Drudge Retort: The Other Side of the News
Saturday, July 20, 2019

The Republican promise was to cut corporate tax rate and repatriate those dollars, unleashing a flood of new job-creating investment in the process. The orange sloth's claims on tax reform are bogus on many levels. Zero annual tax has accelerated from 30 to sixty top companies. Profits are still claimed in the lowest tax countries, regardless where it is actually earned. This is accomplished with bookkeeping tricks, not actual money transfers. Global tax arbitrage runs in parallel to global labor arbitrage. The orange sloth's left hand is working at cross-purposes with the right.

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The Republican tax bill was built on a string of lies. The real U.S. corporate tax rate has never been 35% claimed. The effective rate was around 27.1%. The new rate of 21% offers no incentive against tax havens of 10%. The alleged offices in Cayman, Bermuda, and Ireland ... have never actually been occupied. Corporate money has always been parked in tax havens only on paper, much of it actually is in US Treasuries, securities, stock buybacks and dividends.

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Duh.

#1 | Posted by Zed at 2019-07-20 10:44 AM | Reply | Newsworthy 1

It's going to deliver the same thing that the Bush tax cuts delivered. Only difference is they are planning on it delivering the crash after 2020 elections. That's why he put so much pressure on the Fed to lower interest rates. Powell caved, Powell will be seen in the future as a careerist a*****e who knew what he should do but didn't do it because his job was more important than our economy.

#2 | Posted by danni at 2019-07-20 02:10 PM | Reply

Anyone with 2 brain cells to rub together knew this would be the outcome.

#3 | Posted by aborted_monson at 2019-07-20 02:14 PM | Reply

Anyone with 2 brain cells to rub together knew this would be the outcome.

#4 | Posted by aborted_monson at 2019-07-20 02:15 PM | Reply

#2

Even if the fed lowers the rate it will still be either higher or the same as it was for Obama's entire presidency.

You are praying for a recession purely for political purposes.

#5 | Posted by JeffJ at 2019-07-20 03:01 PM | Reply | Newsworthy 1

"You are praying for a recession purely for political purposes."

Trump seems to be the one doing that, with his economic policies.

#6 | Posted by snoofy at 2019-07-20 03:07 PM | Reply | Newsworthy 1

Well, he's doing more than praying, but you get my drift.

#7 | Posted by snoofy at 2019-07-20 03:07 PM | Reply

"The Republican promise was to cut corporate tax rate and repatriate those dollars, unleashing a flood of new job-creating investment in the process."

Whereas those of us who looked at the actual equation pointed out it incentivized exactly the opposite: taking money out of the business became MORE attractive. Reinvesting -- in materials or manpower -- became LESS attractive.

#8 | Posted by Danforth at 2019-07-20 03:13 PM | Reply

taking money out of the business became MORE attractive.

And investing it in startups, 2018 was a booming year for VC investing.

18 charts to illustrate US VC in 2018.
pitchbook.com

#9 | Posted by AndreaMackris at 2019-07-20 04:49 PM | Reply

"taking money out of the business became MORE attractive."
And investing it in startups, 2018 was a booming year for VC investing.
18 charts to illustrate US VC in 2018.
pitchbook.com
#9 | POSTED BY ANDREAMACKRIS AT 2019-07-20 04:49 PM

You mean booming in purchase and then sales of said startups.

I wonder how well those competing with corporate-owned startups will be doing next year? Specifically since first round financing has fallen so significantly.

Maybe I'm misreading your link, but at 5 million per startup exit value, I can see how monetarily profitable it might be for the largest corporations to continue buying them to cull rather than cultivate them further.

It is obvious that in your worldview capitalism, not innovation make the decisions behind all management.

#10 | Posted by redlightrobot at 2019-07-20 09:40 PM | Reply

Republican Tax Cut Fails to Deliver on Promises

Wrong.

It gave $1.5 TRILLION to the 1%. That was the only promise that they made that they had any intention of keeping.

Everything else was just --------.

#11 | Posted by Nixon at 2019-07-22 07:11 AM | Reply

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