SEP 27 17 SIT EC y POL
ND denuncia debacle d Globaliz neoliberal y
propone State-Social + Capit-compet in Econ
ZERO HEDGE ECONOMICS
Neoliberal
globalization is over. Financiers know it, they documented with graphics
"You might be thinking, if incomes were less than our standard
of living, why did it feel like our standard of living remained stable? One Word – DEBT."
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The share of overall wealth held by the "top 1%" of Americans
is 38.6%, while that held by the "bottom 90%" is 22.8%, which means that the
wealthiest 1% of the US population is now 70% richer than the bottom 90%.
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After dismal drops in existing and new home sales, this morning's
pending home sales data for August was a disaster, tumbling 2.6% MoM (3.1% YoY)
to its lowest SAAR since
January 2016.
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US equity markets ran up overnight
but appeared to hit a 'sell the news' moment as
President Trump's tax plan was leaked.
Wall Street analysts generally agree for now, the
devil is very much in the details... and those are yet to come.
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OUR ECON SYSTEM IS COLLAPSING, not need for more graphics,
but just in case
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Trump's "historic" tax bill, as proposed today, will likely
look very different by the time it is actually voted on. However, as is always the case, the “devil is in the
details." Here are the notable highlights...
Submitted by Lance Roberts of Real
Investment Advice
First: CHECK this
image: http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/09/05/Trump-Tax-Cuts-CRFB_0.png
Here a brief of major
points as summed up by BI.
Business tax changes:
- A 20% corporate tax rate. This is the first time Trump has publicly backed down from one of his earliest campaign promises: a 15% corporate tax rate. The budget math required for a 15% rate was too difficult, so the somewhat higher rate is the opening bid. The current statutory federal rate is 35%.
- A 25% rate for pass-through businesses. Instead of getting taxed at an individual rate for business profits, people who own their own business would pay at the pass-through rate.
- Elimination of some business deductions, industry-specific incentives, and more. There are few details, but the plan includes language regarding the “streamlining” of business tax breaks.
- A one-time repatriation tax. All overseas assets from US-owned companies would be considered repatriated and taxed at a one-time lower rate — this is designed to bring corporate profits back from overseas.
Personal tax changes:
- A bottom individual tax rate of 12%. The plan specifies three tax brackets, with the lowest rate being 12%. That would represent a slight bump in the bottom bracket, which is now 10%. People currently in the 15% marginal tax bracket would most likely be included here.
- A middle tax bracket of 25%. The incomes in this bracket aren’t specified.
- The top individual tax rate of 35%. The current top rate is 39.6%.
- The possibility of a fourth, higher bracket. Because of Trump’s insistence that taxes for the wealthiest Americans not decrease, the plan proposes the possibility of a fourth tax bracket at a rate higher than 35% if the tax-writing committees wish.
- A larger standard deduction. To avoid raising taxes on those currently in the 10% tax bracket, the standard deduction for all taxes would increase to $12,000 for individuals (up from $6,350) and $24,000 for married couples (up from $12,700). These are slightly less than the doubled deductions expected and the idea this would save people money may be misleading.
- Eliminates most itemized deductions. The only deduction preserved explicitly in the plan is for charitable gifts and home-mortgage interest.
- Increases the size of the child tax credit. A pet project of Ivanka Trump, the proposal is to make the first $1,000 of the child tax credit refundable and increase the income level at which the credit would phase out.
- Vague promises on retirement savings and other deductions. Sections of the plan refer to retirement savings and other “provisions,” but details are sparse.
- Elimination of the state and local tax deduction. The so-called SALT deduction allows people to deduct what they pay in state and local taxes from their federal tax bill.— about one-third of the beneficiaries are in New York, New Jersey, and California.
- Elimination of the estate tax. Called the “death tax” in the plan, this applies only to inherited assets totaling $5.49 million or more in 2017. Very few households pay the estate tax, but it has long been a target for Republicans.
Devil In The Details
The bill, as proposed today, will likely look very
different by the time it is actually voted on.
However, as is always the case, the “devil is in the
details.”
First, as the Committee for a Responsible Federal
Budget lays out:
“Tax
cuts shouldn’t be handed out like Halloween candy. To grow
the economy, they must be paid for, and the details of this plan appear to come up $2 to 2.5 trillion short.
Deficit-financed
tax cuts are a recipe for a short-term economic sugar high followed by sluggish
long-term growth.
Without sufficient details on
how or even if these tax cuts will be fully paid for, this outline is nothing more than a fiscal fantasy.
Furthermore, the
CFRB picks up on a particularly important point that headlines have seemed to
overlook:
“Making many
assumptions about the plan – including that the brackets apply to the same
income as the Trump campaign’s plan, that its 25 percent pass-through rate
contains guardrails so it only applies to active business income, and that the limit on interest makes up about half the revenue
lost from expensing – we estimate the plan has about $5.8 trillion over a decade
of gross tax cuts and would cost $2.2
trillion on net through 2027. Given
that it calls for only five years of expensing rather than permanent – a major
budget gimmick – it also potentially sets the stage for an extenders package of
over $1 trillion when expensing expires.”
Check image at the
beginning of this summary.
But even before we can get to tax reform, the issue of the budget must be
addressed first. As Congressman Kevin Brady, Chairman of the House Ways And
Means Committee, stated during a
recent interview on the “Lance Roberts Show:”
“No
budget, no tax-reform.”
Without a budget for 2018, the
tax bill cannot be passed using “reconciliation” which would only require
a 51-vote majority versus the currently required 60-vote majority under Senate
rules.
Passing a budget has been an impossible feat over the last
8-years with the government currently operating under another continuing
resolution (“CR”) until December of this year. (That means spending remains at the same
level as the previous budget, last passed in 2008, with an 8% baseline
increase.)
But the difference between tax reform that would grow the economy, and
tax cuts that would grow the debt, cannot be made up
for with wishful thinking or magical economic growth. And tax cuts certainly
don’t pay for themselves.“
The debate over the budget will be contentious enough with
threats of a Government “shutdown” now an annual event. But some GOP members, however, have suggested combining
another attempt at repealing Obamacare with the tax bill for 2018
reconciliation. This will make an
already difficult undertaking even more complicated.
“The issue of tax reform is not going to be an easy one.
With such a deeply partisan government the probability of passing tax reform as
currently proposed is extremely slim. Furthermore,
while I do expect that some version of tax reform will eventually get passed,
it will likely take much longer than most expect. The chart below shows the current chasm leading to
the difficulty of getting anything accomplished in Washington.”
See chart at: http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/09/05/Senate-Voting-Disparity_0.png
Already, Democrats are aligning to push back against the
proposed legislation:
“If this framework is all about the middle class, then Trump tower
is middle-class housing,” – Senator Ron Wyden (D)
“This would cost anywhere from 5 to 7 TRILLION dollars and they have
no credible plan to pay for it… If they don’t pay for it, they’ll balloon the
deficit and debt….” – Senator Chuck Schumer (D)
And most importantly:
“Tax reform is going to make health care look like a piece of cake,”
– Retiring Sen. Bob Corker.
This is why there hasn’t been a major piece of tax
legislation enacted since Ronald
Reagan was in office.
Economic Outcomes Likely Disappointing
Do not misunderstand me. Tax rates CAN make a
difference in the short run particularly when coming out of a recession as it
frees up capital for productive investment at a time when recovering economic
growth and pent-up demand require it.
However, in the long run, it is the direction and trend of
economic growth that drives employment. The reason I say “direction
and trend” is because, as you will see by the vertical blue dashed
line, beginning in 1980, both the direction and trend of economic growth in the
United States changed for the worse.
See graft “Economic Growth drives
Employment” at: http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2017/09/05/Employment-GDP-AnnualGrowth-043017_0.png Just the opposite: Ec Growth = less
employment
…
Continue reading at: http://www.zerohedge.com/news/2017-09-27/%E2%80%9Ctrump-tax-plan%E2%80%9D-details-analysis
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And they want more.. Ridiculous
"The size of the net tax cut for individuals looks somewhat
smaller than the details floated in the press over the last few days... a revenue-neutral tax “instruction”
in the final budget resolution would make reform difficult, as would failure to
agree on a budget resolution at all."
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"Spending is a possible
outcome of entrepreneurial production, but not the other way around. The former
does not employ people, but the latter does."
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"With more than $6
trillion of excess liquidity still sloshing around in global financial markets, the courage to forge a
different path cannot be found soon enough..."
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We are a sick society (STD now, is added to
pulmonary deceases, obesity and many others.. yet not added the infection of DU
among our soldiers) and still wasting money in a military budget and wars
abroad that benefit only 6 big corporation.. What a shame!
The Centers
for Disease Control just released their latest study on sexually
transmitted diseases and provided yet
another reason why Congress has a lower approval rating than that last paper
cut you got that you could have sworn nearly sliced your finger completely off.
As the charts below illustrate, the miscreants who run our
federal government, in between their extramarital affairs of course, apparently
helped Washington D.C. to "dominate" the CDC's state-by-state
rankings for STDs in 2016. With respect to
Chlamydia outbreaks, for example, Washington D.C.'s reported cases exceeded the
national average by 118% and the next closest state of Alaska by 40%.
In 2016, a total of 1,598,354 cases of Chlamydia trachomatis
infection were reported to the CDC, making it the most common notifiable
condition in the United States. This case count
corresponds to a rate of 497.3 cases per 100,000 population, an increase of
4.7% compared with the rate in 2015. During 2015–2016, rates of
reported chlamydia increased in all regions of the United States.
Winning...
But it's not just Chlamydia, our political elites
"dominated" across the board in 2016 when it came to reported cases
of STDs with the outbreak of Gonorrhea in our
nation's capital reaching a staggering 230% above the national average.
In 2009, the national rate of reported gonorrhea cases
reached an historic low of 98.1 cases per 100,000 population. During 2009–2012,
the rate increased slightly each year to 106.7 cases per 100,000 population in
2012 and has increased steadily during 2014–2016. In 2016, 468,514 gonorrhea cases were reported for a rate of
145.8 cases per 100,000 population, an increase of 18.5% from 2015.
….
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"Policy tweaks such as
tax reform are mere public relations ploys. The cancer eating away at our economy and
society arises from the Federal Reserve and the structure of our financial
system, and the the degradation of
our representative democracy into a pay-to-play auction to the highest
bidder."
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"I think this year’s
higher tuition is just the beginning of bailouts by students and their
parents. The
students had nothing to do with creating this, but they are going to be the
piggy bank to solve the problem in the long term."
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POLITICS
La seudo democ y sist duopolico es obsoleto por fraudulento y
corrupto. Urge cambiarlo
"First keep Obamacare,
now raise taxes in favor of top earners? At least illusion of difference between parties is
finished once and for all!"
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UNDER NEOCON RULE, even sport players are victimized
"...Fans who attack players for protesting,
(a right in which I fought to defend) but are simply not interested in understanding why, is the reason I am
resigning..."
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WE HOPE SO!
Their crimes are well documented, but will congress have the guts to
press forward?
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FREEDOM TO YVONNE .. those who should be jailed are the KKK
members
Prominent anti-fascist leader Yvonne Felarca - a 47-year-old middle school teacher - was
arrested Tuesday following a rowdy Antifa 'Victory March' in Berkeley,
California...
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WORLD ISSUES and M-East
Global depression is
on…China, RU, Iran search for State socialis+K- compet. D rest in limbo
The
Canadian Dollar is tumbling - erasing all the gains following September's
surprise rate-hike - as in his first speech since the, Bank of Canada Governor
Stephen Poloz warns there is no “predetermined path for interest rates” and said
the central bank will proceed “cautiously”
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"We
have been shamelessly threatened by the most criminal empire that ever
existed..."
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BRA or the USA?
Police have stumbled
into a cocaine workshop with robots
packing 150,000 cocaine baggies per day...
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DEMOCRACY NOW
US politics crisis:
Trump captured by Deep state to reproduce old cronyism without alter-plan
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GLOBAL RESEARCH
Global Econ-Pol
crisis leads to more business-wars:
profiteers US-NATO under screen
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Punishing
the Media: Fantasies of CIA and William J. Casey By Dr. Binoy Kampmark
Media-mercenarism should by
outlaw: case in point Facebook
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INFORMATION CLEARING HOUSE
Deep on the US
political crisis, their internal conflicts n chances of WW3
World War III With China How It Might
Actually Be Fought By
Alfred W. McCoy
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Washington Has Initiated Military Conflict
With Russia By
Paul Craig Roberts
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Cold War then. Cold War now. By
William Blum nuke collision: the end of cold wars
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Why The United States Is the Fourth Reich By Finian Cunningham
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Jeremy Corbyn’s Speech to Labour Conference Video and Transcript. Recklesss Tory Brexit agenda will
plunge Britain into a Trump-style race-to-the-bottom”.
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SPUTNIK and RT SHOWS
The nasty business of
US-NATO-Global-wars uncovered .. pro RU view
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Facebook
CEO Zuckerberg Hits Back at Trump Over Bias Claims FB hit its foot
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The FACT is that US is being
displaced by CHINA nowadays
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New
US Ambassador May Arrive in Russia in Coming Days is he the best CIA agent?
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Merkel: better build a front
inside. Start from German issues not polit figurines
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Fraud from top to bottom in US
elections.. as usual
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RT SHOWS
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The Big Picture
Is
the death of capitalism near? It
doesn’t work anymore
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NOTICIAS IN SPANISH
Latino America fight
to break with collapsing Empire: leftist
view on alternatives
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Ningún ser humano debe ser ilegal Marco Dávila
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ARG:
campaña contra pueblo mapuche “avasallamiento mediático”
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¿Es capaz Corea del Norte de cumplir
sus amenazas a EE.UU.? Ningun sensato lo cree
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Kurdistán: sueños por cumplir y por
rectificar si no pacta con Siria y deja pacto USA
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Trump acusa a Facebook de 'noticias
falsas' 1ro ataco a RU y hoy Trump.. FB is gone: el
mercenarismo mediático es delito ético y pronto será delito legal. Trump tiene
la palabra
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Popo lanza cenizas al centro de
México Popo-pedón: prohibido
alimentarlo con abichuelas
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Armar la paz en VEN: Maduro llama a tener "los
fusiles, misiles y tanques bien aceitados"
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PRESS TV
Global situation
described by Iranian observers.. Titles distorted n incomplete sentences
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FB is going to lose half of his audience: because press
mercenarism
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Bibi
vows not to 'uproot' Israeli settlements he build concrete thumbs
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'We'll
see' who’s fired next from White House' I hope the military
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Israel
won't stop selling munitions to Myanmar Isr: source of disruption in M-East
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International
Day of Peace vs 1 year of intense war
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