Tax cuts doing good in the USA

Dan Mitchell sends news from the US and an optimistic mention of corporate tax cuts in Australia.

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13 Responses to Tax cuts doing good in the USA

  1. stackja

    People spending their own money. Not government wasting it.

  2. I’m always amazed at how so many don’t realise that tax cuts means that businesses and individuals have more disposable income and more disposable income produces more taxes for government. It’s still gathering taxes, but it allows people and businesses to choose how they pay their taxes through personal and business choices.

  3. Nicholas (Unlicensed Joker) Gray

    Yes, Dan usually writes interesting articles. He has been praising our super-annuation schemes for years, and has been talking about maybe retiring to Australia, at some time in the future. I wonder how him and Matt Damon and Barbera Streisand will get on?

  4. H B Bear

    Not sure anyone praising Australia’s superannuation system fully understands it. It is superficially appealing looking in from the outside. I see Judith has another article bagging it in Teh Australian behind the paywall.

    I imagine much of the success of Trump’s tax cuts is coming from the hundreds of billions that were previously held outside the US coming back onshore to fund new investment.

  5. Dr Fred Lenin

    Hey Rafe,they are not tax cuts they are revenue losses ,ask the goose? Aspiring prezz of the union mafia federal gang .

  6. Just watched that grub Turnbull, currently touring northern NSW to talk to farmers about the drought situation. He spent half the news grap sprouting climate change rubbish with the dozen or so farmers in the frame dutifully nodding in forced agreement lest the hoped for largess be denied. They were over a barrel with no-where to go! We elect human offal such as this to run our country .

  7. Rafe Champion

    H B Bear I would be interested in his response to Judith’s criticism. He did a thesis on our system after having a look in the early days.
    The way I see it now, in addition to her take, it simply undermines the incentive for people to be responsible and save on their own initiative.

  8. There is a very good article by Wayne Allan Root over at Townhall.

    “Let’s start with the May jobs report. US job growth sharply accelerated. Nonfarm payrolls increased by 223,000, smashing expectations by 33,000 jobs.

    Manufacturing gained 18,000 jobs. Construction gained 25,000 jobs. Mining gained almost 6000 jobs.

    The jobless rate is now 3.8%, the lowest since November of 1969. Yes, I said 1969.

    Wages are up 2.7% for the year. Happy Days are here again. A wage increase of any size was just a rumor in eight years under Obama.

    But wait. I haven’t gotten to the really good news yet!

    The number of full-time jobs rose by 904,000 for the month of May. That’s the biggest monthly increase this century.

    We also lost 625,000 low quality, low wage part-time jobs. I call them “Obama jobs.” Good riddance.

    https://townhall.com/columnists/wayneallynroot/2018/06/05/the-trump-miracle-n2487181

  9. Baa Humbug:

    But wait. I haven’t gotten to the really good news yet!
    The number of full-time jobs rose by 904,000 for the month of May. That’s the biggest monthly increase this century.
    We also lost 625,000 low quality, low wage part-time jobs. I call them “Obama jobs.” Good riddance.

    Top Comment.

  10. Norman Church

    The key flaw in Australia’s tax system is the low point at which punitive levels of taxation cut in. There are many other bad features but that is the worst.

    It means that there is a much smaller pool of capital for the productive middle classes to invest in an effort to get ahead.

    On those rare occasions when Australian governments have allowed the middle classes to keep more of their own money, the positive effect on economic growth has been profound. Think of the Howard years.

    The trouble is that the Canberra consensus is that greater economic growth can be achieved by the government taking ‘surplus’ cash (ie, all sums of money above an arbitrary level to which the government thinks a citizen is entitled) wasting a sizeable portion on the expenses of government and then squandering the rest on largely unproductive expenditure.

    The notion that this will lead to a better outcome beggars belief, of course, to anybody that has a passing familiarity with common sense, human nature or economic history.

    Time and again, increased government expenditure has led to increased taxes which, in turn, has led to lower economic growth which has led to higher deficits and a higher national debt, which has led to the need for increased taxation. And so it goes on. Round and round. Down and yet further down It’s a vicious cycle.

    Until this fundamental flaw in Australia’s tax system is fixed, Australia will underperform, at best, and spiral into penury, at worst.

    Given all the other idiotic policies to which both the Labor and Diet Labor parties are committed, and the lack of any appetite to cut government expenditure or to lower the burden of taxation on individuals, I strongly suspect that we on a road to ruin.

  11. Nicholas (Unlicensed Joker) Gray

    H.B.Bear- have you thought that the superannuation system in the US may be much worse than ours?

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