Listen to my Alternative Visions radio show of January 12, 2018 for my analysis of the Trump Tax Cuts’ true dimensions. How they amount to more than $5 trillion in cuts over the decade to corporations, businesses, investors and the wealthiest 1% households. How the budget deficit hit will be twice the official government $1.45 trillion.
To listen GO To:
http://prn.fm/alternative-visions-trumps-tax-cuts-5-trillion-not-1-5t-01-12-18/
Or Go to:
http://alternativevisions.podbean.com
SHOW ANNOUNCEMENT:
Dr. Rasmus starts the show with comments on last week’s announcement by WalMart raising its minimum wage and the Bloomberg News story about China considering cutting back buying US Treasury bonds. The rest of the show addresses the Trump Tax Cuts true extent of tax reduction on corporations, businesses, investors and the wealthiest 1% households. Jack debunks the notion that the US budget deficit hit from the tax cuts will equal only $1.46 trillion, the official government estimate, showing it is based on the absurd assumption of a 10 year annual average GDP growth rate of 3% and no recession occurring for another decade (or 19 years from the last). The deficit hit will be at least twice, or $3 trillion. Tax hikes on the middle class are about $2 trillion. So the tax cuts for corporate America et. al. therefore exceed $5 trillion. Rasmus then estimates the $5 trillion from the major provisions of the Act: $1.5t from corporate rate reduction, $1t from accelerated depreciation write-offs, $.5t from elimination of corporate AMT, and between $2-$2.5t for US multinational corporations from repatriation of $2.8t to $4.0t profits in offshore subsidiaries and tax havens and a future offshore tax rate reduction from 35% formerly, to 8%. Rasmus explains the cornerstones of the US global economic empire: the twin deficits (trade-budget), free trade (benefits share with local capitalist elites offshore), the dominance of the US dollar as global trading currency, and US domestic tax policy that ensure trillions of profits keep flowing to investors via dividends, stock buybacks, and capital gains.
Dr. Jack Rasmus @drjackrasmus
My guess is that within a year or 2, our deficits will be in the trillion dollar range.
mz
mikiesmoky@aol.com
China’s threat not to buy US Treasuries may be fake news but the underlying issues are very serious. The “threat” is linked to Trump’s endless tweets to nuke North Korea. Although Trump may be a clown to many, the Chinese, Japanese, and Koreans all too painfully remember that the only time nuclear weapons were used was against Asians, by Americans. There is substantial evidence that Nagasaki and Hiroshima were not directed at Japan’s collapsing military but at Joe Stalin. The message to Joe was if you step out of line we will reduce Moscow to radioactive rubble. Chomsky has long argued that the economic integration of Asia—-China, Japan & Korea, was and is a major threat to US hegemony. Thus, Trump’s tweets are directed at China. But China on the other hand may be saying, diplomatically or otherwise, that if you nuke North Korea, we will tank your economy. Which is probably the only threat—-money—-that Trump understands. Yes, China may be joined “at the hip” with the US but if the joint becomes radioactive China will lash back with economic butchery.