The Tax Cut Scam

Tyler Durden's picture

Authored by Sven Henrich via NorthmanTrader.com,

I can’t help shake this sinking feeling: This tax cut package that is being peddled by the current administration is a scam. Why? Because the entire narrative is dishonest and predicated on false, make belief premises.

Look, I don’t like paying more taxes than I have to. Nobody does and I’m not opposed to tax cuts if they actually do something positive for society and the economy. Get Republicans and Democrats together to work something out that helps address our structural issues. I’m all for it.

But my take is that this game that is being played here is a snow job and an obvious one at that and I’ll tell you why.

Let’s start with the obvious: The very people that are pushing for it have an inherent conflict of interest. Everyone of these people stands to gain personally from the very tax cuts they are pushing:

The main narrative: It’ll stimulate economic growth. Let me simply state the obvious here: These 3 folks having larger cash positions and getting enormous refunds will not add to economic growth, it will just add wealth to them.

And it’ll add wealth to their children & families:

That’s after all what the estate tax repeal is all about. Don’t kid yourself.

Gary Cohn struggled to justify all this today in his interview on CNBC. In fact he didn’t justify anything, but rather admitted the larger point: It’s a tax cut for the top 1%.

“we see the whole trickle-down through the economy, and that’s good for the economy”

Why would it trickle down if it’s not a tax cut for the top 1%?

Well because that’s what it is:

“$1 trillion in net cuts for business, $200 billion through the estate tax, and $300 billion for individuals. So, four times as much in business tax cuts and estate tax as for individuals.”

And right here the narrative and premise dies.

First off, corporations are doing great and have more cash than ever. What do they do with most of their cash? It goes to dividends (10% of people own 90% of stocks, 50% of people don’t own any stocks) and of course buybacks. Goldman itself had already done a projection on this late last year:

“We expect tax reform legislation under the Trump administration will encourage firms to repatriate $200 billion of overseas cash next year,” David Kostin, chief U.S. equity strategist, said in a Friday note, referring to companies in the S&P 500. “A significant portion of returning funds will be directed to buybacks based on the pattern of the tax holiday in 2004.”

None of that adds to economic growth for the bottom 90% it adds to the wealth of the top 1%.

And it’s not even honest to call it the top 1%. It’s really the top 3 if you will.

Wake up to reality:

The three richest people in the US – Bill Gates, Jeff Bezos and Warren Buffett – own as much wealth as the bottom half of the US population, or 160 million people.

 

Analysis of the wealth of America’s richest people found that Gates, Bezos and Buffett were sitting on a combined $248.5bn (£190bn) fortune. The Institute for Policy Studies said the growing gap between rich and poor had created a “moral crisis”.

 

In a report, Billionaire Bonanza, the thinktank said Donald Trump’s tax change proposals would “exacerbate existing wealth disparities” as 80% of tax benefits would end up going to the wealthiest 1% of households.

 

“Wealth inequality is on the rise,” said Chuck Collins, an economist and co-author of the report. “Now is the time for actions that reduce inequality, not tax cuts for the very wealthy.”

 

The study found that the billionaires included in Forbes magazine’s list of the 400 richest people in the US were worth a combined $2.68tn – more than the gross domestic product (GDP) of the UK.

 

“Our wealthiest 400 now have more wealth combined than the bottom 64% of the US population, an estimated 80m households or 204 million people,” the report says. “That’s more people than the population of Canada and Mexico combined.”

 

The report says the “billionaire class” continues to “pull apart from the rest of us” at the fastest rate ever recorded. “We have not witnessed such extreme levels of concentrated wealth and power since the first gilded age a century ago.”

Wealth inequality is real and this tax cut will exacerbate it further.

But the package will create economic growth? That’s the line used to justify the package without any explanation or response to the structural challenges ahead. Remember the baby boomers are retiring and social security is a key driver in upcoming budget strains:

Cohn didn’t even bother to answer the question:

Harwood: Another thing Larry Summers told me: ‘The country wants to spend more on defense. We’ve got a whole lot of baby boomers retiring. We are going to need more money for government and not less.’ The Penn-Wharton model — run by a former Bush administration economist, not a Democrat — says that this plan by 2040 will lose $4 trillion. During that time, the number of people on Social Security is going to go from 45 million to 72 million. How in the world does that make sense?

 

Cohn: We firmly believe that we are creating a model that creates economic growth in this country.

That’s his answer.

Instead of answering the question he hides behind the talking point without offering evidence. That’s called playing tennis without the net. And worse: It shows he doesn’t want to or can’t answer the hard questions. Because he doesn’t know or care. It’s called can kicking. Just get the tax cut through and count your winnings.

And then the first of 2 key lies:

Harwood: But you know no tax cut’s ever paid for itself.

 

Cohn: The years that we increased deficit are years when our economy is slowing down.

Here’s a fact: There is no evidence that tax cuts have produced long term sustainable economic growth, but rather larger deficits are in the immediate future as tax revenues start falling short.

Here’s the history folks, a wonderful bi-partisan track record of deficit spending.:

Note the immediate deficit growth following the Bush tax cuts in 2001. What did they do? Spent trillions on wars. What are they doing now? Increasing military spending.

Remember fiscal conservatives? Me neither. It’s a slogan. They don’t exist. On either side of the isle.

But here’s the 2nd big lie, and perhaps the worst in the entire charade:

Not a single scenario that I have seen, budget or tax plan or otherwise assumes any growth downside. Ever. It’s all milk, honey and rose pebbles everywhere hence the consequences are not accounted for and the sheep are led to the cliff thinking there is no risk anymore:

This is insane.

And so I ask:

The answer is it doesn’t. There is no strategic rationale behind the tax cuts other than to personally benefit the very people that are pushing for them. It’s a marketing ploy that will eventually end up in trillion dollar deficits again and benefit cuts. The corporate sector is not hurting. It’s sitting on record cash. No sign of stress, but that’s where the tax cut focus is.

Look, THIS is the forecast of the debt consequences WITHOUT any slowdown or recession in the plan:

“The GOP’s tax bill would add $1.7 trillion to the national debt over the course of a decade, and increase the country’s debt-to-GDP ratio by 5.9 percentage points, according to the Congressional Budget Office.”

And what do these projections look like with a slowdown or recession coming and tax revenue missing? Nobody knows, because nobody has run the numbers and apparently nobody is demanding answers to such a question.

Why not? Because economic growth will just magically happen.

Please.

The economy and markets are already awash with 8 years of artificial liquidity and the loosest financial conditions in decades:

We may see a temporary bump in growth from people spending the tax cut crumbs thrown their way and adding to their credit card balances already back to 2007 levels:

But be very clear that if any of these rosy growth projections don’t pan out know who pays for it all. You, the tax payer. Cause they’ll come for your social security money to pay for it all:

Remember the guys driving all this are former Goldman Sachs bankers. Nothing has changed:

The joke may be on all of us when the next slowdown hits. And the bankers? They will have moved on and will have taken their newly found cash with them.

 

Don’t fall for it. This tax cut is a scam that will expand wealth inequality to even more absurd levels.

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Gatto's picture

Taxes paid for NONE of that!  Look up the Grace Commission Report.   DEBT paid for all of that, debt that is stolen from the unborn people that have no voice!  You are an immoral socialist and thief for supporting it!

silverer's picture

But you gotta love that Federal debt chart, eh? Like climbing Everest! What an accomplishment! lol

pound the vix's picture

Debt went up because spending out paced revenue.  In every year but 2 over the past 30 years government tax collections went up.  So trying to say tax cuts hurt government revenue is a lie.  Excessive spending caused the debt.  STOP SPENDING MORE THAN THE REVENUE

Deep Snorkeler's picture

The middle class, a downwardly mobile horde

of cartoon-workers, is daily extorted by Congress

and the billionaire caste. America's national

bourgeoisie, a once powerful techno-industrial

organism, now reduced to bovine serfdom.

God, what a sorry lot.

I Write Code's picture

Even if it's just simplifcation and cleanup like the elimination of the AMT, that's OK.  The business tax cleanup is reasonable.  If the individual cleanup did NOTHING but raise the personal deductions, it might be OK.  It's not really going to cut taxes, just bang on upper-middle class homeowners in New York and California.  But that's OK.  So really, don't complain that it's not Valhalla cuz that was never in the cards.

TheLastTrump's picture

The near doubling of the personal exemption will save big money for anyone actually PAYING income taxes. I believe that also will positively affect self employment taxes for small biz sole props.

 

The loss of SALT & mortgage interest deductions will cause some taxpayers to pay more. The higher personal exemption may cause this to be a wash for many. It's situational, not one size fits all.

 

The lowering of the corporate tax rate from 35% down to 20% is fucking absurd, but so is a 35% tax. I hope they're just going large in hopes of getting part of it. Somewhere between 25-29% is probably the magic number they're looking for. The 12% tax on repatriated overseas funds should be higher.

 

The leftists want you to think it's a giveaway to the rich, so they won't tell you about the cap on corp salaries over a million.

 

You want to help Americans? Find out why health care costs so fucking much & attack the root causes.

 

You want to help Americans? Find out why 3 Americans can be as rich as 150 million Americans put together....find & attack the root causes.

 

Colonel's picture

" Find out why 3 Americans can be as rich as 150 million Americans put together.."

But, but, but they're lefTARDS so its ok. If they were evil Republicans THEN something would have to be done.

BidnessMan's picture

Doubling personal exemptions only has benefit if you don't have deductions.  Do the tax math honestly.  The Author is right - this is a tax cut for the 1% parasites and kids who were smart enough to pick 1% parents.    

So the top 1% parasites make out like bandits.  Any corporation that actually pays the stated corporate income tax rate needs to fire their tax accountants and/or lobbyist.  Many pay no corporate income tax.  So how are non-existent corporate tax savings going to "trickle down"??   It is a gross insult to intelligent people.

50% of the population does not pay income tax anyway, so could care less.  So you can attempt to put lipstick on this pig, but it is still ugly for the people who play by the rules and actually work for a living.  As opposed to the 1% parasites living large off carried interest, non-taxable cash gifts from parents, in homes their parents bought for them, and dividends from stock and REIT shares they were given, and don't personally contribute to the economy.  Going to Junior League events and Charity Auctions is not work.  

Congress is Lucy jerking the football away from Charlie Brown's kick attempt once again.  You want root causes ?  I just listed them.

Jack McGriff's picture

Man, you are retarded.  That's why you will always be a dumbass wage slave, and only dream of the day of finally getting to be taxed at the highest rate of 39.6%.  Yay! Except when you get there you will realize that the progressive income tax was designed specifically to keep dumbasses like you working until you die.  And maybe then you will learn the difference between income and wealth.

"non-taxable cash gifts from parents"  HAR HAR!! Only a fool would envy a meager $14,000 non taxable cash gift because everything above that is TAXED AS INCOME!  

Fucking faggoty ass SJW!  Your class envy and jealousy is hilarious!

Pollygotacracker's picture

Why doesn't the government cut spending first? Spending is out of control. Get the deficit spending under control...then cut taxes. 

ZeroBeek's picture

Please don't blame Trump.

He just doesn't realize how big a liar he is

and how false the promises he made.

slickrick's picture

"Always be closing", that's what they say in the food truck business. I support the post as valid.

nomad943's picture

People should use the following filter when looking at this tax CUT proposal. Maybe they will see a small net cut or like mayself maybe it will be about a net wash when accounting for the loss off SALT deductions. BUT what will become our SHARE of the new national debt that will be created from the give away to the fortunate few? Considerably larger than the chump change being returned as a tax cut? Increasing debt is just a sleezy way of raising taxes. Politicians just dont have the balls tp step up and admit what they are doing.

silverer's picture

"A future for the next generation" scam. Peddled to the sheeple since 1983. Thank you, US congress.

Ron_Mexico's picture

Um, why not just say "the entire system is dishonest and predicated on false, make believe premises" and be done with it? And it has been since 1913.  Everybody with half a brain already knows it.  You're not adding anything to the discussion.

silverer's picture

Business tax cuts should be scaled as a linear rate, with the most going to the smallest businesses and stopping at about 10 million in gross sales per year. After all, the top biggest corporations are working 24/7 to cut jobs and automate them. They have the money to do that, and will benefit from it. New jobs will be created by small business, not big companies. Only robots will get jobs in the big corporations.

Cutter's picture

Its not a scam for the top and the bottom, just for the middle class.  What is amazing is that noone is talking about the ending of the personal exemptions.  For a family of four, that is the removal of an $18000 cut to their taxable income.  In return, they give a $24,000 standard deduction, but remove all of the other deductions, including state and local tax deductions.  

In the end, the average family of four, that has their own home, ends up paying more in taxes, especially if they have a mortgage over $500,000.  

The only saving feature is the additional $1200 in tax credits for their two children. But that is not enough to make up for the exposure of signficant additional income to taxes.

The real benefit here is to the rich, who will recieve higher dividends, and, due to companies using their newfound cash for stock buybacks, even higher equity prices.

What else is new.

 

 

VWAndy's picture

 Thieves have claimed the moral high ground folks. It really aint going to be all that hard to take it back from them.

Pumpkin's picture

When your sworn servants in government claim that they have a better claim to your property and the fruits of your very own labor THAN YOU DO, there can be nothing good about it.  EVER!

mrjinx007's picture

Afterall, Paul Ryan had ahand in this.  What do you expect?

Gatto's picture

There's the article calling out the bottom 60%+ of the population for not paying their 'fair share' since they are mostly net receipents of government largess?   How in anybody's mind is it OK for 60%+ of the population to get a 'free ride' through life?

nomad943's picture

Lets offer Warren Buffet that wonderful free ride and see how quick he screams Uncle.

MoreFreedom's picture

In summary, liberal and statist think thanks all of a sudden have gotten deficit fever and don't want taxpayers to keep more of what they earn.  But only the libertarians are talking about cutting spending, because neither the Democrats or the RINOs want it cut - they just don't want the other party to control how it's spent. 

The whole article misses the point, that capital, business production and jobs flow to where that capital is better treated and less taxed.  And on that measure, the US doesn't treat capital well having essentially the highest corporate tax rate in the world.  That needs to be lowered, and the SALT deduction needs to be eliminated as well because it's an incentive for more bad government. 

And make no mistake, government is evil, but it's necessary to the extent it protects us from criminals and foreign enemies.  But it's worse when it's used by the people to steal from taxpayers, because then it's purpose is turned upside down, and government becomes an accessory to crime.

 

moneybots's picture

“Wealth inequality is on the rise,” said Chuck Collins

 

Wealth inequality is not on the rise, wealth disparity is on the rise. Wealth is either equal or it is not. It is a binary option. Simply, wealth equality has not existed since the first day that someone had a penny more than somone else.

moneybots's picture

"The corporate sector is not hurting. It’s sitting on record cash."

 

Saw a chart the other day which said that companies borrowed to buy back over 3 trillion dollars worth of stock since 2009.

ClickNLook's picture

Large budget cuts and reduction of the government will lead to economic prosperity.

Tax cuts will naturally follow.

moneybots's picture

"The joke may be on all of us when the next slowdown hits. And the bankers? They will have moved on and will have taken their newly found cash with them."

 

It is interesting how history repeats. What happened at the end of the Roman Empire?

TN VOLUNTEER's picture

....Rome was overwhelm by foreign invadors!

innertrader's picture

H.W. BUSH built Mexico and Clinton built China, ALL AT THE EXPENSE OF THE TRUE AMERICAN CITIZENS!!!  I could argue this article at every point, but it's so far off that I won't waste my time and effort, I'm going to make it simple.  IF YOU WANT A TRUE FAIR TAX SYSTEM, YOU HAVE A CHOICE!  IT'S CALLED THE "FAIRTAX"!!!!!!!!!!!!!  Read it (not what the libtards say about it), you won't believe it and it's before Congress!!!!!! SUPPORT IT!!!

FAIRTAX!!!

SETH RICH???

TRIUMPH with TRUMP!!!

MEAN BUSINESS's picture

Tax the rich, feed the poor

Till there are no rich no more - 

Ten Years After / A Space In Time / I'd Love to Change The World 1971

https://www.youtube.com/watch?v=ZyaFeDlJJAk

-----------------

FairTax, FairCare, FairPath omnibus legislation!

----------------


Everywhere is freaks and hairys
Dykes and fairies
Tell me where is sanity?

Tax the rich, feed the poor
Till there are no, rich no more

I'd love to change the world
But I don't know what to do
So I'll leave it up to you-ooo-ooo

Population, keeps on breedin'
Nation bleedin', still more feedin'
Economy

Life is funny, skies are sunny
Bees made honey, who needs money?
Monopoly

I'd love to change the world
But I don't know what to do
So I'll leave it up to you-ooo-ooo

Oh, yeah!

World pollution, there's no solution
Institution, electrocution
Just black and white, rich or poor
Them and us, stop the war

TN VOLUNTEER's picture

...President Trump was not supposed to happen either!

Andrew-Winter's picture

You lost me on the class warfare argument.

It is a pretty simple concept.     If the upper 20% are paying 95% of the federal revenue then giving them more money to spend will stimulate the economy.   At least that's the belief structure. 

Now if you believe that rich people stuff all their money into their matresses then this scenario won't work.   But, I don't know anybody who has money that doesn't spend it.   And, it is the spending of money that makes an economy grow.

If you want to talk scams talk about how congress has mutilated the theories of John Maynard Keynes.

These people actually believe there is no difference between government spending and private sector spending as far as calculating GDP goes.    There is the essentail scam.

So Mike Mulvaney, the director of the Office of Management and Budget, explained the progressive income tax system, (one of the ten points of the communist manifesto), that was foisted on Americans after have the constitution amended to allow it.    (note:  we weren't supposed to pay a per person taxt in America).

He is comparing his and some "her".   I believe this the interviewer was female.

"We have a progressive tax system, which means that if you make a million dollars and a make $50,000, we both pay the exact same rate on the first, let’s say, $20,000. And then from the next 20 up to my 50 — and her next 20 to her next 50 — we pay the same. I think it’s now… I know it’s 12% or 15%. I can’t remember what the brackets are, and then she goes on to make her higher rates and I stop, right? Well, if you want to give me in the middle class a cut you take my 15% rate say down to 10%, right? That gives a middle class a cut. Guess who else benefits from that? She does, because she pays the same rate on the way up the brackets. You can sit there and do nothing and lower the rates on the middle class and all other things being equal you’re gonna give the rich a tax cut."

So all this talk about this or that tax cut being "targetted" is just a bunch of crap anyway.    As Mulvaney explains, if the middle clasee gets a cut, then that part of, the much reviled "Rich Person's" taxes also get cut.   

Yes that is the beauty of it all.   The second point of the ten points of the Communist Manifesto by Karl Marx. 

2. A heavy progressive or graduated income tax

https://talk.collegeconfidential.com/parent-cafe-election-politics/10223...

 

Don't like government lying and cheating?   Quit supporting Maxist Communism.

We had to amend the constitution to allow this abortion of a tax system.    We could fix it all by erasing the  16th  amendment.   

https://en.wikipedia.org/wiki/Sixteenth_Amendment_to_the_United_States_C...

The corruption and the lying really got going after the 16th amendment.    That put way too much power into the hands of way too few people in Washington D.C.  That needs to end.

ElTerco's picture

"There's class warfare, all right, but it's my class, the rich class, that's making war, and we're winning."

-Warren Buffet

Warren is currently sitting on at least $100 Billion in unspent cash, so don't tell me the rich spend every cent.

all-priced-in's picture

When you listen to our dumb as dirt elected idiots talk - many seem to be saying all the money people earn is the governments and they are doing you a favor by letting you keep some of it.

 

I hate the way the term tax cut is used by many liberals - like it is doing some people a favor -

 

It is my fucking money to start with - you letting me keep more of it is not some special treatment. 

 

 

 

 

Andrew-Winter's picture

You lost me on the class warfare argument.

It is a pretty simple concept.     If the upper 20% are paying 95% of the federal revenue then giving them more money to spend will stimulate the economy.   At least that's the belief structure. 

Now if you believe that rich people stuff all their money into their matresses then this scenario won't work.   But, I don't know anybody who has money that doesn't spend it.   And, it is the spending of money that makes an economy grow.

If you want to talk scams talk about how congress has mutilated the theories of John Maynard Keynes.

These people actually believe there is no difference between government spending and private sector spending as far as calculating GDP goes.    There is the essentail scam.

So Mike Mulvaney, the director of the Office of Management and Budget, explained the progressive income tax system, (one of the ten points of the communist manifesto), that was foisted on Americans after have the constitution amended to allow it.    (note:  we weren't supposed to pay a per person tax in America).

He is comparing his income to some anonymous "her".   I believe this was the original interviewer.  Mulvaney says,

"We have a progressive tax system, which means that if you make a million dollars and (I) a make $50,000, we both pay the exact same rate on the first, let’s say, $20,000. And then from the next 20 up to my 50 — and her next 20 to her next 50 — we pay the same. I think it’s now… I know it’s 12% or 15%. I can’t remember what the brackets are, and then she goes on to make her higher rates and I stop, right? Well, if you want to give me in the middle class a cut you take my 15% rate say down to 10%, right? That gives a middle class a cut. Guess who else benefits from that? She does, because she pays the same rate on the way up the brackets. You can sit there and do nothing and lower the rates on the middle class and all other things being equal you’re gonna give the rich a tax cut."

Now that is a real scam.    For all of my 62 yrs I did not know that is how the "progressive" part of our income taxes were calculated.

So all this talk about this or that tax cut being "targetted" is just a bunch of crap anyway.    As Mulvaney explains, if the middle class gets a cut, then that bracket  of, the much reviled, "Rich Person's" taxes also get cut.   

Yes that is the beauty of it all.   The second point of the ten points of the Communist Manifesto by Karl Marx. 

2. A heavy progressive or graduated income tax

https://talk.collegeconfidential.com/parent-cafe-election-politics/10223...

 

Don't like government lying and cheating?   Quit supporting Maxist Communism.

We had to amend the constitution to allow this abortion of a tax system.    We could fix it all by erasing the 16th amendment.   

https://en.wikipedia.org/wiki/Sixteenth_Amendment_to_the_United_States_C...

The corruption and the lying really got going after the 16th amendment.    That put way too much power into the hands of way too few people in Washington D.C.  That needs to end.

ElTerco's picture

"There's class warfare, all right, but it's my class, the rich class, that's making war, and we're winning."

-Warren Buffet

Warren is currently sitting on at least $100 Billion in unspent cash, so don't tell me the rich spend every cent.

PitBullsRule's picture

This is a very good article.

But the bottom line is still that Trump can't pass this tax bill as it is written.

He's pissed off too many people.

Too bad for Trump, his kids are still going to get hit with the inheritance tax.

Warren Platts's picture

An easy way to pay for the tax cuts, and thus not increase the fiscal deficit, would be a 20% across-the-board tariff on all imports. It would have the added benefit of stimulating domestic production, and reduce the trade defict.

Singelguy's picture

That is a very over simplistic solution. Implementing a 20% trade tarriff will cause retaliation by other countries, hurting US exports. Take a look at Smoot Hawley in the 1930's. Same idea, which ended up prolonging the Drpression. In addition, consumers would be faced with higher prices. Retail is already struggling.

The best way to pay for tax cuts is to CUT THE DAMN SPENDING! Phase out all the corporate welfare, reduce the size of the military, close most of the 600+ military bases around the world, and divert that spending to infrastructure upgrades. In addition, eliminate most of the deductions and stop the double taxation of overseas profits. Finally, negotiate FAIR trade deals. If markets are closed to American made products than they should be prevented from selling their products in the USA. Even the playing field.

JailBanksters's picture

Tax Cuts are just a scam to transfer more money from the Poor to the Rich,

by making it appear you are getting more, But it's just a scam.

 

 

amadeus39's picture

Please explain to me why the rich would want to give money to the poor...the poor who only want to sit in front of the TV and watch cars going in circles, fake wrestling, children games played by adults while guzzling beer and stuffing crap into their mouths. The poor have never contributed significantly to a country's prosperity except as consumers of useless stuff. You give poor people money and all they will do is spend it on trash. They won't save it. They won't invest it. Giving them more money is a waste of time. They make me sick. I watched a bunch of fat females at an all you can eat buffet. What a food frenzy. Could barely get out of their chairs. Need to ban those buffets. For sure. they don't need more money. Revolting creatures. 

 

MrBoompi's picture

Even before Congress was allowed to pass a federal income tax, the super-rich had a plan to avoid paying most of it.  The rise in foundations and "charities", as well as every line in the enormous tax code, is there to benefit someone at the top.  And since this wasn't good enough, they had to develop ways to hide money offshore.  If you can afford to buy Congress, do you think they'll raise your taxes?  

roadhazard's picture

It was over when Trump gave it the kiss of death.

PitBullsRule's picture

If you expected anything else from Trump, you are a sucker.

Getting Old Sucks's picture

Yup.  The Reagan tax cuts were suppose to trickle down too.  What happened?  The rich took the money and ran. 

pitz's picture

Its not even 'overseas' cash in the sense that they portray it being.  The actual 'cash' is already invested in USD$ obligations mostly, including US treasury bills and similar.  So if a tax "holiday" is given, it just reduces the effective taxation rate, but doesn't actually change the amount of cash available to the US economy and US consumers.  Its a massive tax give-away to tax abusers.  Which is why Congress and Trump, who have to face small business owners and individuals in their communities, will ultimately reject it.