Tag: GOP corporate welfare

The White House’s spin that its budget reduces the deficit by $3 trillion

The following article by Glenn Kessler was posted on the Washington Post website February 16, 2018:

White House officials are claiming big budget savings for a plan that sends the deficit soaring. How does that add up? It doesn’t. (Meg Kelly/The Washington Post)

“The budget represents $3 trillion in savings over the course of the 10 years. It’s the second-largest proposed reduction in spending ever, second only to last year’s budget.”
— White House budget director Mick Mulvaney, briefing reporters on the 2019 budget, Feb. 12, 2018

“I know the president certainly would like to reduce the deficit and it’s one of the reasons that his budget — this budget reduced the deficit by $3 trillion, which was one of the largest in history.”
— White House press secretary Sarah Huckabee Sanders, in an interview on CNN, Feb. 13

The Fact Checker did a double take when we saw these statements. After all, the New York Times headlined its article on the 2019 budget: “White House Proposes $4.4 Trillion Budget That Adds $7 Trillion to Deficits.” So how does a budget that adds $7 trillion to the deficit actually reduce the deficit by $3 trillion? Continue reading “The White House’s spin that its budget reduces the deficit by $3 trillion”

President Trump’s claims that tax cuts sparked major U.S. investments

The following article by Salvador Rizzo was posted on the Washington Post website February 15, 2018:

The president has a tendency to claim credit where credit is not due — particularly when it comes to business deals. (Meg Kelly/The Washington Post)

“GM Korea company announced today that it will cease production and close its Gunsan plant in May of 2018, and they’re going to move back to Detroit. You don’t hear these things, except for the fact that Trump became president. … Also, you saw Chrysler moving from Mexico to Michigan.”
—President Trump, in remarks at the White House, Feb. 13, 2018

“Because of our tax cuts, Apple is investing $350 billion in the United States. … And two days ago, ExxonMobil, in addition to many others, just announced that they are investing $50 billion in the United States. So the good news just keeps on rolling in.”
—Trump, in remarks to congressional Republicans, White Sulphur Springs, W.Va., Feb. 1, 2018

Trump has been on a good-news kick lately, claiming that several multinational corporations are bringing jobs, factories or profits back to the United States because of the tax overhaul he signed in December. Continue reading “President Trump’s claims that tax cuts sparked major U.S. investments”

The tax cut is a $6 billion gift to Exxon

NOTE:  While reading this, please keep in mind Speaker Ryan’s tweet touting a school secretary getting a $1.50 per paycheck increase and Pres. Trump touting people with an income of $75,000 receiving a $2,000 tax cut (until they expire in 2020).

The following article by MattEgan was posted on the CNN Money section of the CNN website February 2, 2018:

ExxonMobil scored a massive gain from the Republican tax overhaul.

The tax windfall helped Exxon’s (XOM) net profits surge fivefold, the world’s largest publicly traded oil company said on Friday.

Excluding the tax bonanza, Exxon’s results left Wall Street wanting more. Adjusted earnings unexpectedly declined and revenue missed the mark by a wide margin. Exxon shares slumped about 5%. Continue reading “The tax cut is a $6 billion gift to Exxon”

Why it’s too soon for Davos billionaires to toast Trump’s ‘pro-business’ policies

The following article by Charles Hankla, Associate Professor of Political Science at Georgia State University, was posted on the Conversation website January 29,2018:

SAP CEO Bill McDermott and Siemens chief Joe Kaeser flank Trump as they praise him for his tax cut. Credit: AP Photo/Evan Vucci

The moguls of global business, who met recently in Davos for the World Economic Forum, may not like Donald Trump’s style. But, if a series of reports by The New York Times and other outlets are to be believed, Trump’s pro-business policies are making it easier for them to forgive his foibles.

Klaus Schwab, the head of the forum, put it this way as he introduced President Trump before his Jan. 26 speech: “On behalf of the business leaders here in this room, let me particularly congratulate you for the historic tax reform [that is] fostering job creation while providing a tremendous boost to the world economy.” Continue reading “Why it’s too soon for Davos billionaires to toast Trump’s ‘pro-business’ policies”

Paul Ryan credits Koch network for supporting GOP’s tax overhaul

The following article by Michelle Ye Hee Lee was posted on the Washington Post website January 28, 2018:

House Speaker Paul D. Ryan (R-Wis.). Credit: Jim Lo Scalzo/European Pressphoto Agency

INDIAN WELLS, Calif. — House Speaker Paul D. Ryan (R-Wis.) credited the network of billionaire industrialists Charles and David Koch for being “such a critical part of our historic success in 2017,” highlighting its support for the tax code overhaul.

“Your network has been instrumental for allowing us to reach so many milestones that have long been talked about, but until this year, have not been achieved,” Ryan said in a three-minute video message aired to hundreds of Republican mega-donors attending a three-day meeting here. Continue reading “Paul Ryan credits Koch network for supporting GOP’s tax overhaul”

Koch network to spend about another $20 million promoting GOP tax law

The following article by Michelle Ye Hee Lee was posted on the Washington Post website January 27, 2018:

Billionaire industrialist Charles Koch leads the network. (Photo by Patrick T. Fallon for The Washington Post)

INDIAN WELLS, Calif. — After spending $20 million to push the tax-code overhaul through Congress, the influential Koch network plans to spend up to another $20 million to educate the public about the benefits of the new law, network officials announced Saturday.

The network views the education campaign, which will launch in February, as key to holding the Republican congressional majorities in the 2018 midterm elections. Continue reading “Koch network to spend about another $20 million promoting GOP tax law”

IMF chief warns Trump’s tax cuts could destabilise global economy

The following article by Graeme Wearden and Larry Elliot was posted on the Guardian website January 26, 2018:

Reforms may threaten recovery and lead to bigger US budget deficit, says Christine Lagarde

IMF managing director Christine Lagarde speaking at Davos. Credit: Gian Ehrenzeller/EPA

Donald Trump’s huge tax cuts are a threat to the stability of the global economy, the managing director of the International Monetary Fund has warned.

Christine Lagarde singled out Trump’s tax reformsas one of three risks that could destabilise the current economic recovery, especially given the boom in stock markets in the past year.

“While the US tax reforms certainly will have positive effects in the short term, for the US and other countries around, it might also lead to serious risks,” Lagarde told the World Economic Forum in Davos. Continue reading “IMF chief warns Trump’s tax cuts could destabilise global economy”

Bonuses Aside, Tax Law’s Trickle-Down Impact Not Yet Clear

The following article by Jim Tankersley was posted on the New York Times website January 22, 2018:

Employees at an Apple retail store in San Francisco in 2016. Apple is among the companies handing out bonuses to workers in the wake of the $1.5 trillion tax cut.CreditNoah Berger/Reuters

WASHINGTON — There are good ways to start measuring how much the Trump tax cuts might be helping American workers. Tracking the bonus announcements flowing from corporations is not one of them.

Those announcements, which include $2,500 in stock grants for Apple employees, up to $1,000 for certain workers at Walmart and $1,000 bonuses for Bank of America employees, are both real money and smart marketing. President Trump and top Republican lawmakers have praised many of the companies that are disclosing tax-cut-fueled bonuses and wage hikes. Continue reading “Bonuses Aside, Tax Law’s Trickle-Down Impact Not Yet Clear”

Banks Are Big Winners From Tax Cut

The following article by Jim Tankersley was posted on the New York Times website January 16, 2018:

Big banks like J.P. Morgan are reporting short-term losses as a result of the tax bill but see long-term benefits, including stronger profits, from the overhaul. Credit John Moore/Getty Images

WASHINGTON — The nation’s banks are finding a lot to love about the Trump administration’s tax cuts.

The $1.5 trillion tax overhaul signed into law late last year provided deep and lasting tax cuts to all types of businesses, but financial institutions are among the biggest winners so far, reaping benefits from a lower corporate rate and more preferable tax treatment for so-called pass-through companies, which include many small banks.

While some of the biggest banks are reporting fourth-quarter earnings hits stemming from the new tax law, they see rich benefits over the long term, including effective tax rates that are even lower than the new 21 percent corporate rate. Continue reading “Banks Are Big Winners From Tax Cut”