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Getbig Main Boards => Politics and Political Issues Board => Topic started by: Straw Man on October 24, 2018, 12:49:59 PM
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I'm sure our resident Trumptards haven't heard about this (which would give you something in common with Congress) but Trump has said a few times in recent days that he's putting together a resolution to give the middle class a 10% tax cut?
Only problem is that Congress is on recess so they can't do anything and on top of that they haven't got a clue what Trump is talking about.
Why does he feel the need to lie about this. Why not just run on the former lie that the tax cut they passed this year was for the middle class. Many Trumptards actually believe that bullshit so there is no need to make up a new and more ridiculous lie.
Trump is also been lying recently about how he and Republicans support protecting coverage for pre-existing conditions.
In reality, Trump’s Justice Department is arguing in court that the Affordable Care Act’s protections for pre-existing medical conditions are unconstitutional and should be nullified. On top of that, his administration explicitly supported a bill passed by House Republicans that would have weakened those protections.
Senate Majority Leader Mitch McConnell is also trying to have it both ways, claiming that Republican senators universally support protecting people with pre-existing conditions, while voicing his support for the lawsuit and another repeal effort.
Is there anyone out there actually falling for this total bullshit
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fake news victimized you yet again I see.................
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fake news victimized you yet again I see.................
I guess you're referring to the fact that Trump is creating fake news with these two lies.
I (and most people) know Trump is lying about these two things
I'm just wondering why he is resorting to new lies rather than just running on the old lies
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obligatory 2nd pity post, since the 2nd post was you replying to your own thread
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obligatory 2nd pity post, since the 2nd post was you replying to your own thread
don't bother
pretty obvious that our resident Trumptards can't defend these lies
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The original tax cuts have already helped the "middle class" but another 10% is nice. BTW, did you ever answer my question about how you think this is Obama's economy?
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I'm sure our resident Trumptards haven't heard about this (which would give you something in common with Congress) but Trump has said a few times in recent days that he's putting together a resolution to give the middle class a 10% tax cut?
Only problem is that Congress is on recess so they can't do anything and on top of that they haven't got a clue what Trump is talking about.
Why does he feel the need to lie about this. Why not just run on the former lie that the tax cut they passed this year was for the middle class. Many Trumptards actually believe that bullshit so there is no need to make up a new and more ridiculous lie.
Trump is also been lying recently about how he and Republicans support protecting coverage for pre-existing conditions.
In reality, Trump’s Justice Department is arguing in court that the Affordable Care Act’s protections for pre-existing medical conditions are unconstitutional and should be nullified. On top of that, his administration explicitly supported a bill passed by House Republicans that would have weakened those protections.
Senate Majority Leader Mitch McConnell is also trying to have it both ways, claiming that Republican senators universally support protecting people with pre-existing conditions, while voicing his support for the lawsuit and another repeal effort.
Is there anyone out there actually falling for this total bullshit
Trump says he's putting together a resolution and you say he's lying because congress is on recess? LOL
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The first tax cuts were passed and business picked up soon after. There's no delayed-start to economic cycles, they come and go in waves. There's no doubt that that very wave hit a nadir under Obama that was NOT his fault since it started under Bush, but which he did nothing to improve during his 8 years in office. The national debt ballooned as he borrowed to pay for a growing social security and obamacare user grid without cutting taxes. It didn't work.
This economy didn't kick in when Trump took office. It took a solid 8-10 months for investors to trust his rhetoric and start investing, hiring, buying, expanding etc. their businesses and stock purchases as they saw regulations shrink and money coming in from the cuts again. Then there's the fact that healthcare is being scaled back because it's unwieldly and very expensive, not to mention unpopular (it should have a near-100% approval rate according to its creators, yet it doesn't go above 65% for very good reasons). He's saving money and shrinking government. The only major expansion proposed is the Space Force, which is still in the exploratory stage.
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Trump says he's putting together a resolution and you say he's lying because congress is on recess? LOL
ah yes, a resolution
is that how tax legislation gets done in this country?
I'm not surprised someone like you fell for that
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The first tax cuts were passed and business picked up soon after. There's no delayed-start to economic cycles, they come and go in waves. There's no doubt that that very wave hit a nadir under Obama that was NOT his fault since it started under Bush, but which he did nothing to improve during his 8 years in office. The national debt ballooned as he borrowed to pay for a growing social security and obamacare user grid without cutting taxes. It didn't work.
This economy didn't kick in when Trump took office. It took a solid 8-10 months for investors to trust his rhetoric and start investing, hiring, buying, expanding etc. their businesses and stock purchases as they saw regulations shrink and money coming in from the cuts again. Then there's the fact that healthcare is being scaled back because it's unwieldly and very expensive, not to mention unpopular (it should have a near-100% approval rate according to its creators, yet it doesn't go above 65% for very good reasons). He's saving money and shrinking government. The only major expansion proposed is the Space Force, which is still in the exploratory stage.
the economy has been growing for last 7 years
tax cut that Repulicans passed gives most of the benefit to business and the super wealthy
The middle class got a TEMPORARY tax cut of between 1-2%
Whoop De Doo!!
Trump first full budget has the highest deficit in 6 years
Putting all that aside - the 10% tax cut for the middle class that Trump claims will happen in the next few weeks is an outright LIE
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the economy has been growing for last 7 years
tax cut that Repulicans passed gives most of the benefit to business and the super wealthy
The middle class got a TEMPORARY tax cut of between 1-2%
Whoop De Doo!!
Trump first full budget has the highest deficit in 6 years
Yeah, well, nobody said otherwise. Tax cuts are always for the rich, since rich is a perceived status symbol rather than a quantified (through net worth) social stratum. In other words, to someone living below poverty or scraping by with 2 jobs, "middle-class" people probably appear pretty rich with their large houses and decent year-model cars and 4 kids in school. They don't even think of the "super" rich like Soros or Bezos or Cuban because those guys are in another stratosphere altogether. Only legitimate millionaires resent getting smaller tax cuts than the superrich billionaires they look up to and emulate (within their limits).
Everyone else was pretty much satisfied with getting SOMETHING back and now they're getting even more back. It might end up being 10% cumulatively if you count the first cut, but it won't probably be in one shot like he implied. Big deal. He didn't release his taxes and the world didn't end, even CNN gave up asking for them. They'll do the same with the tax cut for the rich (who do, after all, create jobs and offer a net gain to society) and ignore that after a month too when their bitching loses them ratings again like it did all last summer when Hannity raped their picnics for 5 months straight after all that illegal caravan shit broke out and most recently the Kavanaugh mess that alienated so many independents who were just about ready to vote for anyone who wasn't Trump. Quite a few have changed their minds about that now.
Putting all that aside - the 10% tax cut for the middle class that Trump claims will happen in the next few weeks is an outright LIE
So? Cry about it.
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ah yes, a resolution
is that how tax legislation gets done in this country?
I'm not surprised someone like you fell for that
Sooo go ahead and prove that he's not working on a tax cut for the middle class.
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Yeah, well, nobody said otherwise. Tax cuts are always for the rich, since rich is a perceived status symbol rather than a quantified (through net worth) social stratum. In other words, to someone living below poverty or scraping by with 2 jobs, "middle-class" people probably appear pretty rich with their large houses and decent year-model cars and 4 kids in school. They don't even think of the "super" rich like Soros or Bezos or Cuban because those guys are in another stratosphere altogether. Only legitimate millionaires resent getting smaller tax cuts than the superrich billionaires they look up to and emulate (within their limits).
Everyone else was pretty much satisfied with getting SOMETHING back and now they're getting even more back. It might end up being 10% cumulatively if you count the first cut, but it won't probably be in one shot like he implied. Big deal. He didn't release his taxes and the world didn't end, even CNN gave up asking for them. They'll do the same with the tax cut for the rich (who do, after all, create jobs and offer a net gain to society) and ignore that after a month too when their bitching loses them ratings again like it did all last summer when Hannity raped their picnics for 5 months straight after all that illegal caravan shit broke out and most recently the Kavanaugh mess that alienated so many independents who were just about ready to vote for anyone who wasn't Trump. Quite a few have changed their minds about that now.
So? Cry about it.
Glad to hear that at least you're not delusional and you know it a lie
I'll remind you of that any time you bitch about anyone lying
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Sooo go ahead and prove that he's not working on a tax cut for the middle class.
You're welcome to believe it if you prefer.
The facts say otherwise but since when did Trumptards concern themselves with facts
Same goes for the lie about protecting coverage for pre-existing conditions
The facts (their actual actions) show neither Trump nor Republicans care about that either
Of course, Trump thinks he needs these lies now in the last few weeks of the campaign to try to wrangle every last sucker that he can and of course the usual schmucks like yourself and our phony coach were already on board.
Trump could had you a bowl of dogshit and tell you it's chocolate ice cream and you'd gobble it up without ever stopping to question why it looks, smells and tastes like shit . You would just naturally assume that your own senses must be lying to you because there is no way the Dear Leader would ever try to deceive you.
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Cool story bro.
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Glad to hear that at least you're not delusional and you know it a lie
I'll remind you of that any time you bitch about anyone lying
Which I've done a sum total of zero of since posting here in terms of anyone else that posts here, so your homework is already done. If you mean politicians, it's fair game, since you do the same and so do the other progressive bigots and societal arsonists that post here.
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I guess you're referring to the fact that Trump is creating fake news with these two lies.
I (and most people) know Trump is lying about these two things
I'm just wondering why he is resorting to new lies rather than just running on the old lies
Trump has learned that he can literally say anything and it doesn't matter. I do suspect sometimes he is pushing the limit just to see how far he can go before his base calls bullshit. So far, he's gotten a green light to just say whatever pops into his head. I am waiting for the day when even Hannity goes "Wait what?!?" I thought we hit that a few times already but Hannity, bless his heart is a true soldier for the cause
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I'm sure our resident Trumptards haven't heard about this (which would give you something in common with Congress) but Trump has said a few times in recent days that he's putting together a resolution to give the middle class a 10% tax cut?
Only problem is that Congress is on recess so they can't do anything and on top of that they haven't got a clue what Trump is talking about.
Why does he feel the need to lie about this. Why not just run on the former lie that the tax cut they passed this year was for the middle class. Many Trumptards actually believe that bullshit so there is no need to make up a new and more ridiculous lie.
Trump is also been lying recently about how he and Republicans support protecting coverage for pre-existing conditions.
In reality, Trump’s Justice Department is arguing in court that the Affordable Care Act’s protections for pre-existing medical conditions are unconstitutional and should be nullified. On top of that, his administration explicitly supported a bill passed by House Republicans that would have weakened those protections.
Senate Majority Leader Mitch McConnell is also trying to have it both ways, claiming that Republican senators universally support protecting people with pre-existing conditions, while voicing his support for the lawsuit and another repeal effort.
Is there anyone out there actually falling for this total bullshit
Let's throw all these lying babies out with their stanky, cesspool bath water and start fresh!
Unfortunately, a whole lot of people are falling for this bullshit, hook line and sinker.
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the economy has been growing for last 7 years
tax cut that Repulicans passed gives most of the benefit to business and the super wealthy
The middle class got a TEMPORARY tax cut of between 1-2%
Whoop De Doo!!
Trump first full budget has the highest deficit in 6 years
Putting all that aside - the 10% tax cut for the middle class that Trump claims will happen in the next few weeks is an outright LIE
The people who pay the taxes get the tax cuts. Why is that criminal to libs?
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Getbiggers are 1%'ers and don't need tax cuts or any of that stuff anyway.
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My wife and I sold some property recently and paid a lot less capitol gains tax .
In fact, we got a much bigger tax refund then any previous year. 100% serious.
I'm no Trump voter, but, if he stuck with (mostly) economic issues and acted like Reagan, I might be for him.
so basically you have no values, you just vote for whoever serves your economic interests
yep, that's a real democrat if I ever met one
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Which I've done a sum total of zero of since posting here in terms of anyone else that posts here, so your homework is already done. If you mean politicians, it's fair game, since you do the same and so do the other progressive bigots and societal arsonists that post here.
well to be fair I don't read your posts
I just assumed you were another Trumptard who has ranted about "fake news"
Glad to hear you never done that and don't believe that bullshit
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well to be fair I don't read your posts
I just assumed you were another Trumptard who has ranted about "fake news"
Glad to hear you never done that and don't believe that bullshit
You've been wrong about everything else you've posted, so why not add that to the list of things you read backwards. ;)
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You've been wrong about everything else you've posted, so why not add that to the list of things you read backwards. ;)
like I said
glad to see that you unique among Trumptards and don't buy into the moronic "fake news" meme by the Liar in Chief
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like I said
glad to see that you unique among Trumptards and don't buy into the moronic "fake news" meme by the Liar in Chief
I've posted several threads where the channels you approve of are lying through their teeth, so I'm not sure where you're coming from with that. As far as I'm concerned 100% of the opinion-based programming of CNN and MSNBC is false.
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I've posted several threads where the channels you approve of are lying through their teeth, so I'm not sure where you're coming from with that. As far as I'm concerned 100% of the opinion-based programming of CNN and MSNBC is false.
since when do you care about lying?
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since when do you care about lying?
ever since some random liar tried to bring down a supreme court justice nominee and failed
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I didn't vote for TRUMP because a few extra refund bucks, don't mean much if the country goes to hell.
My wife and I are doing fine and to Trump's credit the economy has done well on his watch.
I'm trying to bee objective and giving credit where credit is due. That's it.
My BIGGER priority issues are : Health care and the ENVIRONMENT.
Health care is not a huge pressing problem the way it was in the past (and even then, only for losers who don't work or have no healthcare due to cost yet had tons of money for cigs and beer). It's available to all who apply for it and meet the minimum conditions. The republicans will not be changing that because plenty in Trump's base like the system as it is now, or want only small cosmetic changes done to it. You yourself have means and don't lack for anything if you ever had a health issue.
The environment is at risk because of foreign countries like China and Russia that pollute it with their smokestacks, chemical and biological testing facilities, and unregulated private sector. The U.S. has some of the cleanest air in the world for being an industrialized first world country and we're moving forward in that direction regardless of whether we drill in Anwar or allow coal miners to go back to work and use some of our own energy instead of that blood-stained oil we import from Saudi Arabia by the millionth gallon. It's a non-issue to people who want jobs or to have more money in their pocket thanks to tax cuts, which this President has delivered on both. Your concerns are old man in a safe country problems. They're not real.
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Any update on this middle class tax cut
Trump said it would get done before the election
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Any update on this middle class tax cut
Trump said it would get done before the election
GOP says they will look at it in late 2019.
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The middle class got a tax cut last year, where have you guys been?
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The middle class got a tax cut last year, where have you guys been?
Trump’s middle-class tax cut is a fairy tale that distracts from the real midterm stakes
The GOP has a real tax cut for the rich, paid for by health care cuts.
By Matthew Yglesias@mattyglesiasmatt@vox.com Oct 24, 2018, 12:30pm EDT
https://www.vox.com/policy-and-politics/2018/10/24/18017202/donald-trump-middle-class-tax-cut-tax-reform-2-0
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The middle class got a tax cut last year, where have you guys been?
Trump just said in the last 30 days we would get another one before the mid terms.. where have YOU been?
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Trump’s middle-class tax cut is a fairy tale that distracts from the real midterm stakes
The GOP has a real tax cut for the rich, paid for by health care cuts.
By Matthew Yglesias@mattyglesiasmatt@vox.com Oct 24, 2018, 12:30pm EDT
https://www.vox.com/policy-and-politics/2018/10/24/18017202/donald-trump-middle-class-tax-cut-tax-reform-2-0
Bullshit! Starting last January people were making more per paycheck than before. Why are the rich not supposed to get a tax cut as well. You know they pay the most by far, right? They also hire others as they own the businesses.
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Trump just said in the last 30 days we would get another one before the mid terms.. where have YOU been?
Oh, so if he doesn't get TWO passed it doesn't count? God you guys are fucktards.
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Bullshit! Starting last January people were making more per paycheck than before. Why are the rich not supposed to get a tax cut as well. You know they pay the most by far, right? They also hire others as they own the businesses.
Tax cuts = higher national debt = possible financial crisis.
The tax cuts championed by President Trump are helping push the nation toward an unprecedented level of debt, heightening the risk of another financial crisis, according to the nonpartisan Congressional Budget Office.
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Tax cuts = higher national debt = possible financial crisis.
The tax cuts championed by President Trump are helping push the nation toward an unprecedented level of debt, heightening the risk of another financial crisis, according to the nonpartisan Congressional Budget Office.
Study the Laffer Curve.
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Study the Laffer Curve.
The Laffer Curve addresses tax increases, not so much on tax cuts. National debt is not included in Laffer's theory.
"The Laffer Curve encourages tax evasion and creates disincentives for people to cheat. It also results in a lower Gross National Product and lower Aggregate Demand. However, the results depends on local laws, culture and work patterns."
https://www.intelligenteconomist.com/laffer-curve/
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The Laffer Curve encourages tax evasion and creates disincentives for people to cheat. It also results in a lower Gross National Product and lower Aggregate Demand. However, the results depends on local laws, culture and work patterns.
https://www.intelligenteconomist.com/laffer-curve/
How does having a lower tax rate encourage tax evasion? Just the opposite is true.
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Health care is not a huge pressing problem the way it was in the past
Thank you President Obama!!
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How does having a lower tax rate encourage tax evasion? Just the opposite is true.
You suggested I look into Laffer's curve which I did.
Notice that it's a quote from the article I cited. That quote addresses tax increases not cuts. Here's the only part of the article covering tax decreases/cuts. Again, what the Laffer's curve does not address is National Debt.
"If tax rates decrease, then leisure time becomes more expensive so people might work more. But at the same time disposable income increases, so people are more willing to have ‘fun,’ so the effect is uncertain. Economists do not agree on where point C lies.
Many politicians use the concept behind the Laffer Curve to justify tax cuts. The idea is that these tax cuts would actually increase tax revenue because the tax rates lie beyond the point C in the diagram below."
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Notice that it's a quote from the article cited.
I know but it makes no sense. If my tax rate is 20% i am more likely to cheat on my taxes than if my tax rate is 70%?
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Oh, so if he doesn't get TWO passed it doesn't count? God you guys are fucktards.
No dipshit
It was a desperate LIE to try to appeal to idiot voters who somehow may not be aware the Trump is pathological LIAR
Trump and Republican just admitted today that it's not going to happen this year and won't happen at all if they lose the House.
So now they are basically resorting to extortion since the lying didn't work
BTW - even they keep the House they still won't pass it because Republican will suddenly be worried about the deficit and debt again
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I thought Republicans didn't worry about deficit spending?
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I know but it makes no sense. If my tax rate is 20% i am more likely to cheat on my taxes than if my tax rate is 70%?
It doesn't make sense and unless I'm reading it wrong, the sentence is contradictory. A 'disincentive' discourages something, in this case, cheating. I assume tax evasion is in fact cheating. Maybe I am missing something, but I can't see what it is.
Did you take it that I was disagreeing with the Laffer Theory, because I wasn't. I did find articles where there is disagreement as to whether the theory actually works. Those weren't the ones I was quoting from. I am not an economist. I have no idea whether the theory works or not. Despite what some folks around here think, not every reply I post is an opposition.
When it comes to taxation, my personal belief is that everyone's personal income should be taxed at the same rate and there should be no deductions. Presently, some people are not taxed at all.
All people and corporations that hide portions of their income to avoid taxation should be prosecuted to the full extent of the law. -Not sure how to prove that they do though.
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It doesn't make sense and unless I'm reading it wrong, the sentence is contradictory. A 'disincentive' discourages something, in this case, cheating. I assume tax evasion is in fact cheating. Maybe I am missing something, but I can't see what it is.
Did you take it that I was disagreeing with the Laffer Theory, because I wasn't. I did find articles where there is disagreement as to whether the theory actually works. Those weren't the ones I was quoting from. I am not an economist. I have no idea whether the theory works or not. Despite what some folks around here think, not every reply I post is an opposition.
When it comes to taxation, my personal belief is that everyone's personal income should be taxed at the same rate and there should be no deductions. Presently, some people are not taxed at all.
All people and corporations that hide portions of their income to avoid taxation should be prosecuted to the full extent of the law. -Not sure how to prove that they do though.
Agreed.
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Trump's been delivering on his promises since day one, what makes you think he's lying about this especially when he just reiterate it a couple of days ago? Left is desperate to get something on this guy ::)
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Trump's been delivering on his promises since day one, what makes you think he's lying about this especially when he just reiterate it a couple of days ago? Left is desperate to get something on this guy ::)
Reiterating it or just an empty promise that there will be a middle class tax cut someday; when and if Congress passes it. ;)
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Obama doubled the national debt in 8 years...I'm sure there are hundreds of posts by straw and prime about the dangers of that while it happened. ::)
Nope, just more "orange man bad, orange man racist".
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Obama doubled the national debt in 8 years...I'm sure there are hundreds of posts by straw and prime about the dangers of that while it happened. ::)
Nope, just more "orange man bad, orange man racist".
you should be able to find plenty of posts from me about the idiotic Bush tax cuts that added to the debt and then when they were about to sunset (as required by law by the Byrd Rule) they were made permanent.
We were also digging out of a huge recession
What's the excuse this time around when the economy is booming and UE is so low.
Given the great economy and tax cuts that will magically pay for themselves and then some, why in the world would we suddenly see federal borrowing go up after dropping steadily for the prior 6 years.
Why does this always seem to happen when those fiscally conservative Republicans take office.
Hey, good new. Trump and the Republican Congress still have about 18 hours left to pass that middle class tax cut.
I assume they are convening for a vote right now
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Obama doubled the national debt in 8 years...I'm sure there are hundreds of posts by straw and prime about the dangers of that while it happened. ::)
Nope, just more "orange man bad, orange man racist".
Can't answer for Straw, but politics became much more interesting to me once Trump threw his hat (wig) in the ring.
Here's a little visual history regarding the national debt:
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Can't answer for Straw, but politics became much more interesting to me once Trump threw his hat (wig) in the ring.
Here's a little visual history regarding the national debt:
That chart shows how bad obama really was
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Trump’s middle-class tax cut is a fairy tale that distracts from the real midterm stakes
The GOP has a real tax cut for the rich, paid for by health care cuts.
By Matthew Yglesias@mattyglesiasmatt@vox.com Oct 24, 2018, 12:30pm EDT
https://www.vox.com/policy-and-politics/2018/10/24/18017202/donald-trump-middle-class-tax-cut-tax-reform-2-0
Vox? Seriously?
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Reiterating it or just an empty promise that there will be a middle class tax cut someday; when and if Congress passes it. ;)
It’s 100% impossible that the cuts couldn’t have helped the middle class especially when workers saw it and expressed it in their paychecks.
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Jobs, Employment and Wages
President Trump is the ‘Jobs President’. Yesterday, the Bureau of Labor Statistics reported that 250,000 new jobs were created in October. In President Trump’s first two years since elected President, the US has gained over 4.3 million jobs. (In President Obama’s first two years the US lost over (4.2) million jobs.) More people are working in the US than ever before and unemployment is at 50 year lows landing at 3.7% last month.
The President’s tax plan passed in late December 2017 is greatly benefiting Americans and American companies. Employees will see increases in their income tax refunds next year due to the lower Federal taxes. Millions of Americans received bonuses due to the tax cuts and major companies announced plans to move capital and operations to the US due to these cuts. On top of income tax refund increases, Americans also are benefiting from the highest wage increases in a decade.
https://www.bls.gov/news.release/empsit.nr0.htm
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Jobs, Employment and Wages
President Trump is the ‘Jobs President’. Yesterday, the Bureau of Labor Statistics reported that 250,000 new jobs were created in October. In President Trump’s first two years since elected President, the US has gained over 4.3 million jobs. (In President Obama’s first two years the US lost over (4.2) million jobs.) More people are working in the US than ever before and unemployment is at 50 year lows landing at 3.7% last month.
The President’s tax plan passed in late December 2017 is greatly benefiting Americans and American companies. Employees will see increases in their income tax refunds next year due to the lower Federal taxes. Millions of Americans received bonuses due to the tax cuts and major companies announced plans to move capital and operations to the US due to these cuts. On top of income tax refund increases, Americans also are benefiting from the highest wage increases in a decade.
https://www.bls.gov/news.release/empsit.nr0.htm
And Obama is the Welfare president...free health insurance, free phones, free lunch for everyone, including illegal immigrants.
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Tax Reform Has Delivered for Workers: Two years later the data show that investment has increased, with wages and job participation rising.
Wall Street Journal ^ | December 22, 2019 | Gary D. Cohn and Kevin Hassett
Posted on 12/23/2019, 7:30:54 AM by karpov
It’s been two years since President Trump signed the Tax Cuts and Jobs Act into law. To the delight of supply-siders, the law contained significant marginal tax rate reductions for individuals and corporations. At the time there was lively debate concerning the likely economic impact of the bill, with opponents pointing to analyses that found little effect from the rate reductions. At the White House, where we worked at the time, we produced analyses that suggested economic growth would surge. On the second anniversary of the TCJA, the numbers are in, and our projections have been vindicated.
The view that the tax cuts would jump-start the economy was based on abundant economic literature examining how tax policy affects decision-making by businesses and individuals. On the corporate side, the tax cut reduced the cost of installing new plant and machinery by about 10%, suggesting that capital spending would jump by the same amount. This would increase the amount of capital per worker and drive up productivity and wages. President Trump emphasized the last point repeatedly, arguing that family incomes would increase by about $4,000 in three to five years, with blue-collar workers benefiting disproportionately.
This predicted increase in capital has materialized, and has translated into additional economic growth. In 2017 our calculations suggested gross domestic product growth would accelerate in response to higher capital spending, with the contribution of nonresidential fixed investment to real GDP growth rising to between 0.8% and 1% in 2018. The contribution of this type of investment to economic growth from the first quarter of 2018 to the fourth quarter of 2018 was right on target, at 0.8%. This wasn’t the existing trend. Capital spending was 4.5% higher in 2018 than pre-TCJA blue-chip forecasts, and this trend continued in 2019.
(Excerpt) Read more at wsj.com ...