I-5 wrote:How are tax cuts that add $1.9T (counting macroeconomic benefits) over 10 years and that benefit corporations ONLY past 2027 a good thing? I want to learn, and don’t post a link.
Since you said you wanted to learn, the corporations are liable to their stock holders only. Used to be that corporations would be loyal to their employees and take care of them. Those days are long gone. The bottom line is the only thing that drives decisions. If you have the highest taxes in the world for corporations to do business what do you think they will do? They move their operations to countries where manufacturing is cheaper. Its just simple economics. Pay less for your product/service to be brought to market and charge the same or more for it. Let's add to the top of that, any monies made overseas would be taxed at 40% or more when brought back into the US. So money made overseas, stays overseas in other country's banks. Investments of that cash are made "OVERSEAS" because again, the company owes its stock holders a return on that money. So it can't just sit around, it can't be brought back to the US because you lose too much of it. So invest it over there, grow that economy, enrich that government with the taxes it collects, hire those people for your goods and service production.
So I think we can all agree that the above that I pointed out is what happened since Clinton's administration (I could go into many points on how this was done but I doubt you'd read it all). Outsourcing overseas, companies going overseas, etc. The problem with that is eventually the wealth of the US drops. Wages quit rising because there are fewer jobs and less competition from a company's point of view to gain good competent employees. You don't have to pay them as much, you don't have to provide as many benefits, etc. When I first went to work at AT&T in 2001, they paid 100% of my medical insurance. Those costs for health care, inflation such as heat bills, electric, sewer, water, education, etc, etc. keep going up but again, wages are flat. You are losing ground every year on your real spending power. Less money for extra stuff means less national wealth. Eventually, you run out of money and dip into your savings, investments, etc. You refinance your home (leading to a housing crisis), take out a line of credit whatever it takes to keep going. Debt goes up, you may even have to file for some kind of assistance and that's where they got you! You keep losing ground year after year, and more assistance, etc, etc. Now you NEED to vote for more free stuff in order to make it. Now the govt needs to double their debt in just 8 short years (like Obummer did from $9T to $18+T) God forbid you lose your job and can't find another one since all the jobs are now overseas. This isn't the scenario for everyone but for a vast majority it is what happened to them.
So how do you reverse that trend? As Obummer said, you don't have a magic wand. What can you possibly do to get people working again? Remember the lowest participation rate in our history was under Obummer. How do you put them to work? Ahhh, I got it, incentivize companies to come back to the US so they can hire these GOOD people who want to work. You almost can't do that because you are broke, in debt to the tune of $18T though. You better have a good plan to get people working quick if you invest any money in attracting those businesses back (yes the tax cut was an investment). The tax cut also gave those who were working a little extra spending money to buy stuff and put back into the economy.
Now there is one last thing I need to adress here without going way over this explanation. Tarrifs. Remember when those companies left the US and took their jobs and money with them overseas? YOu'd think that we would tax their products that they tried to sell here in the US but NOOOOOO... we didn't do that. We let other countries tax the hell out of our products but didn't tax them at all. So you must address this and allow the companies that move back to the US to sell their goods and services into other countries without a penalty and if they are going to penalize US companies from playing in their market, you must penalize their countries equally from selling their goods and services into our market. Otherwise, you lose real wealth through a leaky bucket to overseas markets.
I hope that helps. I didn't go into too much detail but as you can see, even at the 100,000 foot view it is very intricate and complex.
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