Will the new tax plan revitalize the Middle class and help Aviation?

[Duster]

Don't worry folks, all of us Latte sipping, flannel shirt wearing hipster millennial's, will mop up the huge pile of financial sh*t the previous generations have bequeathed us...thanks

Seriously, the industries I work in will benefit, especially the family farm/ranch. The death tax has gutted the ability of next generation farmer/rancher's to continue the family business. Just b/c land is worth more today, does not mean the production value has increased proportionate to the price per acre. When your land rich/cash poor, and the tax man a cometh upon inheritance; the only option is often to sell.

Here's an article from the NAAA, specific to Ag Aviation, but relevant to the topic:

http://news.agaviation.org/naaa/issues/2017-12-21/index.html


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[Shawn]

Actually no. Consumer consumption drives 70% of GDP. Please note that many large corporate CEOs have already stated that lower corp tax rate will not result in huge hiring numbers at those companies.

Correct, in pure GDP numbers...but corporate consumption is responsible for a lager percentage of of jobs and economic growth and that is what the goal of the tax cut is to target. Most successful small and mid size business (mine included) which is a signifigant percentage of the workforce service other businesses, not consumers...that has been relinquished to the Mega Corporations like the Walmarts of the world. Buying more toothpaste from Procter and Gamble will not create more US jobs via consumer consumption alone.

While I 100% agree that a tax cut at a major corporation alone is not gonna cause them to create more job at that corporation as has been indicated, that tax cuz which creates more free cash COUPLED with the full expensing provision is gonna allow companies to make more capital investments to increase profitability.

Case in point to keep it aviation related...Southwest gets a corporate tax cut, they have said they will invest that additional cash into more planes and infrastructure (since they can fully now write it off vs having to depreciate over X number of years)...so while even though Southwest may not hire any additional workers directly, Boeing and TUG will have to ramp up to meet that demand for production and service since those goods are still made in the US.

...at least that is what they are hoping for vs just giving a handout to the middle class that will spend that money on crap made overseas and the US never benefits one dime from that give away other than just amassing more disposable s#!t.

The whole objective of this tax plan was never to give the working American a tax cut...it was to fix and retool the corporate tax code to stop the hemorrhaging of jobs and companies to overseas leaving the US labor force out to dry while lessening the burden on the small and mid size employers. The income tax cuts were just scraps to keep the peasants from revolting cuz they want free things too and think jobs are magically created by government.

 

[labbadabba]

The Tax Policy Center did a study last year that estimates 27% of workers pay no income tax and payroll tax is refunded to employers due to tax credits.

So long as 1 in 4 workers are getting a free ride, the share paid by the remaining contributors will increase.

Looking at the overall tax burden of the working poor, they're not getting a free ride. That 27% of workers make up less than 1% of the total held wealth in the US so the impact is negligible on a macro scale.

 

[Checkout_my_Six]

do the working poor even pay federal taxes?....

 

[genna]

I actually am fairly active politically, and I do believe in liberty, property rights and fiscal discipline at all levels of government. Problem is, in most of the large blue states, governments are elected by the people that don't pay much into the system. If I were in that half the population that pays little or no taxes, I might be seduced too when politicians start talking about free college tuition and all sorts of other giveaways - especially when the freebies come with that "soak the rich" class warfare promise. The only option I see is to vote with my feet, and even that's complicated by what we anticipate will be a fairly significant decline in property values thanks to the new tax bill.

I suspect that when the *political class* of these high-tax blue states start seeing their OWN new Fed taxes without much of current deduction, they may make a push to make some changes.

Maryland governor already announced that he will be sending some sort of bill to adjust MD state taxes. This is mostly due to loss of exemptions and deductions that MD ties to Fed taxes and the idea is to keep it revenue neutral, but still

 

[AlleyCat67]

I guess I'm the only blue state liberal on this site. The idea that the US is overtaxed is crazy. We pay fewer taxes (at the personal level) than nearly any other industrialized country, and our tax rates are lower now than they have been historically during the 1950's - 1980's. What we lack is decent infrastructure, a quality educational system, and affordable health care. At this point I'm all for State's Rights. I'd be happy to let red states drop their marginal tax rates to zero, and live with gross income inequality and declining public infrastructure.

Corporate taxes are a different issue - the US has relatively high corporate taxes, and there's nothing wrong with cutting them to some extent.

 

[mscard88]

The housing bubble didn't collapse because evil banks decided to take people's homes away, it collapsed because banks were encouraged to lend to people who were in the risky subprime group because "everyone deserves a house" .. so what happens when you give someone a $500K loan who makes $35K a year? Guess what, they go belly up. Is it careless to loan someone money you know can never pay it back, yes, but we are adults here, these people are not helpless dimwits. Read the document and promissory note before you sign it. Imagine if you lent your friend $500 and then they didn't pay it back and accused you of being careless in lending them the money? Are banks innocent, absolutely not, but it's not like there was secret meeting of comic book villains and they said "gee, how can we screw the economy, tarnish our names, but at least get a giant golden parachute"

This is worth the watch

And those interest only loans. Led to a ton of foreclosures too.