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5 Reasons Why Trump’s Corporate Tax Cut is Appallingly Dumb


#1

5 Reasons Why Trump’s Corporate Tax Cut is Appallingly Dumb

Robert Reich

Trump wants to cut the corporate tax rate from 35 percent to 15 percent, in order to “make the United States more competitive.”

This is truly dumb, for 5 reasons:


#2

"This is truly dumb,..." Yet Trump's "base" is truly dumb so it works for them. Trump's base simply believes in their tell-it-like-it-is miracle man. Facts are useless. If it "feels" true, then it is. Unleash the power of the private sector. Government programs are nearly always useless or counterproductive. Give Trump's plans a chance. He's very smart, you know. Anyway, we have to hope that there are at least a few republicans in Congress who are not totally worthless ethically and morally.


#3

I think it's more fraud than dumb.


#4

This is more than dumb, it's insane. Add to that an increase in the military and an x-amount of wars in the not-so-far future that somehow need to be bankrolled, and this is Dubya all over again. Create jobs by cutting taxes, saddle your grandkids with the debt. Criminally irresponsible. Republicans in Congress: last chance. if you want to be "all in" like Senator Graham from SC, you will suffer the consequences. But it seems to me that ship, or should I say that yacht, has already sailed. Resist, America. This is class warfare at its worst.


#5

A quote from Reich's book, _Supercapitalism:

"It's time we eliminated the corporate income tax and made up the shortfall by increasing capital gains taxes. Here's the logic: First, the corporate income tax favors big companies that are able to shift their income abroad and engage in other tax-avoidance activities, while harming small companies that can't do any of this and therefore suffer a competitive disadvantage. Yet small companies are the engines of job growth in America.

Second, the people who actually pay the corporate income tax should properly be the company's shareholders, who are the legal owners of the company and who benefit from increases in its income. But in many cases, depending on the structure of the market, a significant share of the actual burden of paying the corporate income tax is often borne instead by employees in the form of lower wages, or consumers in the form of higher prices."


#6

If Reich truly wanted to get to the issue at hand, then he wouldn't choose the rhetorical device of calling this "dumb".

That suggests some unintentional harm done to the masses by this corporate governance.

Reich should know corporate governance when he sees it. After all he greatly contributed to what has been a decades long corporate coup while servicing the Administration that really got that ball rolling inside the Democratic Party.

Reich, in the end apologizes for neoliberal economic policies as he NEVER directly takes on the corporate servitude of the current power center of the Democratic Party.

That would be too close to the truth for Reich, apparently. He pretends to be too "dumb" to know this truth.

And to those, especially on the left, the "alt-left" that asserted Trump as anti-establishment…what the hell did you expect of a billionaire union busting job outsourcing corporate tax cut proposing MIC build-up proposing ultra capitalist with a bent for fascism?


#7

Thank you for reminding me of that quote from this poser, Reich.


#8

Yeah, he seems to have turned full circle on this one.

Not that a Democrat would ever do that...


#9

I don't know if eliminating the corporate income tax is a good idea or not, but if every dollar is made up by increasing capital gains, then it is possibly a good idea.


#10

How many times in the past few decades have democrats raised taxes on the wealthy and not cut taxes on the wealthy? How many times have republicans raised taxes on the wealthy and not cut taxes on the wealthy? Now it is true that Reagan raised taxes on the wealthy a bit, AFTER he slashed them, but surely you get my point.


#11

Appallingly dumb? Or appallingly callous? Welcome to the New "Mean Season"

"Trump’s corporate tax cut will will bust the federal budget....This will either require huge cuts in programs for the poor, or additional tax revenues from the rest of us."

As I noted in another post, the rabid anti-government right is fine with huge deficits - it reasonably anticipates that, in the present right wing setting, budget deficits will be solved by cutting evil federal spending for a range of social services that marginally support the 'undeserving poor'...(riff-raff-and-unAmerican-book-filled) libraries...battered (poor) women shelters...(federally funded and filled with the poor) schools...that sort of thing...all except the sacred 'war on terror' to protect the fatherland.

It's the New "Mean Season," as a quartet of progressives called it in the late 80s...


#12

But don't you know that at least 90% of the federal budget is waste, fraud, or money to "those" people. I know Trump won't take away my Medicare, etc., cause I'm white and not lazy. I stay active here on the Internet and listening to Alex Jones. I know my Messiah, Trump, will lead us to the Promised Land.


#13

Once upon a time, Reich's thoughts on eliminating the corporate income tax made a certain kind of sense for the reasons he outlined above.

Now however, he's had a chance to digest reality: corporations often find ways around passing their savings onto consumers and pocket the windfall to benefit the investor class.

To his credit, much of what he posits in the book I quoted now pertains--corporate power rules pretty much unchecked, while T-shirts, airline tickets, and labor are dirt cheap.

Too bad he continues to support the D-Party. They helped enable the whole corporate takeover.


#14

Someday, in someone's lifetime, the Green Party will hit 5% and the world will be transformed. We can believe in Messiah Trump or in the Green Party. I choose reality, however.


#15

Trump's base is mostly the rich like him.


#16

What reality is that?


#17

Did they forget ( new book about amnesia) that the country did best when the gov invested in its own infrastructure. At any rate, this nonsense about seeing their own gov as "evil" is just that. How about eliminating salaries for the prez, the cabinet, the supreme court, the congress etc ? They can all volunteer.


#18

These people think like children or worse.


#19

The corporate interest dominated power center of the Democratic Party has gone along with tax cuts for corporations, and have only made milquetoast proposals to raise corporate tax rates, and rates on individual income that of course they never push when they actually have the opportunity to do so, such as the last two year period when the Democrats had the Presidency, House, and Senate.

My overall point stands, that corporate servicing Democrats are just fine with this, and Reich and the post DLC Democrats are largely to blame for where we are at in this country relative to historic disparity of incomes and emergent corporate governance.


#20

Please line up for your own special glass of Cool Aide. When large companies want to expand their first choice is to borrow the money and therefore create a tax deduction. Why use your own money when you can borrow at very low rates, Unless you are a student of course.