Lost and FoundMH中毒 / MH Chuudoku / MH Addicted
- Apr 6, 2011
- Reaction score
According to the site I quoted, they help under certain circumstances like recessions but Trump's tax cuts came out of nowhere and was highly counterproductive in terms of offsetting the lost revenue. Apparently it will expire for individuals in 2025, convenient timing when Trump's possible second term would potentially end at the time whereas they remain permanent for corporations despite the data that indicate the reverse would be more cost-effective in creating jobs.But also, tax cuts often don't help, do they? I think companies got tax cuts and still laid off people after giving out bonuses few years ago.
Apparently many large corporations even said they didn't need the money from Trump's tax cuts and instead of increasing production, creating more jobs, or raising wages, the money mostly went to using the extra cash to pay dividends to shareholders, buying back shares of stock and increasing CEO salaries. (More info here)
Disclaimer: I'm not a financial expert, I tell what I see but my assumptions may not be accurate.Ok. Would anyone be interested in explaining why china utilizes tax cuts if they don't work?
From what I gather, the Chinese subsidize certain key sectors, namely transportation, construction and manufacturing in an attempt to fight a potential recession which is a direct consequence of the pandemic and US-China trade war. Whether or not it will work remains to be seen and I reckon the tax cuts will be temporary.
If the tax cuts was a solution to everything every time, we would completely abolish taxes and be done with it but then the government would be nonfunctional. And if this is not an option and we need to draw the line somewhere, this is the point we are trying to make by evaluating the data in hand. If you think Trump reduced taxes for the greater good, I certainly disagree with you, he thinks of nobody but himself and all economical data, all budget deficits that flow into his own pocket is an evidence of that.
Sorry if I can't reply to you anymore since I don't check the posts regularly, just wanted to put in my two cents but to each their own.