Moody's Assessment of the Tax Overhaul

[Teallaura]

Yes - I said that, and stand by it. That is how businesses operate. That is even MY philosophy in MY business. There is nothing unethical about this approach, and no conflict with social justice. It does not make a company "bad." It is a fiscal reality. A business does not WANT to hire. Payroll is the most expensive part of most business' operating budget. No business I have ever encountered is actively seeking to hire unless they have increased demand they cannot meet by any other means (e.g., temp workers, contractors, efficiency increases, etc.).

And we're seeing it unfolding in the shadow of the tax cuts. Although some businesses have announced plans to "grow the business" with the cuts, it is yet unclear how many jobs that will result in. Most businesses appear to be planning to use the new cash for stock-buy-back, increased dividends, mergers and acquisitions, and debt reduction. None of those things will create jobs.

Reread the quote. It's the 'raising salaries' bit that's causing the problem.

[rogue06]

The folks I work for have promised raises starting in March due to the tax cut. While it isn't much (I'll only be getting about $650 more a year extra)^[1] but combined with having my taxes cut (I'll see by how much next month) makes for a nice little extra bonus^[2]









1. Which does not include my annual raise due at the end of June

2. In addition to the roughly $400 quarterly bonuses

Of course to a multi-millionaire like Nancy Pelosi^[1] this is nothing but "crumbs" which is how she dismissively characterizes it.






1. According to Wikipedia she's worth $29.35 million but the Center for Responsive Politics (best known for its website OpenSecrets.org) puts it closer to $196 million.

[Sparko]

Of course to a multi-millionaire like Nancy Pelosi^[1] this is nothing but "crumbs" which is how she dismissively characterizes it.






1. According to Wikipedia she's worth $29.35 million but the Center for Responsive Politics (best known for its website OpenSecrets.org) puts it closer to $196 million.

Why is it that most of the public people that complain about rich people are rich people who don't do anything to make it right other than complain about rich people? Michael Moore for instance.

[Cow Poke]

Why is it that most of the public people that complain about rich people are rich people who don't do anything to make it right other than complain about rich people? Michael Moore for instance.

They think it makes them look more noble. In truth, it just shows what a bunch of pandering hypocrites they are. They are free to give all their money to the cause any time they want.

[rogue06]

Why is it that most of the public people that complain about rich people are rich people who don't do anything to make it right other than complain about rich people? Michael Moore for instance.

And during the Occupy protests/riots, Michael Moore tried to join them in their attacks on the "1%" which led folks to note that he was a member of the 1%. Moore repeatedly claimed that wasn't true but as the numbers started coming out, and pictures of some of his huge houses got posted online, he sheepishly admitted that he was indeed in the 1%. I guess he thinks if he dresses as a working class stiff (essentially it's a costume for him) that his going home to one of his mansions to count his millions doesn't really count.

[rogue06]

They think it makes them look more noble. In truth, it just shows what a bunch of pandering hypocrites they are. They are free to give all their money to the cause any time they want.

For far too many on the left it's giving other people's money away is how they prove their generosity.

[Cow Poke]

For far too many on the left it's giving other people's money away is how they prove their generosity.

EGGzackly... and "I can be generous too, if you enact a law forcing me to do so!"

[carpedm9587]

sigh. Your OP was that Moody was predicting that businesses were NOT using the tax money to expand business and help employees and create jobs. Then they actually report the opposite. And you still can't just say "I was wrong"

SMH.

Yes - my OP was that reports are that tax money is not being used to create jobs. The other report is NOT that tax money is creating jobs - it is just that jobs have been created. Correlation is not causation.

[carpedm9587]

Prediction, not confirmation.

Good point. I stand corrected.

[carpedm9587]

So the cut does do some good.

Having not so long ago been in the position where $25 makes a big difference, your argument is compelling but the other way. Those small gains will likely go into the economy (have you seen gas prices lately?) and they add up. If I remember Econ 101, increased demand eventually translates into more jobs.

There is no evidence that tax cuts directly impact the economy.

Reagan cut taxes - economy soared.
Clinton raised taxes - economy soared
Bush cut taxes - economy tanked

You can go back further in time and find even more examples. Tax cuts/raises and the economy show no sign of strong correlation. The economy has other, far more significant, engines.

[carpedm9587]

Reread the quote. It's the 'raising salaries' bit that's causing the problem.

At this point, with dozens of threads in play, and several people kicking in, I have no idea what "the quote" refers to. I am, to some degree, lost.

[Cow Poke]

At this point, with dozens of threads in play, and several people kicking in, I have no idea what "the quote" refers to. I am, to some degree, lost.

Jesus can save you, just put your trust in Him.

[carpedm9587]

Of course to a multi-millionaire like Nancy Pelosi^[1] this is nothing but "crumbs" which is how she dismissively characterizes it.

1. According to Wikipedia she's worth $29.35 million but the Center for Responsive Politics (best known for its website OpenSecrets.org) puts it closer to $196 million.

For the most part, I suspect the change in withholding people are experiencing will be adjusted to and considered "the norm" within a matter of weeks. I seriously doubt most people will go to the polls in November with their tax position foremost in their minds. Meanwhile, the huge gains the wealthy made, THAT will be pounded on over and over again by the left.

That's my prediction. We'll see....

[carpedm9587]

For far too many on the left it's giving other people's money away is how they prove their generosity.

Ok - I tend to avoid these - but I cannot resist...

[carpedm9587]

Jesus can save you, just put your trust in Him.

Ummm.... no comment...