You are right to be suspicious. Look what we were told about Obamacare and saving money and keeping our doctors. But Tax Foundation has crunched some numbers (for the Senate plan) and says yes, but it depends on your state. Stock market went crazy with the news Thursday—not sure that’s more jobs however. Ohio already apparently has an unfriendly tax climate—I think we’re something like 45th and Illinois is 46th—not a good place to be. Tax Foundation estimates 35,063 jobs and $2,375 after tax income in Ohio. For Illinois 38,465 jobs and $2,701 after tax income. A lot more is involved, however. We all know Mt. Morris jobs didn’t go to Thailand, they went to states in southern USA or to Rockford. https://taxfoundation.org/tax-cut-senate-tax-cuts-and-jobs-act/
In this example of 9 different filers some get more than others, but the only ones losing are a married couple, Laura and Seth (one earner), with 2 children earning $2 million. Of the nine examples, they have the highest income. The one who gains the most is the single guy (Jason) earning $52,000. Of course, if single guy Jason had some children and a wife, he’d be getting EITC and the government would be paying him a bonus of about $6,000. But only tax payers are covered in this example of 9 households, not the 49% who don’t pay any federal income tax. https://taxfoundation.org/tax-cut-senate-tax-cuts-and-jobs-act/
Democrats of course will point out the gap between $52,000 and $2,000,000 not the change in what each household pays.
Saturday, November 18, 2017
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With the reduction in corporate taxes from 35% to 20% and improvements in corporate expensing and depreciation, AT&T said it would invest $1 billion domestically the year that these new laws go into effect. That alone, will likely produce more jobs than Obama's government subsidies for "shovel-ready" jobs that even he later admitted weren't really there.
I think this this is a very good thing to further stimulate the economy. It would be my wish that congress would similarly put forth a bill to cut duplicate, wasteful, inefficient, and archaic government departments and programs too in order to decrease our federal spending. I am not holding my breath.
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