By Sylvan Lane
A victory for Democratic presidential nominee Joe Biden, (click here) a Democratic takeover of the Senate and defense of the party's House majority in the November elections would be the best outcome for the U.S. economy, according to an analysis released Wednesday by Moody’s Analytics.
In an analysis of potential Election Day outcomes based on the economic proposals of President Trump and Biden, Moody’s found that a Democratic sweep would bring the quickest return to full employment, highest number of jobs added and best rebound in economic growth.
“The economic outlook is strongest under the scenario in which Biden and the Democrats sweep Congress and fully adopt their economic agenda,” wrote Moody’s Analytics chief economist Mark Zandi, who provided economic analysis for the late Sen. John McCain’s (R-Ariz.) 2008 presidential campaign, and economist Bernard Yaros....
Americans are purchasing their economy through tax cuts. There is no plan. Trump dumps trillions of money into the economy in order for Wall Street to claim high numbers of trading. Trump focuses on the Wall Street trading numbers. That has nothing to do with the economy that provides jobs and income to the people. The evidence of that observation is the fact the unemployment numbers are very high with those people left out of the "purchase economy" of the USA, yet the financial markets (Wall Street) are doing exceptionally well. Many of the companies traded in the financial markets are not even paying a dime of taxes. None.
April 11, 2019
By Kathryn Kranhold
About twice as many of the largest U.S. companies (click here) reported they didn’t owe taxes in 2018 compared with previous years, a partial result of the 2017 Trump tax law, according to a report....
...At least 60 companies reported that their 2018 federal tax rates amounted to effectively zero, or even less than zero, on income earned on U.S. operations, according to an analysis released today by the Washington, D.C.-based think tank, the Institute on Taxation and Economic Policy. The number is more than twice as many as ITEP found roughly, per year, on average in an earlier, multi-year analysis before the new tax law went into effect.
Among them are household names like technology giant Amazon.com Inc. and entertainment streaming service Netflix Inc., in addition to global oil giant Chevron Corp., pharmaceutical manufacturer Eli Lilly & Co., and farming and commercial equipment manufacturer Deere & Co.
The identified companies were “able to zero out their federal income taxes on $79 billion in U.S. pretax income,” according to the ITEP report, which was released today. “Instead of paying $16.4 billion in taxes, as the new 21 percent corporate tax rate requires, these companies enjoyed a net corporate tax rebate of $4.3 billion, blowing a $20.7 billion hole in the federal budget last year.” To compile the list, ITEP analyzed the 2018 financial filings of the country’s largest 560 publicly-held companies....
The negative tax rate by these companies is real and not just a phrase that helpd justifies the zero tax rate. These companies with negative tax rates GET REBATES of taxes previous paid and/or yet to pay.
...The Moline, Illinois-based Deere, which was started in 1837 by blacksmith John Deere, who made farming plows, reported earning $2.15 billion in U.S. income before taxes. It owed no U.S. taxes in 2018 and reported that it was owed $268 million from the government, after taking into consideration various deductions and credits, according to its annual filing with the Securities and Exchange Commission. The company reported global profits of $2.37 billion.
Asked about the rebate, Brian Moens, one longtime Deere employee, was contemplative. “Everyone should pay their fair share whether it is an individual or a corporation,” he said. “If just the small individuals are paying it without large corporations doing their part, I don’t see that being fair.”...
Donald John Trump has indulged corporations as a means of success of an economy that exists while he is in office. The reason is that it is easy to talk everyday about "Wall Street Numbers." Everyday there are channels of media that discuss trading resulting in higher profits to these companies.
The Republican Tax Plan voted in to law during the first year Trump was in office gave the Middle Class a break for the first year, but, this is the fourth years of that tax plan and there are increases in that income tax.
Pelosi, Oct. 5, press availability: The tax cuts in the bill — 80 percent of the tax cuts in the bill benefit the top 1 percent in our country. $2.6 trillion in tax cuts go to corporate America. Around $475 million — excuse me, $475 billion in tax increases go to Middle America. … So, again, it raises taxes on middle class, cuts the tax of the wealthiest, adds trillions to the deficit.
Those increases were actually 5 percent on households of $112,500 – $190,150. These people would never see increases in taxes for the Joe Biden tax plan. Increases in taxes begin with households earning at $400,000 or more.
The rest of the Trump economic plan also includes tariffs that are passed on to the American consumer. So the Chinese Shipping Magnate that benefits from Moscow Mitch's will pass his tariff fees to Americans and will maintain the wealth he has to pass on to Mitch. That means small money donors will have less money to donate to their favorite candidates while foreign dark money can continue unabated.
Tariffs are supposed to reduce the trade deficit. In other words, tariffs are incentives to other countries to increase American products to their shores. When a better trade balance is better, the tariffs are supposed to be reduced or ended in recognition of that accomplishment. That hasn't occurred under Trump.
The article below is from March of 2019 before the Global Pandemic that the USA is caught up in because of Trump's absence and failing policies. The trade deficit in 2018 increased by more than 10 percent,
March 7, 2019
By Robert E. Scott
The U.S. Census Bureau reported that the U.S. goods trade deficit reached a record of $891.3 billion in 2018, an increase of $83.8 billion (10.4 percent). The broader goods and services deficit reached $621.0 billion in 2018, an increase of $68.8 billion (12.5 percent). The rapid growth of U.S. trade deficits reflect the failure of Trump administration trade policies, as well as the negative impacts of tax cuts and spending increases, which have sharply increased the federal budget deficit, and tightening of U.S. monetary policy, resulting in upward pressure on interest rates and the real value of the dollar....
...Unless these trends are offset by a rapid decline in the value of the U.S. dollar, rapidly rising trade deficits could be devastating for U.S. manufacturing, likely giving rise to massive job loss on the scale experienced in the 2000–2007 period, when 3.5 million U.S. manufacturing jobs were lost....
July 23, 2020
By Kimberly Amadeo
...2017: By May, the euro (click here) had risen to $1.09. Investors left the dollar for the euro due to allegations of connections between President Trump's administration and Russia. By the end of the year, the euro had risen to $1.20.
2018: The euro continued its ascent. On February 15, it was $1.25. In April, the euro began weakening after President Trump initiated a trade war. The euro fell to $1.16 on June 28, a few days after the Federal Reserve raised the fed funds rate to 2%. A higher interest rate strengthens a currency because investors receive more return on their holdings. But the by end of the year, the euro was $1.15.
2019: The euro declined until September when it reached $1.10. It rose briefly in December to $1.11. The euro followed news about the ongoing trade war....
The Euro has fluctuating since the Global Pandemic. These observations of the US Dollar is before the spread of SARS-CoV-2. So, the economic trajectory of the Trump White House was causing losses in value of the US Dollar.
Trump's painful tariffs never accomplished a trade balance with China because China has lowered the value of their currency. Trump's tariffs are a joke.
...Although the United States has imposed tariffs of 10 to 25 percent on $250 billion in imports from China (about half of total U.S. imports from that country), China has played its ‘ace-in-the-hole’ by allowing it’s currency to fall by roughly 10 percent against the dollar. As a result, the U.S. trade deficit with China increased faster (11.6 percent) than the U.S. deficit with the world as a whole (10.4 percent)....
The table below is difficult to read (click here) It is the Federal Reserve of the "Price-adjusted Board Dollar Index- Monthly Index. Everything is artificial in Trump world. There is no real study of the USA economy and it's artificial nature to satisfy the president's politics.
Effective on February 4, 2019, (click here) the Federal Reserve Board staff will make major changes to the methodology used to construct the trade-weighted dollar indexes in the H.10, G.5, and G.5A releases. These changes will affect the calculation of index weights and country composition. The new dollar indexes will go back to (and be indexed to) January 2006. For more information, see "Revisions to the Federal Reserve Dollar Indexes" and "Technical Q&As".
Joe Biden and the Democrats' economic policies are based on traditional values of American health wellness and the confidence of the American worker to return to work.
