Elizabeth Warren Eviscerates GOP Tax Plan: ‘American Families Are On The Ropes’
By Elizabeth Warren
The Republican leadership has outsourced its economic agenda to a handful of billionaires and corporate donors. From attempting to kick millions off of health insurance to rolling back rules protecting worker health and safety, Senate Majority Leader Mitch McConnell (R-Ky.) and House Speaker Paul D. Ryan (R-Wis.) have relentlessly pursued their donors' interests at the expense of working families. The Republican tax plan unveiled Thursday is the latest example.
American fami
Republicans…whatever that means….better hope Lizzie takes up golf…fanatically…otherwise she might kick serious Presidential election ass in 2020.
Better hide Trumpster….she’s not Hillary….
Agreed.
Jesus… Liz should absolutely run for President. She is easily becoming one of my favorite US politicians.
She’s absolutely right. Increasing wages would achieve the best and fastest growth. More spending would translate into more money being funneled into the system. I guess we’ve reached the inflection point where the top 0.1% realize they will get more money not by investing in new growth, but by consolidating asset ownership and profits from already established enterprises. (or it’s just way easier..)
The US system is so unbelievably messed up. If there’s one thing Trump did [gasp] well, it was to bring these issues right front and center, even if he’s on the wrong side of things. It’s now really fucking clear just how sideways-fucked the whole system is.
Reducing the corporate tax rate, which is the percentage of pre-tax income that must be paid, all else equal, would not increase economic activity. If a profit-maximizing rational corporation is charging $10 for an item, that is because it is more profitable to charge $10 than $9.99 or $10.01 taking into account market demand and competitive pressures. Thus, $10 is the price at which pre-tax profits are maximized. If a corporate income tax is levied or changed as a percent of pre-tax profits, $10 is still the price that maximizes both pre-tax and after-tax profits. Thus, the tax change can not cause any change in the price and is not passed on to consumers. The same applies to a corporation that is paying a wage that maximized its pretax profits, which is also the wage that maximizes its after-tax profits. Likewise, the level of output or number of employees that maximizes pretax profits is also the level of output or number of employees that maximize after-tax profits. However, that does not mean that changing corporate taxes other than the rate cannot impact economic activity.
Allowing immediate expensing of capital expenditures or even just allowing vastly increased accelerated depreciation could bring forward capital expenditures that would have otherwise have taken place in the future. This would be particularly powerful if the immediate expensing or extra accelerated depreciation was set to only last for a specified period. Allowing immediate expensing of capital expenditures could even cause projects that would otherwise be not accepted on a net-present value analysis, be undertaken as a result of now having expected internal rates of return exceeding the hurdle rate…”
https://seekingalpha.com/article/4113472