Taxes

White House Advisers Imagine Tax Cuts Will Send Wages Soaring

JM Ashby
Written by JM Ashby

The Treasury Department recently deleted an internal study from 2012 that found that employees and labor cover roughly 30 percent of the cost of corporate taxes. The Treasury under Secretary Steve Mnuchin deleted the study because it conflicted with their claim that labor actually covers 70 percent of the cost of corporate taxes.

It's the 70 percent lie that forms the basis of their next big lie.

Trump's economic advisers have now released their own study that says cutting the corporate tax rate will boost wages by a truly fantastical $4,000 per year

From the Wall Street Journal:

“There’s lots of evidence that wages respond to changes in corporate taxes,” Kevin Hassett, chairman of the White House Council of Economic Advisers, told reporters on Sunday.

“Based on the empirical record, the corporate tax can be counted on to boost profits, not wages,” said Jared Bernstein, a former economic adviser to Vice President Joe Biden. “The trickle-down chain from higher after-tax profits to more investment to faster productivity growth to U.S. workers’ paychecks may show up in CEA’s model, but it hasn’t been operative in the real world for decades.”

In this debate over whether or not empirical reality exists, it's clear who has Trump's ear.

That would be the same Laffer whose ravings virtually bankrupted the state of Kansas.

Trump and the GOP want to do the same to all 50 states.

  • Ellen Kuhlmann

    trickle down economics is the vampire of economics -almost impossible to kill, and even when you drive a stake through its heart, some conservative pulls the stake out and back to life it comes to suck the resources of the 99% for the benefit of the 1%

  • David Greenberg

    Is it really possible that over 60 million voters could be that dumb. Four or five years from now when they find themselves even worse off than they are now, some other right wing con man will feed them the same bull shit Trump has and they will happily follow him until they die and leave this country to people who will inevitably do better by it, if there is anything left.

  • Dread_Pirate_Mathius

    It baffles me that people believe this.

    I mean, not Trump.. who knows what he believes from minute to minute?

    But the man-on-the-street who actually believes that taxing his company less means they’re going to turn around and give him a raise. How the hell are people this naive?

    Trickle Down: “The principle that the poor, who must subsist on table scraps dropped by the rich, can best be served by giving the rich bigger meals.”

    https://economictranscript.files.wordpress.com/2016/12/stei101130_cmyk-11.jpg

    • Scopedog

      It’s a lie that has festered for nearly forty fucking years. Yet too many in the media still continue to push it, as does the GOP.

      Both Clinton and Obama showed that it was bullshit.

      • Tony Lavely

        And Kansas.

  • “There’s lots of evidence that wages respond to changes in corporate taxes,”

    But ONLY if the corporations CHOOSE to spend that money on their workers. But they DON’T do that. Duh.

  • Aynwrong

    Art Laffer. The living definition of Wingnut Welfare. More proof (as if it were in any way needed) that Trump’s alleged populism was never anything more than a painfully obvious sell job. His voters didn’t vote to Make America Great Again. They voted to give the wealthiest Americans the greatest most economically destructive windfall in American history.