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Posts by socialism_stinX

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  • Don't work against Luther Strange, GOP campaign arm warns consultants

    04/28/2017 2:20:39 PM PDT · 20 of 27
    socialism_stinX to vette6387

    They will find contractors to build Trump’s wall in CA. They will be contractors who don’t need no stinking state business.

  • US economic growth weakened to 0.7 percent in first quarter of 2017

    04/28/2017 1:14:21 PM PDT · 40 of 44
    socialism_stinX to nikos1121

    Quarterly growth numbers released by the government are annualized rates. They take the percent change for the quarter and annualize it by either multiplying by four or taking it to the fourth power, e.g., 1.0028 to the fourth power.

  • How Team Trump plans to kill Obama’s Paris climate deal by declaring it a treaty

    04/27/2017 1:56:41 PM PDT · 20 of 42
    socialism_stinX to ColdOne

    This climate deal is a treaty, so the GOP should debate it and demolish it in the senate.

  • How Team Trump plans to kill Obama’s Paris climate deal by declaring it a treaty

    04/27/2017 1:54:54 PM PDT · 19 of 42
    socialism_stinX to ColdOne

    Great article here on the global warming issue with lots of good links:

  • Ted Cruz Introduces EL CHAPO Act to Make Mexican Drug Lord Pay for Wall

    04/26/2017 1:55:13 PM PDT · 89 of 104
    socialism_stinX to Sub-Driver

    This is a great political idea. I knew the Trump team would find a politically popular way to pay for the border wall.

  • U.S. chief justice alarmed at Trump administration immigration case stance

    04/26/2017 1:29:27 PM PDT · 34 of 92
    socialism_stinX to montag813

    The headline is seriously misleading because this all happened before Trump was elected. Chief Justice Roberts makes some good points, but the headline for this article is highly deceptive.

  • White House Responds to Judge Orrick Defunding “Sanctuary City” Injunction

    04/26/2017 2:52:35 AM PDT · 64 of 110
    socialism_stinX to Helicondelta

    This will turn into a win for Trump. The public views the judge as a liberal democrat, and the public strongly opposes the entire concept of sanctuary cities and states. This ruling also makes the voters aware of the critical importance of who nominates and confirms federal judges and new justices on the SCOTUS. Eventually after serious damage is done to the democrats, this case will go to the SCOTUS and the administration should win it there.

  • Trump Looks to Cut Corporate Tax Rate to 15 Percent

    04/26/2017 1:46:13 AM PDT · 1 of 55
    A major cut in the corporate tax rate is a great idea. Our current corporate tax system is one of the stupidest things in the history of the world. Our 35% corporate tax rate, one of the highest rates in the world, is guaranteed to drive down capital investment inside the US and push investment and jobs overseas to countries with lower corporate tax rates. Our corporate tax rate needs to be cut to either a permanent rate of 20 to 25% or a temporary rate of 15 to 20% for the next ten years. It would be better to enact a permanent tax rate cut, even if the rate is only reduced to 20-25%, because a permanent tax reduction would generate more big capital spending projects that take 10 to 15 years to pay off completely. It can take two years or more to build a new factory and then another two years to train the workforce and bring the factory up to full production rates. If the tax cut only lasts ten years, then that can leave only six years or less for a new factory to benefit from the tax cut. That might not be enough time to make a large investment pay off. So if we can get some democrats to vote for a tax reduction in the senate, then a permanent rate reduction would be a more effective economic stimulus.

    Here’s my two minute course in capital budgeting to explain how a tax rate cut increases capital spending. The basic equation for corporate cash flow is: Free cash flow = EBIT x (1- T) + depreciation – capital expenditures – changes in working capital, where EBIT = earnings before interest and taxes, and T = income tax rate. In the typical capital investment project, almost all of the capital expenditures are in the first few years of the project. Usually when you’re working on a financial analysis for a capital investment, you forecast the incremental increase in operating income (EBIT) generated by business expansion or cost reduction without subtracting out depreciation, and then you don’t have to bother adding back depreciation. So the equation becomes simply: incremental free cash flow = increased EBIT x (1- T) – capital expenditures – changes in working capital. Then you discount the incremental cash flows by the company’s hurdle rate, and then add up the discounted free cash flows for all the years of the project. The sum of all the discounted cash flows is called the Net Present Value (NPV) of the project. If the NPV is positive then the project increases the value of the company sufficiently to be worth the investment. Projects with a positive NPV are generally approved and those with a negative NPV are not approved and have to be improved or else cancelled. The point of all this is that the income tax rate (T) is a key factor in the capital budgeting process and you can see that as T decreases, free cash flow and NPV increase and more projects have a positive NPV. This is why a lower corporate tax rate cranks up capital investment and results in much more investment and resulting job creation in many industries through the economic multiplier effect.

    Regarding repatriation of cash flow from foreign subsidiaries, I think the best policy is to tax those profits at a total rate (foreign tax rate + US repatriation rate) equal to no more than the US corporate tax rate. So if we enact a corporate tax rate of 20%, then cash generated by a subsidiary in a foreign tax haven that charges a 10% tax rate would be taxed with a 10% repatriation rate, while companies would pay no repatriation tax on cash generated in a foreign country with a 25% tax rate. With this policy, we would create no incentive to move business operations and jobs overseas to save taxes on repatriated earnings, while also keeping the repatriation taxes at reasonable levels. That encourages repatriation of cash to be used for investments in the US and for stock buybacks.

    A substantially lower corporate tax rate would probably result in less corporate tax revenue collected by the federal government, but it would also create a lot of jobs and increase tax revenue from personal income taxes and payroll taxes. Higher employment also cuts government spending on welfare, food stamps, medicaid, and other social programs that benefit unemployed workers. So my intuitive feel for this is that a major corporate tax cut would not increase total government deficits at the federal and state levels, and would create jobs for millions of Americans and greatly improve the lives of millions of our people, without increasing government budget deficits. We need to get a major corporate tax cut done this year and get our economy growing again at rates of at least 3% annual GDP growth in the next four years. Personal tax relief is also a great idea, combined with budget cuts in the federal government.

  • Schumer: Money for Border Wall Could Be Used to ‘Give Just About Every American Broadband’

    04/25/2017 5:53:38 PM PDT · 82 of 120
    socialism_stinX to Olog-hai

    It’s not the role of the federal government to give people broadband service. Broadband service is easily affordable now and citizens can get their own broadband service. But citizens cannot effectively defend the border against illegal immigration. That’s the role of the federal government. It won’t help citizens to have broadband service if they get shot by a gang member who shouldn’t be in this country. Democrats have their priorities upside down, as usual.

  • BREAKING: US judge blocks Trump funding order on sanctuary cities

    04/25/2017 5:25:01 PM PDT · 266 of 330
    socialism_stinX to Trump20162020

    This will turn into a win for Trump. The public views the judge as a liberal democrat, and the public strongly opposes the entire concept of sanctuary cities and states. This ruling also makes the voters aware of the critical importance of who nominates and confirms federal judges and new justices on the SCOTUS. Eventually after serious damage is done to the democrats, this case will go to the SCOTUS and the administration should win it there.

  • Obama, Boehner negotiations at a stand still (Obama rejects deal)

    10/12/2013 3:29:03 PM PDT · 115 of 123
    socialism_stinX to Innovative

    This negotiation is really not that complicated and the solution is simple. This is like a home purchase negotiation where the buyer wants to spend $190K and the seller wants him to spend $210K. To get a deal done, both negotiators have to agree on the amount the buyer is going to spend and they both have to move off their original
    positions into the center and meet the other negotiator half way. They have to move towards each other and agree on a price of about $200K, or there will not be a deal and a home purchase. That’s the way these negotiations work in the business world. It’s very simple, and that’s what will ultimately happen in these debt limit negotiations, because it has to happen.

    It’s time for everybody in Washington to stop all the name-calling, insults, wild exaggerations, and filibusters, and then move to the center and make a deal that re-opens the federal government. Both parties need to move substantially toward the other party, reach a deal, and re-open the government. That’s what will ultimately happen, but why do negotiations have to continue all the way down to the supposed “day before default”? That just scares the financial markets and causes unsophisticated investors to sell financial assets at bargain prices to savvy institutional investors (...again). Everybody just needs to move toward the center and get a deal done this weekend. Then Obama and Boehner can watch Monday Night Football and drink a beer together, while Harry Reid watches re-runs of Vega$ on another screen and drinks Dasani water. This deal could be completed by late Sunday night or early Monday morning if everybody just makes a substantial move towards the other party in a calm business-like way. That’s better for the county than long, nasty, politicized negotiations and last-minute deals.

  • House Democrats push for immediate vote on gun control measure

    12/21/2012 8:35:07 AM PST · 92 of 98
    socialism_stinX to Do Not Make Fun Of His Ears

    The NRA’s president is in the middle of a great speech right now. He’s calling for armed security at all schools in America. He got heckled by a few idiots who blame the NRA for gun violence. The hecklers were forcibly removed from the room. He showed an online video game on the screen called “Kindergarten Killers”, if I heard him correctly. That’s a despicable video game, along with many others out there. I think he’s right about the need for armed security at schools. There may be copycats planning more violence right now. Shopping malls have armed security, so why not schools? Makes sense to me.

  • Speaker Boehner: "Mr. President, It's Plan B or Be Responsible For the Largest Tax Hike In History"

    12/19/2012 2:00:50 PM PST · 65 of 98
    socialism_stinX to Perdogg
    The House Republicans are playing this well. Raising the top marginal rates on ordinary income is not a good way to increase revenue, and those rate increases will slow economic growth. It's much better to bump up the rate on the lowest bracket for very high income people and limit itemized deductions (excluding charitable contributions) for everyone. It we have to increase the marginal tax rate on ordinary income, because the democrats just insist on that kind of tax increase at some level of income, then raising that rate on income above $1 million is the least damaging way to do that.

    The democrats seem to forget about state income taxes, which have a marginal rate of about 9.5% in several high-tax states. When you add the state tax rate in with a higher federal rate of 39.6%, even with the state tax deduction, you're now up to an effective margin rate of approximately 45.3%. That is a serious disincentive for business investment and expansion. Some of the lost investment and expansion will be offset by increased investment by corporations that pay the 35% corporate tax rate as those corporations expand where small businessmen decide not to expand. But not all of the lost investment will be made up by bigger corporations. Some of that lost investments is in small "niche" businesses or in small markets that are not big enough opportunities for corporations to bother with. Any time a business investment or expansion is canceled because the owners decide it's just not worth it due to high tax rates, there is then a substantial multiplier effect through the larger economy that is also lost. That is how US economic growth declines significantly because of higher tax rates.

    The best way to raise revenue is to raise marginal rates only above $1 million and then limit itemized deductions to $100K, excluding charitable contributions. In the long run, that will get us more economic growth and more revenue than raising total marginal tax rates (which are already very high in many states) on business owners who earn less than $1 million.

  • A ‘fiscal cliff’ deal is near: Here are the details

    12/17/2012 6:30:22 PM PST · 102 of 131
    socialism_stinX to kabar

    I share your concerns about the long-term economic outlook. I was only talking about next year, 2013. The hurricane is going to create a lot of repair work and construction work on the east coast next year, and that stimulus combined with the oil production boom and a strong automotive industry could generate reasonable economic growth next year. In 2014 we’ll have more risk of a really sluggish economy as the post-Hurricane construction work winds down. There will be real spending cuts, at least reductions from the current planned level of growth. But I’m also concerned that spending, debt, and interest on the debt will all grow too rapidly in the next four years.

  • A ‘fiscal cliff’ deal is near: Here are the details

    12/17/2012 3:52:40 PM PST · 71 of 131
    socialism_stinX to kabar
    I don't think the explanation that "the GOP forced us to cut SS and Medicare" would be accepted and believed by the voters. It looks like the plan is to make relatively modest reductions in the growth rate of spending on SS and Medicare, and the modest political cost has to be shared by both parties. Considering that the democrats control the White House and the Senate, the voters will never believe that the GOP forced them into anything.

    At a high level, it looks like Obama and Boehner are trying to get more revenue through economic growth, as the Fed continues to print money and mortgage rates fall below 4%. Actually, with our ongoing oil production boom and robust automotive replacement cycle happening right now, that growth plan just might work. That growth plan could work, if we can negotiate an end to the Iranian nuclear weapons program, or make a quick surgical military strike on Iran that only drives up oil prices for a month or two. We could actually have a fairly strong economy next year in that scenario.

  • How 'genius' honor student Adam Lanza became masked killer

    12/15/2012 11:25:26 AM PST · 162 of 304
    socialism_stinX to chris37

    I agree with you. At the very least, teachers and school administrators should be armed with Taser guns with a 15-foot range and laser sights so they at least have a chance at disabling an armed attacker. In fact, I’ve read that a high-powered Taser gun is actually more effective than a gun at disabling a person quickly. Teachers should be trained in how to use a Taser gun and then hand-cuff the attacker quickly while he’s disabled. Amazing as it sounds, however, Taser guns are actually illegal in many of the liberal states. The liberal mentality never ceases to amaze me.

  • How 'genius' honor student Adam Lanza became masked killer

    12/15/2012 11:20:27 AM PST · 158 of 304
    socialism_stinX to Blackirish

    The second amendment won’t be amended. That’s not going to happen. Most of the state legislatures have to approve a constitutional amendment and that’s not going to happen in the foreseeable future.

  • How 'genius' honor student Adam Lanza became masked killer

    12/15/2012 11:11:58 AM PST · 146 of 304
    socialism_stinX to BunnySlippers

    Thousands of people are killed every year in small cars when they get hit by much bigger and taller vehicles. So are liberals calling for a ban on small cars? Of course not. Instead they’re implementing much tighter fuel efficiency standards that will make cars smaller and lighter and even more dangerous to drive if the car companies don’t make a major effort to design stronger structural components made with high-strength materials. The focus on gun control is irrational, when many more people are killed in traffic accidents every year. If the government wants to stop gun violence without infringing on our rights and leaving us unarmed in a nation filled with armed criminals, then start a program to publicize the need to lock up guns securely at home. That will stop these awful incidents when young kids shoot each other.

  • How 'genius' honor student Adam Lanza became masked killer

    12/15/2012 11:02:04 AM PST · 133 of 304
    socialism_stinX to BunnySlippers
    Where did the shooter get the first gun that he used to kill his mother? Did his mother lock up her guns properly? If not, she certainly should have kept those guns locked up securely considering the severity of her son's mental problems. Lanza's mother may have enabled this massacre by not locking up her guns securely.

    Regarding Mayor Bloomberg's comments: If the killer had instead stolen a UPS delivery truck and killed 26 people by driving it into a classroom, would Bloomberg be calling for tighter controls on commercial trucks? Of course not...instead he's be calling for improved mental health programs and more research into drugs to help mentally ill people. It's so obvious, but I'll say it again: If we make ownership of guns illegal, then only criminals will own guns and criminals of course do not follow the law and will use their guns to terrorize and slaughter the disarmed law-abiding people. Enough settle down Bloomberg and try some logical thinking for a change. Possibly we need a way to prevent mentally-ill people from buying guns, but that has to be done very carefully with a strict definition of who is really mentally ill.

  • Obama Campaign Launches Capitol Call Program Against Republicans in Fiscal Cliff Standoff

    12/11/2012 4:16:43 PM PST · 13 of 19
    socialism_stinX to SMARTY

    It’s more like a endless election campaign. This White House loves campaigning. They don’t seem to like governing and negotiating with congress.