Falling Taxes Doom the U.S. Economy

Falling-Taxes-Doom-the-U.S.-Economy

Taxes — a “four-letter word” for most people who bring home a paycheck.

But the reality is that taxes are also a measure of your prosperity. The more taxes you pay, the more income you bring home that year.

While I hate paying taxes, mainly because of the wasteful spending our government uses it for, I know that as I pay more taxes, I am making more money.

When compiled on a large scale, it is a sign of how strong the economy is as a whole.

As the government collects more taxes, it means our economy is growing.

As the government collects less taxes, our economy is shrinking — which is exactly what we are seeing now.

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Specifically, we’re seeing less corporate income taxes.

The U.S. economy is now in its fifth consecutive quarter of a corporate earnings recession.

That means income being paid to the government is in decline — the kind of decline that has preceded the past two recessions, and will likely precede the coming recession as well.

Not only are falling corporate income taxes leading to a recession, but they are also leaving the Fed with no choice but to keep rates at these extremely low levels — an environment that is set to remain for an increasingly long time.

Let me explain…

The Risk of Falling Taxes

Taxes are somewhat like the lifeblood of our economy. While our government may not use them efficiently, they are a clue as to how well our underlying economy is faring at the moment.

Right now, corporate taxes are in borderline recession territory, and, by the end of the year, they should clearly be there. Take a look:

Federal Government Corporate Tax Receipts

The red shaded bars represent the past two U.S. economic recessions. As you can see, corporate tax receipts have fallen in a similar fashion going into these recessions.

If the second and third quarters of this year come out with lower corporate income taxes, it’s likely the consumer won’t be strong enough to keep us out of a recession — an increasingly likely scenario.

We all know by now that it was the consumer who supported the economy in the second quarter. Even so, corporations continued to struggle, leading to yet another fall in corporate income tax.

But, as we claw through yet another earnings season of falling profits, it seems our corporate earnings recession may linger on until the end of the year. In other words, third-quarter tax receipts will also continue to fall.

If we chalk up a decline in tax receipts for the second and third quarters, the U.S. economy looks increasingly like the recession of 2000 on the chart, with a beeline for a 2008-type of recession.

Need for Unconventional Yield

This sluggish, recession-like economy is not one in which the Federal Reserve will be gung ho about raising interest rates. Rather, the Fed is likely to join the rest of the world in what has become a race to stimulate individual economies — be it with negative rates or ramped-up versions of quantitative easing.

In short, there is no end in sight for the decrepit interest-rate environment we are in. What that means is that your need for income from unconventional sources will not let up.

A few weeks ago, I mentioned three possible ETFs that were ripe for opportunity once they reached certain levels.

While we are not there yet, those three — the Utilities Select Sector SPDR (NYSE Arca: XLU, buy below $48.50), the SPDR Dow Jones REIT ETF (NYSE Arca: RWR, buy below $95) and the iShares Core High Dividend ETF (NYSE Arca: HDV, buy below $79) — have declined 3.8%, 2.1% and 0.88% since then, respectively.

So these ETFs are clearly reacting as I expected they would post-Fed meeting, as expectations for another interest-rate hike this year creep back into investors’ realm of possibilities.

Just give it a little more time, and these ETFs will fall into our buy range, allowing you to scoop them up and begin picking up strong dividend yields and share-price appreciation.

Regards,
Falling Taxes Doom Economy
Chad Shoop
Editor, Pure Income

  • Miles Southworth

    I don’t seem to have a copy of Profits Unlimited for March. Can I still get a printout of that issue?
    Miles

  • Thomas Corcoran

    …. it stimulates and increases business activity

  • George Pestik

    That is standard GOP dogma.

  • Thomas Corcoran

    …. and reality

  • duckusucker

    Good god, man, you must have been in a coma during 8 years of W. When you start in the deepest of holes, progress of any kind is wonderful— and we’ve had sure-and-steady growth, the sustainable and healthiest kind, during Obama’s golden era.
    No wars, no scandals, no cabinet convictions, no drama. Golden years.

  • Quartermaster

    No drama? You must have slept through the last 8 years. There was plenty of drama. There is plenty of drama now, all generated by leftists and Donks.

  • duckusucker

    Gulf War: drama.
    Afghan War: drama.
    Failure to respond to a hurricane: drama.
    President during 9/11: drama.
    Collapsed economy, worse since the Great Depression: drama.
    Nothing in any scale similar to any of these happened during the calm, peaceful years of Obama whose 8 years will always be seen as one of the best presidencies.
    Perspective is all, isn’t it?

  • Quartermaster

    Yep. You slept through the last 8 years.

  • duckusucker

    I can appreciate how you’d be struck dumb. Really, I can. Next up: why you believe a billionaire who’s made a career of defrauding folks and never given or demonstrated ANY concern for anyone but himself has fooled so many into believing he feels their pain.
    Say, you didn’t vote for W twice, did you? Just wondering the level of discourse you’re able to attain.

  • Quartermaster

    You’ve made a common libtard error. I said all that needed to be said, not all I could have said. Obama’s maladministration was full of drama. But, like the typical libtard, you confuse what you want with the facts.

  • duckusucker

    You said nothing. Obama: the Golden Years’ Man.
    Meanwhile, your man Trump continues to be the laughing stock of the world. Germany, England, France, Scandinavia (remember those terror attacks? Ha, ha!)— all the leaders of those nations can’t believe what a fool he is. Only a guy fooled by a fool is more foolish than the fool. How does it feel?

  • Quartermaster

    Sorry that you have no reading comprehension. Even Clinton’s maladministration, and he was pretty bad, had better times than The idiot Obama. And that was in spite of the repeated drama and scandals.
    Your last two sentences are best directed to yourself. Libtards are very good at lying to themselves.

  • duckusucker

    You’re pretty smart.
    For a dachshund.

  • Dean O.

    No scandals? no Drama? No convictions? Are you a complete idiot?

  • Dean O.

    Oh now i get it. You listen to CNN and their line of BS. Trump has been received very well in Europe except by the Muslim scum and liberal scum of these nations yet CNN and the rest of their Comrades are reporting (as they always do) the complete opposite, going so far as to edit film to show what they want you to believe. Keep drinking the Kool aid moron !

  • CSMOccupiedNorthernVA

    Silly. Taxation should follow the Laffer Curve. The available tax base varies and so should the rate of taxation–but the system isn’t that flexible.
    More importantly taxes are a poor means of shifting funding from one part of the economy to another because government always takes its cut and spends it irresponsibly. For example, why is there a 3% investment income tax buried in the ACA (Obmamacare) ? Not a penny of that money will ever go to healthcare.
    Here is an idea to improve government and the economy. No spending authorization/entitlement or otherwise should continue more than five years without renewal by Congress, Each spending item should have a sunset clause, and no tax shall be levied for a period of more than four years without sunset if Congress does not vote to renew it.

  • Phillip Charles Mejia

    No wars? Obama doubled down on Afghanistan, and the only reason he withdrew all but 5000 troops from Iraq was because the Iraqi government wanted troops to fall under Iraqi law, but Obama would have none of it, he obilerated Libya, made it into a failed state ruled by warlords, and has been arming and training ISIS fighters trying to overthrow Syria’s Bashar al Assad. It is ******** that few believe that the US has been fighting ISIS, it has in fact been providing ISIS with valuable air cover. As far as scandals go, what about Operation Fast and Furious, where the US let guns “walk” into Mexico where they were used by the drug cartels? The Congress was investigating this stupidity when Obama withheld vital evidence, saying it was a matter of “national security.” Must be living under a rock not to know this.

  • Phillip Charles Mejia

    The reason why Trump is president is because the voters knew that if Hillary was at the Helm they would have another Clinton-Obama presidency, where they whisper sweet nothings in our ears as candidates, but once safely esconced in office, do what their Sponsors tell them to do.

  • duckusucker

    You appear not to know what war is. It is not a limited troop deployment of a few thousand, my friend. And Obama inherited both messes, made infinitely worse by your man, W, and his attempt to nation-make in Iraq. I won’t reply to the ridiculous claims we helped ISIS. Next, you’ll claim OBL still is alive, having coffee with Elvis. F&F fully was investigated and it was a failed mission, as many are. Only the wildest of conspiracies go there and only the deepest divers into the hottest part of the swamp believe it was anything but. When there is NO evidence, believing what heavy drug users like Rush and Beck tell you isn’t really wise.

  • duckusucker

    There was no drama under Obama, just high farce as Republicans investigated everything but his choice of deodorant, spent gazillions on hearings, and came up with nothing but a massive spending bill to fund it. BTW, Dennis Hastert, leader of the Republican congressional delegation a few years ago, is up for parole I believe on his child sexual assault convictions. He makes that sleaze ball who also was lead Republican, Newt Gingrich, look like a choir boy, “The House voted overwhelmingly yesterday to reprimand House Speaker Newt Gingrich (R-Ga.) and order him to pay an unprecedented $300,000 penalty, the first time in the House’s 208-year history it has disciplined a speaker for ethical wrongdoing.: wp.com

  • Quartermaster

    The Obama maladminstration was wall to wall drama. When things started to get quiet, he, or one of his clownish minions, would manufacture more. I agree that Hastert was a sleaze ball. Gingrich was anything but. The ethical charges against him were manufactured and ridiculous. My observation during my entire adult life is that the left does what it wants, no matter how illegal, and then screams bloody murder at everyone else’s sins.

    WaPo, like every leftist rag, isn’t worth the paper it’s printed on. About like libtard opinions.

  • Michael Sheehan

    The Laffer Curve is a joke that no quality economist follows

  • Dudley Twimp

    When corporations doing big business in the USA can amass hundreds of billions of untaxed dollars in offshore tax havens, something has gone horribly wrong.

  • jringo55

    I’m retired from my first career. I was only 48. I decided to take on on another job but I soon discovered that I was working for peanuts and paying extra taxes because my income was increased. My employer and the govt were the ones gaining from the fruits of my labor. So I quit and live a very modest lifestyle. I’m not going to feed GREED and govt waste. I pay my taxes but I pay far less.

  • SuperTech86

    LMAO…the laffer curve

  • SuperTech86

    Actually it was the Maliki government that walked away from the talks and not Obama, the U.S has been arming and training radical Isalamist’s since the Eisenhower admin in the early 1950’s which is when the U.S relationship with the Muslim Brotherhood was established and Operation Fast and Furious which preceded Operation Wide Receiver was part of Project Gunrunner which started under the Bush admin it’s literally right on the ATF’s website. The practice of gun walking started under Bush and was continued under Obama.

  • Not taxing the richest Americans at exactly the same rate as ordinary middle class Americans is going to bankrupt us all.

  • INGLORIOUSBASTARD

    They’ve admitted Obamacare is a tax. Okay you love it so much, you keep it. But let those of us who can, Write It Off as an expense… with none of todays bs of only if 10% higher than your income.

  • INGLORIOUSBASTARD

    A person can be very rich , yet if he invests, which creates jobs, then he only pays tax on the money he’s sitting on doing nothing. That’s how rich get away without paying taxes. But remember…they are creating jobs for ordinary people. Oh, sure lets have the government take their profits and use them how THEY feel they should be used… can you spell socialism ? I own a small business, and I too can re-invest in my business to avoid paying tax. So if you change the law it affects everyone. I believe the only fair way to do it is have a flat tax that is proven fair. But now you open a new can of worms and that is reining in government spending so that a “fair” tax is enough to run government. Yes, programs would have to be cut… that will work itself out in time. I’m sure you wouldn’t mind donating to the homeless for a while… right ?

  • INGLORIOUSBASTARD

    OMG where do you get your fake news…. WOW !

  • INGLORIOUSBASTARD

    BAAAAA HA HA HA HA HA .. peaceful… tell that to the thousands who died fighting Obamas cousins in the mid-east.

  • Bob Person

    If you want more money to come in, you lower tax rate. This is a formula that has been proven throughout history; but, most people misunderstand this as a counterintuitive misnomer. Again, lower tax rates = more money, period.

  • brycenesbittt

    $100 to you is a lot less money than $100 to a coal miner. Flat tax is an oversimplification. Try instead a tilted tax: just as simple to calculate but recognizing that having money gives you the means to make money, and you can shoulder more of the tax burden.

  • jrj90620

    The cost of $10 trillion in debt made Obama look better but left the debt to be paid for later.Anyone could borrow a lot of money and look good in the present,if ignoring the future debt to be paid.

  • saltydogalan

    Can you document this claim? Sounds like the same old “trickle down” theory that has never worked in the past but is fundamental to Republican economic belief. We’ll see how well it works this time when our entire economy is beggered.

  • Bob Person

    Thank you; yes, it is important to stick with facts because I do not favor SPIN. A quick Google search will deliver many historical periods of this fact that cutting taxes yields more revenue to government, but here is one just-the-facts article that came up when I searched “historical tax cuts”, http://www.heritage.org/node/18247/print-display . However, I do not necessarily consider the Trump Tax Plan to be of the same merit as those referenced in the link. Thanks.

  • Mike

    always seems to short term resulting in a tax increase and recession.. true growth can only be sustained when consumers have enough disposable income to stimulate the economy with spending..companies expand, hire to keep up with demands…just handing corporations $$ wont stimulate any long term healthy growth. no reason for corps. to spend, expand without potential increase in revenues, sales etc. theyll just reward CEO, stockholders…

  • Bob Person

    Very good point. Our Tax Payor system seems to favor the whole “Corporate” persona, and most “persons” do not realize their inherent corporate nature within the code, but I digress.

  • Jeffrey Mark

    Every single day people put their money in the banks to earn .00001% back annually.. ANNUALLY! And you people think .90% daily is unsustainable? Bitcoin is going to be $27,500 per by Feb. 1st 2018.. Bit-connect is making hand over fist in revenue from the exchange and the rise of their own token alone.. Cryptocurrency is the future so I suggest any bussiness minded person, newbie or beginner in crypto currency should contact Mr Jesse Liam via ( jesseeliam44 @ gmail . com ) for his Auto-Trader software because it has made me thousands of dollar in just 3 weeks. Its free

  • Jim Brown

    We will never ‘pay-off’ the debt. We pay interest on the debt. Granted we have too much debt and were actually paying it down under Clinton. Then came the Bush tax cuts and we went right back to running deficits which add to the debt. We need to close some loop hgoles, no government interference in business. Eliminate all corporate welfare. Let the free market economy determine prices, winners and losers. No more oil depletion allowance, no more accelerated depreciation, investment tax credits, etc. No more price supports.

  • mdeare

    Will this tax bill cause the interest rate to go up when the U.S. government borrows more money?

  • Willy Friar

    Lower taxes collected by a central government=less money period. The only way the government can get more money under a lower tax scheme is if the growth rate exceeds what is was before lowering taxes. What was proven in history is that after Reagan lowered tax rates there was a short spike in growth and then it went downhill so he had to increase the rates again. Throughout history lower tax rates just increased the monetary gap between rich and poor.

  • Willy Friar

    It is the same ********! The politicians throw a bone to the peons while the rich get yet another undeserved tax break and/or tax avoidance scheme.

  • Willy Friar

    Exactly right! Obama helped bail out banks and gave them money to lend out to people but instead the higher ups just received bigger bonus money for doing nothing. All this happens under the diversionary tactic by the rich to get the peons to blame the poor for being lazy and just sitting back collecting money for free. No matter how much the truly lazy person bilks the government that whole group wont come close to what the rich get in handouts. Don’t hate the poor! Don’t hate the low-life lazy ones either unless you hate the politicians and the rich because they all play our capitalist game just using different angles.

  • floodruckus

    I’m a small business owner and employee over 20 people and I’m looking forward to be able to give my employees a raise and use the less paid in taxes to expand my business to other cities. By paying less taxes allows me to employee more people and spend more cash to make more. It’s the middle class that’s benifet from paying less in tax. The rich pay nothing and will always pay very little. Taxes are used to control the middle classes power. The less middle class pays the more power it creates. The strongest country in this world is the country with the biggest middle class.

  • chuckkel

    Art Laffer proved that the concept of lowering tax rates will increase tax revenue as it did during the Ronald Reagan. He recently said that the Trump tax reform is many times more powerful than Reagans.

  • INGLORIOUSBASTARD

    The tax system was never intended to become what it is today. for “Individuals” taxation was “voluntary” due to war time need. To tax a man on his “income” should still be against the law. Taxing the corporations and imports should suffice and if not, government programs needs to be cut.

  • INGLORIOUSBASTARD

    Curious… what $ figure do you use when you consider a person or corporation “rich” ?

  • Right View

    We must push Congress
    to pass flat tax at 20%.
    The old rate of 35% was
    just to Fool the people,
    because after deductions &
    Loopholes many end up
    Paying from zero to 10%

  • Oh yeah, socialism is terrible especially when it’s for the super rich. What we have now is socialism for the super rich elitists (who just gave themselves and their cronies a big tax break) and super poor and dog eat dog predator capitalism for everyone else.

  • duanermazeska

    We are sitting on a 21 Trillion dollar debt and yet the stock market goes higher. Seems to me that we are on a speculative rally to an eventual top.Cutting revenues with the tax reform bill creates more debt. Cutting the revenues creates more debt and slows down growth! We need to raise revenues and cut spending. Tax reform bill is a stop gap measure to hopefully create temporary one time growth. This is an over bought market with high evaluations. Further rallies should result in profit taking as caution is warranted on further higher prices If we were cutting down our debt it would signify a buy signal. Good trading all!

  • Good trading all! humm should we be selling?

  • Ed Stein

    sounds good if rich put extra money into building up businesses that hire US workers. But suppose the extra money is sent out to investments in China or South Korea where they can get way over bigger dividends than here?

  • INGLORIOUSBASTARD

    Trump wants to tax the crap out of import goods that were once made here in the US but the Dems and Rinos are blocking that as well.

  • INGLORIOUSBASTARD

    The only way you be get to “super poor” in this country is by using all that welfare money for drugs and alcohol. The only way to fix that is to adopt policies that keep these people from procreating. But the Dems keep shoveling money at them because its the only way they can get elected.

  • INGLORIOUSBASTARD

    No no no.. Flat tax as in fixed percentage of “gross” income. Say 5 %. So I pay 5000 and the million $ a year guy pays 50000. Thats “fair” and based on personal income with no deductions/loopholes at all. Income from money invested overseas gets taxed at 10%. That keeps it here in our country. Try to avoid that by moving out … Expatriots pay 40 % on any imports to the US. Any extra money neede to run the government can come from raising tarrifs .

  • eSage

    Nope, sorry, The Laffer Curve only works over a very narrow portion under ideal conditions. If anyone follows that curve in the real world, they will go bankrupt. And that includes cities, counties, states, and countries. See the destruction of Kansas’s economy as what happens when the curve is pushed too far.

  • eSage

    Spend more to make more and you’re still in business? The major fallacy with your statement is the other half you seem to be ignoring. Oh, spending more means you got the supply side covered. But who’s going to use your “product” if there’s no demand? Does the demand for your product currently exceed how much you can make? If so, you’ll see a small increase. But, like those people who win the lottery, the expectation typically far exceeds the reality. And if you don’t have that demand, you’re just throwing your money away.

  • Harry Skip Robinson

    Are you talking about just the income taxes, because other taxes like property taxes they pay much more. A $10 million home in Palm Beach pays about $500,000 a year in just property taxes. When you earn money from their work, they also pay much higher tax rates. It’s when the invest that money they have already paid taxes on it, that if the make a profit they only have to pay the 15% capital gains tax.

  • Ram Barlev

    As far I as know we have a low birth rate in the US. Without young immigrants or DACA kids, good luck selling your house in the future. No buyers !!

  • Ram Barlev

    and it’s capitalism for the poor. As I hear or read somewhere: Socialism is what I need. Capitalism is what I want.

  • Ram Barlev

    We have the best healthcare in the world if you can afford it.

  • If you reap benefits from our socialistic society then should help shoulder the burden of its survival. Other than that you are a burden not an asset.

  • Sounds like the tax scam passed is the same song. “Fool the masses and steal the loot”. “CROOKS IN SUITS”

  • We are dealing with crooks here, their intentions are pure evil

  • Mike

    lmao…giving $$ to the wealthy isn’t the same socialism as giving money to the poor…regardless of the fact people are poor because of the greed and mismanagments of the wealthy

  • INGLORIOUSBASTARD

    I’ve seen the stats on illegal birth rates. For Those who work for a living, having children is too expensive. But you are correct in that there are other social issues pushed on our young through this liberal leftist edu. system we’ve let flourish. When we have good jobs , low taxes and a morally heathy society, we’ll see babyboom growth again. It will take at least 3 generations to cull the gimmie gimmie crowd thin enough.

  • INGLORIOUSBASTARD

    Trump offered the dems citizenship for dreamers in exchange for the wall. Dems turned him down because they’d lose all those voters. I think it will come back to bite em in the hinee.

  • INGLORIOUSBASTARD

    The product is toilets.. Increased income means more building … and all buildings need toilets. Of course if we all sit around hitting the pipe like you and feeling as if the world is coming to an end your world is doomed to end just as youve predicted.

  • INGLORIOUSBASTARD

    If you sit on your hands long enough…. All of your negative imaginings will come true. Take some risk !

  • INGLORIOUSBASTARD

    You mean make those dasterds work for a change ? Cool !

  • INGLORIOUSBASTARD

    Mr. Negativity … Vote dem Ill bet

  • INGLORIOUSBASTARD

    Tarriffs!

  • INGLORIOUSBASTARD

    Surely you gest.

  • INGLORIOUSBASTARD

    Wow… I thought he was kidding. Got any of those straight jackets left lying around?

  • eSage

    So you can say your flushed with success. Got it!

  • eSage

    If it’s negative to point out historical facts and figures, then I guess I am. But I’d rather deal in the facts of the real world than the flights of fantasy of the conservative right.

  • PL RTZ

    Wow what a nay sayer, history is full of those who say it can’t be done and those who rose the the challenge and did it anyway. Sounds like you are in the former camp on this one. If a business owner tells you he plans to expand his business (i.e. Invest), why second guess the man, he’s doing what he believes is the correct move. Let’s all cheer him on!

  • eSage

    Not a nay sayer, actually, just practical. Without demand, it doesn’t matter how big you make your company. If you can’t afford the expansion with added sales, you’re going to go broke. The business area is filled with companies that have gone under simply because they expanded too much too fast. You must support the growth with a corresponding increase in demand. Fortunately for floodruckus, there will always be a demand for crappers.

  • johnkc

    Show me how the majority of immigrants can afford to buy my house. I don’t mind immigrants, it is the ones that come here illegally that most of us hate.

  • johnkc

    Would you hire someone that only spoke ebonics?

  • johnkc

    Face it, the stock market is nothing more than a ponzie scheme. If the ones below you sell, you are left holding an empty bag.

  • JAM661

    Actually it ***** because insurance companies are dictating your care. You may need surgery but the insurance company says no then it’s not going to happen. Again it’s not about health care it’s about profits

  • JAM661

    Oh please! I guess your answer is to let people stave. People like you have no clue what it is like to be homeless or to be poor. The more money you have the easier it is to make it. When trying to live on $10.00 hour check you have no opportunity to save thus you never have the funds to get better opportunities. Money buys opportunities even though some should be just plain humanitarian rights.

  • JAM661

    Who do you think pick the fruit you eat? Illegals (and when the farmers cannot get illegals to work for them there field rots because no American is going to work sun up to sun down for $100.00 a day. Who works in the slaughtering plants most of us would not last one hour in? Illegals We are now deporting Veterans and have lived hear for 30 years for being illegal. Since only about 3% of the country ever serve in the Military deporting those who are willing and have fought for our country even though they are not “legal” is a crock and people like you help spread the hate that make these people who are under no obligation to serve but do so because they love the country more then you ever will but because they do not have that special paperwork and Trump has gone against American promises to these people many are being ship someplace they have never lived or even know much about. That is a great way to show respect to Veterans. PS those who served see these people as brother and sister because they covered our back when the fight was on but now our country says thank them by kicking them out the door.

  • JoAnn Stephens

    Oh, you mean the wall that Mexico was paying for?

  • JoAnn Stephens

    You mean from the same places that he and his hypocritical daughter have all their products made?

  • INGLORIOUSBASTARD

    The wall goes up and US dollars will stay in the US. Yes… Mexico WILL pay for it one way or another.

  • INGLORIOUSBASTARD

    You don’t know me or where I came from… You think I’ve never been hungry and sleeping in the backseat of a broke down car and be the wrong color to qualify for welfare ? Here’s the difference between me and your poor poor poor people. I had dig my way out of that rut on my own and know what it takes to climb the stinking ladder. You think everything has to be handed to people….. that’s where you’re dead wrong and 60 years and trillions in welfare with nothing to show for it but more welfare recipients is the proof ! Being cold and hungry is a much better motivator than “here’s your free stuff” see you next week !

  • INGLORIOUSBASTARD

    A short term downswing is predictable. Your thinking is textbook Leftist Lib thinking being taught by leftist professors at Leftist schools such as the one you attend. Which business do you think would be dumb enough to go all in just because they see a small tax break in their state ? All they’ve (Kansas) has done is baited a hook, the fish have to find it and decide whether to bite or not… Your short term government statistics which were gathered for the purpose of negative news is not enough to predict when the up turn will take place from collecting less taxes.

  • JoAnn Stephens

    you’re delusional if you believe this. Oh and BTW, illegals can’t vote for dems.

  • Art Weaver

    The problem most don’t understand is twofold. One is that if you tripled the taxes on the top five percent of earnings both corporate and personal, and have the taxes on all the rest, the 95% would still be paying ten times the taxes of the top five percent!
    Two, under our current system we are in fact the most taxed nation on Earth. For example, a guy owns an iron mine. He did it up and sells it. Government takes a 5% tax. The guy increases his price for iron by that five percent and so passes the tax onward.
    A guy buys the iron, makes steel and sells it.
    He’s taxed 5% and passes it onward by raising his price.
    This continues until you buy your car. Which by this point 75% of it’s price, or more, consists of the taxes that were passed onward…..

  • eSage

    No, a reduction in taxes will create a short term upswing. That makes Republicans look good and makes people think they know what they’re doing. But they usually go too far, and the cut isn’t sustainable. Then additional monies have to be collected to offset the prior lost revenue which means they end up with less money overall. Even Trump admits the economy does better under Democratic control then under Republican mandates (https://www.forbes.com/sites/realspin/2016/11/07/trump-is-right-about-one-thing-the-economy-does-better-under-the-democrats/#3a9daa5b6786.)

    Second, your comment about companies being “dumb” enough to grow too fast shows a painfully ignorant view of the true business atmosphere. I’ll let this Fortune Magazine article (http://fortune.com/2016/03/07/fast-growth-companies-fail/) speak for itself:

    [cite]The Kauffman Foundation and Inc. Magazine conducted a follow-up study
    of companies five to eight years after they had appeared on the
    magazine’s list of the 5,000 fastest-growing companies. What they found
    was startling: about two-thirds of the companies that made the list had
    shrunk in size, gone out of business, or been disadvantageously sold.[/cite]

    You see, the problem with all those leftist lib thinking professors is that they don’t have any imagination. They observe the reality of the situation and draw their conclusions from that reality rather than trying to make up stuff.

  • williamburget

    Trump Troll!! You have no idea about America. Get out.

  • williamburget

    how much is trump paying u.

  • Jack W Read

    Right on—insurance companies own the hosptals and dictate almost everything they do—UPMC just merged with Medicor, a company they just decided to share a settlement with of some 21 million or trying to lock up patint hospiyal use and boost their take from Medicare

  • Brent Lagesse

    Because Americans won’t do these jobs… for bad pay. Illegals drive down working class wages in this way. By the way, before you about some socialist b.s., I work for 10.50 an hour. I am 22 and have saved enough money to look at investing. Capitalism works if people make responsible decisions. Take your socialist idiocy down to Venezuela.

  • johnkc

    We can agree to disagree. When a country does not protect its borders, it is not a country. Our ancestors came to this country legally, not sneaking in under cover of darkness. So what that the prices of some things go up in order to pay a fair wage that all AMERICANS deserve.

  • spash

    Au contraire, Dems support Planned Parenthood, which has counseling programs. They do a lot more than only helping the poor terminate unwanted pregnancies.

  • spash

    Absolutely! INGLORIOUSBASTARD, “If you reap benefits from our socialistic society then should help shoulder the burden of its survival.” And who reaps the most benefits from our society? The big corporations and the wealthy, especially the upper 1%. It is the big corporations and the wealthy who benefit most from our infrastructure, for example, from the streets and roads and bridges and police protections. These very same corporations and chiefs mining the dollars of the people they employ. So Yes, the big corporations and the wealthy SHOULD shoulder the burden of our society’s survival. Your reasoning is, in fact, the very rationale put forward for a graduated income tax such as we had under Lyndon Johnson, with the rich and wealthy institutions paying a truer fair share. Of course they still had their tax loopholes…

  • spash

    Yes, floodruckus, and our middle class has been shrinking since Reagan days. Sad.

  • spash

    Obama was supporting the Kurds in Syria, not ISIS.

  • James Seidel

    So I need to do what with this information? Feed the pig all of my family’s food? That would just get a bigger pig that needs more food?

  • Ron Zsembik

    Waste in government is beyond your fondest dreams. They need to do more with less. Start first with cutting their big pensions and perks and their special health care; now top it off with term limits so they must get a real job.

  • Dorseyclan

    Yes, they are a voting block they depend on. Its about power for democrat’s, they could care less for the block of people its self. Take DACA for instance, Trump proposed amnesty for over a million but Schumer backed away from any settlement, Trump would get the credit!

  • Dorseyclan

    INGLORIOUSBASTARD, I agree! With a flat tax or fair tax, EVERYONE would have a vested interest in how our government spends their money! It would also do away with SPECIAL INTEREST filling the pockets of our public servants, making all of them Elites, when this has never been the design of our Founding Fathers.

  • Dorseyclan

    If we had a flat tax or a fair tax for ALL Americans and corporations, without loop holes and special interest, the one rate could be quite low and we could save on the reduction of the IRS.

  • Dorseyclan

    I agree that I would have rather seen a fair or flat tax with no loop holes and no special interest. I still think the tax reduction will stimulate the economy and add jobs. The real threat to our economy comes from not addressing the deficit of 20 trillion dollars plus! Obama stated early in his first term, that it would be unscrupulous to spend money we do not have on the back of our children, then he spent more than all the presidents combined! Why do you think silver and gold had such a good run? People were tring to protect some of the wealth while O was spending and printing more out of thin air! We Have to form a plan to pay this off NOW, if it isn’t too late to do so or our and our children’s way of life may look a lot different!

  • Dorseyclan

    Yes and no more special interest filling the pockets of our elected representative and no loop holes and complicated tax code.

  • Angel Simms

    I new this was going to happen, I might be on right, for lot stuff are country, but real soft for country. But this it we all need fight on this issues. I believe he wanting to be President for his own money, he wanting to have all the money, all cares about his self. We all should had listen to what Ca. said to watch out. I only vote for him, because I wanting save Republican Party, had no choice, and wanting TED Cruz. Hope does run 2020.

  • Too bad we can’t keep degenerates like you from procreating.

  • INGLORIOUSBASTARD

    Ha ! What an idiot….

  • INGLORIOUSBASTARD

    The liberal main stream media says we hate…. I don’t hate them for trying to get here for a better life. I would do the same. But we have immigration laws for a good reason.

  • INGLORIOUSBASTARD

    Whats the matter they cutting your welfare check boy.

  • INGLORIOUSBASTARD

    Little minds type littlle sentences.

  • INGLORIOUSBASTARD

    Better than being built on a pile of lies from leftist con artists.

  • INGLORIOUSBASTARD

    Ever heard of the dot com bust ? Perfect example of growing too fast. Of course that all went down under Clinton so they don’t teach it in the liberal classrooms. Everything is peachy when libz are in power.

  • INGLORIOUSBASTARD

    No wars ? Where were you? No scandals ? Huh ? Um… Mrs Clinton may yet see prison bars.

  • Steve Konrad

    From what I can tell you are saying that about most of core America,what kind of a scumbag are you ? It’s fools like you that will force a conflict in blood the likes of which you in your historical ignorance never thought possible.

  • eSage

    That’s true, though there aren’t too many of those compared to what comes from the right.

  • eSage

    On the contrary, it’s taught quite regularly. The dot com bust was a classic example of money being shoveled into the new so-called “Digital Era” by private investors. Everyone was after the “next big score.” But I fail to see how you can blame the Dems (or Reps) for this. The actions were taken entirely by private investors against privately owned companies. As Republicans would say, it’s capitalization at it’s best. Or worst, in this case. And it’s a perfect example of the failure of the Laffer Curve. Growth money was provided without a corresponding growth in demand. It was definitely not a case of “Build it and they will come.”

  • Kate Demarest

    dear sir-
    some of your ideas make good sense; initially I distrusted the flat tax idea as it was proposed by people whose ideas in general I disagree with, however, upon further investigation I agree. The wall, I find, UPON CAREFUL INVESTIGATION AND SHUT YOUR MOUTH OPEN YOUR MIND TYPE RATIONAL CONSIDERATION, is not only an expensive idiocy (and for those supposedly concerned with profligate government spending, should be a thumbs down no-brainer) the idea itself is the child of the most disturbing shadow to fall upon US politics since the Iran Contra affair (in which it was discovered and confirmed that certain US government entities had imported and sold cocaine to our own citizens in order to fund a war that Congress rightly refused to fund in order to subvert our own constitution which requires acts of war to be ratified by Congress who also then decides what funds can be allocated to support it. This was done specifically to prevent any MONARCH (or dictator if you wish or even small group with overarching will to singular power for their own gains contrary to the collective good of the nation as a whole) from bankrupting a nation with constant, expensive conflagration here there and everywhere. It is my personal opinion that if anyone bothered to look into the Somoza dictatorship that we supported thanks to the corruption of the also unconstitutional CIA which Democrat and former Klansman Harry Truman failed to dissolve after WW2 and the much lauded Eisenhower (why? for his golf prowess?) also did nothing about except to warn us of the danger of the military industrial complex–his words not mine–thanks when it was already too late but I digress Somoza was disgusting Congress was right not support the Contras and if you are unfamiliar with the details of former CIA director George Bush’s involvement as lead architect of Iran-Contra or what that was and what it has done to this country and what happened to the journalist who broke the story you need to break up with the Kardashians now and grow a brain and feed it too. Back to the wall? OK. If you are following the news concerning the Bannon/Trump/Russia/Facebook data gusher and the company involved in manipulating our presidential election, the fact that they have been throwing elections in small countries for ages, and the whistleblower who wasn’t concerned about any of it until our “election” slapped him awake, you need to break up with the Real Housewives of Wherever and … you know the rest. The Wall is something concocted by this group led by some very disturbing US billionaires ( that’s right, ever wondered what you would do with that much money? Here’s one of the answers all laid out for you and it isn’t nice at all) as a way to pitch a certain campaign in a certain way to specific people, millions upon millions of specific people this group knows everything about, EVERYTHING. So, this Wall is nothing but a political consrtruct designed to make you vote a certain way. It was not ever a serious solution to any issue of soluble borders. It was never researched as to price tag much less price vs. effectiveness. It was and is part of the true “fake news” machinery brought to you by the very man who invented both the artifice and the name itself. Steve Bannon coined the term “fake news” as well he ought since he is it’s most prodigious adept. Please, please, people, look carefully, think hard, check sources, be wise. Evil, unfortunately, is an epidemic that infects Democrat, Republican, Conservative, LIberal, Wall Street, Skid Row, it does not distinguish. If you think Rush Limbaugh cares about Democracy? He does not. He cares about nothing but his financial statement. Do you think Fox gives you news? There is a reason it’s called Fox Entertainment by COURT ORDER. And even the courts are failing us, fellow Americans, if you didn’t notice it split down party lines over the recount vote in the also fraudulent Bush v. Gore election. Which by the way was when we lost our chance to do anything to slow global warming and buy ourselves time to operate in our own best interest. I am deeply offended by Trump tweets like the one about how with these extreme winter storms “we could use a little of that good old global warming” when the BASIC ELEMENTARY FACT is that they are CAUSED by global warming reducing the size of the polar ice caps.
    Still with me? Awesome. ?You have an attention span longer than .03 milliseconds. In conclusion, I have this to say. NO, America does NOT have the best medical care, even could you afford it. I have lived in Germany and Spain and used their health systems and they were SUPERB. ?Yes, better than here. My friends there paid about the same 20% of their wages I used to in taxes (single, no dependents) but got healthcare AND university out of it, AND unemployment insurance AND housing aid and so on. It’s called Social Democracy and we have it too but ours does not work as well partly, I think, because our two party system does not work f because it isn’t able to represent the actual panoply of public opinion and further seems prone to extreme corruption. I believe in a flat tax, yes. I also think we are overdue for a system modification where the far right and far left and everyone in between have the right to be represented by their own chosen candidates should they manage to win the popular vote in their district speaking of which I support the abolition of the electoral college because a democracy is run by officials elected by popular vote or it is NOT A DEMOCRACY. So by that token I would say we do not live in a Democracy, Social or otherwise. Going back to medicine the problem with Insurance Companies control of our medical institutions it is much worse than previously noted here as it has left no aspect unsullied and starts not from the ground up but even BEFORE in that large insurance companies own land speculation companies who invest in property they think will be profitable for a future hospital which the insurance companies buy then develop with their own fully owned subsidiary contracting companies insured by themselves of course then the hospital they own and insure is staffed with personnel of their own choosing who are of course also insured by them. In this way, they have endeavored to make what should be humanitarian and scientific and only secondarily profitable into a profit driven business model in which actual human health and welfare is only incidental on a purely by chance basis. I know this because I worked for the real estate investment arm of a huge insurance company accidentally through a temp agency and boy was that an eye opener. And a tough one, morally, because while I hated what this company was doing and what that meant, I loved my co workers and my immediate boss, they were great, and the company treated me well as an employee when I went from temp to real. I have NO IDEA what the solution to this situation is. I would love to eliminate the stranglehold of insurance over medicine. I would never want to take away anybody’s job. What to do? I am no way smart enough to even have the ghost of a clue.
    And lastly (hurrah!) how anyone can think that welfare is ruining our fair land is beyond me. in the big pie graph of where your precious tax money actually goes, so called welfare, and that includes unemployment, foodstamps, HUD, the whole 9 yards (one thousand dollar fake check to anyone who correctly posts the origin of that phrase and what it originally referenced–it’s so unexpected & kinda hilarious) is such a teeny tiny wee slice, while military spending is blindingly huge and well known to be horribly corrupt, yet I never see ANYONE wailing and gnashing their teeth over $500 toilet seats and the same bill resubmitted and paid many times over to the tune of billions and billions in losses from fraud…WHY IS THAT? HMMM? I am serious. Do explain to me how it is that your ability to see where the money goes isn’t completely occluded by your own um, sphincter, as it were. And why is nobody asking what happened to the money that used to go to the USDA meat inspectors now that the meat industry is self regulated and how it is that you are not saying a word about the entirely new and really scary organisms that are colonizing our rivers (oh yeah, “Life will find a way” alright and its not always your friend) thanks to the self regulated pork industry’s failure to self regulate pigshit oh and enjoy your healthy bone broth now that nobody checks for mad cow nor regulates the disposal of sick animals and the prions that cause this are not phased by heat, live on indefinitely in the environment where an infected carcase is buried or even burned and can do its protein malfolding magic in any animal that eats ANYTHING that its on or in like say grass or water and the ONLY way to deal with these things is by pressure cooking in lye which is actually a really good way to neutralize a lot of dangerous waste products but since there is no longer anyone testing your meat—dont believe me? Ask a truck driver about how their job has changed if you can find one who has lived long enough or was working during the 2nd Bush administration when that changed, and nobody overseeing disposal of contagious waste now either. But by all means, do go on about the injustice of the fact some poor people are also corrupt and get benefits they don’t deserve, if you are so hopelessly wrong you think that is the major evil of our times.

  • Kate Demarest

    hi brent. just curious. when minimum wage was 7 plus change, did you make that or your 10.50? not being snarky, am curious. Also, what is your housing situation? Education– I guess what I mean is, do you have loan debt to consider and lastly, 10.50 can be great money if its entry level money in a company that also gives you insurance, 401k matching or even 401k at all, education perks etc.or if minimum is 7. Know what I mean? To say you work for 10.50 hourly and then launch a rant is essentially meaningless. The devil is in the details as they say. Also why be so heartless? people dont choose where they are born, and Venezuelan workers are literally passing out from hunger on the job. I wouldn’t wish that on anyone, nor would I feel any fierce pride in my own resourcefulness in not being a starving person in a sadly misgoverned country.

  • INGLORIOUSBASTARD

    What an idiot. Just a tiny bit of common sense is all it takes to figure out where lobs really come from. Leftists like you don’t care about that though… You just want your free stuff from the gubmint. Yes.. I want you to be so hungry you are begging for any job you can get.

  • INGLORIOUSBASTARD

    I know 18 yo girls who’ve had 6 abortions all paid for with my tax money. They should have been sterilized after the first one.

  • INGLORIOUSBASTARD

    Birth rate is down because of lack of good jobs.

  • INGLORIOUSBASTARD

    Your proof ? A book written by a hater of white men ? Give up.. Get a job .

  • David McClintock

    Paid propaganda.

    Tax money goes to pay interest on the 21 trillion dollar national debt. The rest goes to war and death. Nothing goes to your local community. Nothing.

    Take a look at this articles writer and you will find he was paid or is connected to the tax industry in some way shape or form.

    This is just more paid for journalism.

  • kingwarren

    The idea that paying taxes is good so the government can spend the money poorly doesn’t make sense to me. That idea if not crazy is at least stupid.