Greenspan on tax cuts

Discussion in 'Politics' started by Traumagirl, Dec 6, 2017.

  1. Traumagirl

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    On squawk on the street, had basically the same take as all the CEOs interviewed on corporate tax cuts. Free cash does not increase capital investment. Unless the investment will lead to more profits they will do stock buybacks or raise dividends. You only spend capital when things look so positive that you think it will come back to you. The third and 4th quarter slowing put GDP rise according to Greenspan at 2%. Not as rosy as it first looked. So he says they tax cuts will have little positive effect on the economy and blowing up the deficit will in the long term make things worse.

    He says only when you create surplus by cutting entitlements, that can then go back into the economy as happened in 2000 and 2001 do you really stimulate growth. At least the senate has some rules that force it to be more revenue neutral than it would otherwise be in the house bill. Thank goodness someone tied their hands so it can't get through reconciliation until fixed.
     
  2. Gator Fever

    Gator Fever Senior Member

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    Greenspan is pretty smart but has been wrong on quite a bit of stuff. I think companies are getting a more positive outlook however. GDP now from the Fed is well above 3% right now going against his claims on that. He must be getting alzheimers.
     
  3. diehardg8r

    diehardg8r Junior Member

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    WE like him when he says what we want to hear and think he is wrong when he says thing we don't want to hear.
     
    • Gator Fever

      Gator Fever Senior Member

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      Nope I said he was full of it many times when he was the fed chairman and it proved out he was on quite a bit of it and that 2% GDP crap he says there looks like he hasn't even been following stuff lately. I do think the stock market is in a decent size bubble right now however. The real economy has improved some.
       
    • Gatoravatara

      Gatoravatara Protaganista

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      That is exactly what I said a week ago on this forum, and exactly what my company plans to do if the tax plan passes.Republicans are lying to people to sell this as a middle class tax cut. Some of the marks will buy it.
       
      • diehardg8r

        diehardg8r Junior Member

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        Correct, but his opinions are what I was referring to....opinions that either later prove to be right or wrong.
         
      • diehardg8r

        diehardg8r Junior Member

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        Kinda like that you can keep you health plan or you can keep you Doctor if you want.
         
      • GMDGator
        Amused

        GMDGator Slick Willie
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      • Blacklabgator

        Blacklabgator Lurking Member
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        You mean as smart as you are you don’t own the company ?
         
      • Traumagirl

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        I just like to hear any smart economists opinion and weigh it. I think the economy is strong, but I think he is right about the tax cuts. We will see. And, in fact, they interviewed multiple CEO's of large companies that will benefit from the tax cuts and they preceded him in saying they would not spend extra cash on capital expenditures or labor that they did not think would benefit the company. Look at all the cash apple sits on. We will see.
         
      • Traumagirl

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        Well the middle class tax cut is not the largest part of the plan, it's corporate and repatriation. And there will be middle class taxpayers that pay more. If you live in NY or CA get your wallet out, if you have more than two kids you just lost 4 exemptions get out your wallet. I don't care whether they do or don't pass tax reform as long as they don't increase the deficit. If it's revenue neutral I will get hit a little with that third kid, but then it may boost some of my stocks with buybacks, so I will survive.

        But then I don't pay state taxes or have over a half million dollar home who's mortgage I can't fully deduct. I suppose those folks will not be so happy with the tax cut. If it increases the deficit, I will be pissed. Hopefully senate rules will not allow that, and they will work out the kinks. A shame we don't have those same reconciliation rules for spending like we do tax cuts.
         
      • pilot-in-fla

        pilot-in-fla Deplorable
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        Do you believe that the media coverage of the proposed tax cuts, unlike anything else that the Trump administration had proposed or done, is fair? I'll answer it for you. Of course it is not fair -- the establishment media are opposed to the tax cut as they are to anything that would make the Trump administration look good.

        In fact, it is small businesses that are the job engines in the U.S. economy and it is small businesses that have borne most of the burden of Obama's job-killing regulations and economic policies.
         

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