How the tax reform bill will impact the economy

WSJ Editorial Page writer Jillian Melchior, The Hill editor-in-chief Bob Cusack and The Daily Caller News Foundation’s Christopher Bedford discuss the mad dash to pass the GOP tax reform bill.

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Roger Turner

Get Your Gun out for the fox thing going to raise taxe son them

you know Jesus Christ right there looking at everything fuk your taxes that white people die in a day in the graveyard you got no low class middle class and high class if you want everybody single homeless

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Denise Brown

Bottom line is if people make more money and have jobs they can pay for most of their expenses except for health insurance unless you are rich. Even with corporation getting tax breaks there is no guarantee that companies will hire more people or even pay them more. Companies are in the business of making money, not spending it.

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Rose Johnson-Tsosie

What luck for rulers, that men do not think. Adolf Hitler
“Fascism should more appropriately be called Corporatism because it is a merger of state and corporate power”
― Benito Mussolini

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Rose Johnson-Tsosie

So WE the People are responsible for almost $200K for Omerosa to plan her wedding at the White House? Or any of these other pet projects?
Let's do the math. How long will it take minimum paid Carl's Jr employees to pay this off? When are the people going to object putting their children in financial bondage? We are now a country of indentured servants. What are we handing over to our children?
Trump = Mad King George Tax Bill = Boston Tea PartyDoes

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Glenn Logan

This will not create any jobs. Ragan Slashed Tax Rates in the 1980s did did not create jobs then and it won't in 2017. Trickle down economics is as stupid today as it was in the 1980s. Trump is looking after Trump. These cuts will result in Trump paying less tax which is exactly what this is all about.

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Edward Dodson

Even more important, this bill guarantees the next recessionary downturn. The primary cause of recessions is overheated property markets, and since the 2008 crash the Federal Reserve has by very low interest rates caused the upward climb in land and, as a result, property prices. The historical data indicates the land market cycle crashes on average every 18 years. So, if 2010 was the low point of the last cycle, the next crash is schedule for 2028 or sooner.

There is the massive public debt that must be serviced from current tax revenue, leaving less and less revenue to pay for government and entitlement programs.

What is required to lessen the depth and duration of the next recession is tax reform that rewards incomes earned by producing goods and services and at the same time removes the incentives to divert financial resources into purely speculative “investments.” Of course, the problem is that a long line of people benefit hugely from speculation in land, in natural resources and in financial instruments. Consider that in the real world there is no such thing as a “capital gain.” Actual capital goods – buildings, machinery, technologies – all depreciate in value over time. The gains the tax system treats more favorably than the taxation of wages are gains from what in economics is referred to as “rent-seeking” (i.e., profiting without providing anything of equal value in exchange).

What would real tax reform look like?

This would start with local governments and school districts moving to a land-only property tax base, exempting all property improvements from the tax base. Every parcel or tract of land has some potential annual rental value based on locational advantage. Some location advantages come from nature. Others are directly related to a combination of population density and access to quality public goods and services. This value – land or location rent – has long been identified as the optimum source of public revenue. A chain reaction of positive outcomes would follow from this change. Holding land out of use for speculative gain would become unprofitable. Land would be brought to its highest, best use by owners to offset the annual public charge. Other taxes – on individuals and businesses – could be lowered and eventually eliminated. Over time, cities and towns would be financially self-sufficient, no longer dependent upon revenue sharing from the state or federal government.

At the federal level, the key reform to the individual income tax would be to combined tax simplification with real progressivity, favoring wages or rent-derived income. Individual incomes up to the national median should be exempt. All other deductions or exemptions would be eliminated. Above the exempt level of income, higher ranges of income would be subject to increasing rates of taxation, the rates and ranges set during the budget process to achieve a balanced budget.

There are numerous additional sources of rents in the economy that should be and could be publicly collected and will do no harm to economic output. Any asset with an inelastic supply is such an asset. Examples include frequencies on the broadcast spectrum, licenses to extract natural resources of all types, and even take-off and land slots at airports. Economists who have studied this issue estimate that rents comprise between 20-30 percent of GDP.

Part of the longer-time objective should be to retire the public debt. The best way to achieve this is to refund maturing government securities with fully amortizing securities that periodically repay to investors both interest and principle. The revenue necessary to service the debt would be included in the budget calculations.

Edward J. Dodson, Director
School of Cooperative Individualism
http://www.cooperative-individualism.org

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Dickson Tam

For all those people who are against this, you can still pay the 30% and ill just take the 10% and you can give the 20% to the government. Everyone will be happy that way.

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SouthernKomfort57

Hard working americans aren't going to get shit…This is so obviously a scam, I cant believe anyone would be stupid enough to believe it,

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topthickproducer

Does it really matter if Trump falls? If he passes tax cuts for the rich, he'll be rewarded by donors. Why? 1. Tax cuts, 2. Regulation backing off, 3. Internet freedom destroyed.

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Coraga 1

How the tax reform bill will impact the economy? It won't and these type of cuts never have before in economic history. All this will do is continue to make the rich richer at the cost of Americas debt.

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Mike Fournier

WATCH AMERICA ….HOW THE GREEDY BUSINESS WORLD IN THIS COUNTRY REALLY WORKS ….PRICES AT THE STORES ARE ALREADY CREEPING UP …THE PRICESN AT THE GROCERY STORES ARE CREEPING UP AS WELL…SEE THEY ALL KNOW SOME CONSUMERSBWILLMSOON HAVE MORE EXPENDABLE CASH ON HAND ,AND WHY NOT GET AS MUCH OF IT AS POSSIBLE ????. SO THEY SIMPLY RAISE THEIR PRICES …NO ONE IN THIS COUNTRY CAN DEFEND THIS ,OUR GOVT. IS JOT WATCHING THEM ,THEY WILL DO AS THEY WILL .
EXAMPLE ….REMEMBER FIVE YEARS AGO WHEN GAS PRICES CREPT UP ,FOR SOME REASON ,TO FIVE DOLLARS PER GALLON ???? AND EACH WEEK IT CREPT UP MORE AND MORE …AND THE NEWS TOLD US TO BE PREPARED TO PAY MORE AT THE STORES ,ESPECIALLY THE GROCERY STORES ???? BECAUSE THEY SAID THE HIGHER GAS PRICES WERE THEIR ""BURDEN"" SO WE EXPECTED AND ACCEPTED IT??? WELL GAS PRICES FELL TO A HISTORIC LOW AND HAS BEEN THERE FOR FIVE YEARS NOW ,HOW COME THE FOOD COSTS ARE NOT ALSO AT A HISTORICAL LOW ,IF THEIR BURDEN THAT CAUSED THE HIKE IS GONE ?????? ANY ONE ????? WELCOME TO THE GREEDY SHORES OF AMERICA !!!!
ANOTHER EXAMPLE IS THE GREEDY OIL COMPANIES JUST ILLEGALLY RAISED THE GAS PRICES DURING ,NOT AFTER,BUT DURING HURRICANE HARVEY …AND THEY NEVER PROVED A LOSS AMOUNT …THEY COULDN'T …THEY HAVEN'T HAD ONE YET ??? BUT THEY KNEW HOW MUCH TO RAISE PRICES …EXACTLY 50 CENTS A GALLON ….AND KEPT IT UP FOR ONE QUARTER …THREE MONTHS ????
HOW DID THEY KNOW HOW MUCH MONEY THEY NEEDED TO RECOVER ???? A SCAM AMERICA …AND SOMEONE IN OUR GOVT. ALLOWED THIS TO HAPPEN ….SEE THIS 50 CENTS A GALLON …NATION WIDE …CREATED BILLIONS IN ILLEGAL PROFITS FOR ONE QUARTER IN THE STOCK MARKET …AND THAT PLEASED TRUMP ,YES TRUMP ..HIS PRECIOUS RECORD IN THE STOCK MUST CONTINUE AT ALL COSTS RIGHT ??? ILLEGAL PRICE HIKE ,AND ILLEGALLY STIMULATING OIL STICKS AND THE MARKET ITSELF ?????? WHAT A CRIME ????
SO IF WE EVEN SEE ANY EXTRA MONEY AMERICA ,FROM THIS SO CALLED TAX CUT …WE WILL NEVER SEE A PENNY !!!! THEY ARE WAITING TO GET EVERY PENNY OF IT !!!!!

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KillJoy Sanchez

They'll need the military industrial complex to keep this tax plan alive. Or , they have to take money from federal funded programs over a hundred million people need to survive. They kept Obama care alive by taking from those programs and they'll do it here. War will keep it alive , war or federal funded programs .

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B Hes

with a robust economy will they be able to raise intrest rates and stop all QE ?

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vanchick 2018

There was no viable health care plan under Obamacare so just tge fact that it was gotten rid of is A WIN in itself. Stop saying that the Republicans failed when obviously its a complicated situation and the health of the U.S. economy is far more important!

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Richard Allis

Let the scroll of names voting for this tax scam be your guide to 2018 and vote for 'NONE OF THE ABOVE'!

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Benny Aderaw

20% permanent tax cut for corporates while we our tax cut expires in less then 8 years hahahah great job, the rich get richer.

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Ken Smith

This is why nobody sane takes Fox Business as real news.
At least they stopped pretending to care about the national debt.
We have had a growing economy since 2009. The labor market was already starting to tighten late last year. Wages are about to start rising and there is some risk of inflation. This is a really bad time to be adding an extra $1.5T to the national debt.

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Bert Nijhof

Re-introduce the Guillotine, that will put the fear of God into their souls.

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lithgrapher

Corker the crocodile fuck u

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Lucky Luchiano

They know the Kate verdict mad a lot of Americans angry…this don't change shit…build the WALL

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