Americans skeptical of Trump's trickle-down tax plan, FAU poll finds

Share

But perhaps the clearest reason to cut corporate taxes is the waste they generate through avoidance.

Blue America may fear President Donald Trump and loathe him.

A large majority of corporate executives think tax reform is the best way to accelerate economic growth, according to a new Business Roundtable survey. National Economic Council Director Gary Cohn didn't go that far, though he did call the plan "a once-in-a-generation opportunity to do something really big".

Math is not on their side. This would boost federal revenue by a projected $74.1 billion in 2018 and similar amounts in succeeding years, according to the congressional Joint Committee on Taxation. Judging from its past calculations, the JCT is likely to agree with independent budget wonks, on the left and right, who have concluded that Trump's plan would create a gusher of red ink. But a third of Democrats say they will pay more under the plan; a third of Republicans think they will pay less. In other, recent proposals, this path has led to economically harmful ideas such as extending depreciation schedules, losing research expense deductions, and imposing "bubble" tax rates.

Americans are split on President Donald Trump's tax plan, and almost two-thirds say he should release his own tax returns before overhauling the tax code.

Currently, federal taxes on fuel amount to 18.4 cents-per-gallon for gasoline, and 24.4 cents-per-gallon for diesel - rates that have remained unchanged since 1993, essentially leaving the USA government's Highway Trust Fund tapped out and causing much-needed road repairs to be deferred.

Trump advocates USA government shutdown
Congress is expected to vote on the five-month spending bill before midnight Friday, the deadline to prevent a partial shutdown. He called for more Republican Senators to be elected in 2018, or for the rules to be changed to 51%.

What makes the Trump tax cuts violate the transversality condition is that they're meant to be permanent. The public is split on his plan, and on his performance on taxes: 38% approve, 42% disapprove.

So President Trump has finally chose to take our advice. "Among other things, the border adjustment tax policy would exempt businesses from paying taxes on products that are produced domestically but exported to other countries". That's unsustainable. "We have this enormous fiscal gap".

That sure does not sound like the populist candidate who won the presidency. It would also slash the corporate rate from 35 percent all the way to 15 percent, a boon to most companies even though many don't pay the full tax now. He's already dropped hints that he considers the one-pager as a starting point for negotiations, not a final demand. For every dollar a corporation claims as net income, Uncle Sam takes about ¢35, not including tax deductions and state and local tax. That's what President George W. Bush did, although some of his cuts were later extended.

"Most economists would argue a low tax rate and a broad tax base with relatively few exceptions is the most efficient tax", Dyreng said.

A tempting alternative is for Congress to change its rules.

In a CNN interview on April 26, economic analyst Rana Foroohar said, "There's no real evidence in the last 20 years that" growth from tax cuts has made up lost revenue.

Joaquin 'El Chapo' Guzman will be tried in US in April 2018
Cogan ruled that Guzman may not communicate with witnesses, citing his 'alleged history of witness intimidation'. The judge similarly allowed his defenders' pre-cleared investigator to visit without an attorney present.

A recent survey by the Business Roundtable showed that 90% of CEOs surveyed say that delaying tax reform will harm the overall US economy by lowering economic growth (92%), lowering employment growth (91%) and lowering investment spending (89%).

William Gale, a senior fellow in Economic Studies at the Brookings Institution says, "It's basically a massive tax cut for the very highest income households". This is Mnuchin's case.

CEOs overwhelmingly believe that tax reform is the most effective way to put more Americans to work in a stronger, growing economy.

Americans are rightly fed up with the feeble growth of recent years.

More than a year ago this newspaper noted in an editorial that then presidential candidates Ted Cruz, Marco Rubio, Chris Christie, Jeb Bush, John Kasich and Ben Carson all had proposed repealing the IRS deduction for state and local taxes, but Trump was still vague on the matter. Deficits would rise. But if-hypothetically-debt grew more slowly than the economy, debt would shrink in relation to GDP, making it easier to bear.

To demonstrate this, I have modeled two tax cuts of equal size. Expect to hear more of that kind of talk in future GOP messaging.

What are the odds? 2 caught trying to steal statistics exam
Police say shortly after, one student, Henry Lynch, returned to talk to police and confessed to breaking into the building. Cain yelled out that he was going to call the police, the students burst from the office and ran down the hall, Mr.

The sweeping tax overhaul plans from President Donald Trump and House Republicans attempt to address an enduring mystery of the economic recovery: Why are US businesses, flush with cash, so unwilling to spend it?

Share