{"id":16116,"date":"2016-08-08T17:16:04","date_gmt":"2016-08-08T21:16:04","guid":{"rendered":"http:\/\/streamingradioguide.com\/startingover\/?p=16116"},"modified":"2016-08-08T17:24:52","modified_gmt":"2016-08-08T21:24:52","slug":"donald-trump-introduces-the-larry-kudlow-economic-plan","status":"publish","type":"post","link":"https:\/\/streamingradioguide.com\/startingover\/?p=16116","title":{"rendered":"Donald Trump introduces the Larry Kudlow economic plan"},"content":{"rendered":"

http:\/\/bloom.bg\/2aGTdH1<\/a><\/p>\n

Larry Kudlow (heard on Cumulus Radio on the weekend) has been advising Trump for months and sketching out the outline of Trump’s economic plan. The most important item on the list is lowering the Corporate tax rate to 15%. That is (generally) a great idea. Because the current rate is so high, management of corporations spend more time on tax planning and strategic mergers than they do on building and selling products.<\/p>\n

Corporations create wealth. Governments consume wealth. Corporations not only pay income taxes, but they pay FICA (Social Security), Unemployment taxes, property taxes – and they employ people who pay taxes and buy stuff. It’s the ultimate economic multiplier effect. Keynesians understand that governments spending money creates more economic activity than just the original boondoggle – cutting corporate taxes does the same thing which will create much more economic activity.<\/p>\n

In 2015, the Corporate income tax of all corporations was only $344 Billion, less than 10% of what the government spent
\nPie Chart<\/a><\/p>\n

One of the unintended consequences is some corporations might have huge losses. I know that sounds counterintuitive – the problem (Brian might be able to explain it better) is that corporations have “saved up” losses to use to offset against future taxes. Successful company A will buy up Company B that is ready for bankruptcy because Company B has never made a profit and had “Tax loss carry forwards”. This is a way that a company that does make a profit can end up paying no taxes. If the tax rate is cut from 35% to 15%, the accountants will have to right down those assets. Corporations also account for things like depreciation, using one rate \/ method for Wall Street and a different calculation for income taxes. That will trickle down as well.<\/p>\n

The big qualifier I want to slap on this change is “for corporations publicly traded on US regulated Stock Exchanges”. I want to bring back the America where Ma and Pa could buy stock in companies they knew and respected, not companies owned by Private equity firms using money from unknown sources with unknown motives.<\/p>\n","protected":false},"excerpt":{"rendered":"

http:\/\/bloom.bg\/2aGTdH1 Larry Kudlow (heard on Cumulus Radio on the weekend) has been advising Trump for months and sketching out the outline of Trump’s economic plan. The most important item on the list is lowering the Corporate tax rate to 15%. … Continue reading →<\/span><\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[176],"tags":[],"class_list":["post-16116","post","type-post","status-publish","format-standard","hentry","category-donald-trump"],"_links":{"self":[{"href":"https:\/\/streamingradioguide.com\/startingover\/index.php?rest_route=\/wp\/v2\/posts\/16116","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/streamingradioguide.com\/startingover\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/streamingradioguide.com\/startingover\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/streamingradioguide.com\/startingover\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/streamingradioguide.com\/startingover\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=16116"}],"version-history":[{"count":4,"href":"https:\/\/streamingradioguide.com\/startingover\/index.php?rest_route=\/wp\/v2\/posts\/16116\/revisions"}],"predecessor-version":[{"id":16120,"href":"https:\/\/streamingradioguide.com\/startingover\/index.php?rest_route=\/wp\/v2\/posts\/16116\/revisions\/16120"}],"wp:attachment":[{"href":"https:\/\/streamingradioguide.com\/startingover\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=16116"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/streamingradioguide.com\/startingover\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=16116"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/streamingradioguide.com\/startingover\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=16116"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}