That was the first salvo! There will be multiple changes before this thing is finalized. As some noted above I am sure it will be super crappy by the time it comes to a head/vote!
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Just out if curiousity, does anyone have any data on company hiring rates when their tax rates are lowered? I just dont see it being logical for any company to go on a hiring binge just because they receive a tax cut, especially if they dont need more people. I know my company sure wouldnt, because we dont have enough work to warrant more people (oil industry). Hell, they'd probably keep laying us off.
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Originally posted by sir shovelhands View PostJust out if curiousity, does anyone have any data on company hiring rates when their tax rates are lowered? I just dont see it being logical for any company to go on a hiring binge just because they receive a tax cut, especially if they dont need more people. I know my company sure wouldnt, because we dont have enough work to warrant more people (oil industry). Hell, they'd probably keep laying us off.
Trump is betting the tax relief will bring back more jobs that were offshored in prior years than will be automated out of existence by robots funded by tax cuts on companies. It's both supply and demand pressure keeping wages low while corporate profits are high.
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Originally posted by 100%TtId View PostFor wages to show any real increase, corporate taxes must be lowered AND the labor supply must be held constant. Until we get a border wall built and the flow of cheap labor from Mexico slowed substantially, corporations will feel no pressure to increase wages.
Trump is betting the tax relief will bring back more jobs that were offshored in prior years than will be automated out of existence by robots funded by tax cuts on companies. It's both supply and demand pressure keeping wages low while corporate profits are high.
My driving point is that I dont see how an across the board corporate tax reduction incentivizes increased wages or hiring, in fact, it incentivizes nothing. Rather it is made in the hope that those things will follow.
I think it would be better if the tax code were modified to specifically incentivize increasing wages or hiring: say for example, doubling the tax writeoff for new employees for X number of years after hiring, or doubling the tax writeoff on raises. This would incentivizing hiring or wage increases, without giving a blank check to those companies that dont need new hires or intend to give raises.
Just my thoughts.
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If corporate tax rates are reduced, that will make it easier for companies who have operations overseas to move more operations (and jobs) to the US. By making the tax penalty of doing business here less severe, more of those operations and jobs will be moved here. It won't happen overnight, obviously. But it will happen if the cost of doing business here isn't prohibitive, compared to the cost of doing business somewhere else.
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I own a company, but we only have 5 employees. The lower tax rate would certainly be nice for my company, but I won't hire employees because of it. I hire employees based solely on my work load and how many will be needed. Salaries are based on job duties, experience, regional pay range, and work loads, not on how much federal or state taxes I pay.
I'm not sure how realistic these projections are for increased tax revenue due to trickle down economics. It looks to me like this tax plan would raise our national debt significantly. I thought the R party was more about reducing national debt, which I'm all for.
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Originally posted by BoneDigger View PostI own a company, but we only have 5 employees. The lower tax rate would certainly be nice for my company, but I won't hire employees because of it. I hire employees based solely on my work load and how many will be needed. Salaries are based on job duties, experience, regional pay range, and work loads, not on how much federal or state taxes I pay.
I'm not sure how realistic these projections are for increased tax revenue due to trickle down economics. It looks to me like this tax plan would raise our national debt significantly. I thought the R party was more about reducing national debt, which I'm all for.
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Originally posted by Neck View PostThe national debt should be paid down by reducing out of control spending not by continually raising the tax burden. If we don't control spending no amount of taxes are ever gonna get us out of debt. Hopefully we can tackle the spending problems too and stop spending more than we got coming in.
Increased spending
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Originally posted by BoneDigger View PostI'm not sure how realistic these projections are for increased tax revenue due to trickle down economics. It looks to me like this tax plan would raise our national debt significantly. I thought the R party was more about reducing national debt, which I'm all for.
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Originally posted by Bill in San Jose View PostWhat happened to the flat tax?
How much did you earn?
Multiply by 5%
Send it in.
If you make $10k or $10 million per year.
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Originally posted by texansfan View PostAnd this GOP administration is raising the budget once again.
Increased spending
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Originally posted by Shane View PostBy making the tax penalty of doing business here less severe, more of those operations and jobs will be moved here. It won't happen overnight, obviously.
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Originally posted by sir shovelhands View PostSome might, but for the most part, how do we compete with the cheap labor, property prices/taxes, and lack of government oversight of third world countries? Lower taxes doesn't even come close to evening the scales.
Not to mention the EPA regulations we have in this country.
You ever tried getting a 1960s bumper chrome plated?
How about trying to start a battery manufacturing plant?
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