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Los Angeles, California, United States
The blog 'Breaking Bread' is for a civil general discussion, like you might have at the dinner table with guests. The posts 'Economics Without the B.S.' are intended for a general audience that wouldn't have to know the difference between a Phillips Curve, a Laffer Curve, or a Cole Hamels Curve. Vic Volpe was formally educated at Penn State and the University of Scranton, with major studies in History, Economics and Finance, and Business; and, is self-educated since by way of books and on-line university courses. His practical education came from sixty years of work experience in the blue-collar trades as well as a white-collar professional career -- a white-collar professional career in production and R&D. In his professional career and as a long-haul trucker, he has traveled throughout the lower forty-eight. From his professional career alone he has visited many manufacturing plants in the United States, Europe and China. He has lived in major metropolitan areas and very small towns in various parts of the United States. He served three years with the U.S. Army as an enlisted man, much of that time in Germany.

Wednesday, September 27, 2017

Trump's Tax Plan -- the Republican nostrum for what ails us

Trump's Tax Plan


The Republican nostrum for what ails us




Economics Without The B.S.**: 

[**  Double entendre intended.]

 Tax cuts are not tax reform or tax simplification - although the Alternative Minimum Tax would go away - nor economic growth.

 Tax cuts are the Republican nostrum for what ails us, but they do not have a history of bringing economic well-being. Check out JFK, Reagan, Bush (2001) tax cuts and Bush/Clinton tax increase and look at effect on revenues and economic growth. Revenues decreased in 2001 and economic growth petered out from trillion $ tax cuts in 2001. Tax cuts worked with revenues in '60s and '80s.


Want to talk about tax cuts and jobs?...We produced more jobs in '60s with workforce of 70 million than Bush 2000s with workforce of 140 million. And during '60s the Debt-to-GDP went down almost in half although we had no balanced budgets; it rose during Reagan's tax cuts; went down again during Clinton with economic growth and tax increases; and increased again under Bush in 2000s with his trillion $ tax cuts.



Want to fix economic growth?...Fix the structural problems in the real economy -- one problem is poor labor productivity. Labor productivity was improved in '60s and '80s and '90s, it has been poor since 2004. Obama (and Bush) failed to address this problem. JFK and Reagan specifically went after this problem. I never heard Trump Administration even mention this as a problem. Tax cuts won't fix this problem


If tax cuts would fix this, the Bush trillion $ tax cuts would have worked miracles on our economy. Are you still waiting for a miracle?



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