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Do you think that the Trump Tax plan will help the middle class?

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I have no idea



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1. D Robb
     (11/22/2017 7:27:24 AM)
     Message ID #294095

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Paul Krugman has an interesting piece in today’s NYT on Leprechaun economics. He uses Ireland as an example. Since so many of Ireland’s businesses are foreign owned residents there do not get full benefit when Ireland’s GDP goes up. More and more US businesses are foreign owned. It is great that foreign cars are manufactured in the US, but at the end of the day the profits go back to Japan or Germany or…
“Start with the direct effects of a corporate tax cut. The JCT puts the revenue loss at $171 billion in 2027. Assume, as is roughly the consensus, that 1/3 of this accrues to workers, but two-thirds to capital. Steve Rosenthal says that about 35 percent of this gain, in turn, accrues to foreign investors. So right there we have about $40 billion in additional investment income paid to foreigners.
Then there are the effects of the trade deficit. I can’t figure out TPC’s estimate there, but typical numbers from other modelers say that we’re looking at around $80 billion a year, or $800 billion in increased net foreign liabilities.”

https://krugman.blogs.nytimes.com/2017/11/21/tax-cuts-growth-and-leprechauns
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