They said it wouldn’t happen, but it did: The money companies stashed overseas to protect them from high U.S. corporate tax rates is flooding back in, boosting growth, jobs and confidence in the economy. Thank the Trump tax cuts.
All told, the Bureau of Economic Analysis (BEA) reported, some $305.6 billion returned to the U.S. from overseas accounts. That’s a $1.2 trillion annual rate, and far more than the $35 billion one year before.
The BEA’s analysts explain why this happened: “The large magnitudes (of inward capital flows) … reflect the repatriation of accumulated earnings by foreign affiliates of U.S. multinational enterprises and their Continue reading
Taxes: There’s a growing disconnect between the economic benefits spinning off the Republican tax cuts and the poll numbers. Is the public going sour of them? Or is this just more wishful thinking on the part of Democrats and the liberal press?
Just the past week saw three more examples of the tax cuts’ benefits.
Item 1: Kroger announced that it was accelerating wage hikes, increasing the company’s 401(k) match, enhancing benefits, and expanding employee discounts. All, it said, thanks to the Republican tax reforms. Kroger joins more than 500 other companies who’ve extended bonuses, wage hikes, or improved benefits to more than 4 million workers in the wake of the law’s sharp reduction in corporate tax rates.
Item 2: A Gallup poll found that the public thinks the tax code is more fair today than it was before the Republican tax cuts took effect. Just 42% now say middle income families pay too much in income taxes, down from 51% last year. And 26% Continue reading
Brian Ellis • Investor’s Business Daily
Employers have until Thursday to implement new tax withholding guidelines, which determine how much they withhold from pay for federal taxes.
Fortunately for many Americans, job creators are already seeing lower rates and distributing larger paychecks. Treasury Secretary Steve Mnuchin estimates more than 90% of working Americans will see greater take-home pay because of the Tax Cuts and Jobs Act’s new withholding guidelines.
It’s further proof that tax cuts are working for the middle class. To date, more than 330 U.S. employers have publicly announced tax-induced wage hikes, 401(k) increases, and generous bonuses. While Apple and Wal-Mart grab the headlines, many beneficiaries of the Republican tax bill are small businesses, which account for two-thirds of new jobs in the country.
Missouri-based Dynamic Fastener, a construction hardware supplier, is rewarding employees with bonuses of up to $1,000, while also opening a paint shop, buying new equipment and Continue reading
by Ali Meyer • Washington Free Beacon
Sixteen CEOs from large companies are urging Congress to enact comprehensive tax reform that would end a tax on domestic production and make companies in the United States more competitive globally.
CEOs from companies such as Dow Chemical, Pfizer, Caterpillar, Boeing, and General Electric have written a letter to Speaker of the House Paul Ryan (R., Wis.) and Sen. Chuck Schumer (D., N.Y.) urging them to make the U.S. tax code more pro-growth and lower rates for businesses so they can actively compete with global competitors.
“We recommend enacting comprehensive pro-growth tax reform to remove a major impediment to economic growth—our outdated tax code,” the CEOs said. “We have the highest business tax rate in the developed world and are one of the few countries that taxes business income on a worldwide basis.” Continue reading
While October numbers show auto sales continuing on their path to pre-recession levels of 15.5 million annually, the good news should not be read as an indicator of the overall strength of the economy. The country can’t rely on one industry to aid its lackluster recovery. Rather, tax reform and deregulation must be priorities for long-term growth.
A new Michigan economic study finds that the implementation of the Affordable Care Act will be a drag on the economy next year. Small businesses have resisted hiring under the uncertainty of Obamacare’s costs, and consumers are feeling the shock of higher health care premiums and canceled policies entering the holiday buying season. That’s not what the economy needs.
In the fourth year of sluggish growth, the twin federal policies of increased regulation and stimulus spending have brought diminishing returns. Continue reading
Will Rogers once said, “It is a good thing that we do not get as much government as we pay for.” That may be true, but I think we all wish we were paying for a lot less government and a lot less taxes. Our federal government is at historically high levels of spending — in recent years gobbling up nearly 25% of the total economic output.
Every year, the federal government spends more money than it did the last year. Even this year with the “sequester,” federal government will spend more money this year than it did the year before. Continue reading
“Every dollar the federal government does not take from us, every decision it does not make for us will make our economy stronger, our lives more abundant, our future more free.”
by Scott L. Vanatter
Granted the privilege of being elected to a second term, it was his first term accomplishments which enabled Reagan to describe the continued path to an even greater future. These concrete accomplishments – in the face of a terrible economy and a palpable lack of hope — gave the country confidence that we could become the shining city on a hill he so often pointed to. His February 6, 1985 State of the Union address cemented these hopes in the minds and hearts of Americans of all walks of life. Reagan’s generous, positive vision of the future was contagious. This contagion was assisted by the results of the politics and policies he pursued. Continue reading