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Unread 2018-04-13, 05:16 AM   #1
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Default 80% of Economic Gains From Trump's Tax Plan Will End Up Going To Foreigners

TRUMP TAX PLAN: 80 PERCENT OF ECONOMIC GAINS WILL END UP GOING TO FOREIGNERS, CBO SAYS

http://www.newsweek.com/republican-t...ump-cbo-884129

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President Donald Trump touted the economic growth triggered by his tax cuts in a speech Thursday afternoon, pointing out the projected growth of gross domestic product (GDP) over the next 10 years had increased because of the plan.

But 80 percent of the economic growth generated by the Republican tax cuts will eventually go abroad and benefit foreigners, according to a new report by the nonpartisan Congressional Budget Office.

The report found significant differences between projected GDP, which measures the level of production in the U.S., and gross national product, which measures the income earned by all Americans. If the economic impact from GDP is higher than GNP, the difference between the two is income generated in the United States but going to foreigners. According to the CBO, on average 34 percent of income from the economic activity driven by the tax cuts is flowing out of the country, and in 2028, when the full effects of the tax cuts are in place, that number will increase to 80 percent.

“We heard statement after statement about how this tax plan would be great for American workers but the analysis is clear,” Senator Chris Van Hollen told Newsweek. “When this thing kicks in, 80 cents of every dollar [gained from the tax plan] will go to foreigners and not American workers. That’s a stunning number.”

Nearly one-third of the U.S. stock market is owned by foreign investors, which means they’re benefiting from the $238 billion increase in stock buyback authorizations since the tax law passed. An analysis of Fortune 500 companies found that corporations have spent 37 times more on stock buybacks than on American workers’ bonuses and wages. “Republicans had fair warning that a huge chunk of this economic boost would flow to foreigners,” said Van Hollen. “The bottom line is that foreigners own a large chunk of U.S. corporations and will get a big windfall.”

At the same time, U.S. deficits are projected to balloon because of the decrease in revenue being collected under the tax cuts. The CBO projects that federal spending will exceed revenues by $804 billion in fiscal year 2018, up from $665 billion in 2017. The national debt is now on track to be 100 percent of GDP by 2028. That means the U.S. will have to borrow money to make up for its shortfalls, and much of that money will come from abroad. The small gains to GDP will be offset by increased interest payments abroad.

“That’s the effect of the tax law, it provides some boost to GDP but that boost is financed by a lot of borrowing,” said Chad Stone, chief economist at the nonpartisan Center on Budget and Policy Priorities. “Each year’s borrowing produces more income for foreigners and by the time you get to 2028 there’s a fair amount of income for foreigners being generated.”

Republicans have “clearly abandoned any claims of fiscal responsibility,” said Van Hollen. “You’re borrowing close to $2 trillion from our kids and grandkids and then you’re giving it to corporations and others and at the end of the day 80 percent of the benefits of additional economic activity are going to foreigners.”
It's so incredibly ironic to me how the conspiratorial right has claimed for decades there would be a total economic collapse due to outside influences and they were so sure Obama was the guy to do it. Useful idiots indeed.
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Unread 2018-04-13, 08:10 AM   #2
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And they still do. I just had a bit of back and forth with a guy who is a trump supporter and he was still on the same old talking points, even with all of the stuff that has come out regarding Trump. Basically its "At least he isnt obama or hillary" and they still think Obama was actively trying to destroy the country, but that trump, despite being narcissistic, loves America more than anything else.

Then he went on to some bilderberg shit. That is when it became apparent that the chemtrail kids won, there are far more functional nutbags among us than I thought possible. We are fucked.
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Unread 2018-04-13, 09:45 AM   #3
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One of the first comments on the article was something about how Obama sold us out first. It's bizarre how these Alex Jones far right people have projected all of their problems onto Obama and the Clintons. They thought Obama was LITERALLY the Antichrist. A secret Muslim homosexual who isn't even really American, put in power to bring in other Muslims to take over America, take our guns and institute martial law to enslave everyone and kill all the Christians. I am just dumbfounded at how easily they've been played into bringing their own fears into fruition in a way that they will NEVER be able to acknowledge. They could have all the evidence laid out in front of them of Trumps deceit and Russian connections and they will still fight for him while claiming Hillary is the real Russian puppet. I am seriously afraid for the future. Go read any Trump loving right wing website's comment section or The_Donald on Reddit, the delusion is frightening and they will fight to the death to maintain it. I would argue that if there is concrete evidence of collusion and nothing is done to Trump to remove him from office, THAT would be the time for revolution as the founding fathers intended. Revolution is not for when you think your guy should be untouchable and thus taking him down is akin to an attack on America itself. If nothing happens to Trump in light of real evidence, that's it for America. The blatant corruption will be so out in the open, there will be nothing stopping it anymore. The left hates Trump so much, I don't think they'll accept it if not enough evidence is found either. Even if he isn't indicted, he's still a giant dumpster fire of a president that we have to deal with for at least 3 more years. And that's if some sort of civil war doesn't start due to all of this division over Trump and the Russia investigation first. I think we're fucked either way.
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Unread 2018-04-13, 11:30 AM   #4
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No wonder the left is so angry, 5:15 am and you are already jumping into politics.
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Unread 2018-04-13, 12:58 PM   #5
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The Dems under Obama: Yay for Obama the stock market is growing, Americans are better off.

The Dems under Trump: Whooo, shame on Trump, the stock market is growing, the money is going overseas.

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Unread 2018-04-13, 01:16 PM   #6
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No wonder the left is so angry, 5:15 am and you are already jumping into politics.
I work nights. I had just gotten off. And I may be angry but I'm not apart of "the left".
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Unread 2018-04-13, 01:31 PM   #7
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And they still do. I just had a bit of back and forth with a guy who is a trump supporter and he was still on the same old talking points, even with all of the stuff that has come out regarding Trump. Basically its "At least he isnt obama or hillary" and they still think Obama was actively trying to destroy the country, but that trump, despite being narcissistic, loves America more than anything else.

Then he went on to some bilderberg shit. That is when it became apparent that the chemtrail kids won, there are far more functional nutbags among us than I thought possible. We are fucked.
You don't think this headline is fairly sensationalized?

From what I'm reading, they are making some pretty large assumptions... and even if they are spot-on accurate, the headline is still spinning an increase in US debt/deficit along with more gap in GDP vs GNP as to somehow representing the headline. It's pretty rough, but consider the source.
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Unread 2018-04-13, 01:47 PM   #8
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I'm not going to pretend to understand all this stuff better than you guys but here is the link to the CBO report and a post someone made on Reddit that has some key points from it.

https://www.cbo.gov/publication/53651

Quote:
The largest effects on GDP over the decade stem from the tax act. In CBO’s projections, it boosts the level of real GDP by an average of 0.7 percent and nonfarm payroll employment by an average of 1.1 million jobs over the 2018–2028 period. During those years, the act also raises the level of real gross national product (GNP) by an annual average of about $470 per person in 2018 dollars. (GNP differs from GDP by including the income that U.S. residents earn from abroad and excluding the income that nonresidents earn from domestic sources; it is therefore a better measure of the income available to U.S. residents.) Those projected effects grow in the earlier years of the period and become smaller in the later years. ...

In CBO’s projections, the crowding out of private investment occurs gradually, as interest rates and the funds available for private investment adjust in response to increased federal deficits. In the longer term, the net decline in national saving would tend to reduce the stock of capital—and thus GDP—below what it would have been without the increased federal borrowing. Moreover, the additional net inflows of capital from abroad would cause more profits and interest payments to flow overseas, leading to a greater decline in gross national product (GNP) than in GDP. ...

The appendix goes into more detail:

Effects on Gross National Product. The 2017 tax act is expected to affect GDP and GNP differently. It raises the projected level of real GDP by an annual average of 0.7 percent over the 11-year period, an increase of about $710 per person (in 2018 dollars). Real GNP, by contrast, increases by 0.4 percent, on average, or about $470 per person.28 The act is expected to increase GNP less than it increases GDP because it shrinks U.S. net international income (see Table B-2 on page 115).

There are two reasons for that decline in net income flows to the United States. First, the increase in foreign investment in the United States that is associated with greater private investment and increased government borrowing generates a fall in net international lending, which is national saving minus domestic investment.29 In CBO’s projections, the act decreases net international lending over the next 11 years by an average of 0.4 percent of GDP (see Figure B-5). The additional income generated by the foreign investment in the United States accrues to foreign investors.

The second reason is that the act alters the rates of return earned on international assets. As the after-tax profitability of U.S. investments rises because of the tax act, foreign investors earn a higher return on their U.S. assets. In addition, the reported rate of return that U.S. investments earn abroad will decline after 2023 as the act discourages U.S. companies from shifting their taxable income from the United States to affiliates in foreign countries. By altering the relative rates of return on international assets through those changes, the act reduces net international income and shrinks the difference between GDP and GNP.
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Unread 2018-04-13, 01:49 PM   #9
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You don't think this headline is fairly sensationalized?

From what I'm reading, they are making some pretty large assumptions... and even if they are spot-on accurate, the headline is still spinning an increase in US debt/deficit along with more gap in GDP vs GNP as to somehow representing the headline. It's pretty rough, but consider the source.
Yes, it is. But it doesnt change the underlying issue. Nor does it change anything about my comment. Its amazing to talk to people who still support trump and their reasons. Especially those who identify as Christians who have to justify his very un-Christian behavior. Or those who thought he would fix corruption explain away the Russia issues, the nepotism, his DISASTROUS hires, the fact that he has fired or run off most of HIS OWN PEOPLE.

But I shouldn't be shocked I guess, they had already been doing this math before the election. Ignoring the same behaviors that were well known, his grifting putting his name on all kinds of shams and pyramid schemes, his abuse of the bankruptcy system, or his fake business acumen (the idea that he built some sort of empire, he was given a 100mm business and 4x'ed it in DECADES, the rest of his wealth is based on his estimation of his "brand" that couldnt even sell steaks).

Nor should I have been shocked when they go on tangents about Clinton sex planes, vaccines, or the deep state/jews shit. And these are college educated people with careers and families.
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Unread 2018-04-13, 02:00 PM   #10
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Originally Posted by DIYAutoRepair View Post
The Dems under Obama: Yay for Obama the stock market is growing, Americans are better off.

The Dems under Trump: Whooo, shame on Trump, the stock market is growing, the money is going overseas.

DIY: I have literally zero defense for the things Trump does so I'll make logical fallacies in comparison to Obama in order to justify Trump.

Serious question: If there is solid evidence of a traitorous crime relating to Trump and Russia, will you still stand with Trump? Or will no evidence ever be solid enough for you?
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Unread 2018-04-13, 02:06 PM   #11
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DIY: I have literally zero defense for the things Trump does so I'll make logical fallacies in comparison to Obama in order to justify Trump.

Serious question: If there is solid evidence of a traitorous crime relating to Trump and Russia, will you still stand with Trump? Or will no evidence ever be solid enough for you?
Id vote for the latter after actually trying to talk with a few people who still support him. At this point you have had to discount so much stuff that what you have is basically a religion. Which is why trump is really latching on to "fake news" and "witch hunt" as phrases because it really sells to those people.

To them its all a "deep state" conspiracy to bring down an honorable man.
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Unread 2018-04-13, 02:25 PM   #12
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DIY: I have literally zero defense for the things Trump does so I'll make logical fallacies in comparison to Obama in order to justify Trump.

Serious question: If there is solid evidence of a traitorous crime relating to Trump and Russia, will you still stand with Trump? Or will no evidence ever be solid enough for you?
DIY has yet to substantiate/validate ANY of his accusations, assumptions, or claims in any of his posts. What makes you think he'll change?
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Unread 2018-04-13, 02:33 PM   #13
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Id vote for the latter after actually trying to talk with a few people who still support him. At this point you have had to discount so much stuff that what you have is basically a religion. Which is why trump is really latching on to "fake news" and "witch hunt" as phrases because it really sells to those people.

To them its all a "deep state" conspiracy to bring down an honorable man.
It's complete delusion. Do they think Mueller can literally make up that kind of evidence? They are in a cult and will need to be deprogrammed. A lot of them think God himself helped Trump win the presidency. I guess God is working for the Russians too. The people who are still left literally see themselves as Trump. Trump can't be bad because then they'd have to admit they are bad too. Since most of them are Christians, they have a built in persecution complex and Trump's narcissism plays right into that strategy. If they've already made it this far without realizing somethings wrong, they most likely never will. I'm guessing most of them will claim the evidence came from the recent raid and that the raid was illegal so Trump is innocent. Not realizing how untrue that argument is and how they didn't care about the details about how Hillary's emails got out, just the information within them.
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Unread 2018-04-13, 02:38 PM   #14
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DIY has yet to substantiate/validate ANY of his accusations, assumptions, or claims in any of his posts. What makes you think he'll change?
I'm hoping he seriously thinks about things and comes to rational conclusions, for his own sake and the countries. He has to know that all he does is post "What about Obama?" in every post without engaging in the actual discussion and backing up his viewpoints. I doubt he is this irrational in his real life. He seems like a decent guy from what I can tell but strong political ideologies can blind anyone. Which is why I stay mostly in the observer/commentator role and I don't choose hard right or left positions. That's the very thing that caused Trump in the first place.
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Unread 2018-04-13, 02:48 PM   #15
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Serious question: If there is solid evidence of a traitorous crime relating to Trump and Russia, will you still stand with Trump? Or will no evidence ever be solid enough for you?
There won't be, they have been trying to make things up and the just haven't stuck yet.

You might want to ask all those that voted for HRC why after all the crimes she committed they still voted for her. That's right, those were all covered up.

You did ignore my stock market question though.
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Unread 2018-04-13, 02:55 PM   #16
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There won't be, they have been trying to make things up and the just haven't stuck yet.

You might want to ask all those that voted for HRC why after all the crimes she committed they still voted for her. That's right, those were all covered up.

You did ignore my stock market question though.
So we'll take that as a resounding "no" to his question. Thanks for being consistent bro.
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Unread 2018-04-13, 03:05 PM   #17
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Yes, it is. But it doesnt change the underlying issue. Nor does it change anything about my comment. Its amazing to talk to people who still support trump and their reasons. Especially those who identify as Christians who have to justify his very un-Christian behavior. Or those who thought he would fix corruption explain away the Russia issues, the nepotism, his DISASTROUS hires, the fact that he has fired or run off most of HIS OWN PEOPLE.
100%... but that said so many of those people also thought Obama was a muslim trying to ruin America... so are you really that surprised?
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Unread 2018-04-13, 03:11 PM   #18
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There won't be, they have been trying to make things up and the just haven't stuck yet.

You might want to ask all those that voted for HRC why after all the crimes she committed they still voted for her. That's right, those were all covered up.

You did ignore my stock market question though.
There was a question in that post?

You have literally zero knowledge of what Mueller knows and doesn't know. You've already made your mind up that Trump is innocent from the very beginning. I think Trump is guilty the more I see come out but if there is no solid evidence to support that conclusion, I'm willing to admit I was wrong and accept it.

In case you haven't noticed, Hillary isn't president. She doesn't matter anymore. No amount of comparing Trump to Obama or the Clintons will make what he does any more right. You have to defend Trump on his own merits or we can play whataboutism til the end of time with everyone losing. Are you suggesting that Trump's crimes should be covered up as well?
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Blessed are the envious
Bless the slothful, the wrathful, the vain
Blessed are the gluttonous; May they feast us to famine and war

Doomed are the poor
Doomed are the peaceful
Doomed are the meek
Doomed are the merciful
For the word is now death
And the word is now without light
The new beatitude:
"Fuck the doomed, you're on your own"
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Unread 2018-04-13, 03:21 PM   #19
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That's fine, ignore the immoralities and crimes of your own party and talk about the false accusations (none of them have yet been proven) against the GOP.
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Unread 2018-04-13, 03:30 PM   #20
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My own party? I don't belong to a political party. Stop labeling everyone automatically as the enemy or the "other" when they don't have your specific political beliefs. I was criticizing Hillary during the election just like I was Trump and I refused to vote for either. Your guy won. Time to stand on your own merits and stop deflecting blame onto people who don't even matter anymore. The problem with Trump is he only comes off well with a well defined enemy to shift blame to and attack against. He looks great and strong as an attacker but weak as a leader with no enemy to put all of his focus on and to be compared to. There is no one left to point the finger at. Start pointing it where it belongs.
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Blessed are the fornicates; May we bend down to be their whores
Blessed are the rich; May we labor, deliver them more
Blessed are the envious
Bless the slothful, the wrathful, the vain
Blessed are the gluttonous; May they feast us to famine and war

Doomed are the poor
Doomed are the peaceful
Doomed are the meek
Doomed are the merciful
For the word is now death
And the word is now without light
The new beatitude:
"Fuck the doomed, you're on your own"
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Unread 2018-04-13, 03:39 PM   #21
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Originally Posted by DIYAutoRepair View Post
That's fine, ignore the immoralities and crimes of your own party and talk about the false accusations (none of them have yet been proven) against the GOP.
How about actually backing up your posts for once? You're a predictable broken record.
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Unread 2018-04-13, 05:01 PM   #22
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Originally Posted by DIYAutoRepair View Post
That's fine, ignore the immoralities and crimes of your own party and talk about the false accusations (none of them have yet been proven) against the GOP.
so here's something that is interesting to me... you seem to despise the perceived hypocrisy of Democrats criticizing Trump and the GOP for things that Dems have been convicted of (only in your mind most of the time) and yet you clearly have no trouble with the hypocrisy of believing that Trump is "obviously" innocent because "none of them have been proven" yet you condemn every Democrat you've ever heard of for every crime that some wackadoodle from the internet has ever accused them of...

without any real evidence you've decided that Trump is a saint despite the fact that he's been shown time and again (in court documents no less) to be a huckster and a crook who defrauds people out of their money.


keeping up the (imaginary) dichotomy required to hold your opinions must be exhausting.
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Unread 2018-04-13, 06:04 PM   #23
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keeping up the (imaginary) dichotomy required to hold your opinions must be exhausting.
It's easy when you're convinced that you're on the good side in a battle between good and evil so the ends justify the means. Funny that that's exactly what the other "evil" side thinks about itself too.
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Blessed are the fornicates; May we bend down to be their whores
Blessed are the rich; May we labor, deliver them more
Blessed are the envious
Bless the slothful, the wrathful, the vain
Blessed are the gluttonous; May they feast us to famine and war

Doomed are the poor
Doomed are the peaceful
Doomed are the meek
Doomed are the merciful
For the word is now death
And the word is now without light
The new beatitude:
"Fuck the doomed, you're on your own"
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Unread 2018-04-13, 10:00 PM   #24
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It's easy when you're convinced that you're on the good side in a battle between good and evil so the ends justify the means. Funny that that's exactly what the other "evil" side thinks about itself too.
I have no idea what you're talking about
(considering many on here likely want to try and make me his foil or at least much much closer than I think I am... but that's what I would say, wouldn't I? I'm getting dizzy now... )
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Our progress in degeneracy appears to me to be pretty rapid. As a nation, we began by declaring that ”all men are created equal.” We now practically read it “all men are created equal, except negroes” When the Know-Nothings get control, it will read “all men are created equal, except negroes, and foreigners, and Catholics.” When it comes to this I should prefer emigrating to some country where they make no pretence of loving liberty -- to Russia, for instance, where despotism can be taken pure, and without the base alloy of hypocricy. - Lincoln
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Unread 2018-04-13, 10:45 PM   #25
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I have no idea what you're talking about
(considering many on here likely want to try and make me his foil or at least much much closer than I think I am... but that's what I would say, wouldn't I? I'm getting dizzy now... )
Well I wasnt specifically referring to you but now that you mention it, you do seem to be the representation of the left to some of the conservatives on here or at least their idea of the left that they're projecting onto you. So I guess the shoe fits.
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Blessed are the fornicates; May we bend down to be their whores
Blessed are the rich; May we labor, deliver them more
Blessed are the envious
Bless the slothful, the wrathful, the vain
Blessed are the gluttonous; May they feast us to famine and war

Doomed are the poor
Doomed are the peaceful
Doomed are the meek
Doomed are the merciful
For the word is now death
And the word is now without light
The new beatitude:
"Fuck the doomed, you're on your own"
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