gotsnowgotslush
skates like Eck
- Joined
- Dec 24, 2007
- Posts
- 25,720
May 23, 2017
Trump Budget Based on $2 Trillion Math Error
Donald Trump’s budget claims to balance the budget over a decade, without cutting defense or retirement spending, is to assume a $2 trillion increase in revenue through economic growth.
This is the magic of the still-to-be-designed Trump tax cuts. But wait — if you recall, the magic of the Trump tax cuts is also supposed to pay for the Trump tax cuts. So the $2 trillion is a double-counting error.
Trump has promised to enact “the biggest tax cut in history.” Trump’s administration has insisted, however, that the largest tax cut in history will not reduce revenue, because it will unleash growth. That is itself a wildly fanciful assumption. But that assumption has already become a baseline of the administration’s budget math. Trump’s budget assumes the historically yuge tax cuts will not lose any revenue for this reason — the added growth it will supposedly generate will make up for all the lost revenue.
But then the budget assumes $2 trillion in higher revenue from growth in order to achieve balance after ten years. So the $2 trillion from higher growth is a double-count. It pays for the Trump cuts, and then it pays again for balancing the budget. Or, alternatively, Trump could be assuming that his tax cuts will not only pay for themselves but generate $2 trillion in higher revenue. But Trump has not claimed his tax cuts will recoup more than 100 percent of their lost revenue, so it’s simply an embarrassing mistake.
http://nymag.com/daily/intelligencer/2017/05/trump-budget-based-on-usd2-trillion-math-error.html
Why two trillion dollars ?
12/21/2008 Updated May 25, 2011
The Two Trillion Dollar Bailout You Don’t Know About
If you thought the $700 billion bailout bill was bad, think again. The Federal Reserve is apparently handing out two trillion dollars in loans to companies and financial institutions effected by the credit crisis — and it won’t disclose where the money is going to.
What are the implications of these secret loans? Well, more than anything, it is a serious crisis in democracy. The loans do not come from nowhere — they exist in the form of taxpayers money and loans taken out from foreign investors that must be paid back by, you guessed it, the taxpayer. Another huge problem with the massive bailout is that the tax payer is getting literally nothing in return for it. Says Klein:
“These terrible equity deals that are so much worse than what Gordon Brown negotiated in Britain. I mean, let’s remember, Gordon Brown got voting rights at the banks that they bailed out, seats on the boards, 12 percent dividends for US tax — for UK taxpayers, as opposed to the five percent negotiated in the US and no voting rights and no seats on the board. Other thing Gordon Brown did is he got it in writing that the banks had to start lending, as opposed to Henry Paulson, who didn’t get it in writing, and the banks are not lending.”
http://www.huffingtonpost.com/ben-cohen/the-two-trillion-dollar-b_b_145000.html
What does 2 trillion dollars, have to do with American arms sales to Saudi Arabia
?
The United States is close to completing a series of arms deals for Saudi Arabia totaling more than $100bn, a senior White House official said on Friday, a week ahead of President Donald Trump's planned visit to Riyadh.
The official, who spoke to Reuters on condition of anonymity, said the arms package could end up surpassing more than $300bn over a decade to help Saudi Arabia boost its defensive capabilities while still maintaining US ally Israel’s qualitative military edge over its neighbours.
http://www.independent.co.uk/news/w...-billion-arms-deal-saudi-arabia-a7733871.html
In announcing the jobs that Trump claims will be created by the arms deal, he took time to make two other claims that screamed for immediate and thorough fact-checking. Not only have 1 million new jobs been added since Trump became president, but “nearly $3 trillion of new value” has been added to the economy, the president said.
Does that mean $3 trillion more in gross domestic product? New corporate profits? Tax revenue? Doesn’t matter. Nor does it matter that the million-jobs claim is highly debatable. In Trump’s world, the only thing that matters is that it sounds good — a deal, and one that he personally made, on behalf of the American people.
https://www.washingtonpost.com/post...nvolved-arent-so-sure/?utm_term=.0514ec1b8878
Trump Budget Based on $2 Trillion Math Error
Donald Trump’s budget claims to balance the budget over a decade, without cutting defense or retirement spending, is to assume a $2 trillion increase in revenue through economic growth.
This is the magic of the still-to-be-designed Trump tax cuts. But wait — if you recall, the magic of the Trump tax cuts is also supposed to pay for the Trump tax cuts. So the $2 trillion is a double-counting error.
Trump has promised to enact “the biggest tax cut in history.” Trump’s administration has insisted, however, that the largest tax cut in history will not reduce revenue, because it will unleash growth. That is itself a wildly fanciful assumption. But that assumption has already become a baseline of the administration’s budget math. Trump’s budget assumes the historically yuge tax cuts will not lose any revenue for this reason — the added growth it will supposedly generate will make up for all the lost revenue.
But then the budget assumes $2 trillion in higher revenue from growth in order to achieve balance after ten years. So the $2 trillion from higher growth is a double-count. It pays for the Trump cuts, and then it pays again for balancing the budget. Or, alternatively, Trump could be assuming that his tax cuts will not only pay for themselves but generate $2 trillion in higher revenue. But Trump has not claimed his tax cuts will recoup more than 100 percent of their lost revenue, so it’s simply an embarrassing mistake.
http://nymag.com/daily/intelligencer/2017/05/trump-budget-based-on-usd2-trillion-math-error.html
Why two trillion dollars ?
12/21/2008 Updated May 25, 2011
The Two Trillion Dollar Bailout You Don’t Know About
If you thought the $700 billion bailout bill was bad, think again. The Federal Reserve is apparently handing out two trillion dollars in loans to companies and financial institutions effected by the credit crisis — and it won’t disclose where the money is going to.
What are the implications of these secret loans? Well, more than anything, it is a serious crisis in democracy. The loans do not come from nowhere — they exist in the form of taxpayers money and loans taken out from foreign investors that must be paid back by, you guessed it, the taxpayer. Another huge problem with the massive bailout is that the tax payer is getting literally nothing in return for it. Says Klein:
“These terrible equity deals that are so much worse than what Gordon Brown negotiated in Britain. I mean, let’s remember, Gordon Brown got voting rights at the banks that they bailed out, seats on the boards, 12 percent dividends for US tax — for UK taxpayers, as opposed to the five percent negotiated in the US and no voting rights and no seats on the board. Other thing Gordon Brown did is he got it in writing that the banks had to start lending, as opposed to Henry Paulson, who didn’t get it in writing, and the banks are not lending.”
http://www.huffingtonpost.com/ben-cohen/the-two-trillion-dollar-b_b_145000.html
What does 2 trillion dollars, have to do with American arms sales to Saudi Arabia
?
The United States is close to completing a series of arms deals for Saudi Arabia totaling more than $100bn, a senior White House official said on Friday, a week ahead of President Donald Trump's planned visit to Riyadh.
The official, who spoke to Reuters on condition of anonymity, said the arms package could end up surpassing more than $300bn over a decade to help Saudi Arabia boost its defensive capabilities while still maintaining US ally Israel’s qualitative military edge over its neighbours.
http://www.independent.co.uk/news/w...-billion-arms-deal-saudi-arabia-a7733871.html
In announcing the jobs that Trump claims will be created by the arms deal, he took time to make two other claims that screamed for immediate and thorough fact-checking. Not only have 1 million new jobs been added since Trump became president, but “nearly $3 trillion of new value” has been added to the economy, the president said.
Does that mean $3 trillion more in gross domestic product? New corporate profits? Tax revenue? Doesn’t matter. Nor does it matter that the million-jobs claim is highly debatable. In Trump’s world, the only thing that matters is that it sounds good — a deal, and one that he personally made, on behalf of the American people.
https://www.washingtonpost.com/post...nvolved-arent-so-sure/?utm_term=.0514ec1b8878
