Category: The Real Erik Paulsen

Why This House Tax Scheme Is For IDIOTS

The following article by David Cay Johnston was posted on the DCReport.org website November 17, 2017:

The House tax bill is an all-out attack on the future prosperity of America, not that any of the major news organizations are telling you that in plain English. Lost in the dense bureaucratic language of modern news reports is the simple fact that the House bill takes from striving students so that the already rich and major corporations can have more.

This bill is a long-term disaster in terms of what economists call opportunity costs. That term refers to a benefit that a person could have received, but gave up, to take another course of action. This tax bill gives up the future wealth from investing in brainpower in favor of permanent tax cuts for the already rich and corporations. Continue reading “Why This House Tax Scheme Is For IDIOTS”

‘Hot potato’ shows why workers won’t benefit from Trump’s corporate tax cut

The following article by Prof. Steven Pressman of the Economics Department at Colorado State University was posted on the Conversation website November 17, 2017:

Many children have played hot potato, a game in which they pass a spud to other children quickly so they don’t get stuck with it when the music stops.

Taxes are like that potato. No one likes paying them; everyone tries to pass them to others. The game of hot potato sheds some light on the debate over Republican tax cutting plans, particularly when it comes to companies.

The House just passed its tax cut bill. It would give about two-thirds of roughly US$1.5 trillion in net tax cuts over the next decade to businesses, mainly by lowering the corporate income tax rate to 20 percent from 35 percent. That puts a lot of money on the table. About $100 billion in U.S. corporate profits would be retained by companies rather than paid to the government each year. Continue reading “‘Hot potato’ shows why workers won’t benefit from Trump’s corporate tax cut”

In towns and cities nationwide, fears of trickle-down effects of federal tax legislation

The following article by Renae Merle and Peter Jamison was posted on the Washington Post website November 17, 2017:

The Trump administration says its tax plan will help ordinary Americans, but some GOP figures have acknowledged big business and political donors will benefit. (Taylor Turner/The Washington Post)

It took the city of Pataskala, Ohio, nine ballot measures before its 15,000 residents agreed to a new 1 percent tax to pay for repairs to its crumbling roads and to buy new police cruisers. The mostly rural community was finally won over by a century-old hallmark of the tax code: The $5 million local levy could be deducted from their federal taxes.

“There is a severe sensitivity to more taxes here,” said James M. Nicholson, the city’s finance director. “At the end of the day, you get a tax break was the thing that convinced people.” Continue reading “In towns and cities nationwide, fears of trickle-down effects of federal tax legislation”

Myths of the 1 Percent: What Puts People at the Top

The following article by Jonathan Rothwell was posted on the New York Times website November 17, 2017:

Income inequality inspires fierce debate around the world, and no shortage of proposed solutions. As global billionaires bid up the price of a da Vinci painting on Wednesday, to $450.3 million, Congress debated tax reforms that many analysts said would give the largest benefits to the richest 1 percent of taxpayers.

In the United States, the richest 1 percent have seen their share of national income roughly double since 1980, to 20 percent in 2014 from 11 percent. This trend, combined with slow productivity growth, has resulted in stagnant living standards for most Americans.

 

No other nation in the 35-member Organization for Economic Cooperation and Development is as unequal, and none have experienced such a sharp rise in inequality. Continue reading “Myths of the 1 Percent: What Puts People at the Top”

House Tax Bill: 5 key ways the newly passed plan would affect your money

The following article by James Dennin was posted on the mic.com website November 16, 2017:

The House of Representatives passed its version of a tax overhaul on Thursday by a 227-205 vote. The passage represents a major hurdle cleared for the GOP, but it’s still not clear whether the bill can survive a vote in the Senate — expected soon, following approval by the Senate Finance Committee Thursday night — and become law.

The bill, rolled out two weeks ago, has been criticized for purporting to help average Americans, while eliminating many middle-class benefits. Indeed, the biggest beneficiaries of reform seem instead to be corporations, said Jacob Leibenluft, a senior adviser for the Center for Budget and Policy Priorities. Continue reading “House Tax Bill: 5 key ways the newly passed plan would affect your money”

Republican Representatives Emmer, Paulsen, Lewis Vote for ‘Reverse Robin Hood’ Tax Bill

The following article was written by DFL State Chair Ken Martin:

Yesterday, the GOP-controlled House of Representatives approved their regressive tax plan. This harmful attempt to change our tax code comes at a heavy price for working families across Minnesota.

This misguided measure is reverse Robin Hood. It takes money from working Minnesotans to give to the wealthy. While huge corporations and the 1% would see a massive windfall thanks to this bill, more than one-fourth of Minnesotans would see their taxes rise. By eliminating critical deductions that help taxpayers afford college, offset medical expenses, and buy a new home, this bill would pull the rug out from under Minnesota families.

Continue reading “Republican Representatives Emmer, Paulsen, Lewis Vote for ‘Reverse Robin Hood’ Tax Bill”

New analysis undercuts the White House argument that tax reform benefits the middle class

NOTE:  Rep. Erik Paulsen voted FOR this bill.

The following article by Philip Bump was posted on the Washington Post website November 16, 2017:

White House press secretary Sarah Huckabee Sanders speaks to representatives of the media during the daily briefing at the White House on Thursday. (Pablo Martinez Monsivais/AP)

Shortly after the House passed the Tax Cuts and Jobs Act, the Republican majority’s version of President Trump’s tax reform effort, White House press secretary Sarah Huckabee Sanders was asked about how that bill and one moving through the Senate accomplishes the president’s goals.

“The tax bill passed by the House today: One of the things that the tax bill does is increase the deficit by $1.5 trillion,” a reporter asked Sanders. “I know the White House has argued that that will be paid by growing the economy, but if the economy doesn’t grow, how do you square that with the Republican view — or general principle that deficits are bad?”

“I mean, I just disagree with the premise of the question,” she replied. “We do expect the economy to grow. We’ve seen that happen over the last 10 months, and we expect that to continue.” Continue reading “New analysis undercuts the White House argument that tax reform benefits the middle class”

Letter: A simple tax plan isn’t always better

To the Editor:

Congressman Erik Paulsen has been urging us to support the Republican tax plan because it is simpler. He even promised we can spend more time with our families instead of having to do our taxes. However, simpler isn’t always better. Life is complex, and sometimes our tax returns reflect that complexity.

In eliminating complexity, this proposed law eliminates some important deductions. Congressman Paulsen called these “loopholes.” I call them important financial strategies to help us some of us while we are in economic hard times. Continue reading “Letter: A simple tax plan isn’t always better”

As Rep. Erik Paulsen votes for tax bill, his staffer stonewalls concerned seniors

The following article by Susan Du was posted on the CityPages website November 17, 2017:

The U.S. House passed the Republican tax bill Thursday afternoon along party lines, though 13 Republicans broke ranks to vote against the proposal.

All three Minnesota Republicans in Congress voted for the tax bill.

The bill contains big tax cuts for corporations and millionaires, which it pays for by eliminating deductions for student loans, medical expenses, and on state and local sales and income taxes.

The Congressional Budget Office estimates the bill would raise deficits by $1.5 trillion over the next 10 years, which Congress will have to pay for. One way to find extra money: cutting the cost of supporting America’s most vulnerable. If the GOP tax bill passes both chambers, the Office of Management and Budget would be required to seize $136 billion from mandatory spending programs like Medicare, which could be slashed by $25 billion in 2018.  Continue reading “As Rep. Erik Paulsen votes for tax bill, his staffer stonewalls concerned seniors”