Reagan economic adviser Arthur Laffer breaks down Trump's tax plan
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- Опубликовано: 15 окт 2024
- President Trump is promoting his tax proposal as the biggest tax cut since Ronald Reagan was in the White House. Former Reagan economic adviser Dr. Arthur Laffer explains why he supports Trump's tax plan.
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My late great grandfather said in the 1890's they had what was called an Oats and Sparrow economist like Laffer. The theory was that if you gave enough oats to a horse, some of it would pass through his gut undigested and the sparrows would have something to eat each time the horse pooped. I asked why they didn't just give the oats to the sparrows, so he told me the idea was the horse worked...pulled things, delivered stuff, etc. In other words, horses were the "job creators" of their day. Problem is, demand is what creates a job, not companies with cash in the bank. Corporations don't go into business to hire people. They go into business to make money. The best way to do that is to avoid employees or overhead. That's why so many folks are just going through the motions of pretending they're bottom line matches their true interests.
Thank CHRIST someone else said this. Hacks like Laffer and Sowell have pushed regressive "trickle down" policies for decades that, when drilled down upon, don't hold any water and have never produced the kinds of results that Oat and Sparrow economists claim that they do.
Mr. Laffer was right. The cuts in taxes worked
Correct.
yep, seems so. Though it obviously did not meet Trump's boasting.
Correct. Look up tax collections from corporations by year. You can see them skyrocketing.
The tax rates have been cut for a long time and nothing has gotten better.That is the fact.
People at the bottom having more money will give those at the top more money. They HAVE to spend their income.
Why are we paying more taxes than the corporations..? Dam these companies. ..
Ya right,.,the corp will all pay nothing. Like they'll suddenly get honest, not.
It becomes more economical to pay your taxes than hire lawyers sand accountants galore to help you evade taxes
Laffer curve?? Well that's one of the most comedic blown out of proportion ridiculousness.
Does he really believe, companies are going to do it without tax-avoiding tricks if the taxes would be lower?
That's far beyond naive!
As long as a competend tax-avoiding specialist is cheaper than what he/she is able to save, nothing will change.
Its correct, that only a higher spending power can lead to prosperity, but only as long as this higher spending power applies to a as many citizens as possible. If it only applies to the already whealthy, who already have anything they need, there will be no positive effects on the entire society.
Lowering taxes, wich especially the already wealthy will benefit (by far) the most and at the same time intensifying financial burdens that drasticlally, which will harm anyone but the already wealthy, won't work at all.
Trump's tax plan in combination with his AHCA and budget plan only favours the wealthy and santions those, who aren't wealthy (or in other words, the vast majority).
I never got a job from a poor person
You win the internet. In just nine words you have shut everyone down who disagrees with Mr. Laffer.
get rid of income tax and raise sales tax
Flat tax is better
The lie is that they're honest they just don't want to get cheated by taxes
Laffer would be a joke if it wasn't for the fact that Reagan swallowed his baloney.
Why didn't this plan work in Ks.
Because they increased regulation costs at the same time. However it has been successful in increasing tax receipts in New Zealand, under Kennedy, Reagan, and GW Bush. The big thing is don't expand spending every time you see more money coming in.
Liars. PLEASE stop falling for the con. Enough already!
But lower taxes for corporations doesn’t change the fact that corporations pay extremely low wages to employees in Taiwan, or China, etc. that is another incentive for corporations to operate outside the US. So I don’t completely agree with this guest.
One of the great economic geniuses of our time!
Unless TRUMP releases his TAX RETURNS he should recuse himself from TAX REFORM as he has a CONFLICT of INTEREST
The guy who blew up the deficit under Reagan tells us cutting taxes will raise revenue. Cutting taxes is fine, if you close the loopholes to balance them. Cut the subsidies to energy companies and eliminate the holes allowing companies to hide money abroad.
Reagan inflated the miltary spending and cutting taxes actually did bring in more goverment revenue each year Reagan was in office, the problem no cut to the miltary spending
@@wojosquad4680 More revenue, but not enough to match or exceed the amount spent. A tank doesn't generate productive economic activity unlike bridges, roads, or education. See Eisenhower's farewell address.
@@christophermcanally1246 this is why a 50% cut to defense spending would be a phenmional thing
And, it raised the deficit. When will these liars stop?
Why wasn't he asked about what he did to Kansas?
No
I have different memories of the years from 1986 to 1996 I remember the 50% loss in value of All Commercial Real Estate. I remember homes in foreclosure. I Remember the RTC. I remember the rise of interest rates and the devaluation leading to a depression.
I wonder if he has a brother named Larry.
no more corporate socialism
You mean no more progressivism.
Believe what you want
+Gerald Yea - stagnation is the way to go!
James Ladd you mean corporate welfare
james; Corporation are people and working Americans.
Tax rates can change with different administrations. No company will return to the U.S. for a possible temporary favorable tax rate.
when I hear "believe me", I smell a con and liar.
Lies Lies Lies Lies Lies Lies!... When are these guys going to quit pushing this lie? Money doesn't come back at 15% when they can pay 0% and to assert so is asinine.
what about wages ? if mexico wages are 2dollars per hr versus a wage of 8 dollars per hr , why would a company come back to America ?
It was also followed by a Democratic Party sweep during the midterms because the debt skyrocketed into the billions of dollars. The new Congress forced a large rise in the tax codes. There were mitigating factors in the debt level, like the huge increase in defense spending, etc., but the cutting of taxes did lead to a dramatic rise in the wealth gap that continues to this day. The tax cut also led to cuts in programs such as; closing of mental institutions (some of which were admittedly horrible places, but not all), a sharp decrease in infrastructure spending, and cuts elsewhere. These cuts disproportionately fell on programs that benefited the poor and working classes. This made Mr Reagan deeply unpopular among some groups in this country in his first two years. There was also a deep economic downturn during this time. That certainly didn't help Mr Reagan.
Corporations will never pay their taxes honestly. Second , why the 35%tax cut to the very top 1% who have benefited a whopping 200% increase in their wealth in the last four decades? For crying out loud, two people have more wealth than 50% of the population combined in this country! Wrap your head around that! And those two individuals will get an additional 35% tax cut!!!! You think Bill Gates and Mark Zackerberg will invest that extra income with the fellow Americans or will there will be more schools built in Africa and more jobs in India?
Leads to prosperity for the wealthy and huge debt. Reagan tripled the debt.
BonerMaroner not if the tax cuts are matched with spending cuts
Arthur: how about cut tax rate to zero? GE does not pay tax. What does GE will pay now? You mean GE will pay more? How about a minimum tax rate for American Companies? Why remove alternative minimum tax? to make rich Americans to pay zero tax!!!!!
GE was closely affiliated with Obama and the Democrats. They have more affiliation to government movers and shakers than the majority of politicians.
It matters who is paying taxes. The lower class paying less makes everyone win. They HAVE to spend the extra money. Wealthy tax cut, means they save money and no economic growth.
This is crazy yeah the corporations are going to bring the money back to pay taxes on it instead of just leaving it where it is and not paying any taxes on it hey I get it nobody wants to pay taxes
Unbalanced tax cuts always result in a market crash. It's inherent in the supply and demand system. The cycle of trickle-down-economics:
1) Increase in corporate profits
2) More capital for the super rich to make private investments in interest bearing accounts
3) Business closing for the middle class and job loss for the working class.
4) Golden parachutes for CEO's in mergers or business closures
5) A financial loss for individual tax deferred IRA accounts.
6) Reduction of cash flow. in the economy. Reduced consumer spending. A financial melt-down.
7) A skyrocketing national debt.
8) Incentive for innovation to a narrow margin of the population.
9) A buying opportunity for the super rich. Greater wealth inequality.
A company that has reached the top of its demand isn't going to produce more product. It's going to put the money into assets and give bonuses to CEO's. Producing more of any product doesn't necessarily mean there will be a demand for it.
Reagan's tax cuts meant job loss too. People stood in the streets with signs that said, "Will Work for Health Care".
Then the anchors shake their head in agreement with this guy. Haha
I did a rough analysis for my situation, and found out under the new Trump tax that I will pay more tax due to the large amount local tax in the form of property tax we paid in Houston, Texas. My colleague told me he will also pay more tax under the Trump tax plan for the same reason. Both my colleague and I do not have large family to benefit from the increase of personal exemption increase. We are typical middle class small size family in Houston. So I conclude the middle get burned again for the benefit of 1%.
You dont need a analysis for that.... I knew this the second trump got elected...
Increased tertiary taxes means the middle and lower class is paying a larger percentage of their incomes to fund taxes.
why aren't they paying their fare share now?
How much is fair exactly ??........top %10 richest pay %71 of U.S. federal buget
is that fair to you ?
chris anderson - Yes, it is fair when we have such a large wealth gap in this country. There should be no cap on how rich you can get, but it shoild be harder and harder to get personally richer and richer once you're in the upper 10%. They owe back to the country that allows them to live in the lap of luxury while the bottom and middle have to struggle.
And they will Still have more than everyone else, and yet they feel the need to whine about how "unfair" that is !?! furthermore, the most wealthy generally do the least actual labor - most of their wealth comes from the efforts of the lower and middle class and That is Why they owe and why business taxes should be high enough to cover the infrastructure that supports them . . .
It is called special interest , tax loopholes that would pay for a corporate tax cut just seem to be another part of the fraud since not a single loophole is closed except State and locale taxes for our middle class. We also cut Medicare, Medicaid because the richest among us need more help. Satin has nothing Donald Trump can't promise you.
because we have had corrupt politicians for the last 30+ years
Can someone give me a real world example of Laffers plan actually working
There are plenty of examples in the world. And year 2016 and 2017 of South korea is one of them
Reagan administrations started to actually raise corporate taxes after they realized what a failure TDE was...
Also, REGAN's releasing of the BULLS, deregulation of banks so they can grow larger IS THE PRIMARY REASON for 2008 housing crash, and the USA being forced to bail out these banks, because they were TOO BIG TO FAIL...
Trickle Down Economics, basically never works in a diverse and open economy.
Kansas... He f*ck up that state really bad
Exactly. Look at Kansas, has all of his policies in place. It's literally a failed state.
Patrick Bateman. No. Unbalanced tax cuts always result in a financial melt-down . It's inherent in the supply and demand system. If you look at history, financial deregulation and tax cuts to the rich, similar to the Reagan and G.W. Bush tax cuts, by Presidents Harding and Coolidge proceeded the Great Depression.
Tax cuts to corporations and the rich don't create jobs or prosperity for all. A company that has reached the top of its demand isn't going to produce more product. It's going to put the money into assets and give bonuses to CEO's. Producing more of any product doesn't necessarily mean there will be a demand for it. Product demand creates more jobs that stimulate the GDP (gross national product), not tax cuts.
I call BS...
Wow, again, what a con artist, he was asked the question if there was going to be enough money for the social safety net of we cut more taxes his response was neither definitive nor honest. He mustered neither a yes nor a no, he simply said with more economic growth there will be no need for a social safety net. But what about those who are disabled and not able to work? And what about those who are retired? What about widows and orphans? Make no mistake, this tax plan is engineered to serve the wealthiest and largest corporations. It eliminates the legal obligation to support your country and fellow citizens (he said so himself i. the bit about thr deductions the Northeast has and how its not fair for him to have to pay for that) and makes it into a system of pay your fair share if you want to. The idea that all of a sudden large companies will suddenly become honest by lowering their legal obligation is absolutely ridiculous. The companies will grow their bottom line by reducing debt and risk, and they will do so through automation and buyong back their stock and reinvestment overseas NOT by opening more factories or innovation and research and development. He is anything but honest in his assessment of what the outcome for your average worker, retiree, veteran, disabled person or student will be. We'll get another chance to reform this crap In a little bit, just don't forget what these mongers are pushing on our country.
Bull you lower the corporate tax they will pocket the cash.
If %4-%5 growth could rid us of poverty we would have killed it in the 20th century. This is short sighted opinion. There is no obligation to the less well off in this bill. Automation is a more likely investment target. Look past your own glasses Mr. Dr.
This guy is a hoot. I loved when he used the term "believe me". Basically that is Trump speak for, "ain't going to every happen".
Look at this guy: "Believe me" -said every liar on the planet.
Crap! pos!
I DON'T BELIEVE YOU.
To see this guy on TV again, peddling the same BS for thirty years, and having reporters comment on how illuminating it is to have him on, is truly disgusting. His ideas and policies have decimated the American middle class, not to mention the working poor, and he's being given a podium again to do even more damage. The arguments are laughable, as pointed out by many here. Why have this guy on again, corporate media, why? Hmmm. I wonder.
Laffer's idiocy was just tried in Kansas by the Republibums and was a total FAILURE!! Not that corporate media would ever report it.
“The arguments are laughable, as pointed out by many here”
Right, a bunch of random users on RUclips typing “THIS IS BS” hold the same validity as the guy with a PhD in economics.
You do realise there are 1000 others PhD's in economics who disagree with this guy, who is paid to espouse the views that he has right? Ever heard of the CATO institute, Heritage, and 100 other so-called think tanks that have been set up to do just that?
It's a valid point though, don't take my word for it, why don't you do your own research? Here's a short piece from the World Economic Forum: www.weforum.org/agenda/2016/07/it-s-time-to-demolish-the-myth-of-trickle-down-economics/
After that, do your own research bud. It's not that hard. This experiment has been run on the American people for over 40 years; it's failed miserably. Here's a youtube link, if you don't like to read: ruclips.net/video/Q5oOLs2ns14/видео.html
Zoran Saint-Simon There’s plenty of evidence that suggests otherwise. Look, I’m not going to argue Austrian economics vs Keynesian economics because I’ve done it a million times and it’s just boring now. Bye.
@@Watersonification Keynesians don't count
A weak stick and small carrot aint gonna bring corps back.
How much do they pay this guy to spread garbage economics on live TV. What stimulus will be pumped into our system by giving almost all the benefits to large corporations. They will not create jobs unless the market demands it. That money will go into paying off debt, into stocks, or just bottom line profits. It will not go into a wage increase or jobs. To pay for that they take it our huge sums of money in programs that benefit average Americans for health care, educations, infrastructure...
20 trillion debt trickle down really works
bf526 that's because we have over 33% for the 1% anything over 33% it does not work Laffer explain this before. Trickle down economics is not working because we are texting over 33% manufacturing jobs overseas and then 99% are highly unemployed.
Removing millions of Americans from paying taxes is what created 20 trillion dollar debt
top %10 in America pays %71 of Federal budget
and Trickle down works : www.thebalance.com/trickle-down-economics-theory-effect-does-it-work-3305572
Chris Anderson.
YOUR OWN LINK SAYS... WHY TRICKLE DOWN ECONOMICS WORKS IN THEORY, BUT NOT IN REALITY...
THAT is the LINK YOU SENT TO PROVE WHY TRICKLE DOWN ECONOMICS WORKS...
THE LINK YOU SENT IS ACTUALLY A ARTICLE OF WHY TRICKLE DOWN ECONOMICS DOESNT WORK...
LOLLLLLLLLLLLLLLLLLLLLLL...
YOUR OWN LINK proved yourself WRONG.....
TRICKLE DOWN ECONOMICS NEVER WORKS YOU IDIOT...
NOT ONE EXAMPLE OF IT WORKING EVER.
How about 20 trillion "bubble up" economics?
chris anderson Chris, Just write a personal check.
To all that dont agree, why would you want more benefits for the people living on government plans & more punishment to those who ACTUALLY PRODUCE! How stupid! Just stop relying on the damn government to take care of you period! Tax insensitives are for those who INVEST their money in what actually helps the economy & not for those who only seek to earn more so they can spend more! The rich are rich because they invest their money, the poor are poor because they spend their money, simple!
TRUMP = George Washington 2.0
I LOVE OUR PRESIDENT!
What stupid scripting /. “Interview”
*WARNING!* Idiotic comments below.
So let me get this straight, this guy thinks that lowering the corporate taxes will make it less tempting for companies to use loop holes that have been allowing them to pay zero taxes...yeah...that makes sense.
These guys just want him to negative answer. Drilling from all directions. Still can't get negative answer.
the trump plan takes purchasing power away from vast majority of The People (weakens demand) and passes the money onto those who already have the most (supply) - that plan is an anathema to capitalism
the part of the economy the proposed plan will benefit are not known to increase demand with increased wealth . . . defacto removal of that value from the economy
Truth. Reagan grew GDP and tax receipts. But the Democrat congress could spend faster than the increase. They never did make any of the tax cuts they promised. And they spent so little on defense that in the late 1980's the military restricted annual markmanship training because of low inventory of bullets. Those were needed in case of actual war.