FEDERAL TAXES and BUDGET . . . related to the ECONOMY
KITCHEN TABLE ISSUES
How do Federal Taxes and Budget affect us and our personal Economy? This page will pull it all together and explain how the three are all related. Basically we are being suckered by Trump. The American public, we taxpayers, will pay in the long term, probably as soon as he is removed from office. He, and Republicans, passed a tax cut where the benefits went primarily to corporations and the well to do. He put off paying for the tax cuts so the American public doesn't feel it right now, but we will. The trade wars are paid for by businesses and consumers, through higher prices, not by China or anyone else. The economic growth is the exact same it has been for years under Obama, approximately 2%.
This page is about facts, not the exaggerations and lies that Trump puts forth. Look at it this way, if you knew someone told you about 11-13 lies per day, maybe one every hour at work, would you believe that person about anything? What do your guts tell you?
How does the Trump tax cut affect me?
1) you might get a small refund (but you probably don't really know. The impact of multiple changes in the tax obscure whether you really got one or not. This is a way to confuse people).
But . . .
2) Federal taxes receipts are down.
3) No spending cuts were made in the Federal budget.
4) We keep spending more than we are bring in so we create a deficit.
5) This is a little like agreeing to a big debt in the future -- you don't owe it back today but you will, unless something happens like spending cuts (Medicare, Medicaid, Social Security are the likely targets). The deficit has ballooned from ???
6) The Federal Reserve is keeping interest rates low, which results in stimulating the economy. But when there is a downturn, there is little to no wiggle room to lower interest rates. As Hemingway wrote in The Sun Also Rises . . .
“How did you go bankrupt?"
Two ways. Gradually, then suddenly.”
7) To rub it in, your personal tax cut expires in 2025 but the corporate cuts NEVER expire.
What about my job?
1) The answer depends on your industry and your location.
2) If you are a farmer, you are fine for the moment. The Federal government is providing billion of dollars to you because you have been harmed by the Trump trade war. This could be described as a 'socialism' move.
3) If you are in manufacturing, look out. The trends, driven by technology and global demands, is not in your favor.
Why is the manufacturing index important?
What economic indicators should I be looking at?
How do the trade wars affect me?
What about the impact on income equality?
What about the stock market?