having to go back to

They probably resent subsidizing your medical care...

 

[easyt65]

Why don't Democrats PAY their taxes?

 

[mamooth]

Tax cuts are paid for by T bills?

Tax cuts make for deficits. How do you think deficits are covered?

Supply side is just just a paper transfer of wealth to the rich. It frees up no investment money, unless you want to claim that since Chinese money flows in, that frees up investment capital. However, I don't think that bragging about selling the USA to China will be a strong propaganda point in favor of supply-side. And it still doesn't address the point that there isn't any shortage of investment capital in the first place. No one is going to increase production unless there's demand for it.

 

[The5thHorseman]

Tax cuts make for deficits. How do you think deficits are covered?

Supply side is just just a paper transfer of wealth to the rich. It frees up no investment money, unless you want to claim that since Chinese money flows in, that frees up investment capital. However, I don't think that bragging about selling the USA to China will be a strong propaganda point in favor of supply-side. And it still doesn't address the point that there isn't any shortage of investment capital in the first place. No one is going to increase production unless there's demand for it.

In the past 11 years we've had 2 Supply Side Hucksters insisting that tax rates disincentivize the rich to invest.

One paid an effective rate of 12%, the other < 4%.

 

[The5thHorseman]

Why don't Democrats PAY their taxes?

Why do you vote for those who brag about not doing so?

 

[easyt65]

Why do you vote for those who brag about not doing so?

I don't vote for those who don't do so...or for those who claim to only for us to find out they didn't - like Biden, Obama, and most of Obama's Cabinet, like Sect of State Geitner.

Why do you vote for known criminal dementia-ravaged traitors?

 

[Oldestyle]

No.....I did some post grad reprogramming...I went elsewhere for my BA.

What years were you at BU?

 

[Oldestyle]

Tax cuts make for deficits. How do you think deficits are covered?

Supply side is just just a paper transfer of wealth to the rich. It frees up no investment money, unless you want to claim that since Chinese money flows in, that frees up investment capital. However, I don't think that bragging about selling the USA to China will be a strong propaganda point in favor of supply-side. And it still doesn't address the point that there isn't any shortage of investment capital in the first place. No one is going to increase production unless there's demand for it.

Claiming that tax cuts don't free up investment money is laughably false, Mamooth! People are far more apt to invest capital when there is a greater chance of keeping profits then they are if the government is going to take those profits. Demand by itself doesn't lead to investment...it's the anticipation of making a large enough profit to justify the risk of capital that does that!

 

[The5thHorseman]

I don't vote for those who don't do so...or for those who claim to only for us to find out they didn't - like Biden, Obama, and most of Obama's Cabinet, like Sect of State Geitner.

Why do you vote for known criminal dementia-ravaged traitors?

Have you cast one or more votes for Grifty?

 

[The5thHorseman]

Claiming that tax cuts don't free up investment money is laughably false, Mamooth! People are far more apt to invest capital when there is a greater chance of keeping profits then they are if the government is going to take those profits. Demand by itself doesn't lead to investment...it's the anticipation of making a large enough profit to justify the risk of capital that does that!

That's pablum.

As I pointed out before, the 2 most recent proponents of Supply Side paid effective rates of 12 and 4%.

The idea that tax rates are determinant is belied by econometrics.

 

[mamooth]

Claiming that tax cuts don't free up investment money is laughably false, Mamooth!

Making people feel better about investing is not freeing up investment capital.

People are far more apt to invest capital

No, they're more likely to cash out their investment capital. That has the opposite effect.

Demand by itself doesn't lead to investment...it's the anticipation of making a large enough profit to justify the risk of capital that does that!

There's no shortage of investment capital, so it's not a limiting factor. Demand is.

 

[The5thHorseman]

What years were you at BU?

Late 80s.

I had Hatten for Management, Bodie for Investments, some beefwit named Pease for Op. Mngmnt.

I was also party to a minor scandal involving Izzy Shaked.

Yourself?

 

[Oldestyle]

That's pablum.

As I pointed out before, the 2 most recent proponents of Supply Side paid effective rates of 12 and 4%.

The idea that tax rates are determinant is belied by econometrics.

This may come as a shock to you, 5th but when you lose money with your investments...say in a down market...you don't pay ANY tax! I find it hard to believe that someone's who's major was Economics struggles with that concept!

 

[Oldestyle]

Making people feel better about investing is not freeing up investment capital.


No, they're more likely to cash out their investment capital. That has the opposite effect.


There's no shortage of investment capital, so it's not a limiting factor. Demand is.

You think making them feel worse about investing is going to free up investment capital? Seriously? Did that even make sense to you as you typed it?
If Government raises taxes on profits then investors aren't as likely to invest capital. Why would they? Which do you think is going to entice more investors...a scenario where they get to keep most of the profits that are earned or one that they get to keep very little? This really isn't rocket science but somehow for you on the left it seems that way!

 

[g5000]

It’s a pretty basic concept. If spending is not adequately cut and taxes are cut (something republicans do), this means that there is less revenue to pay for spending. If bewilders me how republicans think you can cut taxes and think it doesn’t have consequences. We know it has consequences because the deficit blew up under Trump.

Donald Trump Built a National Debt So Big (Even Before the Pandemic) That It’ll Weigh Down the Economy for Years

www.propublica.org

Oh and news flash: trickle down economics is not a real thing. Why would corporations bother investing in labor when it is easier for them to just keep the huge amount of money they save from tax cuts? After all their profits are already at an all time high.

United States Corporate Profits

Corporate Profits in the United States increased to 2803.20 USD Billion in the fourth quarter of 2023 from 2697.93 USD Billion in the third quarter of 2023. This page provides the latest reported value for - United States Corporate Profits - plus previous releases, historical high and low...

tradingeconomics.com

It's not just Republican tax cuts which added to the debt. It was all their spending which did the most damage.

 

[g5000]

For as long as I can remember, every time a Republican takes the White House, more is added to the debt than their Democratic predecessor.

Hell, Trump matched Obama's debt in half the time! Trump and the GOP Congress set to work doubling the federal deficit immediately.