Taxes

Did the tax cut really produce those bonuses and pay raises?

Featured image Veronique de Rugy suggests that the bonuses and pay raises granted by many employers right after the tax cut was signed into law might well have been coming even without the tax cut. The key to the increase in worker compensation, she proposes, is the very tight labor market. De Rugy quotes the Wall Street Journal: With the unemployment rate low and unfilled job openings high, losing workers to a »

Bringing it all back home

Featured image Has there ever been a quicker boost to the economy than the one we have experienced under President Trump over the past year? As Joel Kotkin puts it in this City Journal column: “New job numbers are robust, GDP and wages continue to rise, stocks are soaring, unemployment continues to decline, and overall growth is at its highest in 13 years. And this salutary picture is not exclusive to big »

The Media vs. the Facts On Tax Reform

Featured image The Democratic Party media tried desperately to discredit the Republican tax reform bill, assuring readers and viewers that it wouldn’t do them any good. This makes it especially fun to watch the good news continue to roll out. And just wait until the overwhelming majority of working Americans get a raise next month! The Washington Free Beacon created this delightful 2:31 video, in which Democratic Party broadcasters and “experts” claim »

Bonus Bonus Bonus!

Featured image [I see John is after this story also, just below.] Is it still Christmas? Or is Nancy Pelosi just determined to be the gift that keeps on giving all year round? Today, in answer to a reporter’s question about the growing number of companies giving bonuses to their workforce because of the tax bill, said that the bonuses were “insignificant crumbs.” I’ll bet a lot of the people receiving the »

Lessons in Economic Literacy

Featured image Anyone remember the early 1990s when the Clinton Administration discovered to its horror that it couldn’t spend like the horny drunken sailors we know them to have been because the bond market would instantly punish the economy? James Carville famously said that if he was reincarnated, he wanted to come back to earth as the bond market. Hold that thought in mind as we survey the current economic scene a »

Blue States Search For Ways to Preserve Subsidies

Featured image Blue state governments are reeling following enactment of the tax reform bill, which among many other virtues, corrects an injustice: residents of low-tax states like South Dakota will no longer be forced to subsidize residents of high-tax states like New York. Or at least, not to the same extent. State and local taxes will still be deductible, up to $10,000. The Associated Press reports: “States exploring tax changes in response »

Holiday Shopping Data Illustrate Success of Trump’s Policies and Democrats’ Difficult Road

Featured image The Wall Street Journal reports on holiday shopping: Fueled by high consumer confidence and a robust job market, U.S. retail sales in the holiday period rose at their best pace since 2011, according to MastercardSpendingPulse, which tracks both online and in-store spending. Sales, excluding automobiles, rose 4.9% from Nov. 1 through Christmas Eve, compared with a 3.7% gain in the same period last year. *** Unlike in past years, when »

Meet Robert Strong

Featured image Robert Strong is the Los Angeles psychologist who “claims to have left the festively wrapped box of manure outside the Bel-Air home of U.S. Treasury Secretary Steven T. Mnuchin that spurred a Secret Service investigation, billing it as a political protest against the recently passed tax bill.” Here I am quoting from Emily Alpert Reyes’s Los Angeles Times story. Robert Strong, in other words, is the face of the Resistance »

Breaking: Tax bill cut taxes

Featured image Under an all caps Merry Christmas Glenn Reynolds alerts us to the Senate GOP tweet that embeds an interesting report from CBS News (below). In the spirit of the day, it carries tidings of good cheer. CBS checked in with three families of varying means to ascertain the effect of the tax bill enacted last week. I was particularly interested in the impressions each of them had. A single mother »

Not the end of the world as we know it, maybe

Featured image Can fans of Bernie Sanders be persuaded to support elements of the GOP tax bill that was just enacted despite the Democrats’ visions of the apocalypse? It seems impossible, but Ami Horowitz may have have opened a few minds of Sandernistas waking the streets of the East Village by creatively ascribing them to Sanders (video below). I’m not sure Ami persuaded anyone on lowering the corporate tax rate from 35 »

What if Americans end up really liking the tax cuts?

Featured image As the Senate was about to pass the tax reform bill earlier this week, protesters interrupted the proceedings with chants like “Kill the bill, don’t kill us.” The protests were so loud that Vice President Pence had to stop the process a few times. Protesters singled out Sen. Jeff Flake, whom they hoped would vote “no.” A protester yelled: “Have you no decency, have you no shame?” This was probably »

Tax Reform is Already Working

Featured image The ink is barely dry on the president’s signature on the tax reform bill, and already positive results are being reported. One of the arguments of economists like my former colleague Kevin Hassett (now chair of the President’s Council of Economic Advisers) is that reducing the corporate tax rate would benefit workers wages. It has started to have this effect—today: AT&T, Comcast giving $1,000 bonuses to hundreds of thousands of »

Germans Fear Tax Cut Will Spur US Investment and Growth

Featured image The Democrats in Congress and the press have frantically tried to convince the American people that cutting businesses taxes won’t do any good. This view is delusional, but we hear it so often it almost begins to sound plausible. Here is a contrary view from a different source, German industry: “Germans fear huge loss of jobs from US tax reform.” German investment in the US is expected to rise by »

Both chambers pass tax reform

Featured image On Tuesday, the House passed the GOP tax reform bill by a vote of 227-203. Then, around midnight, the Senate passed a very similar bill, 51-48. The Senate voted strictly along party lines, with John McCain unable to participate. The Senate bill differs slightly from the House version because the Senate parliamentarian ruled that three provisions of the House version violate the Senate’s Byrd Rule, which governs what types of »

Why Can’t Trump Get Credit?

Featured image Sarah Sanders began her press briefing today by ticking off some of President Trump’s achievements in 2017: As December winds down, I thought this would be a perfect opportunity to look back at what has been, by any measure, a historic year. Nearly 1.7 million new jobs have been created, and the unemployment rate has fallen to 4.1 percent, the lowest rate in 17 years. The stock market reached a »

Tax Reform Angst on the Left

Featured image The final tax cut bill has emerged from conference committee. Let’s see what the reaction is, first from the Philadelphia Inquirer and then The New Yorker: Judging from these headlines, the tax bill must be fantastic! Though I’ll want to wait to hear from Paul Krugman just to be sure. Thanks, liberals, for saving me so much time. What was that John was saying about liberal hysteria? »

GOP Senators unanimous in support for tax bill

Featured image So reports Jibran Khan at NRO’s Corner. Senators Rubio and Scott have fallen into line, having secured an increase in the child tax credit refund. No surprise there. But here’s a surprise, at least to me. Senator Corker says he will vote for the bill, notwithstanding his concern that it will increase the deficit. He opposed the version initially passed by the Senate due to that concern. Corker called the »