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Trump's Treasury pick just doubled down on a budget trick that would steal from an entire generation


soonsister

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 https://www.yahoo.com/finance/news/trumps-treasury-pick-just-doubled-200604495.html

 

 

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"We do believe in dynamic scoring and with the appropriate growth," said Steve Mnuchin, the nominee for Treasury secretary. "I think we want to make sure that tax reform doesn't increase the deficit."

Those two sentences actually contradict each other because "dynamic scoring" is just a fancy way of justifying massive increases in the national debt — increases that would result from Trump's plan to spend $500 billion on infrastructure development while carrying out dramatic tax cuts.

 

Is this true? Or is it a Liberal slant to scare us? Anyone? I'm not a tax specialist here.

 

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18 minutes ago, soonsister said:

 https://www.yahoo.com/finance/news/trumps-treasury-pick-just-doubled-200604495.html

 

 

Is this true? Or is it a Liberal slant to scare us? Anyone? I'm not a tax specialist here.

 

totally depends on whether or not business grows at 4 or 5% with the tax cuts....    If we can get people back to work paying taxes and have business grow to make up the difference in the taxes collected, then it's just a liberal slant to scare us.

But it's very complex and hard to know exactly what will happen.      Streamlining government and not replacing retiring and people who leave government jobs could probably make up a lot of difference.     I know that, most of Tinker Air Force Base could be more effecient if about 30% of the people retired and everyone really worked to thier potential and they would never miss anyone gone.

 

GSA staffing rules need to be changed and spending patterns modified.   Unless they have changed in the past three years when I lost track, if a department didn't spend the money they were allotted, they would loose that part of thier budget for the next year and toward the end of the physical year they go on a crazy spending spree buying things they don't need.

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20 minutes ago, soonsister said:

 https://www.yahoo.com/finance/news/trumps-treasury-pick-just-doubled-200604495.html

 

 

Is this true? Or is it a Liberal slant to scare us? Anyone? I'm not a tax specialist here.

 

The article is actually very fair and accurate.  There are 3 main issues with Dynamic Scoring.

The first is that it relies on an economic model to estimate the future.  These models are all not without flaws and which one you use changes your end solution.  So when making their case the current Admin will always use a model that gives the most favorable result.  Conservatives are normally opposed to such models (think of the global warming models and how they have fared), but they will not oppose Trump. 

The second is they have to guess on what future Congresses are going to do to the hills and valleys of a normal economic cycle.  This is just total guess work and has no basis since nobody knows who will control congress and what might happen, for example no economic models in 1998 foresaw the 2008 crash so they could not take that into account.

Third is dynamic scoring really works the best over extended periods of time where volatility has less impact.  Congress typically looks about 10 years out, but that is not even close to enough time for the dynamic scoring to be accurate.  

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My question would be rather if the liberals wanted to see Trump loose so much that they would hurt America to do it.

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12 minutes ago, other one said:

totally depends on whether or not business grows at 4 or 5% with the tax cuts....    If we can get people back to work paying taxes and have business grow to make up the difference in the taxes collected, then it's just a liberal slant to scare us.

But it's very complex and hard to know exactly what will happen.      Streamlining government and not replacing retiring and people who leave government jobs could probably make up a lot of difference.     I know that, most of Tinker Air Force Base could be more effecient if about 30% of the people retired and everyone really worked to thier potential and they would never miss anyone gone.

 

GSA staffing rules need to be changed and spending patterns modified.   Unless they have changed in the past three years when I lost track, if a department didn't spend the money they were allotted, they would loose that part of thier budget for the next year and toward the end of the physical year they go on a crazy spending spree buying things they don't need.

Tax cuts cannot grow a business, a business can only grow with more customers.  A company paying less money in taxes just makes more profit, but they have no reason to use that profit to hire more people unless somehow demand grows.  But with tax cuts that target just the rich and corporations, there is nothing to jump start demand as the people that would bring about the demand are not getting tax cuts enough to make a difference. 

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2 minutes ago, Churchmouse said:

My question would be rather if the liberals wanted to see Trump loose so much that they would hurt America to do it.

Well, the Republicans have done that for the last 6 years, so there is no doubt the liberals would do it also.

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43 minutes ago, other one said:

totally depends on whether or not business grows at 4 or 5% with the tax cuts....    If we can get people back to work paying taxes and have business grow to make up the difference in the taxes collected, then it's just a liberal slant to scare us.

But it's very complex and hard to know exactly what will happen.      Streamlining government and not replacing retiring and people who leave government jobs could probably make up a lot of difference.     I know that, most of Tinker Air Force Base could be more effecient if about 30% of the people retired and everyone really worked to thier potential and they would never miss anyone gone.

 

GSA staffing rules need to be changed and spending patterns modified.   Unless they have changed in the past three years when I lost track, if a department didn't spend the money they were allotted, they would loose that part of thier budget for the next year and toward the end of the physical year they go on a crazy spending spree buying things they don't need.

I heard about that last part before. Let's hope this works for the best. God knows we've suffered so much already and for eight years we don't need that to be compounded by a man many thought would turn the tide.

 

30 minutes ago, Churchmouse said:

My question would be rather if the liberals wanted to see Trump loose so much that they would hurt America to do it.

There's a thought. I don't recall the attitudes of celebrity types refusing the invite to the inauguration of any president like has happened with Mr.Trump. If Left leaning celebs will go that low, even when the marching band from Alabama has been threatened for accepting the invite, what will seasoned Democrats do to protest Trump once he's in the office?

Obama endured that kind of thing when the Left lost the majority on his watch. His solution was to write EO's go work around it. It's ridiculous really. The Democratic process worked, the people voted, and now there's this enormous grumpy agenda that's going to pout for four years? Whining because a woman that was a politician for over 3 decades lost the chance to hurt America from a higher seat of power?

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14 hours ago, Out of the Shadows said:

Tax cuts cannot grow a business, a business can only grow with more customers.  A company paying less money in taxes just makes more profit, but they have no reason to use that profit to hire more people unless somehow demand grows.  But with tax cuts that target just the rich and corporations, there is nothing to jump start demand as the people that would bring about the demand are not getting tax cuts enough to make a difference. 

I disagree with this. More customers don't always equal a successful business, nor growth. A reduction in taxes can lead to more free capital which can lead to more investment in expansion of successful businesses. If you're running a business and your profits are being taxed at a rate of 35 percent and that is reduced to 10 or 15, you are going to have more capital to invest in expansion. While I agree that more customers are required to grow, more capital is also required to grow. Lowering taxes = more capital. That's simple math.

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8 minutes ago, Steve_S said:

I disagree with this. More customers don't always equal a successful business, nor growth. A reduction in taxes can lead to more free capital which can lead to more investment in expansion of successful businesses. If you're running a business and your profits are being taxed at a rate of 35 percent and that is reduced to 10 or 15, you are going to have more capital to invest in expansion. While I agree that more customers are required to grow, more capital is also required to grow. Lowering taxes = more capital. That's simple math.

But without more customers there is no reason to use that capital to expand and a company having more capital does little to help the economy unless it is put to use

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17 hours ago, Out of the Shadows said:

Tax cuts cannot grow a business, a business can only grow with more customers.  A company paying less money in taxes just makes more profit, but they have no reason to use that profit to hire more people unless somehow demand grows.  But with tax cuts that target just the rich and corporations, there is nothing to jump start demand as the people that would bring about the demand are not getting tax cuts enough to make a difference. 

The less tax the more they have to work with and ultimately competition will lower prices and more people will buy....    so I don't agree with you once again.

 

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