AtUrCervix
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Joined: 1/15/2016
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quote:
ORIGINAL: Musicmystery
Trump instructed advisers last week that he wants the corporate tax rate to be lowered from 35 percent to 15 percent, a senior White House official said, speaking on the condition of anonymity. This is the same rate that Trump pursued during his 2016 campaign, but officials had not signaled since the election whether he would stick to the pledge.
By doing so — but not committing to measures that would offset the revenue loss — Trump is making clear he is putting a priority on cutting taxes over the national debt. It also potentially creates a tension point with House Republicans, who have spent years advancing a vision for tax restructuring of their own.
The White House decision comes at a crucial time. White House officials plan to unveil the broad principles of their tax plan Wednesday, though details of what would be in the release remained fluid Monday, another White House official said.
More: https://www.washingtonpost.com/business/economy/trump-seeks-15-percent-corporate-tax-rate-even-if-it-swells-the-national-debt/2017/04/24/0c78a35c-2923-11e7-be51-b3fc6ff7faee_story.html?hpid=hp_hp-top-table-main_trumptax-130pm%3Ahomepage%2Fstory&utm_term=.c44c67ef8e2e
Same comments were made in 1983 when Reagan lowered rates by 29% (ratios...not factors).
"The world is ending!!!"
Always be aware...those that love the existing circumstances...will do everything they can to eviscerate change.
It's impossible to upset the apple cart (Congress won't allow it for one...).
In the end...rates will be lowered....deductions will be eliminated and...in 15 years...it'll all be the same shit all over again (when the Democrats get back in charge).
Currently...the GOP wants to lower capital gains taxes from 23.8% to 15% across the board.
It's already been shown that when Reagan and (uniquely, as to Democrats) Clinton did exactly the same.....IRS/Fed revenues doubled (as to capital asset sales) within 3 years. When Obama raised the rates to 23.8%...they fell by half.
(To be fair...Obama did that in a revenue "search"....when the economy was in free fall so...no one was selling).
However, history has shown time and time again...when you lower investment capital taxation....(federal taxable) revenue increases.
Will it happen again? Your guess is as good as mine but...I'd venture to say that...history has a decent shot at repeating itself (as it often does).
I just turned down a deal today from a guy who desperately wants to sell his property....but he doesn't want to pay 23.8%.
He said if I up my price (offer) to compensate for the 8.8% differential (between current short term holdings and long term...+ the 3.8%), he'd sell (divide the offering price at -0.08.8% {it's called a "CAP rate"} and you'll see the natural spread).
Most investors have been holding...waiting for a "natural" (historic) taxation spread (which resides near the 15% calculation)...and now...offered one...will hold out longer (i.e., until that "natural" taxation rate is offered)
What's the cost?
(Nothing. Waiting? No cost).
And...for those that want to debate what the "natural" taxation rate is? Well...it's the rate at which reasonable sellers and buyers want to transact deals.
When do you know you've hit (achieved) that?
It's fairly easy to know: When tax revenues rise.
< Message edited by AtUrCervix -- 4/24/2017 4:04:11 PM >
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Trump willing to balloon debt to reduce corporate taxes... - 
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