Reagan's lower taxes were instituted during a time of crowding out, so they could be effective encouraging investment. There is no crowding out now, not even close. It was the Fed's policy to sharply lower interest rates that really gave the broad economy under Reagan the jolt (not counting his enormous military spending surge). Of course, that option no longer exists, either.
If fortune 1000 pay near 15% and everyone else pays near 35%, then Donald's tax plan is a boon. Vast majority of job creators are small to medium sized business.
The biggest companies like aapl and msft pay little taxes because they shift the income to places like Ireland where there is little tax liability. The lower rate by Trump is an effort to get companies to reduce this practice and report their income here and pay taxes here. And if someone is going to say 'they'll still just shift it to Ireland because 2 percent is still lower than fifteen percent' the answer to that is the corporations can't get their hands on the money in the US because they have to leave it over there. Trump's plan is to make it palatable for corporations to pay their taxes here so they can have the cash available here.
No major corporation pays anywhere near 35%, and any corporation that does, medium or small is just plain stupid. It's too easy to beat. What Trump needs to do is propose a reward program for corporations that "guarantee" to bring jobs back, create new jobs and don't downsize. These are the companies that get tax breaks. The ones that don't will receive no tax break, and I would actually propose raising the taxes on those companies. Lets take and example of a company I love to hate. CAT. They need to be told, okay cocksukers, all those jobs you have shipped to China and Mexico, they need to come back. They come back, you get a little reward, even though you don't deserve it. They don't come back we're raising your taxes on all operations in this country, putting a HUGE tariff on all equipment imported for your overseas operation, AND putting a usage tax on any company that uses your equipment. CAT, assholes that they are, will probably say fine, we're pulling out completely. The response should be good, fuck you and good-bye. You'll never sell another piece of equipment here. Next you give huge tax breaks to the company that replaces them. They're building bulldozers for christ-sake. It ain't that hard to do. Plenty of companies that can step into that space. Would this cause some inflation? Yes. Who gives a shit? Low rates, great mortgages, etc. are meaningless if you don't have a job. Again, it's all about how many are flush with cash. Create the jobs and the rest will take care of itself. To create jobs there must be demand for the product and/or service. That's a given with a huge infrastructure rebuild.
Lost in this discussion : a 20% tax reduction and 35% tariff = 55% increase in margin for American manufactuers to turn a profit. That is absolutely fucking huge
right... tax cuts only worked in the past because things were different and it was not tax cuts that worked every time it was tried it was something else that caused revenues to go up and the economy and tax revenues to go up. Its as if you think taxes are a good thing? Why not just cut them and see if the economy improves? look at it another way.. Today we have new accounting methods to hide inflation and we have found dozens of new ways to tax everything that walks.... but our economy is doing so well under this tax scheme the FED has to go to near zero interest rates?
It makes no sense. Unfinished goods, which are inputs to American manufacturing, will cost more, so the finished product will cost more. Finished imports which are simply resold will cost more. Many of the former are not present within US borders and have to be imported. Many of the latter are products that, if we made them here again, would not create good jobs because they're low value added anyway.
The economic ideas being advocated in this thread are pure fantasy, and doomed to fail fantasy at that. Only plan I heard with merit was the Captain's, and he sounds like FDR, lol. (A compliment.)