Wednesday, January 17, 2018

Tax Cuts for the Rich and Corporations??

       Back at the end of December, Congress passed, and President Trump signed into law a massive tax cut and reform package, that took effect on January 1st. It will add about $1.5 trillion, in reduced taxes, to the economy over the next ten years. Immediately, the Democrats (not a single one voted for it) claimed it was a huge giveaway to the rich and corporations and only crumbs for the middle class. So, let's take a look at it in detail. The corporate tax rate was cut from 35% to 21%. So, let's, for the sake of argument and math simplicity, say that a corporation makes $100 million in profit. Under the old tax rate they would be paying $35 million in taxes (Yes, I know all about loopholes, credits, deductions, etc. As I said I'm trying to keep the math simple), and under the new rate they would be paying $21 million. That's a $14 million difference. What are those corporations going to do with all that extra money? The Democrats say they are just going to give massive bonuses to their top executives, and nothing to the lower everyday workers. Well, at least 150 companies have announced they are going to be giving bonuses, raises,  increased benefits or some combination of them to all employees, but let's assume there is some greedy corporation out there that decides to keep all that money. What are they going to do with it? Take it home and stuff it in their mattresses? Not likely! They will invest it or save it. It will be put into stocks, bonds, cds, mutual funds, or pass book savings accounts!
       That money is now available, above and beyond what is there now, to be borrowed by other businesses or individuals to be used to expand existing businesses by building new plants or expanding existing ones, and hiring new employees. Individuals will be able to borrow that money to buy new cars, build a new home or expand or renovate an existing one, buy new appliances, toys for their kids, take a vacation, go on a cruise, etc. All of these things now being done will increase business for the companies they are doing business with, with resulting increased money for them and more tax dollars going to the government. Despite what Democrats will tell you, tax cuts ALWAYS result, eventually (there is a slight delay), in increased tax revenue going to the government, not less!
       Now what about those greedy corporations who don't want to give anything to those poor little regular employees. Well, what will happen is that other corporations in the same or similar fields will start offering better pay and benefits and the employees at the "evil" corporations will start going to work for the "better" corporations, so the "evil" corporations will quickly start losing all their key employees and won't be able to hire, so they will have a choice, raise pay and benefits, or eventually go out of business!
       Tax cuts ALWAYS result in increased economic activity, with resulting benefit, in one form or another, to everyone in the country. Check out what happened during the Harding/Coolidge, JFK, Reagan, Clinton, Bush, Jr., and very soon, the Trump  administrations when taxes were cut. Yes, Clinton did raise a few tax rates, but he drastically cut the capital gains taxes, and that was huge!
        The economy is about to explode, so I would either get on board, or get out of the way or you will be run over!

Wednesday, January 3, 2018

They don't care about this particular one!

So, I was sitting here watching the SYFY channel’s New Year’s Twilight Zone marathon last Monday, and I got to thinking about those sheriff deputies that got shot in Colorado. No connection between the two. I was wondering where the anti gun crowd is? Shouldn’t they be out by now screaming for more gun control? Where’s Murphy? Where’s Blumenthal? Where’s Esty and all the rest of them? Where's the media? Couldn’t figure it out! Then it came to me! They are leftists and leftists hate cops! That ambush was fine with them! If it had been school kids, or innocents in a mall, or people in a theater, that would have been an outrage and they would have been calling for more control before the bodies were cold! They are really pathetic!