Bush tax cut could add 2 trillion in value back to stock market

trumptmantrumptman
Posted:
in General Discussion edited January 2014
Forbes



Many folks around here had asked for what the tax cut could do for the economy. I mentioned that focusing on dividends returns companies back to how they should operate, but this article explaines it much better.



Nick

Comments

  • Reply 1 of 12
    enaena Posts: 667member
    <dumb question>



    In not double-taxing dividends--this applies to the investor and not the company. Yes?





    </dumb question>
  • Reply 2 of 12
    trumptmantrumptman Posts: 16,464member
    Correct, right now it is currently double taxed. The company, in declaring a profit has to pay taxes on it. After they pay the taxes and the dividend to you, you have to pay taxes on it for receiving the dividend.



    So say the company made 100 million dollars and paid taxes on it. There would be 65 million left over. Now when you receive your share of that 65 million, say one million, it is declared income for you as well and at one million you are in the 35% bracket again.



    Your one million becomes, $650,000. If there had been no taxes on any of the profits as a 1/65th owner of the company you would have receieved $1,538,462. So currently when a company declares a profit, you get less than half of what they declare due to double 35% taxation.



    Nick
  • Reply 3 of 12
    ghost_user_nameghost_user_name Posts: 22,667member
    Quote:

    Originally posted by trumptman

    Forbes



    Many folks around here had asked for what the tax cut could do for the economy. I mentioned that focusing on dividends returns companies back to how they should operate, but this article explaines it much better.



    Nick



    Trumptman:



    1) How large parts of the tax cuts is this about?



    2) What prevent the investors in investing in overseas markeds?



    3) If the money was invested in search for cheap alternative energy sources (waves, solar, thermal aso.) how many jobs would be created compared to this?



    "U.S. workers are the most productive in the world. They are productive because they have the best training..."



    Wrong. You have a great educational system but just as with your economy it isn´t evenly distributed. A lot of work done by non-skilled and semi-skilled workers in US is done by skilled workers in other countries, making them more effective
  • Reply 4 of 12
    billybobskybillybobsky Posts: 1,914member
    Yeah, well I am a grocer. A client of mine is a mechanic. Most of his clients work for company x. Company X makes money, is taxed on it, and gives some of that money to its employees in the form of pay (lets say incentives). Those employees pay taxes on that money, and then pay some of that money to the mechanic, who then pays taxes on this money, and then buys food from me. I pay taxes on my profit and spend the rest of the money on smack which isnt taxed. Good thing.



    Multi-taxation occurs everywhere, get over it.



    Its great that more money would exist in the essentially irrelevent stock market. THat money isnt building houses for the homeless, that money isnt paying for health care for those who need it. What utter and complete single minded republican bullshit...
  • Reply 5 of 12
    billybobskybillybobsky Posts: 1,914member
    Quote:

    Originally posted by Anders the White

    You have a great educational system but just as with your economy it isn´t evenly distributed.



    We arent at all near the top in science or otherwise. We dont have a vocational educational system (and that is a good thing). I would say our educational system is adequate, and that means that by far there are a lot of people out there with college diplomas who dont understand anything about anything...
  • Reply 6 of 12
    brussellbrussell Posts: 9,812member
    But the actual tax bill that has been passed didn't get rid of the dividend tax. It was approximately cut in half, but then goes back into full force (i.e., you pay at whatever your marginal rate is) in a few years.



    But what's really cool about these tax cuts is that they will pay for themselves! We don't have to cut gov't spending - in fact, we can increase it - and everything will be just great! I promise!
  • Reply 7 of 12
    curiousuburbcuriousuburb Posts: 3,325member
    [disclaimer sticker in budget mode]

    but... trickle down is just a faith-based opinion. we accept the 'micro' part that makes rich folks richer, where's the scientific evidence that follows the money to new 'macro' forms of wealth to make anyone other than rich folks richer?

    [/disclaimer sticker in budget mode]





    hmmm... not enough coffee for that to read right. 'economist mode' edits to follow.
  • Reply 8 of 12
    mrmistermrmister Posts: 1,095member
    Nice to hear that SOMEONE is enthusiastic about the cuts--I can't say I'm very happy about Bush's domestic plans, but I'll watch these developments with great interest.
  • Reply 9 of 12
    mikemike Posts: 138member
    Quote:

    Originally posted by mrmister

    Nice to hear that SOMEONE is enthusiastic about the cuts--I can't say I'm very happy about Bush's domestic plans, but I'll watch these developments with great interest.



    Everyone that I know IS enthusiastic about the cuts [almost]. The ONLY two people that I know of that aren't are the same people that do side work and don't claim the income at the end of the year. Talk about irony!
  • Reply 10 of 12
    jimmacjimmac Posts: 11,898member
    Yeah tax cuts always sound good don't they? But we'll be paying for them down the road. History has already proven that's the way it works. The U.S. has to pay it's bills from somewhere. But it's getting close to election time and Bush hasn't a clue how to solve the economic problems we're in. So in order to get more polictical support for the next election he does a feel good now ( never mind about later ) tax cut.
  • Reply 11 of 12
    trumptmantrumptman Posts: 16,464member
    Well the Washington Post didn't think it was so bad. They actually declared that it would help.... middle class families, GASP!



    Of course that is because it also increases the child tax credit to $1000 which seems to have gotten lost in all this discussion. (even and especially by me)



    Washington Post



    It said that based off THIS years tax returns, if you claimed the child tax credit they will start mailing out checks in July. Since it was raised from $600 per child, to $1000, that means I have another $800 coming to me.(2 kiddos)



    Anyone else going to be expecting a check?



    Nick
  • Reply 12 of 12
    brussellbrussell Posts: 9,812member
    Yeah, I like the child tax credit and the expansion of the standard deductions. I heard about them mailing $400 checks, but for some reason only $400 rather than $400 per child. Maybe it was just a mistake in the article I read, or maybe there's some provision that you only get one child's retroactive increased tax credit.
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