Posted on 01/21/2016 3:21:08 AM PST by expat_panama
Economy: Stocks cratered again Wednesday, with the Dow off as much as 548. Business investment and profits are falling, and consumers are in retreat. A recession now seems possible. What can help turn things around?
Surely the talk by the leading presidential candidates of raising tax rates...
Perhaps it's just a coincidence that every time Bernie Sanders rises in the polls, the market tanks...
...the economy looks like it may need a pick-me-up as insurance against recession.
This certainly should not mean anything like the failed $830 billion stimulus of early 2009. We learned a hard lesson from that blunder: Government spending doesn't have a "multiplier effect" and doesn't heal a sick economy.
Monetary policy is also impotent. We had at least $3 trillion of asset purchases...
What would spur investment and economic growth -- and there's almost universal agreement on this -- would be a cut in the corporate income tax.
"The high statutory corporate tax rate reduces the return to investments and therefore discourages saving and investment.. .. The tax acts to reduce the productivity of American businesses and American workers, increase the likelihood and cost of financial distress, and drain resources away from more valuable uses."
Those reasons alone would justify a major cut in the corporate rate.
But there's also reason to suspect that a reduction in the corporate rate will result in very little loss of revenue. The reason is that increased growth and investment from the lower rate will make up for some, if not all, of the expected revenue loss to the government.
...the economy appears to be stumbling. Where does Hillary Clinton stand?
If Democrats do block this pro-growth tax cut, Republicans should make it a highest-priority political issue in the November elections.
(Excerpt) Read more at news.investors.com ...
2:39
Sadly we see this kind of class insanity too often on our side too, we see some freepers who somehow think factory workers are somehow "more important" than business owners, we hear Rush complain about past stock price advances being supported by the enemy, and we see our fellow freepers now cheering as stock prices fall..
That’s the one thing that I find annoying, lol. The Dow drops 500, and it’s BREAKING NEWS! Oh wait, it didn’t close at that level? lol
IBD described yesterday's close as "mixed" in higher volume, I agree w/ the the heavy trade but all major indexes tanked --that and this morning's futures are unanimous w/ more drops ahead.
Ah, GOOD MORNING! Like, metals are flat, and today's 'claims day':
8:30 AM Initial Claims
8:30 AM Continuing Claims
8:30 AM Philadelphia Fed
10:30 AM Crude Inventories
10:30 AM Natural Gas Inventories
11:00 AM Crude Inventories
And just look at all these neat threads:
Doing the simple things in all facets of life seem to be an enigma: like respecting the autonomy of the individual along with the business owner, being sound in fiscal matters, and avoiding trying to “buy” votes in order to gain/maintain power as well as control through a collective special interest “hive”.
Tax cuts — permanent! Permanent! Etched in Constitutional Stone — an amendment!
The more solid our support of the free market is, the more permanenent, the more investors can think long-term here in the US.
[Even if we must allow an emergency override vote, super majority and support by most state legislatures.]
What the hell?
Let me fix this for you:
freepers who somehow think American factory workers are important,
Expropriate the Expropriators!
The Left’s punitive policies are responsible for our current economic condition. Unless and until Changes are made, such as convincing the voters that Central Planning is not conducive to creating wealth (economic growth), we’re headed for stagnation or worse.
Economically 100% correct.
And politically unattainable for a slew of reasons that could fill the rest of this page.
There needs to be a very strong provision enacted, even if it is in defiance of treaties:
The Corporate Patriotism Act. For any corporation to sell its goods or services in the United States, it must pay corporate income taxes on those sales in the United States, proportional to the gross sales of those goods or services.
Further, that such corporations must give hiring preferences to United States citizens proportional to the sales of those goods and services. This includes revision of the Visa Categories used to determine entrance to the United States, to insure that these programs are not misused to displace United States citizens from employment in the United States.
Directory of Visa Categories
https://travel.state.gov/content/visas/en/general/all-visa-categories.html
Yeah right, like "BLACK lives matter". Anyone who says all Americans are important end up getting shot at just like anyone who says all lives matter becomes a target.
imho that thinking sucks.
Trump winning must kill you. LOL little man.
Income taxes are taxes on income. Taxes on sales are called "sales taxes".
...proportional to the gross sales...
You may be thinking of "net sales" and not "gross sales". Let's say a business sells $1,000,000 in goods that cost $999,999 to make. We can't tax them more than we tax a business that sells $100,000 in goods costing $10 to make.
Oh really central planning? You really want to go there?
Before the 1970s China was basically a huge North Korea. So backwards it isn't even funny. Then, to promote a "New World Order" the USA in its infinite wisdom decided to artificiality give the Chicoms technology, money and fixed contracts and then transplanted factories from the USA to to China. The whole thing was done to make China stronger in the fight against the USSR and the cold war. The a funny thing happened, the USSR collapsed and we were left holding the bag. This China policy was done for no good reason except to make international gloBULList corporations an their international stock holders rich.
Again this is nothing but and example of humongous international central planning. It pits US workers against the Asian peasants and we are bleeding dry, wealth is being transferred out of the USA and you want to chastise someone as a "central planner" who wants the BS to stop? That is rich...
We might have a good chance of that happening if Corporations constantly reminded the public that corporations do not pay taxes. They collect taxes from their customers. Every time we gas up our vehicles, the fuel supplier collects tax money from us then pays it to the beast.
As they don’t follow the damned thing anyway, what’s adding more verbiage going to do?!
Congress has EVERY ability to tax....for those things they are AUTHORIZED.
Follow the Constitution and the taxes/regs/etc. minimize.
As a Const. Republic we should STILL be the tax haven of the world. Unfortunately, it’s the FED, unions/govt monopolies, Socialism/Fascism/crony Capitalism and ignoring the govt constraints that got us were we are now.
B.S. The big corporations are hoarding cash, not investing it. OTOH, reducing the too-high tax rates on corporate transfer to this country of profits earned in other countries would help some, as well as temporarily increasing federal tax revenue.
If this were implemented and all other taxes done away with we might have a chance.
If you earned Five Million a year, would $35,000 be too much to pay in tax?
It is the FLATEST of the Flat Tax. Plus, everybody pays. Including Goldman Sachs!
This is exactly what I was saying, how mindless hatred of American businesses is overwhelming the FR repeating garbage like this tired "hoarding cash" story.
Actual total corporate cash is public record (page 135 here), but maybe the FR disconnect is for the best. I mean, if the facts ever come out on the FR, rather than any "oops sorry" I'd expect a doubling down w/ complaining about wreckless CEO's who don't know how to maintain cash reserves for the downturn we're going into.
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