Seth wrote:
Replying to John Correspondent.
"The kinds I chatted with" are employers and job creators -- who else are you going to talk to when you want to know how the tax cuts affect employers and job creators?
Between their being able to keep more of their profits (capital, to an individual business owner or a corporation) and now being able to deduct the costs of new equipment and business vehicles from same year's taxes, they are creating new jobs and paying all their employees more money.
What part of that is difficult to fathom?
b Replying to John Correspondent. /b br br &quo... (
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Why should we _only_ be interested in how the tax cuts affect _employers_ and _job creators_? That's the part of your post that's difficult to fathom.
What about how they affect all the people who _aren't_ employers or job creators?
Maybe the biggest group of people are "employees".
You say "paying all their employees more money". If true, that might address the needs of a lot of people. (A lot, but still not all; there would be some people who are not "employees", nor "employers", nor "job creators"; for example there could be a lot of layoffs in the steel industry or any other industries that might be affected by current trade war conditions. Maybe laid-off people aren't counted as "employees" anymore.) Did you also chat with employees, and with people who got laid off, and with any other kinds such as retirees? They might enlighten us with their perspectives and, perhaps, other information we haven't thought of. Are the employees forced to work overtime or two jobs to get the more money?
But there's more. If there's an effect _now_, is there some other effect _later_? I don't know yet (well, I _think_ I know; I think it will be like in the following example, but I don't know enough details to actually predict what will happen).
Here's a believable hypothetical example: Suppose the government were to borrow some huge amount of money, and use it to spread benefits (money, wages, salaries, tax cuts, etc.) to some, most, or all people _now_. In this hypothetical example, that all comes from borrowed money. Eventually, that will have an effect _later_: the effect might be "paying the interest" or "having a lowered credit rating" among nations, or some other "payback" kind of detrimental effect.
What we do _now_ might be affecting how the economy is 5 or 10 or more years in the future. If it's good now, sometimes that could be offset (in a cause-and-effect way) by it being bad later. I'm not saying it always works that way, I'm just saying that sometimes it might work that way.
If there is some detrimental effect that comes later, then when? During the Trump Administration? During one of the following Administrations? Should we even care? Yes. (Still in the hypothetical example: Anyone who _borrows_ should think ahead to how that affects the future, typically thinking about "paying back" the loan.) (Has there been such a scenario in our real history? I think it has happened more than once.)