pafret Loc: Northeast

Absolutely correct. Demand and only demand drives expansion and job creation. How many businesses have you seen start up which failed within a year? Sometimes it was caused by undercapitalization but most often the customer based demand anticipated, just wasn't there. This is one of the chief reasons to get rid of our illegal invaders, the money they earn is remitted in most part to other countries and does nothing to stiulate demand in the local economy.

Increased profits will be paid out as increased dividends, driving the stock price higher, which permits the executives with huge stock options, to cash out as wealthy individuals.

PeterS

They do? Why does California have the 6th largest economy in the world?

PeterS

No argument here.

2bltap Loc: Move to the Mainland

Excellant answers from all of you! Thank you. Like I said though I think that those who start a business and become wealthy as a result good for them. However, I will say this. First Im not smart enough in this areana to argue intelligently about this subject. But I do think that there are way to many laws and regulations that are so murky that allow the more nefarious of these companies to cheat. I really wish I had studied better in my college business classes.
Semper Fi

PeterS

What companies don't want to do business here because of the business climate. Name them. And just when did Forbes become a facile for lefty statistics? Do a google search on corporate profits and get back to me. All you're doing is blowing smoke out your rear...

PeterS

Like I said I have no problem with a tax cut if credits are eliminated. That will never happen though which means taxes else where will just have to go up.

Alicia Loc: NYC

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Lest ye forget, Trickle Down Economics has been proved not to work. Look it up.

PeterS

If you are a millionaire it works to make you a billionaire so it's not a complete failure...

JFlorio Loc: Seminole Florida

Wrong.

https://www.forbes.com/sites/georgeleef/2013/12/06/trickle-down-economics-the-most-destructive-phrase-of-all-time/#1f11c3755891

Actually wrong and right. Supply side economics can and has worked. It can also if stimulated with to deep of tax cuts explode the deficit and increase unemployment. The economy has so many moving parts that a one size fits all doesn’t work anymore. We can only increase long term growth in one way. Reduction in government expenditures. DC won’t? Why? There will be pain in the short term. Everyone needs a govt haircut from those receiving food stamps to the big boys receiving corporate welfare. So if DC and the American people won’t cut government spending what will happen? My opinion, we are on a huge bubble, it will burst. Always does. Why’s this different? Ask yourself, what have we always done in the past? We have either cut taxes and or the Fed has dropped interest rates. Or we could print a boat load of “stimulus’ money and give to the banks. While the entire time the Fed is keeping interest rates historically low. This is what we did under Obama. So, when this bubble bursts what do we do? Can’t lower interest rates any lower. Printing tons more money is just going to make the dollars buying power worthless. In a nutshell. We are screwed.

PeterS

Read a book on Supply Side Economics. It can only work if tax cuts are accompanied by cuts to government. That will never happen and that's the reason after ever tax cut there has been an explosion in debt. Running a government on debt is demand side economics and cutting taxes is supply side. So which one is providing the stimulus to the economy? When Reagan cut taxes we didn't balance the books until 99. After Jr cut taxes we are still running in the red and if Trump cuts taxes we won't see a balanced budget in our grand childrens life time. But yeah, bubbles are bad...

And I did read your article J. It's just that we didn't have a smaller government under Reagan. In fact the lowest level of spending under any president was under Obama where there was a net growth of 300 billion dollars. When you have a 3.8 trillion dollar economy that's less that 1% yoy per year. So ironically, Obama came closer to your articles sweet spot than any other president. What did they say: “Free markets and smaller government means greater opportunity for everyone.” And Ironically, you don't need tax cuts for that do you...

Buford Loc: Arizona

The dema will wine about someone making more money than them. They just want more especially if they don’t have to work to get it.

Larry the Legend Loc: Not hiding in Milton

Try this. I think it explains everything tax related:

Suppose that every day, ten men go out for beer and the bill for all ten comes to $100…

If they paid their bill the way we pay our taxes, it would go something like this…

The first four men (the poorest) would pay nothing.

The fifth would pay $1.

The sixth would pay $3.

The seventh would pay $7..

The eighth would pay $12.

The ninth would pay $18.

The tenth man (the richest) would pay $59.

So, that’s what they decided to do..

The ten men drank in the bar every day and seemed quite happy with the arrangement, until one day, the owner threw them a curve ball. “Since you are all such good customers,” he said, “I’m going to reduce the cost of your daily beer by $20”. Drinks for the ten men would now cost just $80.

The group still wanted to pay their bill the way we pay our taxes. So the first four men were unaffected. They would still drink for free. But what about the other six men? The paying customers? How could they divide the $20 windfall so that everyone would get his fair share?

They realized that $20 divided by six is $3.33. But if they subtracted that from everybody’s share, then the fifth man and the sixth man would each end up being paid to drink his beer.

So, the bar owner suggested that it would be fair to reduce each man’s bill by a higher percentage the poorer he was, to follow the principle of the tax system they had been using, and he proceeded to work out the amounts he suggested that each should now pay.

And so the fifth man, like the first four, now paid nothing (100% saving).

The sixth now paid $2 instead of $3 (33% saving).

The seventh now paid $5 instead of $7 (28% saving).

The eighth now paid $9 instead of $12 (25% saving).

The ninth now paid $14 instead of $18 (22% saving).

The tenth now paid $49 instead of $59 (16% saving).

Each of the six was better off than before. And the first four continued to drink for free. But, once outside the bar, the men began to compare their savings.

“I only got a dollar out of the $20 saving,” declared the sixth man. He pointed to the tenth man,”but he got $10!”

“Yeah, that’s right,” exclaimed the fifth man. “I only saved a dollar too. It’s unfair that he got ten times more benefit than me!”

“That’s true!” shouted the seventh man. “Why should he get $10 back, when I got only $2? The wealthy get all the breaks!”

“Wait a minute,” yelled the first four men in unison, “we didn’t get anything at all. This new tax system exploits the poor!”

The nine men surrounded the tenth and beat him up.

The next night the tenth man didn’t show up for drinks, so the nine sat down and had their beers without him. But when it came time to pay the bill, they discovered something important. They didn’t have enough money between all of them for even half of the bill!

And that, boys and girls, journalists and government ministers, is how our tax system works. The people who already pay the highest taxes will naturally get the most benefit from a tax reduction. Tax them too much, attack them for being wealthy, and they just may not show up anymore. In fact, they might start drinking overseas, where the atmosphere is somewhat friendlier.

Peewee Loc: San Antonio, TX

The best surest was to reduce government spending is to eliminate the Federal Income Tax and make the Feds get their money from trade and tariffs like the Constitution states.

Close down the Federal Reserve and you eliminate planned inflation and globalism.

Return to the gold standard and your money has value again.

Return all Federal power not spelled out in the Constitution back to the States.

Get a clue people... the founding fathers had it right... and were smarter and braver than us.

They knew their Bibles, most knew several languages, and they knew history, they knew both governments and men needed restraints and this new nation would only work if people were moral (that would be the Ten Commandments with a death penalty for those who refused to be moral).

kankune Loc: Iowa

It's a feeling of hope for this country. Sorry you don't have it!

debeda

Obviously you have no capacity for big picture thinking. I'll keep that in mind in future.