Факты, которые подконтрольные ЦРУ СМ»И» в России скрывают...
Dictatorship USA – Run By A Plundering and Murderous Ruling Class — 2019 (271)
It’s official: The Trump tax cuts were a bust
Lower taxes helped goose profits and stocks, but did little for jobs or the economy
MarketWatch, Feb. 2, 2019
Right before Congress passed the Tax Cuts and Jobs Act in December 2017, President Trump proclaimed:
“It’ll be fantastic for the middle-income people and for jobs, most of all ... I think we could go to 4%, 5% or even 6% [GDP growth], ultimately. We are back. We are really going to start to rock.”
A year later, it’s very clear that the tax cuts boosted gross domestic product and jobs a bit — and just for one year. Its effects are fading as U.S. GDP growth is weakening in 2019. The only thing that “rocked” were corporate profits and the stock market. And we’re facing trillion-dollar deficits as far as the eye can see.
The Tax Cuts and Jobs Act made small cuts in rates to most individual taxpayers, while cutting the corporate tax rate from 35% to 21%, expanding deductions for “pass-through” companies, and taxing only corporate income earned in the U.S., not worldwide. That theoretically removed a major barrier to U.S.-based multinational corporations repatriating the estimated $2.6 trillion in accumulated earnings they’re holding overseas.
Muted hiring, investment plans
The failure of the tax cut bill to achieve those intended results was made clear Monday when the National Association for Business Economics (NABE) released its January Business Conditions Survey. This is a poll of more than 100 economists employed by major firms in corporate America, so they’re hardly lefties. But they are guided by facts and hard data, not supply-side delusions.
Some 84% of these economists reported that in the year since their passage, the tax cuts “have not caused their firms to change hiring or investment plans.”
Buyback bonanza
So where is all that money going? Where else? Share buybacks, which hit a record $1.1 trillion in 2018. Companies actually spent more on buybacks than on capital investments in 2018’s first half, and remember, capital expenditures weakened as the year went on. Buybacks shrink the number of shares, boosting earnings per share and eventually, the stock price. That helps all shareholders, of course, but especially corporate executives, more than half of whose total compensation is in stock.
And what happened to all the trillions of dollars the president promised corporations would bring back to the U.S.A. from overseas? That, too, has turned out to be a bust — the amount dropped 50% in the third quarter after starting out strong in the first half of 2018. See a pattern here?
As economists projected, the tax cuts did boost GDP a bit for a while, but economists expect U.S. GDP growth to slow this year — and some are even predicting a recession.
Job growth in manufacturing — which the president promised would go through a revival — has been pretty modest.
Booming company profits
So, who gained? Well, corporate profits surged $78.2 billion in the third quarter, accelerating over the second quarter’s $65 billion gain. Earnings for the companies in the S&P 500 Index SPX, +0.72% probably topped $148 per share last year, about a 40% gain from the end of 2016.
The numbers couldn’t be clearer: Corporations, big shareholders and top corporate executives reap the lion’s share of the gains from the 2017 tax cut, which should be renamed the Shareholder and CEO Enrichment Act of 2017. It didn’t boost economic growth that much, didn’t start a capital spending boom or U.S. manufacturing renaissance, didn’t bring overseas profits back home, and might have led to modest job growth but little discernible wage increases.
And we’ll all be stuck with the bill for a long, long time.
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Перед нами - коварный и опасный мошенник, расист, лжец и фашист Дональд Трамп, порочный Конгресс, нацистские ФБР - ЦРУ, кровавые милитаристы США и НАТО >>> а также и лживые, вредоносные американские СМ»И».
Нынешние киевские власти — фашистские агенты американского империализма... Именно то, чего хотят Трамр/ США и в Венесуэле!
/////////////////////////////////////////////
Правительство США жестоко нарушало мои права человека при проведении кампании террора, которая заставила меня покинуть свою родину и получить политическое убежище в СССР. См. книгу «Безмолвный террор — История политических гонений на семью в США» - "Silent Terror: One family's history of political persecution in the United States» - arnoldlockshin.wordpress.com
Правительство США еще нарушает мои права, в течении 15 лет отказывается от выплаты причитающейся мне пенсии по старости. Властители США воруют пенсию!!
ФСБ - Федеральная служба «безопасности» России - вслед за позорным, предавшим страну предшественником КГБ, мерзко выполняет приказы секретного, кровавого хозяина (boss) - американского ЦРУ (CIA). Среди таких «задач» - мне запретить выступать в СМИ и не пропускать отправленных мне комментариев. А это далеко не всё...
Арнольд Локшин, политэмигрант из США
BANNED – ЗАПРЕЩЕНО!!
ЦРУ - ФСБ забанили все мои посты, комментарии в Вконтакте, в Макспарке, в Medium.com... и удаляют ещё много других моих постов!
Dictatorship USA – Run By A Plundering and Murderous Ruling Class — 2019 (271)
It’s official: The Trump tax cuts were a bust
Lower taxes helped goose profits and stocks, but did little for jobs or the economy
MarketWatch, Feb. 2, 2019
Right before Congress passed the Tax Cuts and Jobs Act in December 2017, President Trump proclaimed:
“It’ll be fantastic for the middle-income people and for jobs, most of all ... I think we could go to 4%, 5% or even 6% [GDP growth], ultimately. We are back. We are really going to start to rock.”
A year later, it’s very clear that the tax cuts boosted gross domestic product and jobs a bit — and just for one year. Its effects are fading as U.S. GDP growth is weakening in 2019. The only thing that “rocked” were corporate profits and the stock market. And we’re facing trillion-dollar deficits as far as the eye can see.
The Tax Cuts and Jobs Act made small cuts in rates to most individual taxpayers, while cutting the corporate tax rate from 35% to 21%, expanding deductions for “pass-through” companies, and taxing only corporate income earned in the U.S., not worldwide. That theoretically removed a major barrier to U.S.-based multinational corporations repatriating the estimated $2.6 trillion in accumulated earnings they’re holding overseas.
Muted hiring, investment plans
The failure of the tax cut bill to achieve those intended results was made clear Monday when the National Association for Business Economics (NABE) released its January Business Conditions Survey. This is a poll of more than 100 economists employed by major firms in corporate America, so they’re hardly lefties. But they are guided by facts and hard data, not supply-side delusions.
Some 84% of these economists reported that in the year since their passage, the tax cuts “have not caused their firms to change hiring or investment plans.”
Buyback bonanza
So where is all that money going? Where else? Share buybacks, which hit a record $1.1 trillion in 2018. Companies actually spent more on buybacks than on capital investments in 2018’s first half, and remember, capital expenditures weakened as the year went on. Buybacks shrink the number of shares, boosting earnings per share and eventually, the stock price. That helps all shareholders, of course, but especially corporate executives, more than half of whose total compensation is in stock.
And what happened to all the trillions of dollars the president promised corporations would bring back to the U.S.A. from overseas? That, too, has turned out to be a bust — the amount dropped 50% in the third quarter after starting out strong in the first half of 2018. See a pattern here?
As economists projected, the tax cuts did boost GDP a bit for a while, but economists expect U.S. GDP growth to slow this year — and some are even predicting a recession.
Job growth in manufacturing — which the president promised would go through a revival — has been pretty modest.
Booming company profits
So, who gained? Well, corporate profits surged $78.2 billion in the third quarter, accelerating over the second quarter’s $65 billion gain. Earnings for the companies in the S&P 500 Index SPX, +0.72% probably topped $148 per share last year, about a 40% gain from the end of 2016.
The numbers couldn’t be clearer: Corporations, big shareholders and top corporate executives reap the lion’s share of the gains from the 2017 tax cut, which should be renamed the Shareholder and CEO Enrichment Act of 2017. It didn’t boost economic growth that much, didn’t start a capital spending boom or U.S. manufacturing renaissance, didn’t bring overseas profits back home, and might have led to modest job growth but little discernible wage increases.
And we’ll all be stuck with the bill for a long, long time.
//////////////////////////////////////
Перед нами - коварный и опасный мошенник, расист, лжец и фашист Дональд Трамп, порочный Конгресс, нацистские ФБР - ЦРУ, кровавые милитаристы США и НАТО >>> а также и лживые, вредоносные американские СМ»И».
Нынешние киевские власти — фашистские агенты американского империализма... Именно то, чего хотят Трамр/ США и в Венесуэле!
/////////////////////////////////////////////
Правительство США жестоко нарушало мои права человека при проведении кампании террора, которая заставила меня покинуть свою родину и получить политическое убежище в СССР. См. книгу «Безмолвный террор — История политических гонений на семью в США» - "Silent Terror: One family's history of political persecution in the United States» - arnoldlockshin.wordpress.com
Правительство США еще нарушает мои права, в течении 15 лет отказывается от выплаты причитающейся мне пенсии по старости. Властители США воруют пенсию!!
ФСБ - Федеральная служба «безопасности» России - вслед за позорным, предавшим страну предшественником КГБ, мерзко выполняет приказы секретного, кровавого хозяина (boss) - американского ЦРУ (CIA). Среди таких «задач» - мне запретить выступать в СМИ и не пропускать отправленных мне комментариев. А это далеко не всё...
Арнольд Локшин, политэмигрант из США
BANNED – ЗАПРЕЩЕНО!!
ЦРУ - ФСБ забанили все мои посты, комментарии в Вконтакте, в Макспарке, в Medium.com... и удаляют ещё много других моих постов!