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View Full Version : Trump Tax Cuts Will Start Monumental US Boom – Martin Armstrong



Serpo
17th December 2017, 03:12 AM
By Greg Hunter (https://usawatchdog.com/author/greg-hunter/) On December 17, 2017 In Political Analysis (https://usawatchdog.com/category/political-analysis/) 2 Comments
By Greg Hunter’s USAWatchdog.com (https://usawatchdog.com/) (Early Sunday Release)
Legendary financial and geopolitical analyst Martin Armstrong says the Trump tax cuts are going to be a very positive move for the U.S economy. Armstrong explains, “It’s huge, I cannot tell you how much. . . . Any company that doesn’t bring its cash back under this deal should be sold short, basically. You bring it in because who knows what will happen when the politics change. It’s a one-time deal. You get to bring it in, and you better get it in fast.”
Armstrong thinks you cannot underestimate the effect Trump tax cuts will have on the U.S. economy. Armstrong goes on to say, “It’s monumental. It really is a very pro-business situation, and that’s going to grow jobs, etc. Small businesses and pass-throughs have been abused. They have been abused. A small business tries to get a loan from a bank, and 70% of them are declined. It’s really more of a pro-business type thing. I mean in what you are paying out in taxes, in our office, we could hire ten more people. You have to understand what it does, it then puts pressure on everybody else. We already have Canadian companies standing up and saying we are going to have to move to the United States if this keeps up.”
Armstrong says the rest of the world is freaking out about the Trump tax cuts because they are going to lose business. Armstrong says, “Absolutely, China, I had to fly to London to meet with very senior people and they met me in London. . . . You have to grasp the structural differences outside the United States. . . . If this tax thing goes through, our models are showing we should be reaching the 37,000 to 40,000 level (on the DOW) at least by 2020.”
There is also some bad news. Armstrong is worried about central banks continually buying bonds to suppress interest rates. Armstrong says, “Yes, absolutely. We are in the biggest bond bubble in history, not a stock bubble, but a bubble. . . . The scary thing in Europe is the ECB (European Central Bank) has been basically supporting the governments. It is subsidizing all the governments in the Eurozone. We are looking at almost 10 years of quantitative easing with that, and it hasn’t helped the economy. If the ECB backs off, who’s going to buy the debt?”
How does this end? Armstrong says, “Our computers are showing that interest rates are going to go up faster than anybody has ever seen in history. . . . You are looking at a doubling of interest rates very, very rapidly. . . . Gold and equities are the place to be.”




https://www.youtube.com/watch?v=cUgSpEQlTMY

https://usawatchdog.com/trump-tax-cuts-will-start-monumental-us-boom-martin-armstrong/

singular_me
17th December 2017, 03:49 AM
>>>“It’s monumental. It really is a very pro-business situation, and that’s going to grow jobs,<<<

meaning more pollution and senseless consumerism.

crimethink
17th December 2017, 04:09 AM
Armstrong: a bona fide con-man.

cheka.
17th December 2017, 07:46 AM
i dont see the jobs he sees coming. i do see the potential to drive stocks up -- as execs use money to buy their own stock - making money on their options and stock performance based bonuses

to get the jobs i think we need import tariff

another issue is the tax cuts to the wage slaves. i calculated about 3k less tax for me. that's going to bump spending.

this will drive rising-price type inflation. frbny will raise rates to fight it. so rising prices in stocks, rising prices in other things......and when frbny gets rates high enough, the thing pops.

Horn
17th December 2017, 08:54 AM
Nothing wrong with tax cuts, just so long as you aren't planning any huge government projects,

like instituting a tariff system, building a continental wall or defending yourself from Chinese or Islamic invasion/war.

Bush did it back in early 2000s just before invading Iraq, well you see the results.

Unless you like to fantasize that Cheerleaders become Nobel Peace prize winners again and .gov cuts other places turn to gains somewhere else

TroyOz
17th December 2017, 08:57 AM
I liked his stuff better when he was in jail.

Jewboo
17th December 2017, 10:01 AM
i dont see the jobs he sees coming.

Reported last week that illegal immigration from Mexico has returned to the Obama levels. They never actually hired additional Border Patrol.

http://www.latimes.com/nation/la-na-border-patrol-hiring-20171217-story.html

Twisted Titan
17th December 2017, 05:09 PM
>>>“It’s monumental. It really is a very pro-business situation, and that’s going to grow jobs,<<<

meaning more pollution and senseless consumerism.



Who made you the arbiter of what I should or should not consume?


Can you show me one useful thing that has been created that does not make pollution?

Jewboo
20th December 2017, 08:40 PM
https://img.4plebs.org/boards/pol/image/1513/82/1513827202911.jpg

keehah
26th February 2020, 10:00 AM
Searched around a bit and could only find this one thread on the income tax cuts. I only just learned about the plan's change in consumer price index that will increase taxes by adjusting for inflation slower than the previous tax plan. Trump scaled back an important aspect of Reagan's tax cuts!

The Consumer Price Index (CPI) Reagan's tax cuts used does not underestimate actual inflation as much as the Chained-CPI Trumps taxes use.
As example of the difference, if the price of steak goes up (CPI) and it is observed some consumers switch to eating ground beef, the C-CPI may say there is no inflation or even deflation!


Bloomberg: The Big, Permanent Tax Increase Inside the Tax Cut Act (https://www.bloomberg.com/opinion/articles/2017-12-20/the-big-permanent-tax-increase-inside-the-tax-cut-act)

Let's talk about tax-bracket indexation.
December 20, 2017

Over time, though, this indexing of tax brackets to inflation has become arguably the most significant and lasting consequence of the 1981 tax legislation. It's certainly been the most expensive, with a revenue impact that as far as I know is no longer tracked but by this point must be multiples larger than any other element of the 1981 cuts. It also seems to have been the inevitable and right thing to do. As the New York Times put it in an editorial in 1984, when some lawmakers -- and Democratic presidential nominee Walter Mondale -- were pushing to delay or alter the provision's looming onset:

Indexation is the fairest tax reform in many years. To tamper with it is to betray a trust.

So anyway, you'll never guess what the legislation formerly titled the Tax Cuts and Jobs Act of 2017 2 does! It tampers with indexation! [Uses Chained-CPI, no longer CPI] I wouldn't exactly say that the change is betrayal of a trust, but it is a tax increase that will get bigger and bigger over the decades, and it will weigh heaviest on those in lower tax brackets. Unlike most other individual income tax changes in the new law, it is permanent, and given its positive revenue implications, it is hard to imagine any future Congress rolling it back...

[S]witching to chained CPI does have consequences. In the case of the tax code, it amounts to a stealthily growing tax hike -- increasing taxes by just $800 million next year but by $31.5 billion in 2027, according to the Joint Committee on Taxation. The total increase over the next decade is $133.5 billion, in a bill that cuts taxes by $1.5 trillion over that period. In the decade after that, switching to chained CPI will bring in almost $500 billion in additional revenue, estimates the Urban-Brookings Tax Policy Center. And the amount will just keep going up...

So in the first decade this hidden change reduces the tax cut by almost 10% (133 billion) in 10 years, in the next decade ~33% (500 billion), eventually in a future decade or two income taxes would be higher than they would have been without the new tax plan. Decades into the future means that most taxpayers will discount concern, but certainly the claim of 'permanent tax cut' is incorrect when describing this plan.


But it does seem important to note that, because of the way tax brackets work, the tax increases brought on by chained indexing will be bigger in percentage terms for those near the bottom of the income distribution than for those at the top. According to a 2013 analysis by the Tax Policy Center, taxpayers in the second income quintile (currently those with cash incomes of $25,000 to $48,600) would see the biggest percentage increases, with their tax rate going up by 0.4 percentage points and their after-tax income declining by 0.4 percent 15 years after a switch to chained CPI. Meanwhile, those in the top 0.1 percent of the income distribution (incomes above $3.4 million) would see average percentage changes of effectively zero.