The Pronk Pops Show 870, April 10, 2017: Story 1: Will President Trump Boldly Cut Taxes and Spending? — A Competitive Race Towards Lower Taxes And Less Government Spending: Replace All Income Based Taxes (All Income, Capital Gain and Payroll Taxes) With Broad-Based Consumption Tax With A Progressive Tax Prebate ( FairTax 23% Less Prebate or Fair Tax Less 20% Less $1,000 Per Month or $12,000 Per Year Prebate) And Real Cuts of 5% Per Year In Government Spending To Balance The Budget In 8 Years Or Less To Pay For Tax Cuts!) — Cut Taxes and Spending — Videos — Story 2: Stagnating United States Economy — The Great Stagnation –Videos

Posted on April 10, 2017. Filed under: American History, Blogroll, Breaking News, Budgetary Policy, Communications, Congress, Countries, Culture, Currencies, Donald J. Trump, Donald J. Trump, Donald Trump, Donald Trump, Economics, Elections, Employment, Fiscal Policy, Foreign Policy, Free Trade, Government Dependency, Government Spending, History, House of Representatives, Labor Economics, Law, Media, Medicare, Monetary Policy, News, Philosophy, Photos, Politics, Polls, President Trump, Raymond Thomas Pronk, Scandals, Senate, Tax Policy, Taxation, Taxes, Trade Policy, U.S. Dollar, Unemployment, United States of America, Videos, Wealth, Welfare Spending, Wisdom | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

Project_1

The Pronk Pops Show Podcasts

Pronk Pops Show 870: April 10, 2017

Pronk Pops Show 869: April 7, 2017

Pronk Pops Show 868: April 6, 2017

Pronk Pops Show 867: April 5, 2017

Pronk Pops Show 866: April 3, 2017

Pronk Pops Show 865: March 31, 2017

Pronk Pops Show 864: March 30, 2017

Pronk Pops Show 863: March 29, 2017

Pronk Pops Show 862: March 28, 2017

Pronk Pops Show 861: March 27, 2017

Pronk Pops Show 860: March 24, 2017

Pronk Pops Show 859: March 23, 2017

Pronk Pops Show 858: March 22, 2017

Pronk Pops Show 857: March 21, 2017

Pronk Pops Show 856: March 20, 2017

Pronk Pops Show 855: March 10, 2017

Pronk Pops Show 854: March 9, 2017

Pronk Pops Show 853: March 8, 2017

Pronk Pops Show 852: March 6, 2017

Pronk Pops Show 851: March 3, 2017

Pronk Pops Show 850: March 2, 2017

Pronk Pops Show 849: March 1, 2017

Pronk Pops Show 848: February 28, 2017

Pronk Pops Show 847: February 27, 2017

Pronk Pops Show 846: February 24, 2017

Pronk Pops Show 845: February 23, 2017

Pronk Pops Show 844: February 22, 2017

Pronk Pops Show 843: February 21, 2017

Pronk Pops Show 842: February 20, 2017

Pronk Pops Show 841: February 17, 2017

Pronk Pops Show 840: February 16, 2017

Pronk Pops Show 839: February 15, 2017

Pronk Pops Show 838: February 14, 2017

Pronk Pops Show 837: February 13, 2017

Pronk Pops Show 836: February 10, 2017

Pronk Pops Show 835: February 9, 2017

Pronk Pops Show 834: February 8, 2017

Pronk Pops Show 833: February 7, 2017

Pronk Pops Show 832: February 6, 2017

Pronk Pops Show 831: February 3, 2017

Pronk Pops Show 830: February 2, 2017

Pronk Pops Show 829: February 1, 2017

Pronk Pops Show 828: January 31, 2017

Pronk Pops Show 827: January 30, 2017

Pronk Pops Show 826: January 27, 2017

Pronk Pops Show 825: January 26, 2017

Pronk Pops Show 824: January 25, 2017

Pronk Pops Show 823: January 24, 2017

Pronk Pops Show 822: January 23, 2017

Pronk Pops Show 821: January 20, 2017

Pronk Pops Show 820: January 19, 2017

Pronk Pops Show 819: January 18, 2017

Pronk Pops Show 818: January 17, 2017

Pronk Pops Show 817: January 13, 2017

Pronk Pops Show 816: January 12, 2017

Pronk Pops Show 815: January 11, 2017

Pronk Pops Show 814: January 10, 2017

Pronk Pops Show 813: January 9, 2017

Story 1: Will President Trump Boldly Cut Taxes and Spending?  — A Competitive Race Towards Lower Taxes And Less Government Spending:  Replace All Income Based Taxes (All Income, Capital Gain and Payroll Taxes) With Broad-Based Consumption Tax With Generous Tax Prebate ( FairTax or Fair Tax Less!) And Real Cuts of  5% Per Year In Government Spending To Balance The Budget In 8 Years Or Less To Pay For Tax Cuts!) — Cut Taxes and Spending — Videos —  

Image result for payroll taxes in 2016 social security and medicare disability

Image result for fair tax nation
Image result for fairtax

Image result for fairtaxImage result for border adjustment tax a bad idea

Image result for payroll taxes in 2016 social security and medicare disability

Image result for payroll taxes in 2016

Image result for president trump for fair tax
Border+Adjustment+Tax.png (940×493)Image result for border adjustment tax a bad ideaImage result for border adjustment tax a bad ideaImage result for border adjustment tax a bad idea

Image result for border adjustment tax a bad idea

Image result for fairtax

Image result for fairtax

Image result for fairtax

Donald Trump: Simplify the Tax Code

Donald Trump: I pay as little as possible in taxes

Is Donald Trump serious about tax reform?

Sean Spicer: Trump wants to get tax reform right

Will tax reform really happen by August?

Dan Mitchell Discussing GOP Tax Plan and Corporate Rate Reduction

What Tax Reform Could Look Like Under Donald Trump | Squawk Box | CNBC

#Eakinomics – 4 Key Questions on Dynamic Scoring

What is Dynamic Scoring?

Trump Pushes ‘Major Border Tax’ to Keep Jobs in U.S.

Ryan Unexpectedly Joins Forces With Bannon on Border Tax

Kudlow: Freedom Caucus & Trump’s base is opposed to Border Adjustment Tax

Sen. Perdue: Border Adjustment Tax would “shutdown economic growth”

Sen. Tom Cotton: “I have serious concerns” w/ Border Adjustment Tax

Americans Need a Progressive Consumption Tax

Sen. Strange: “I would not” vote for a Border Adjustment Tax

Milton Friedman – Why Tax Reform Is Impossible

Milton Friedman – Is tax reform possible?

CNBC: Steve Forbes on Border Adjustment Tax – “Don’t Do It” 2.8.17

Meg Whitman: Border Adjustment Tax Will Not Create Jobs | CNBC

Art Laffer: Border tax is a major mistake

Border Tax Fight Is Economists Vs. Everybody Else | Squawk Box | CNBC

Dan Mitchell Discussing GOP Tax Plan and Corporate Rate Reduction

What is a Border Adjustment?

Border Tax: What You Need to Know

Will a border adjustment tax help American businesses?

Will a border adjustment tax kill free trade?

Border adjustment tax political suicide?

Fox Pol:l 73% Want Tax Reform This Year – Cavuto

Could the border tax debate stall tax reform?

Is A Border Adjustment Tax A Good Idea?

Border Adjustment Tax: Trump’s MAGA Ace

President Donald Trump Begins First Week By Meeting With Top Business Leaders | NBC News

Dan Mitchell Fretting about GOP Border-Adjustable Tax Plan

FairTax: Fire Up Our Economic Engine (Official HD)

Pence on the Fair Tax

Freedom from the IRS! – FairTax Explained in Details

The FairTax: It’s Time

Dan Mitchell explains the fair tax

Six Reasons Why the Capital Gains Tax Should Be Abolished

Is America’s Tax System Fair?

Sen. Moran Discusses FairTax Legislation on U.S. Senate Floor

What’s Killing the American Dream?

Robert Wolf: Border adjustment not going to happen

Paul Ryan on why he’s confident about tax reform

1/26/17 Border Adjustment Taxes, Tax Reform & Trade: Panel 1

1/26/17 Border Adjustment Taxes, Tax Reform and Trade: Panel 2 Part 2

Border Tax Adjustment and Corporate Tax Reforms: Panel 1

Border Tax Adjustment and Corporate Tax Reforms: Panel 2

Breaking Down The Republican Plan For A Border Tax | CNBC

Harvard Professor: Trump’s Border Tax ‘Misunderstood’

Making Sense Of The 20 Percent Tax Proposal | Morning Joe | MSNBC

Proposed Tax Package A Dramatic Cut Even With A Border Tax?

Treasury Secretary Steve Mnuchin On Tax Reform, Growth, Border Tax, China (Full) | Squawk Box | CNBC

Wilbur Ross On Border Tax: Something Will Be Found To Fill Trillion-Dollar Hole | Squawk Box | CNBC

Trump ditches tax reform plan he campaigned on and considers series of new options – including payroll tax cut in bid to woo Democrats

  • Trump had campaigned on rapid tax reform and a so-called border adjustment tax, which would effectively levy a duty on imports 
  • Now all options are back on the table as he tries to have a reform plan which will get Republican support 
  • There are signs the president will be willing to work with Democrats too as White House officials hold ‘listening sessions’ with the opposition 
  • One plan being considered is a cut in the payroll tax, which would benefit middle-earners and could garner Democratic support 

President Donald Trump has scrapped the tax plan he campaigned on and is going back to the drawing board in a search for Republican consensus behind legislation to overhaul the U.S. tax system.

The administration’s first attempt to write legislation is in its early stages and the White House has kept much of it under wraps. But it has already sprouted the consideration of a series of unorthodox proposals including a drastic cut to the payroll tax, aimed at appealing to Democrats.

Some view the search for new options as a result of Trump’s refusal to set clear parameters for his plan and his exceedingly challenging endgame: reducing tax rates enough to spur faster growth without blowing up the budget deficit.

Administration officials say it’s now unlikely that a tax overhaul will meet the August deadline set by Treasury Secretary Steve Mnuchin.

Off plan: Donald Trump is abandoning the tax overhaul he campaigned on 

Off plan: Donald Trump is abandoning the tax overhaul he campaigned on

Tough deadline: Steven Mnuchin, the Treasury Secretary who was at the table when Trump was briefed on the Syria missile strikes, had set an the August deadline for tax reform

Tough deadline: Steven Mnuchin, the Treasury Secretary who was at the table when Trump was briefed on the Syria missile strikes, had set an the August deadline for tax reform

But the ambitious pace to figure out a plan reflects Trump’s haste to move quickly past a bruising failure to broker a compromise within his own party on how to replace the health insurance law enacted under President Barack Obama.

The White House is trying to learn the lessons from health care. Rather than accepting a bill written by the lawmakers, White House officials are taking a more active role.

Administration officials have signaled that they want to pass tax legislation with only Republican votes, yet they’ve also held listening sessions with House Democrats.

White House aides say the goal is to cut tax rates sharply enough to improve the economic picture in depressed rural and industrial pockets of the country where many Trump voters live.

But the administration so far has swatted down alternative ways for raising revenues, such as a carbon tax, to offset lower rates.

Trump, who brands himself as a deal-maker, has not said which trade-offs he might accept and he has remained noncommittal on the leading blueprint, from Rep. Kevin Brady, chairman of the Ways and Means Committee.

Brady, a Republican from Texas, has proposed a border adjustment system, which would eliminate corporate deductions on imports, to raise $1 trillion over 10 years that could fund lower corporate tax rates.

But that possibility has rankled retailers who say it would lead to higher prices and threaten millions of jobs, while some lawmakers have worried that the system would violate World Trade Organization rules.

Brady has said he intends to amend the blueprint but has not spelled out how he would do so.

Other options are being shopped on Capitol Hill.

One circulating this past week would change the House Republican plan to eliminate much of the payroll tax and cut corporate tax rates. This would require a new dedicated funding source for Social Security.

The change, proposed by a GOP lobbyist with close ties to the Trump administration, would transform Brady’s plan on imports into something closer to a value-added tax by also eliminating the deduction of labor expenses.

This would bring it in line with WTO rules and generate an additional $12 trillion over 10 years, according to budget estimates.

Those additional revenues could then enable the end of the 12.4 percent payroll tax, split evenly between employers and employees, that funds Social Security, while keeping the health insurance payroll tax in place.

This approach would give a worker earning $60,000 a year an additional $3,720 in take-home pay, a possible win that lawmakers could highlight back in their districts even though it would involve changing the funding mechanism for Social Security, according to the lobbyist, who asked for anonymity to discuss the proposal without disrupting early negotiations.

Although some billed this as a bipartisan solution, and President Barack Obama did temporarily cut the payroll tax after the Great Recession, others note it probably would run into firm opposition from Democrats who are loathe to be seen as undermining Social Security.

The White House would not comment on the plan, but said a value-added tax based on consumption is not under consideration ‘as of now,’ according to a White House statement.

The lack of detail about how to significantly rewrite tax laws for the first time in 30 years may provide Trump some time to build consensus among Republicans. But without Trump laying down his hand, lawmakers appear reluctant to back a plan that will likely stir controversy.

How will markets react? Stocks rallied after the election on the promise of lower taxes and fewer regulations, but the Dow has dipped 1.2 percent over the past month

How will markets react? Stocks rallied after the election on the promise of lower taxes and fewer regulations, but the Dow has dipped 1.2 percent over the past month

Stock markets take a hit after Trump’s healthcare defeat

‘Because there are trade-offs, congressmen need cover from the president to withstand the lobbyists and constituents who are going to complain,’ said Bill Gale, an economist at the Brookings Institution who worked at the White House Council of Economic Advisers during President George H.W. Bush’s administration.

The Trump administration appears to have shut out the economists who helped assemble one of his campaign’s tax overhaul plans, which independent analyses show would have increased the budget deficit.

‘It’s a little frustrating that they feel they have to write a new tax plan when they have a tax plan,’ said Steven Moore, an economist at the conservative Heritage Foundation who helped formulate tax policy for the Trump campaign.

Rob Portman, the Republican senator from Ohio, a member of the Senate Finance Committee, said that all of the trial balloons surfacing in public don’t represent the work that’s being done behind the scenes.

‘It’s not really what’s going on,’ Portman said. ‘What’s going on is they’re working with on various ideas.’

Investors are beginning to show some doubts that Trump can deliver. Stocks rallied after his election on the promise of lower taxes and fewer regulations, but the Dow Jones Industrial Average has dipped 1.2 percent over the past month as the path for health care and tax revisions has become muddied.

‘The White House is going to need its own clear direction, or it’s going to need to defer to Congress, but saying that your plan is forthcoming and then not producing a plan kind of puts everything in stasis,’ said Alan Cole, an economist at the conservative Tax Foundation.

http://www.dailymail.co.uk/news/article-4396916/Trump-taxes-President-scraps-tax-plan-timetable-threatened.html#ixzz4dsZ74tNb
Follow us: @MailOnline on Twitter | DailyMail on Facebook

Why the Border Adjustment Tax Should Be Killed

The BAT is a bad idea. There are far better ways to shrink the federal budget deficit.

March 18, 2017

“Anytime I hear border adjustment, I don’t love it,” Donald Trump told The Wall Street Journal shortly before his inauguration, noting that the proposed border adjustment tax was “too complicated.”

Trump isn’t always right when he makes off-the-cuff remarks such as that, but this time he was. The proposed border adjustment tax is so complicated that even its advocates can’t agree on how its disruptive effects on the U.S. economy will play out, and there’s nothing to love about that. The BAT is a bad idea, and it should be scrapped. And while taking it off the table will bring more red ink to the federal budget, there are better ways to stanch the bleeding than subjecting the economy to the trauma of a BAT.

Despite protestations to the contrary, the border adjustment levy is a tax hike embedded in the program of tax reductions that House Republicans put forward last June under the rubric of “A Better Way.” It’s there, presumably, to help offset the effect of the administration’s planned cuts, since the Republicans’ stated aim is to keep those cuts revenue-neutral. Barron’s fully supports the goal of not adding to deficits that, before too long, will be running above $1 trillion a year, given repeated warnings from the nonpartisan Congressional Budget Office about the risk of a financial crisis, due to exploding debt.

The attraction of a BAT is that it could generate an estimated $100 billion a year in revenue. There may be reasons to challenge that estimate, but we’ll accept it for now. There are, however, better ways to slash the fiscal deficit by $100 billion a year than the Better Way plan, and most fall under the heading of spending cuts.

President Trump has spoken about “waste, fraud, and abuse” in “every agency” of the federal government. Indeed, he promised that “we will cut so much, your head will spin.” He should therefore find plenty to love in our proposed reductions in spending. Just for starters, if all corporate welfare were cut from the budget, as much as $100 billion a year could be saved, about matching the total expected from the BAT.

The president also favors slashing the top rate on corporate income to 15% from 35%. Barron’s has proposed a more modest cut, to 22% (“Cut the Top U.S. Corporate Tax Rate to 22%,” Nov. 26, 2016). The Republican package calls for a reduction to 20%, which is close enough to our original proposal and which we believe should boost revenue rather than shrink it.

A list of potential cuts and revenue enhancements, totaling $200 billion, is in the table at the bottom of this page.

THE BETTER WAY PLAN, as noted, would reduce the top federal tax rate on corporate profits to 20% from 35%—which is all to the good. The proposed tax cut would not only be revenue-neutral; it would probably be revenue-enhancing.

In a study released this month by the London-based Centre for Policy Studies, analyst Daniel Mahoney traces the effect on revenue from Britain’s cuts in the corporate tax rate over a 34-year period. According to his calculations, the take from the corporate tax has added three-tenths of a percentage point annually to gross domestic product since rates were slashed.

Similarly, last year, in calling for a maximum U.S. rate of 22%, we traced the significant decline in the average top rate on corporate income for 19 countries in the Organization for Economic Cooperation and Development, which includes the U.S. and the United Kingdom. Over 33 years, their average tax take as a share of GDP rose six-tenths of a percentage point.

While that might not sound like much, every tenth of a percentage point of U.S. nominal GDP is worth $18.9 billion. So if revenue from the corporate tax rises by, say, three-tenths of a percentage point, to 2.5%—a conservative guess—that increase would translate into a bonus of nearly $57 billion a year in revenue. That alone gets us more than halfway to the $100 billion value of a BAT.

The idea of a revenue-enhancing cut in the corporate income tax was put forward in 1978, when economist Arthur Laffer was first cited as arguing that some rate decreases could generate enough added economic growth that the government wouldn’t lose revenue over the long run—and might, in fact, even gain revenue. Laffer also noted that most tax hikes generate less revenue than a conventional “static” analysis indicates, and that most tax cuts lose less.

Laffer’s “dynamic” analysis covered all of the behavioral changes likely to result from a cut. To begin with, if the tax collector claims a lower share of income, there is an incentive to produce more income. Second, a lower rate means there’s less incentive to spend time and effort avoiding the tax.

Corporations don’t pay taxes; only people do. And there is a tendency to forget that if a corporation nets more profits as a result of a lower tax, those funds will soon take the form of salaries, dividends, and capital gains, and will be taxed in those forms.

The second factor, less tax avoidance, applies with special force to a rollback of corporate taxes. As we noted last year, bringing down the top rate to 22% from 35% would dramatically reduce corporate flight to low-tax jurisdictions in the rest of the world.

Following the publication of our article, the CBO released a study confirming that U.S corporate tax rates are among the highest in the world. Among the Group of 20 countries—including Japan, China, Russia, Germany, France, Canada, and the U.K.—the U.S. is No. 1, 3, and 4, respectively, in “top statutory corporate tax rate,” “average corporate tax rate,” and “effective corporate tax rate.” The Better Way plan would narrow this gap significantly and make the U.S. more competitive.

But when it comes to the Better Way plan for cutting tax rates on personal income, Barron’s believes that there would be a loss of revenue even after taking into account behavioral changes. The revenue reduction from the proposed personal income-tax cuts has been estimated, on a static basis, at an average of $98 billion a year. We can assume that dynamic losses would run 10% less, or $88 billion, mainly because lower taxes are likely to encourage people to work.

Still, $88 billion a year is a huge loss of revenue. Barron’s proposes that the Better Way plan consider splitting the difference and going halfway on the tax cut, thus saving $44 billion.

THE REVENUE-ENHANCING corporate tax cut would include a special kicker in the form of the border adjustment tax. The BAT would deny corporations the ability to deduct the cost of imports from their taxable income, while all income earned from exports would be exempt from the 20% levy.

This means that companies selling imported goods in the domestic market would be taxed on the sale’s full proceeds—not just on the profit earned—which could more than offset the gains from the corporate tax reduction. At the same time, as noted, there would be no tax on the sale of exports.

The GOP’s Big Three Key players in the border adjustment tax debate: Senate Majority Leader Mitch McConnell, above, and House Speaker Paul Ryan and President Donald Trump, below. McConnell has said that he hasn’t made up his mind about the levy. Alex Wong/Getty Images

The BAT would bring uncertainty and disruption to the U.S. economy, making it hard to predict whether it really would raise $100 billion annually in revenue. The basic idea is that, because the U.S. imports more than it exports, the export exemption would be more than offset by hitting imports hard. Regardless of how it shakes out, the value of the transactions affected by the BAT is huge.

The U.S. trade deficit—the difference between exports and imports—ran at just 3.4% of real GDP in 2016, much lower than the 5.5% peak of 2005. But the actual gross flows of exports and imports are much larger than the difference between the two flows. Exports last year were valued at $2.2 trillion, or 12.8% of real GDP, and imports at $2.7 trillion, or 16.2% (see chart). Given those magnitudes, the tax plan is likely to require massive readjustments throughout the economy.

That’s why major importers, like Wal-Mart Stores, are objecting—and why exporters are clearly pleased. As you might expect, then, the BAT is pitting exporters against importers, creating needless discord at a time when the country is surely suffering from more discord than it can handle.

THE POSITION PAPER for the Better Way asserts that by “exempting exports and taxing imports,” the BAT does “not” consist of the “addition of a new tax.” But of course, the BAT’s designers know that imports normally exceed exports by about $500 billion a year. Apply a back-of-the-envelope 20% to that $500 billion, and you get the hoped-for $100 billion in revenue. So the maneuver of “exempting exports and taxing imports” certainly looks and sounds like a new tax.

The Better Way statement also argues that there is an imbalance in the tax treatment of imports and exports that the BAT must remedy. “In the absence of border adjustments,” it states, “exports from the United States implicitly bear the cost of the U.S. income tax, while imports do not bear any federal income tax cost. This amounts to a self-imposed unilateral penalty on American exports and a self-imposed unilateral subsidy for U.S. imports.”

Ryan strongly supports the tax. Chip Somodevilla/Getty Images

But all other countries impose this “implicit cost” on exports through their own corporate income tax. And since the Better Way would slash America’s top rate to 20%, this implicit cost would finally become competitive with that of other nations.

Some supporters of the BAT like it precisely because it would help exports and penalize imports. The mercantilist view of economics implicit in that aim was discredited in Adam Smith’s 1776 treatise, The Wealth of Nations. And apart from the massive dislocations that will occur if imports shrink, this calls into question whether the projected $100 billion a year in revenue is realistic. As Alan Greenspan once wisely said, “Whatever you tax, you get less of.”

Then again, whether we really will get fewer imports depends a lot on the exchange value of the dollar. Other supporters of the BAT predict that the dollar will respond by appreciating against other currencies, conforming to the dictates of textbook fundamentals. If the dollar appreciates enough, the advantage to exporters and disadvantage to importers will be nullified. Without getting into the technicalities of how all this would work, we concede that it is all quite possible.

But as currency analysts and traders can tell you, exchange rates are subject to all kinds of forces and can spend long periods flouting textbook fundamentals. So whether the dollar will really strengthen in response to the BAT is anyone’s guess. But even if it does, a much stronger greenback would bring other disruptions. American investors with holdings denominated in foreign currencies would take a huge hit. And America’s tourist industries, which are already hurting from what the Los Angeles Times has called a “Trump slump,” would be hurt even more, as the cost of traveling to the States jumps.

There are other questions. Would the World Trade Organization challenge the BAT? Might our trading partners respond in ways that would be unfavorable to us? The border adjustment tax is an experiment in Rube Goldberg economics that the U.S. can do without.

SINCE REVENUE NEUTRALITY is the goal of the Better Way package, what about making up for the $100 billion a year in revenue that the border adjustment tax is supposed to generate?

Whether this tax really will raise as much as $100 billion depends on how imports and exports respond, which is hard to predict. Also, the reduction in the corporate income tax would probably be revenue-enhancing and could generate more than $50 billion in annual revenue.

The president has declared that “anytime I hear border adjustment, I don’t love it” and has voiced concern that it’s overly complicated. Michael Reynolds/Getty Images

We note that the full title of the House Republican plan is “A Better Way: Our Vision for a Confident America,” which leaves room for a vision that includes cost-cutting, along with tax-cutting.

It’s actually possible to reduce outlays by as much as $8.6 trillion over the next 10 years, as we pointed out in Barron’s Prescription for U.S. Economic Growth” (Dec. 24, 2016).

That discussion revealed much low-hanging fruit. For example, the Medicare system is rife with “improper payments,” which Medicare itself estimates at 11% of its spending in 2016. That’s probably a low estimate, because those who get improperly paid tend to keep these payments hidden. Barron’s calculated that if the improper-payment rate could be halved, it would save more than $400 billion over 10 years.

That would contribute $40 billion a year to the $100 billion shortfall from forgoing the BAT. To that we add $65 billion, and perhaps as much as $100 billion, by eliminating corporate welfare.

The Better Way statement properly criticizes the tax code for being “littered with hundreds of preferences and subsidies that pick winners and losers” and “direct resources to politically favored interests.” Spending on corporate welfare is another form of subsidy that picks winners and losers and directs funds to politically favored interests.

IN A 2012 PAPER, “Corporate Welfare in the Federal Budget,” the Cato Institute identified nearly $100 billion worth of yearly spending on corporate handouts, broadly defined, that could be ended. At Barron’s request, Cato senior fellow Chris Edwards updated the scoring on just 10 of the institute’s 40 categories of corporate welfare and came up with $66 billion in potential cuts.

High on Edwards’ list: farm subsidy programs, which redistribute taxpayer money to relatively rich agribusinesses and landowners. That the farm industry receives subsidies makes about as much sense as channeling funds to the restaurant industry, which could well be riskier than farming, based on its high failure rate. This form of corporate welfare goes back to the Great Depression of the 1930s. But whatever argument might have been made for it then hardly applies today, with the yearly tab currently at $25 billion.

Also on the corporate welfare list: pork-barrel handouts administered by the Department of Housing and Urban Development, totaling $13 billion, which go under the heading of “community development,” and which distribute funds to such recipients as museums, recreational facilities, and parking lots. Whatever one may think about the worthiness of these projects, they are better left to states and localities.

Another $10 billion could be saved by abolishing the Universal Service Fund, through which the Federal Communications Commission subsidizes telecommunications companies, among others. A creation of the Telecommunications Act of 1996, this attempt to pick winners and losers is more unnecessary than ever in this dynamic and competitive industry.

PRESIDENT TRUMP PROMISED to “drain the swamp” of Washington’s special interests. One route toward that admirable goal would be to cut corporate welfare. Trump should repeat his objections to a border adjustment tax that would favor the interests of some businesses over others. He can help make U.S. corporations great again by weaning them off subsidies and reducing their tax burdens.

http://www.barrons.com/articles/why-the-border-adjustment-tax-should-be-killed-1489814286

Concerns About The ‘Border Adjustable’ Tax Plan From The House GOP, Part I

The Republicans in the House of Representatives, led by Ways & Means Chairman Kevin Brady and Speaker Paul Ryan, have proposed a “Better Way” tax plan that has many very desirable features.

And there are many other provisions that would reduce penalties on work, saving, investment, and entrepreneurship. No, it’s not quite a flat tax, which is the gold standard of tax reform, but it is a very pro-growth initiative worthy of praise.

That being said, there is a feature of the plan that merits closer inspection. The plan would radically change the structure of business taxation by imposing a 20 percent tax on all imports and providing a special exemption for all export-related income. This approach, known as “border adjustability,” is part of the plan to create a “destination-based cash flow tax” (DBCFT).

When I spoke about the Better Way plan at the Heritage Foundation last month, I highlighted the good features of the plan in the first few minutes of my brief remarks, but raised my concerns about the DBCFT in my final few minutes.

Allow me to elaborate on those comments with five specific worries about the proposal.

Concern #1: Is the DBCFT protectionist?

It certainly sounds protectionist. Here’s how the Financial Times described the plan.

The border tax adjustment would work by denying US companies their current ability to deduct import costs from their taxable income, meaning companies selling imported products would effectively be taxed on the full value of the sale rather than just the profit. Export revenues, meanwhile, would be excluded from company tax bases, giving net exporters the equivalent of a subsidy that would make them big beneficiaries of the change.

Charles Lane of the Washington Post explains how it works.

…the DBCFT would impose a flat 20 percent tax only on earnings from sales of output consumed within the United States… It gets complicated, but the upshot is that the cost of imported supplies would no longer be deductible from taxable income, while all revenue from exports would be. This would be a huge incentive to import less and export more, significant change indeed for an economy deeply dependent on global supply chains.

That certainly sounds protectionist as well. A tax on imports and a special exemption for exports.

But proponents say there’s no protectionism because the tax is neutral if the benchmark is where products are consumed rather than where income is earned. Moreover, they claim exchange rates will adjust to offset the impact of the tax changes. Here’s how Lane explains the issue.

…the greenback would have to rise 25 percent to offset what would be a new 20 percent tax on imported inputs — propelling the U.S. currency to its highest level on record. The international consequences of that are unforeseeable, but unlikely to be totally benign for everyone. Bear in mind that many other countries — China comes to mind — can and will manipulate exchange rates to protect their own short-term interests.

For what it’s worth, I accept the argument that the dollar will rise in value, thus blunting the protectionist impact of border adjustability. It would remain to be seen, though, how quickly or how completely the value of the dollar would change.

Concern #2: Is the DBCFT compliant with WTO obligations?

The United States is part of the World Trade Organization (WTO) and we have ratified various agreements designed to liberalize world trade. This is great for the global economy, but it might not be good news for the Better Way plan because WTO rules only allow border adjustability for indirect taxes like a credit-invoice value-added tax. The DBCFT, by contrast, is a version of a corporate income tax, which is a direct tax.

The column by Charles Lane explains one of the specific problems.

Trading partners could also challenge the GOP plan as a discriminatory subsidy at the World Trade Organization. That’s because it includes a deduction for wages paid by U.S.-located firms, importers and exporters alike — a break that would obviously not be available to competitors abroad.

Advocates argue that the DBCFT is a consumption-base tax, like a VAT. And since credit-invoice VATs are border adjustable, they assert their plan also should get the same treatment. But the WTO rules say that only “indirect” taxes are eligible for border adjustability. The New York Times reports that the WTO therefore would almost surely reject the plan.

Michael Graetz, a tax expert at the Columbia Law School, said he doubted that argument would prevail in Geneva. “W.T.O. lawyers do not take the view that things that look the same economically are acceptable,” Mr. Graetz said.

A story in the Wall Street Journal considers the potential for an adverse ruling from the World Trade Organization.

Even though it’s economically similar to, and probably better than, the value-added taxes (VATs) many other countries use, it may be illegal under World Trade Organization rules. An international clash over taxes is something the world can ill afford when protectionist sentiment is already running high. …The controversy is over whether border adjustability discriminates against trade partners. …the WTO operates not according to economics but trade treaties, which generally treat tax exemptions on exports as illegal unless they are consumption taxes, such as the VAT. …the U.S. has lost similar disputes before. In 1971 it introduced a tax break for exporters that, despite several revamps, the WTO ruled illegal in 2002.

And a Washington Post editorial is similarly concerned.

Republicans are going to have to figure out how to make such a huge de facto shift in the U.S. tax treatment of imports compliant with international trade law. In its current iteration, the proposal would allow corporations to deduct the costs of wages paid within this country — a nice reward for hiring Americans and paying them well, which for complex reasons could be construed as a discriminatory subsidy under existing World Trade Organization doctrine.

Concern #3: Is the DBCFT a stepping stone to a VAT?

If the plan is adopted, it will be challenged. And if it is challenged, it presumably will be rejected by the WTO. At that point, we would be in uncharted territory.

Would that force the folks in Washington to entirely rewrite the tax system? Would they be more surgical and just repeal border adjustability? Would they ignore the WTO, which would give other nations the right to impose tariffs on American exports?

One worrisome option is that they might simply turn the DBCFT into a subtraction-method value-added tax (VAT) by tweaking the law so that employers no longer could deduct  expenses for labor compensation. This change would be seen as more likely to get approval from the WTO since credit-invoice VATs are border adjustable.

This possibility is already being discussed. The Wall Street Journal story about the WTO issue points out that there is a relatively simple way of making the DBCFT fit within America’s trade obligations, and that’s to turn it into a value-added tax.

One way to avoid such a confrontation would be to revise the cash flow tax to make it a de facto VAT.

The Economistshares this assessment.

…unless America switches to a full-fledged VAT, border adjustability may also be judged to breach World Trade Organisation rules.

Steve Forbes is blunt about this possibility.

One tax initiative that should be strangled before it sees the light of day is to give a tax rebate to exporters and to impose taxes on imports. …It’s a bad idea. Why do we want to make American consumers pay more for products while subsidizing foreign buyers? It also could put us on the slippery slope to our own VAT.

And that’s not a slope we want to be on. Unless the income tax is fully repealed (sadly not an option), a VAT would be a recipe for turning America into a European-style welfare state.

Concern #4: Does the DBCFT undermine tax competition and give politicians more ability to increase tax burdens?

Alan Auerbach, an academic from California who previously was an adviser for John Kerry and also worked at the Joint Committee on Taxation when Democrats controlled Capitol Hill, is the main advocate of a DBCFT (the New York Timeswrote that he is the “principal intellectual champion” of the idea).

He wrote a paper several years ago for the Center for American Progress, a hard-left group closely associated with Hillary Clinton. Auerbach explicitly argued that this new tax scheme is good because politicians no longer would feel any pressure to lower tax rates.

This…alternative treatment of international transactions that would relieve the international pressure to reduce rates while attracting foreign business activity to the United States. It addresses concerns about the effect of rising international competition for multinational business operations on the sustainability of the current corporate tax system. With rising international capital flows, multinational corporations, and cross-border investment, countries’ tax rates and tax structures are of increasing importance. Indeed, part of the explanation for declining corporate tax rates abroad is competition among countries for business activity. …my proposed reforms…builds on the [Obama] Administration’s approach…and alleviates the pressure to reduce the corporate tax rate.

This is very troubling. Tax competition is a very valuable liberalizing force in the world economy. It partially offsets the public choice pressures on politicians to over-tax and over-spend. If governments no longer had to worry that taxable activity could escape across national borders, they would boost tax rates and engage in more class warfare.

Also, it’s worth noting that the so-called Marketplace Fairness Act, which is designed to undermine tax competition and create a sales tax cartel among American states, uses the same “destination-based” model as the DBCFT.

Concern #5: Does the DBCFT create needless conflict and division among supporters of tax reform?

As I pointed out in my remarks at the Heritage Foundation, there’s normally near-unanimous support from the business community for pro-growth tax reforms.

That’s not the case with the DBCFT.

The Washington Examiner reports on the divisions in the business community.

Major retailers are skeptical of the House Republican plan to revamp the tax code, fearing that the GOP call to border-adjust corporate taxes could harm them even if they win a significant cut to their tax rate. As a result, retailers, oil refiners and other industries that import goods to sell in the U.S. could provide a major obstacle to the Republican effort to reform taxes. …The effect of the border adjustment, retailers fear, would be that the goods they import to sell to consumers would face a 20 percent mark-up, one that would force retailers like Walmart, the Home Depot and Sears…to raise prices and lose customers.

A story from CNBC highlights why retailers are so concerned.

…retailers are nervous. Very nervous. …About 95 percent of clothing and shoes sold in the U.S. are manufactured overseas, which means imports make up a vast majority of many U.S. retailers’ merchandise. …If the GOP plan were adopted as it’s currently laid out, Gap pays 20 percent corporate tax on the $5 profit from the sweater, or $1. Plus, 20 percent tax on the $80 cost it paid for that sweater from the overseas supplier, or $16. That means the tax goes from $1.75 to $17 for that sweater, more than three times the profit on that sweater. Talk about a hit to margins. …Retailers certainly aren’t taking a lot of comfort in the economic theory of dollar appreciation. …the tax reform plan will dilute specialty retailers’ earnings by an average of 132 percent. …Athletic manufacturers could take a 40 percent earnings hit… Gap, Carter’s , Urban Outfitters , Fossil and Under Armour are most at risk under the plan.

And here’s another article from the Washington Examiner that explains why folks in the energy industry are concerned.

…the border adjustment would raise costs for refiners that import oil. In turn, that could raise prices for consumers. The border adjustment would amount to a $10-a-barrel tax on imported crude oil, raising costs for drivers buying gasoline by up to 25 cents a gallon, the energy analyst group PIRA Energy Group warned this week. The report warned of a “potential huge impact across the petroleum industry,” even while noting that the tax reform plan faces many obstacles to passage.

Concern #6: What happens when other nations adopt their versions of a DBCFT?

Advocates of the DBCFT plausibly argue that if the WTO somehow approves their plan, then other nations will almost certainly copy the new American system.

That will be a significant blow to tax competition, which would be very bad news for the global economy.

But is also has negative implications for the fight to protect America from a VAT. The main selling point for advocates of the DBCFT is that we need a border-adjustable tax to offset the supposed advantage that other nations have because of border-adjustable VATs (both Paul Krugman and I agree that this is nonsense, but it still manages to be persuasive for some people).

So what happens when other nations turn their corporate income taxes into DBCFTs, which presumably will happen? We’re than back where we started and misguided people will say we need our own VAT to balance out the VATs in other nations.

The bottom line is that a DBCFT is not the answer to America’s wretched business tax system. There are simply too many risks associated with this proposal. I’ll elaborate tomorrow in Part II and also explain some good ways of pursuing tax reform without a DBCFT.

https://www.forbes.com/sites/danielmitchell/2017/01/03/concerns-about-theborder-adjustable-tax-plan-from-the-house-gop-part-i/2/#1edd1775d9e8

MAR 27,2017

Chairman Brady Acknowledges “Valid Concerns” About the Border Adjustment Tax Harming U.S. Businesses

Post by Freedom Partners

After months of insisting that a trillion-dollar Border Adjustment Tax (BAT) on American consumers is the best and only way to achieve pro-growth tax reform without adding to the deficit, Ways and Means Chairman Kevin Brady acknowledged that importers fearful of the new tax have “valid concerns.”

The proposed BAT from House Republicans would mean a new 20 percent tax on everything imported into the U.S., raising up to $1.2 trillion of new government revenue in the form of higher prices, shouldered by consumers. In effect, the regressive tax could undercut positive economic outcomes from lower rates and a simplified tax code through tax reform.

According to Chairman Brady, House Republicans need to “make sure that we allay the valid concerns of those that are importing today,” CNBC reports.

 Freedom Partners Vice President of Policy Nathan Nascimento issued the following statement:

“Some of the ‘valid concerns’ that Chairman Brady acknowledges include a devastating new trillion-dollar tax hike, higher costs on everyday goods, fewer jobs, and less economic opportunity. We hope to work with the administration and Congress to get pro-growth tax reform done, but a 20 percent tax hike on all imports would only undermine the point of tax reform – which is to provide much-needed relief for taxpayers and the economy. A massive tax hike on all imports is bad policy, and Americans deserve a better plan that can unite lawmakers in both the House and Senate behind comprehensive tax reform.”

U.S. manufacturers would be threatened by increased complexity and disruptions to supply chains, resulting in increased costs, fewer sales, and job loss. “Anytime I hear border adjustment, I don’t love it … And it’s too complicated,” President Donald Trump told The Wall Street Journal earlier this year.

Americans for Prosperity has already identified more than $2 trillion in wasteful spending, unnecessary programs, and corporate welfare that ought to be eliminated before any new tax on U.S. consumers. Freedom Partners and its coalition allies support the efforts of Congress and the administration to bring comprehensive tax reform to reality in a way that protects all Americans from a massive tax hike.

READ: Border Adjustment Tax Myth vs. Fact

U.S. Businesses Facing Massive Tax Increases Under A Border-Adjusted Tax System Have “Valid Concerns”

Wall Street Journal: “Some Retailers And Other Big Importers … Warn Of Tax Bills That Would Exceed Profits, Forcing Them To Pass Costs To Consumers. ”Cody Lusk, president of the American International Automobile Dealers Association, says his members are shocked that a Republican Congress is proposing a 20% tax on imports.” (Richard Rubin, “GOP Plan To Overhaul Tax Code Gets Held Up At The Border,” Wall Street Journal, 2/7/17)

LUSK: “We view this as a very, very serious potential blow to the auto sector and the economy.” (Richard Rubin, “GOP Plan To Overhaul Tax Code Gets Held Up At The Border,” Wall Street Journal, 2/7/17)

Financial Times: Border Tax Threatens To Devastate Importers Through Soaring Tax Bills. “Yet for Mr. Woldenberg the hope has turned to horror. Republicans are still promising the most sweeping changes since the Reagan reforms of 1986. But the only firm proposal on the table — from the House of Representatives — threatens to devastate his 150-person business because it includes a 20 per cent tax on imports … The problem for Mr. Woldenberg is that his goods come from China — 98 per cent of the products he sells in the US are imported. US factories could not produce them with the same low costs and specialized skills, he says. So he would have no choice but to pay the import levy. He estimates it would send his tax bill soaring to 165 per cent of earnings.” (Barney Jopson, Sam Fleming & Shawn Donnan, “Trump And The Tax Plan Threatening To Split Corporate America,” Financial Times, 2/13/17)

RICK WOLDENBERG: “To preserve cash flow I [would have to] raise my prices by a third, expect volume to go down by 40 per cent, and fire one out of five people.” (Barney Jopson, Sam Fleming & Shawn Donnan, “Trump And The Tax Plan Threatening To Split Corporate America,” Financial Times, 2/13/17)

RBC Capital Markets: Major Retailers Would Face Tax Bills That Exceed Their Operating Profits. “Major retailers like Wal-Mart, Best Buy, Costco and Dollar Tree would face tax bills that exceed their operating profits under House Republicans’ plans to create a ‘border adjustable’ business tax, RBC Capital Markets said. The investment bank sided with retailers in a debate over the proposal, saying in a research note it would have a ‘seriously adverse’ impact on them. ‘If the US moves to a border-adjusted tax system, most of our retailers would be forced to raise prices (and revenues) or meaningfully change their import/domestic sourcing mix, or their earnings would be materially reduced,’ it said.” (Brian Faler, “RBC Capital Markets: GOP Border-Adjustment Plan Bad For Retailers,” POLITICO Pro, 12/12/16)

POLITICO: “Retailers Fear Massive Tax Increases Under House Republican Tax Plan” “Many retailers fear that, even with Republicans promising to slash the corporate tax rate, they will still face big tax increases that in some cases will exceed their profits. On high alert over the proposal, retailers have begun a big lobbying campaign on the Hill, warning lawmakers and their aides that any tax hikes will get passed on to their constituents in the form of higher prices.” (Brian Faler, “Retailers Fear Massive Tax Increases Under House Republican Tax Plan,” POLITICO, 11/23/16)

The National Retail Federation Warns That A Border Tax Could Shut Businesses Down Completely. “‘Our members have told us that the import tax could be as high as five times their profits,’ said David French, chief lobbyist for the National Retail Federation. ‘I don’t know how viable some retailers would be in the face of this import tax.’” (Brian Faler, “Retailers Fear Massive Tax Increases Under House Republican Tax Plan,” POLITICO, 11/23/16)

POLITICO Pro: “Some Of The Biggest Losers Would Be Retailers Like Walmart, Best Buy And Home Depot That Import Massive Amounts Of Goods And Materials On Which They Would Suddenly Have To Pay Taxes.” “The border adjustment plan would affect individual companies differently, depending in part on how much they import and export. Some of the biggest losers would be retailers like Walmart, Best Buy and Home Depot that import massive amounts of goods and materials on which they would suddenly have to pay taxes.” (Brian Faler, “Some Companies May Never Pay Taxes Under Border-Adjustment Tax Plan,” POLITICO Pro, 1/9/17)

Axios: Cowen Research Released A Study Highlighting Some Of The Big Name Companies That Will Be Hurt By The Border Adjustments High Tax Hikes. “Cowen Research published a report Thursday that estimates the effect of the reform plan, and other planned measures, like eliminating the deductibility of interest and a headline corporate tax cut, on different industries and companies. Here are some of the big-name firms Cowen says will be hurt by reform: 1. Apple: The world’s largest company would see its tax bill jump because it won’t be able to deduct the expense of assembly abroad. 2. Constellation Brands: The largest beer importer in America will not be able to expense the cost of goods it brings across the border, like its Corona brand. 3. Gap: Between 50% and 80% of the retailer’s cost of the goods its sells comes from abroad. Walmart: 4. Walmart’s low margins means that it may not be able to survive a tax hike on imported goods without raising prices. 5. Target: Will suffer from the same conundrum as Walmart, but will be worse off since less of its revenue comes from domestically-sourced groceries. J.C. Penney: The department store has high debt loads, and interest on debt will not be deductible under the Republican plan. (Christopher Matthews, “These Companies Will Be Hit Hardest By GOP Tax Reform,” Axios, 1/27/17)

Border Adjustment Tax Would Result In Higher Costs For Hard-Working Families

Christian Science Monitor: Border Tax Could Raise Car Prices By Thousands Of Dollars. “Michigan-based Baum & Associates says that a border tax–one that applies not only to vehicles imported from factories abroad but also to foreign-made vehicle parts–could increase sticker prices by as much as $17,000 … Most increases would be smaller, but still very substantial. Volvo, for example, would need to up its prices by more than $7,500 to accommodate a border tax. Volkswagen wouldn’t be far behind, with increases of around $6,800. Even Detroit brands would see price upticks: Ford’s would climb $285, and General Motors’ would rise by nearly $1,000. Fiat Chrysler would have to boost prices by closer to $2,000.” (Richard Read, “How Trump’s Border Tax Could Raise Car Prices By Thousands Of Dollars,Christian Science Monitor, 2/8/17)

Auto Sales Would Plummet Under A Border Adjustment Tax. “A report from UBS Securities says that the higher car prices would slash U.S. auto sales by about 2 million vehicles per year. That would more than erase the increased capacity and almost certainly result in layoffs.” (Richard Read, “How Trump’s Border Tax Could Raise Car Prices By Thousands Of Dollars,Christian Science Monitor, 2/8/17)

More Than A Hundred American Businesses Are Opposing The Republican Border Tax: “Don’t Make Hard-Working Families Pay More On Essential Products.” “Nike, Rite Aid, The Gap, Best Buy and Abercrombie & Fitch have joined a new advocacy group aimed at killing House Republicans’ plans to create a border adjustable business tax. They are some of the more than 100 companies and trade associations behind Americans for Affordable Products, an organization launched today that is pushing lawmakers to dump a plan to begin taxing imports as part of a broader tax-code rewrite. The groups, which rely on imports, fear the House Republican plan will mean huge tax increase even as Republicans promise to simultaneously slash the corporate tax rate … Other well-known companies joining the effort include Target, Walmart, QVC, Petco, AutoZone, Macy’s and Levi Strauss.” (Brian Faler, “Border Adjustment Tax Opponents Launch New Group Targeting GOP Proposal,” Politico, 2/01/17)

“A Sweeping Tax Reform Proposal Meant To Boost U.S. Manufacturing Faces Mounting Pressure From Industries That Rely Heavily On Imported Goods …” “A sweeping tax reform proposal meant to boost U.S. manufacturing faces mounting pressure from industries that rely heavily on imported goods as President-elect Donald Trump and congressional Republicans work to finalize new tax legislation. As Republican members of the House of Representatives tax committee prepared to discuss tax reform this week, the panel received a letter from 81 industry groups rejecting the proposal known as ‘border adjustability.’ A lynchpin of the House Republican ‘Better Way’ agenda and viewed favorably by Trump’s team, the policy would help manufacturers by exempting export revenues from corporate taxes. But it would tax imports, hitting import-dependent industries.” (David Morgan, “U.S. Tax Reform Proposal On Border Trade Faces Growing Opposition,” Reuters, 12/15/16)

“Companies That Rely On Global Supply Chains Would Face Huge Business Challenges Caused By Increased Taxes And Increased Cost Of Goods.” “In a Dec. 13 letter to House Ways and Means Chairman Kevin Brady and incoming top Democrat Richard Neal, groups representing the auto and retailing industries, among others, said: ‘Companies that rely on global supply chains would face huge business challenges caused by increased taxes and increased cost of goods.’ They warned of ‘reductions in employment, reduced capital investments and higher prices for consumers’ as potential consequences.” (David Morgan, “U.S. Tax Reform Proposal On Border Trade Faces Growing Opposition,” Reuters, 12/15/16)

CNBC: Coach CEO Victor Luis Acknowledged That “Any Border Tax Will Lead To Higher Prices For The Consumer.” “If we see this border adjustment in an economy where 70 percent of GDP is driven by consumption that is driven on imports, any border tax will lead to higher prices for the consumer … That’s just a reality that we’ll have to face if it comes to that.” (Rachel Cao, “Coach CEO: Any Border Tax Will Lead To Higher Prices For The Consumer,” CNBC, 1/31/17)

National Retail Federation: The Border Adjustment Tax Could Cost The Average Family $1,700 In Just The First Year. “The imposition of a ‘border adjustment tax,’ a key provision of a pending House tax reform proposal, would end up seriously harming U.S. consumers. NRF analysis indicates that this plan could cost the average family $1,700 in the first year alone if the border adjustment provision is enacted. While economic theory suggests that trade flow of imports and exports would balance out over the long run due to offsetting exchange rate and price adjustments, there is no consensus as to the degree or the timing of these adjustments. In the near term, consumers would be left to pick up the significant tab while hoping that the economic theory proves out.” (Mark Mathews, “Border Adjustment Tax Would Cost American Households Up To $1,700 In First Year Alone,” National Retail Federation, 2/3/17)

NRF: Annual Family’s Savings Could Be Wiped Out By Nearly A Third. “For the average family, 27 percent of their savings (income after taxes and expenditures) could evaporate with the cost increases caused by the border tax.” (Mark Mathews, “Border Adjustment Tax Would Cost American Households Up To $1,700 In First Year Alone,” National Retail Federation, 2/3/17)

  • “Unmarried adults without children currently have only $443 left over annually after taxes and expenditures. If the border adjustment tax were enacted, they could see an $836 increase in costs — nearly 200 percent higher than their annual savings.”
  • “One-parent households, which are already in the red, could see an additional $1,000 added to their debt burden as they do what they can to make ends meet. Their apparel and footwear bills would increase by $271
  • “The average family (married with children) could see their apparel costs (including shoes) increase by $437 a year.”
  • “Single people could see their annual gasoline bills rise by $189, a whopping 43 percent of their annual average savings.”
  • “Married couples with children could see their annual gasoline bill could increase by over $400.”

CNBC: “The Republicans’ Plan To Enact A Border Adjustment Tax Will Leave Consumers Digging Deeper Into Their Pockets,” Increasing The Price Of Everyday Goods Like Clothes And Shoes By 20 Percent. “It will force consumers to pay as much as 20 percent more for the products they need. Gasoline is estimated to go up as much as 35 cents a gallon,’ said ‘Americans for Affordable Products’ advisor Brian Dodge … ‘Common household goods, apparel, things that people count on every day, pajamas, will cost more and really just so a certain, select group of corporations can avoid paying taxes forever. We think that’s bad policy…” (Michelle Fox, “Consumers Could See 20% Price Hike With Border Adjustment Tax, Retail Group Says,” CNBC, 2//17)

Economists And Analysts Weigh-In Against Border Adjustments

Dan Mitchell, Cato Institute: “I’ve Never Understood Why Politicians Think It’s A Good Idea To Have Higher Taxes On What Americans Consume And Lower Taxes On What Foreigners Consume.” (Dan Mitchell, “A Remarkably Good And Reasonably Bold Tax Reform Plan From House Republicans,” International Liberty, 6/25/16)

President Of The New York Fed Bill Dudley: “… There Could Be A Lot Of Unintended Consequences.” “Another prominent critic of a ‘border adjustment tax’ emerged Tuesday: the president of the New York Federal Reserve. Bill Dudley was asked by Macy’s CEO Terry Lundgren at a meeting of the National Retail Federation trade group what he thinks of the idea of a border adjustment tax, which involves taxing imports at 20 percent, while making U.S. exports tax-free. … ‘I think that it will lead to a lot of changes in the value of the dollar, the price of imported goods in the U.S., and I’m not sure that would all happen very smoothly,’ Dudley said. ‘I also think there could be a lot of unintended consequences.’” (Michelle Caruso-Cabrera, “NY Fed’s Dudley Sees ‘A Lot Of Unintended Consequences’ From Border-Tax Plan,” CNBC, 1/17/17)

Stephen Moore, Heritage Foundation: Border Tax Unlikely To Be Enacted. “A Heritage Foundation economist who advised President Trump’s campaign said he doubts a proposal from House Republicans to tax imports and exempt exports will gain traction.” (Naomi Jagoda, “Trump Campaign Adviser: Border Tax Unlikely To Be Enacted,” The Hill, 2/7/17)

MOORE: “I think it’s a distraction.” (Naomi Jagoda, “Trump Campaign Adviser: Border Tax Unlikely To Be Enacted,” The Hill, 2/7/17)

Steve Forbes: Border Adjustment Amounts To “Sneaky, Anti-Consumer Tax.” “This levy will cost American consumers at least a trillion dollars over the next ten years …  Prices for everyday items, such as socks, shoes and household appliances, will go up. So will tech devices like the iPad, not to mention automobiles and trucks. Gasoline? Millions of Americans will pay an additional 30 cents or more per gallon at the pump. Lower-income and struggling middle-class Americans will get hit the hardest.” (Steve Forbes, “OMG! House Republicans Are Preparing To Hit Consumers With A Horrible New Tax That Will Harm Trump And Hurt The Economy,” Forbes, 1/11/17)

POLITICO Pro: “Trump Adviser Larry Kudlow Slams Border-Adjustment Tax Plans.” “An economic adviser to President-elect Donald Trump slammed plans to create a so-called border adjustable business tax, and predicted it could kill efforts to overhaul the tax code. The House Republican proposal is overly complicated …  said Larry Kudlow, who helped write Trump’s tax-reform plans.” (Brian Faler, “Trump Adviser Larry Kudlow Slams Border-Adjustment Tax Plans,” POLITICO Pro, 1/12/17)

KUDLOW: “That is an exercise in government planning and complexity that I believe is doomed to fail … I think the whole corporate tax reform, which is the most important pro-growth measure, will go down the drain over this … There’s a problem that exists, but this is not the right solution …” (Brian Faler, “Trump Adviser Larry Kudlow Slams Border-Adjustment Tax Plans,” POLITICO Pro, 1/12/17)

KUDLOW: “GOP’s Border Adjustment Tax Is ‘Voodoo Economics” “President-elect Donald Trump is correct to criticize the House Republican plan to tax cross-border trade … said Larry Kudlow, who served as a senior economic adviser to Trump’s campaign…’I hate to say this, but it’s ‘voodoo economics’” (R. Williams, “Larry Kudlow: GOP’s Border Adjustment Tax Is ‘Voodoo Economics,” Newsmax, 1/17/17)

https://freedompartners.org/latest-news/chairman-brady-acknowledges-valid-concerns-border-adjustment-tax-harming-u-s-businesses/

Concerns about the”Border Adjustable” Tax Plan from the House GOP, Part II

I wrote yesterday to praise the Better Way tax plan put forth by House Republicans, but I added a very important caveat: The “destination-based” nature of the revised corporate income tax could be a poison pill for reform.

I listed five concerns about a so-called destination-based cash flow tax (DBCFT), most notably my concerns that it would undermine tax competition (folks on the left think it creates a “race to the bottom” when governments have to compete with each other) and also that it could (because of international trade treaties) be an inadvertent stepping stone for a government-expanding value-added tax.

Brian Garst of the Center for Freedom and Prosperity has just authored a new study on the DBCFT. Here’s his summary description of the tax.

The DBCFT would be a new type of corporate income tax that disallows any deductions for imports while also exempting export-related revenue from taxation. This mercantilist system is based on the same “destination” principle as European value-added taxes, which means that it is explicitly designed to preclude tax competition.

Since CF&P was created to protect and promote tax competition, you won’t be surprised to learn that the DBCFT’s anti-tax competition structure is a primary objection to this new tax.

First, the DBCFT is likely to grow government in the long-run due to its weakening of international tax competition and the loss of its disciplinary impact on political behavior. … Tax competition works because assets are mobile. This provides pressure on politicians to keep rates from climbing too high. When the tax base shifts heavily toward immobile economic activity, such competition is dramatically weakened. This is cited as a benefit of the tax by those seeking higher and more progressive rates. …Alan Auerbach, touts that the DBCFT “alleviates the pressure to reduce the corporate tax rate,” and that it would “alter fundamentally the terms of international tax competition.” This raises the obvious question—would those businesses and economists that favor the DBCFT at a 20% rate be so supportive at a higher rate?

Brian also shares my concern that the plan may morph into a VAT if the WTO ultimately decides that is violates trade rules.

Second, the DBCFT almost certainly violates World Trade Organization commitments. …Unfortunately, it is quite possible that lawmakers will try to “fix” the tax by making it into an actual value-added tax rather than something that is merely based on the same anti-tax competition principles as European-style VATs. …the close similarity of the VAT and the DBCFT is worrisome… Before VATs were widely adopted, European nations featured similar levels of government spending as the United States… Feeding at least in part off the easy revenue generate by their VATs, European nations grew much more drastically over the last half century than the United States and now feature higher burdens of government spending. The lack of a VAT-like revenue engine in the U.S. constrained efforts to put the United States on a similar trajectory as European nations.

And if you’re wondering why a VAT would be a bad idea, here’s a chart from Brian’s paper showing how the burden of government spending in Europe increased once that tax was imposed.

In the new report, Brian elaborates on the downsides of a VAT.

If the DBCFT turns into a subtraction-method VAT, its costs would be further hidden from taxpayers. Workers would not easily understand that their employers were paying a big VAT withholding tax (in addition to withholding for income tax). This makes it easier for politicians to raise rates in the future. …Keep in mind that European nations have corporate income tax systems in addition to their onerous VAT regimes.

And he points out that those who support the DBCFT for protectionist reasons will be disappointed at the final outcome.

…if other nations were to follow suit and adopt a destination-based system as proponents suggest, it will mean more taxes on U.S. exports. Due to the resulting decline in competitive downward pressure on tax rates, the long-run result would be higher tax burdens across the board and a worse global economic environment.

Brian concludes with some advice for Republicans.

Lawmakers should always consider what is likely to happen once the other side eventually returns to power, especially when they embark upon politically risky endeavors… In this case, left-leaning politicians would see the DBCFT not as something to be undone, but as a jumping off point for new and higher taxes. A highly probable outcome is that the United States’ corporate tax environment becomes more like that of Europe, consisting of both consumption and income taxes. The long-run consequences will thus be the opposite of what today’s lawmakers hope to achieve. Instead of a less destructive tax code, the eventual result could be bigger government, higher taxes, and slower economic growth.

Amen.

My concern with the DBCFT is partly based on theoretical objections, but what really motivates me is that I don’t want to accidentally or inadvertently help statists expand the size and scope of government. And that will happen if we undermine tax competition and/or set in motion events that could lead to a value-added tax.

Let’s close with three hopefully helpful observations.

Helpful Reminder #1: Congressional supporters want a destination-based system as a “pay for” to help finance pro-growth tax reforms, but they should keep in mind that leftists want a destination-based system for bad reasons.

Based on dozens of conversations, I think it’s fair to say that the supporters of the Better Way plan don’t have strong feelings for destination-based taxation as an economic principle. Instead, they simply chose that approach because it is projected to generate $1.2 trillion of revenue and they want to use that money to “pay for” the good tax cuts in the overall plan.

That’s a legitimate choice. But they also should keep in mind why other people prefer that approach. Folks on the left want a destination-based tax system because they don’t like tax competition. They understand that tax competition restrains the ability of governments to over-tax and over-spend. Governments in Europe chose destination-based value-added taxes to prevent consumers from being able to buy goods and services where VAT rates are lower. In other words, to neuter tax competition. Some state governments with high sales taxes in the United States are pushing a destination-based system for sales taxes because they want to hinder consumers from buying goods and services from states with low (or no) sales taxes. Again, their goal is to cripple tax competition.

Something else to keep in mind is that leftist supporters of the DBCFT also presumably see the plan as being a big step toward achieving a value-added tax, which they support as the most effective way of enabling bigger government in the United States.

Helpful Reminder #2: Choosing the right tax base (i.e., taxing income only one time, otherwise known as a consumption-base system) does not require choosing a destination-based approach.

The proponents of the Better Way plan want a “consumption-base” tax. This is a worthy goal. After all, that principle means a system where economic activity is taxed only one time. But that choice is completely independent of the decision whether the tax system should be “origin-based” or “destination-based.”

The gold standard of tax reform has always been the Hall-Rabushka flat tax, which is a consumption-base tax because there is no double taxation of income that is saved and invested. It also is an “origin-based” tax because economic activity is taxed (only one time!) where income is earned rather than where income is consumed.

The bottom line is that you can have the right tax base with either an origin-based system or a destination-based system.

Helpful Reminder #3: The good reforms of the Better Way plan can be achieved without the downside risks of a destination-based tax system.

The Tax Foundation, even in rare instances when I disagree with its conclusions, always does very good work. And they are the go-to place for estimates of how policy changes will affect tax receipts and the economy. Here is a chart with their estimates of the revenue impact of various changes to business taxation in the Better Way plan. As you can see, the switch to a destination-based system (“border adjustment”) pulls in about $1.2 trillion over 10 years. And you can also see all the good reforms (expensing, rate reduction, etc) that are being financed with the various “pay fors” in the plan.

I am constantly asked how the numbers can work if “border adjustment” is removed from the plan. That’s a very fair question.

But there are lots of potential answers, including:

  • Make a virtue out of necessity by reducing government revenue by $1.2 trillion.
  • Reduce the growth of government spending to generate offsetting savings.
  • Find other “pay fors” in the tax code (my first choice would be the healthcare exclusion).
  • Reduce the size of the tax cuts in the Better Way plan by $1.2 trillion.

I’m not pretending that any of these options are politically easy. If they were, the drafters of the Better Way plan probably would have picked them already. But I am suggesting that any of those options would be better than adopting a destination-based system for business taxation.

Ultimately, the debate over the DBCFT is about how different people assess political risks. House Republicans advocating the plan want good things, and they obviously think the downside risks in the future are outweighed by the ability to finance a larger level of good tax reforms today. Skeptics appreciate that those proponents want good policy, but we worry about the long-run consequences of changes that may (especially when the left sooner or late regains control) enable bigger government.

P.S. This is not the first time that advocates of good policy have bickered with each other. During the 2016 nomination battle, Rand Paul and Ted Cruz proposed tax reform plans that fixed many of the bad problems in the tax code. But they financed some of those changes by including value-added taxes in their plans. In the short run, either plan would have been much better than the current system. But I was critical because I worried that the inclusion of VATs would eventually give statists a tool to further increase the burden of government.

https://www.cato.org/blog/concerns-about-theborder-adjustable-tax-plan-house-gop-part-ii

THE CORNER THE ONE AND ONLY. Speaker Ryan’s Use of Reporters’ Recorders to Explain His Border Tax Was Cute — But Misleading

Faced with growing opposition to their border-adjustment tax, congressional Republicans are nonetheless on the offensive trying to sell it. I have expressed my many reasons for opposing the tax, including my disbelief that Republicans would support a massive tax increase alongside what is otherwise a pro-growth tax reform. While they oppose tax increases to pay for spending increases in other contexts and usually make the case that spending increases should be paid for by spending cuts, Republicans continue to push for this massive new source of revenue, in spite of the distortions it would introduce.

Until now, supporters of the tax have used many questionable arguments. For instance, they claim we shouldn’t worry about the protectionist aspect of a tax that imposes a 20 percent rate to imports but exempts exports under the hope that the U.S. dollar will adjust fully and quickly. However, there are reasons to believe that while the U.S. currency will adjust, it won’t adjust fully (Federal Reserve Board chairwoman Janet Yellen is only the latest one to stress that point), it won’t adjust as quickly as they claim (especially if the tax is challenged under the World Trade Organization as the Europeans have warned is going to be the case), and it won’t result in unicorns and rainbows.

But the latest misguided statements about the border-adjustment tax comes from House speaker Paul Ryan — who ought to know better. During a press conference last week, he repeated the claim that United States was at a disadvantage because other countries’ exports are exempted from taxes while U.S. goods aren’t. [Ryan] noted that most other countries already border-adjust their taxes and tax goods based on whether they were consumed in their jurisdiction.

That comment is bound to confuse reporters because, as Mr. Ryan must know, no other country border-adjusts their corporate income tax. They border-adjust their Value Added Tax. Conflating the two is misleading, to say the least.

Ryan continued:

The Speaker picked up two reporters’ recorders to give an example of how goods are taxed currently. He suggested one was American-made and the other was Japanese-made. Early on, he dropped one of the recorders, saying “oops” and receiving laughter from the reporters. “Here’s what Japan does when they make this tape recorder: When they send it for export they take the tax off of it, and then it comes to America and it’s not taxed, and it comes through to compete against our good, which was taxed. Theirs was untaxed twice,” Ryan said. “When America makes something, like a tape recorder, we tax it, and then we send it to Japan. As it enters Japan it’s taxed again, to compete against their tape recorder,” he continued. “So we are doing it to ourselves. We are hurting our manufacturing and jobs. We are putting a bias against making things in America in the tax code. . . . That is why we think this is very important. This is good manufacturing policy.”

Oh boy, where do I begin? First, it is true that U.S. companies are at a disadvantage but it is not because of other countries’ tax codes. It is because our corporate-income-tax system has the highest rate of all OECD countries and because, unlike most of our competitors, it taxes U.S. companies’ profits no matter where they are earned in the world. The solution to this disadvantage is to reduce the rates and move to a territorial system. Oh, and by the way, unlike what Ryan and other proponents of a border-adjustment tax would like you to believe, you do not need to move to an expansive destination-based-cash-flow tax to have a territorial tax.

Now let me address the cute tape-recorder example used by the speaker. It is totally misleading because it conflates foreign countries corporate tax and VAT taxes and it paints a picture that is incorrect. For instance, he claims that Japanese exports are exempt from taxes. No, Japanese products exported to the U.S. are exempt from the Japanese VAT but the Japanese company is still paying U.S. corporate tax on its U.S. profits. And you know what? In that sense, the Japanese export is treated exactly like the U.S. goods sold in the U.S. In other words, the playing field is even! I repeat: Japanese goods in the U.S. are taxed like U.S. goods in the U.S.

How about U.S. exports in Japan? Well, it gets hit by the Japanese VAT in Japan and by the Japanese corporate tax but so are Japanese goods sold in Japan. Again, the only disadvantage faced by U.S. companies selling tape recorders abroad comes from the U.S. tax system, which requires that income earned in Japan be taxed by Uncle Sam at 35 percent after benefiting from a tax credit for tax paid in Japan. If the U.S. company decides to keep its Japanese income outside the U.S., the U.S. rate won’t apply.

Dan Mitchell explains why the VAT doesn’t change the terms of trade in this video.

Finally, economists have debunked the idea implied by the speaker that foreign VATs give an advantage to foreign exports — and therefor boost foreign exports. It is simply not true. It follows that imposing a border-adjustment tax in the U.S. will not boost U.S. exports either. Period.

Let me summarize this for you:

  • No, other countries do not border-adjust their corporate income tax.
  • Comparing other countries’ VATs and our corporate tax is problematic to say the least.
  • No, foreign exports sold in the U.S. do not have an advantage over U.S. goods sold in the U.S. Foreign VATs do not boost foreign exports.
  • A border tax in the U.S. will not boost our exports but it will hurt consumers and many U.S. retailers.
  • The disadvantage faced by U.S. companies exporting goods abroad comes from the terrible worldwide tax and high rates of the U.S. tax regime, not from other countries’ tax system.
  • The way to fix the U.S. disadvantage is not to create a new expansive tax that would penalize imports in the U.S. — including imports for the benefit of U.S. domestic companies — and would penalize U.S. consumers.
  • The solution is to reform our corporate-tax rate by lowering the rate and moving to an origin-based territorial-tax regime. http://www.nationalreview.com/corner/445034/paul-ryan-border-adjustment-tax-mistake

Who’s Afraid of a Big BAT Tax?

The Border Adjustment Tax, a proposal favored by House Speaker Paul Ryan, has aroused serious opposition from Republican senators.

Joshua Roberts / Reuters

Donald Trump is feeling good about taxes. In his gonzo press conference last Thursday, he assured Americans that “very historic tax reform” is absolutely on track and is going to be—wait for it!—“big league.” The week before, he told a bunch of airline CEOs that “big league” reform was “way head of schedule” and that his people would be announcing something “phenomenal” in “two or three weeks.” And at his Orlando pep rally this past weekend, he gushed about his idea for a punitive 35 percent border tax on products manufactured overseas. The magic is happening, people. And soon America’s tax code will be the best, most beautiful in the world.

But here’s the thing. What Trump doesn’t know about the legislative process could overflow the pool at Mar-a Lago. And when it comes to tax reform, even minor changes make Congress lose its mind. Weird fault lines appear, and the next thing you know, warring factions have painted their faces blue and vowed to die on the blood-soaked battlefield before allowing this marginal rate to change or that loophole to close.

Such drama has, in fact, already begun over the proposal percolating in the House. At issue: a provision known as the border adjustment tax—let’s call it BAT—which, shrunk to its essence, incentivizes domestic manufacturing by slapping a 20 percent levy on imports, while making U.S. companies’ export-revenues tax deductible.

BAT fans—most notably House Speaker Paul Ryan and Ways and Means Chairman Kevin Brady—pitch the provision as an economically elegant twofer: an America-First measure that discourages companies from moving operations overseas while creating a revenue stream ($1 trillion every decade or so) that allows the overall corporate tax rate to be slashed.

Opponents—most vocally Senators David Perdue and Tom Cotton—argue that a BAT is another grubby government cash grab that will ultimately hurt consumers when, say, Walmart has to jack up the prices of underwear, bananas, and Playstations. In a February 8 letter to colleagues, Perdue, who spent four decades in the business world, charged that the BAT is “regressive, hammers consumers, and shuts down economic growth.”Thus the battle lines are drawn. And, make no mistake, this will not be some bush-league, penny-ante skirmish. Behind the legislative factions are amassing some of the heaviest hitters in corporate America, ready to spend millions to sway debate on behalf of their team.Roughly speaking, companies that do a lot of exporting dig the BAT (think: Boeing, Merck, and Dow Chemical) while import-dependent retailers (including Target, Nike, and, yes, Walmart) fear it will destroy their bottom lines. The oil industry isn’t feeling much BAT love either. The Koch brothers want it dead, like, yesterday.At this point, anti-BATers have an edge. Why? Partly, because the provision is super complicated and almost impossible to explain in terms that don’t sound like something a coven of economists vomited up. Ask BAT fans why the provision won’t, in fact, hurt retailers or consumers, and you’re instantly hip-deep in talk of currency revaluation, purchasing power, and territorial taxation. Last Wednesday, one day after Paul Ryan tried to educate Senate Republicans on the wonders of BAT at their weekly policy lunch, Tom Cotton (who represents Walmart’s home state of Arkansas) snarked on the Senate floor, “Some ideas are so stupid only an intellectual could believe them.”
This is in no way to suggest that the pro-BAT arguments are wrong. They simply don’t push the same buttons as anti-BAT warnings that Congress is poised to screw consumers in order to fund big tax cuts for corporations.For the past few weeks, in fact, an anti-BAT coalition called Americans for Affordable Products has been busy hawking this exact message. “This is a consumer tax—a means by which House Republicans are paying for other tax deductions,” asserted AAP member Brian Dodge. “It’s not about America First. It’s not a trade-deficit reduction tool. It is a pay-for.”AAP is lobbying lawmakers and staffers and doing public outreach. Last Wednesday, it dispatched eight CEOs to chat with Trump and Vice President Pence. “We view our job as leading a large education campaign,” said Dodge. “We believe the more that lawmakers understand about this proposal, the less inclined they’ll be to support it.”Of course, BAT fans are gearing up as well and promise to be equally aggressive. The day after the AAP roll out, the American Made Coalition launched, with an eye toward helping Ryan’s office spread the good word. “It takes time to educate both policy makers and businesses on what’s on the table,” said Brian Reardon, an adviser to the group.There is no place for subtlety in this war. Part of BAT supporters’ argument is that, without the provision, tax overhaul will implode altogether. Message: Get on board or kiss your once-in-a-lifetime reform opportunity good-bye.It’s a question of Senate math. To pass with a simple majority (and avoid a filibuster by Democrats), the GOP’s plan must go through under the procedure known as reconciliation. But to qualify for reconciliation, the package–which slashes both corporate and upper-bracket taxes–cannot blow a hole in the long-term budget. Without the $1 trillion in revenues from BAT, say advocates, there’s no way that hole can be plugged.“This is the only way at these rates and keeping things revenue neutral,” insisted a senior Republican aide. There is no other viable option. Period. End of story.But anti-BATers are eyeing a different Senate equation. To amass even a simple majority of votes, the BAT can lose only two of the 52 Republican members. (Unless Democrats cross the aisle, of course.) In addition to Cotton’s and Perdue’s open hostility, Senators John Boozman, Mike Rounds, John Cornyn, Tim Scott, and Mike Lee have all expressed reservations. “I have real concerns that this piece of the House blueprint will cause more disruption than necessary,” Lee said. “Will the dollar suddenly shoot up by 20 percent? Will U.S. manufacturers have to redo their international supply chains? These are all open questions.”

With the provision’s Senate prospects iffy, there’s less incentive for House conservatives to support something that smells even faintly like a tax. Both the current chairman of the Freedom Caucus, Mark Meadows, and the former chairman, Jim Jordan, have said they’d like reform done without a BAT.

“My reasoning is very basic,” Jordan told me. “Why in the world would we want to add another revenue stream?” You can debate the impact on exchange rates and purchasing power all day, said Jordan, but that doesn’t address many conservatives’ core objection. “We come at it from fundamental perspective,” he said. “The idea that you’re going to add an entirely new tax is a big problem.”

(BAT fans, for the record, dispute that this is a new tax. It is, they insist, replacing the existing system with an entirely new, far superior one that must be looked at, as Reardon put it, “holistically.”)

The only thing everyone can agree on is that this will be a long, ugly fight. If Trump drops his tariff idea and embraces BAT, it could boost the cause. But even then, he’d need to do major arm-twisting to get Senate skeptics on board (especially with the likes of Walmart and the Kochs twisting the other arm.) Like it or not, this is what the political big leagues are like: slow, messy, and infuriating.

The up side for Trump: He’ll have time to throw a lot more pep rallies on this topic before anything gets decided.

https://www.theatlantic.com/politics/archive/2017/02/border-adjustment-tax-congress/517287/

The Internal Revenue Service has recently released new data on individual income taxes for calendar year 2014, showing the number of taxpayers, adjusted gross income, and income tax shares by income percentiles.[1]

The data demonstrates that the U.S. individual income tax continues to be very progressive, borne mainly by the highest income earners.

  • In 2014, 139.6 million taxpayers reported earning $9.71 trillion in adjusted gross income and paid $1.37 trillion in individual income taxes.
  • The share of income earned by the top 1 percent of taxpayers rose to 20.6 percent in 2014. Their share of federal individual income taxes also rose, to 39.5 percent.
  • In 2014, the top 50 percent of all taxpayers paid 97.3 percent of all individual income taxes while the bottom 50 percent paid the remaining 2.7 percent.
  • The top 1 percent paid a greater share of individual income taxes (39.5 percent) than the bottom 90 percent combined (29.1 percent).
  • The top 1 percent of taxpayers paid a 27.1 percent individual income tax rate, which is more than seven times higher than taxpayers in the bottom 50 percent (3.5 percent).

Reported Income and Taxes Paid Both Increased Significantly in 2014

Taxpayers reported $9.71 trillion in adjusted gross income (AGI) on 139.5 million tax returns in 2014. Total AGI grew by $675 billion from the previous year’s levels. There were 1.2 million more returns filed in 2014 than in 2013, meaning that average AGI rose by $4,252 per return, or 6.5 percent.

Meanwhile, taxpayers paid $1.37 trillion in individual income taxes in 2014, an 11.5 percent increase from taxes paid in the previous year. The average individual income tax rate for all taxpayers rose from 13.64 percent to 14.16 percent. Moreover, the average tax rate increased for all income groups, except for the top 0.1 percent of taxpayers, whose average rate decreased from 27.91 percent to 27.67 percent.

The most likely explanation behind the higher tax rates in 2014 is a phenomenon known as “real bracket creep.” [2] As incomes rise, households are pushed into higher tax brackets, and are subject to higher overall tax rates on their income. On the other hand, the likely reason why the top 0.1 percent of households saw a slightly lower tax rate in 2014 is because a higher portion of their income consisted of long-term capital gains, which are subject to lower tax rates.[3]

The share of income earned by the top 1 percent rose to 20.58 percent of total AGI, up from 19.04 percent in 2013. The share of the income tax burden for the top 1 percent also rose, from 37.80 percent in 2013 to 39.48 percent in 2014.

Top 1% Top 5% Top 10% Top 25% Top 50% Bottom 50% All Taxpayers
Table 1. Summary of Federal Income Tax Data, 2014
Number of Returns 1,395,620 6,978,102 13,956,203 34,890,509 69,781,017 69,781,017 139,562,034
Adjusted Gross Income ($ millions) $1,997,819 $3,490,867 $4,583,416 $6,690,287 $8,614,544 $1,094,119 $9,708,663
Share of Total Adjusted Gross Income 20.58% 35.96% 47.21% 68.91% 88.73% 11.27% 100.00%
Income Taxes Paid ($ millions) $542,640 $824,153 $974,124 $1,192,679 $1,336,637 $37,740 $1,374,379
Share of Total Income Taxes Paid 39.48% 59.97% 70.88% 86.78% 97.25% 2.75% 100.00%
Income Split Point $465,626 $188,996 $133,445 $77,714 $38,173
Average Tax Rate 27.16% 23.61% 21.25% 17.83% 15.52% 3.45% 14.16%
 Note: Does not include dependent filers

High-Income Americans Paid the Majority of Federal Taxes

In 2014, the bottom 50 percent of taxpayers (those with AGIs below $38,173) earned 11.27 percent of total AGI. This group of taxpayers paid approximately $38 billion in taxes, or 2.75 percent of all income taxes in 2014.

In contrast, the top 1 percent of all taxpayers (taxpayers with AGIs of $465,626 and above) earned 20.58 percent of all AGI in 2014, but paid 39.48 percent of all federal income taxes.

In 2014, the top 1 percent of taxpayers accounted for more income taxes paid than the bottom 90 percent combined. The top 1 percent of taxpayers paid $543 billion, or 39.48 percent of all income taxes, while the bottom 90 percent paid $400 billion, or 29.12 percent of all income taxes.

Figure 1.

High-Income Taxpayers Pay the Highest Average Tax Rates

The 2014 IRS data shows that taxpayers with higher incomes pay much higher average individual income tax rates than lower-income taxpayers.[4]

The bottom 50 percent of taxpayers (taxpayers with AGIs below $38,173) faced an average income tax rate of 3.45 percent. As household income increases, the IRS data shows that average income tax rates rise. For example, taxpayers with AGIs between the 10th and 5th percentile ($133,445 and $188,996) pay an average rate of 13.7 percent – almost four times the rate paid by those in the bottom 50 percent.

The top 1 percent of taxpayers (AGI of $465,626 and above) paid the highest effective income tax rate, at 27.2 percent, 7.9 times the rate faced by the bottom 50 percent of taxpayers.

Figure 2.

Taxpayers at the very top of the income distribution, the top 0.1 percent (with AGIs over $2.14 million), paid an even higher average tax rate, of 27.7 percent.

Appendix

Year Total Top 0.1% Top 1% Top
5%
Between
5% & 10%
Top 10% Between 10% & 25% Top 25% Between 25% & 50% Top 50% Bottom 50%
Table 2. Number of Federal Individual Income Tax Returns Filed 1980–2014 (Thousands)
Source: Internal Revenue Service.
1980 93,239 932 4,662 4,662 9,324 13,986 23,310 23,310 46,619 46,619
1981 94,587 946 4,729 4,729 9,459 14,188 23,647 23,647 47,293 47,293
1982 94,426 944 4,721 4,721 9,443 14,164 23,607 23,607 47,213 47,213
1983 95,331 953 4,767 4,767 9,533 14,300 23,833 23,833 47,665 47,665
1984 98,436 984 4,922 4,922 9,844 14,765 24,609 24,609 49,218 49,219
1985 100,625 1,006 5,031 5,031 10,063 15,094 25,156 25,156 50,313 50,313
1986 102,088 1,021 5,104 5,104 10,209 15,313 25,522 25,522 51,044 51,044
The Tax Reform Act of 1986 changed the definition of AGI, so data above and below this line not strictly comparable
1987 106,155 1,062 5,308 5,308 10,615 15,923 26,539 26,539 53,077 53,077
1988 108,873 1,089 5,444 5,444 10,887 16,331 27,218 27,218 54,436 54,436
1989 111,313 1,113 5,566 5,566 11,131 16,697 27,828 27,828 55,656 55,656
1990 112,812 1,128 5,641 5,641 11,281 16,922 28,203 28,203 56,406 56,406
1991 113,804 1,138 5,690 5,690 11,380 17,071 28,451 28,451 56,902 56,902
1992 112,653 1,127 5,633 5,633 11,265 16,898 28,163 28,163 56,326 56,326
1993 113,681 1,137 5,684 5,684 11,368 17,052 28,420 28,420 56,841 56,841
1994 114,990 1,150 5,749 5,749 11,499 17,248 28,747 28,747 57,495 57,495
1995 117,274 1,173 5,864 5,864 11,727 17,591 29,319 29,319 58,637 58,637
1996 119,442 1,194 5,972 5,972 11,944 17,916 29,860 29,860 59,721 59,721
1997 121,503 1,215 6,075 6,075 12,150 18,225 30,376 30,376 60,752 60,752
1998 123,776 1,238 6,189 6,189 12,378 18,566 30,944 30,944 61,888 61,888
1999 126,009 1,260 6,300 6,300 12,601 18,901 31,502 31,502 63,004 63,004
2000 128,227 1,282 6,411 6,411 12,823 19,234 32,057 32,057 64,114 64,114
The IRS changed methodology, so data above and below this line not strictly comparable
2001 119,371 119 1,194 5,969 5,969 11,937 17,906 29,843 29,843 59,685 59,685
2002 119,851 120 1,199 5,993 5,993 11,985 17,978 29,963 29,963 59,925 59,925
2003 120,759 121 1,208 6,038 6,038 12,076 18,114 30,190 30,190 60,379 60,379
2004 122,510 123 1,225 6,125 6,125 12,251 18,376 30,627 30,627 61,255 61,255
2005 124,673 125 1,247 6,234 6,234 12,467 18,701 31,168 31,168 62,337 62,337
2006 128,441 128 1,284 6,422 6,422 12,844 19,266 32,110 32,110 64,221 64,221
2007 132,655 133 1,327 6,633 6,633 13,265 19,898 33,164 33,164 66,327 66,327
2008 132,892 133 1,329 6,645 6,645 13,289 19,934 33,223 33,223 66,446 66,446
2009 132,620 133 1,326 6,631 6,631 13,262 19,893 33,155 33,155 66,310 66,310
2010 135,033 135 1,350 6,752 6,752 13,503 20,255 33,758 33,758 67,517 67,517
2011 136,586 137 1,366 6,829 6,829 13,659 20,488 34,146 34,146 68,293 68,293
2012 136,080 136 1,361 6,804 6,804 13,608 20,412 34,020 34,020 68,040 68,040
2013 138,313 138 1,383 6,916 6,916 13,831 20,747 34,578 34,578 69,157 69,157
2014 139,562 140 1,396 6,978 6,978 13,956 20,934 34,891 34,891 69,781 69,781
Year Total Top 0.1% Top 1% Top 5% Between 5% & 10% Top 10% Between 10% & 25% Top 25% Between 25% & 50% Top 50% Bottom 50%
Table 3. Adjusted Gross Income of Taxpayers in Various Income Brackets, 1980–2014 ($Billions)
Source: Internal Revenue Service.
1980 $1,627 $138 $342 $181 $523 $400 $922 $417 $1,339 $288
1981 $1,791 $149 $372 $201 $573 $442 $1,015 $458 $1,473 $318
1982 $1,876 $167 $398 $207 $605 $460 $1,065 $478 $1,544 $332
1983 $1,970 $183 $428 $217 $646 $481 $1,127 $498 $1,625 $344
1984 $2,173 $210 $482 $240 $723 $528 $1,251 $543 $1,794 $379
1985 $2,344 $235 $531 $260 $791 $567 $1,359 $580 $1,939 $405
1986 $2,524 $285 $608 $278 $887 $604 $1,490 $613 $2,104 $421
The Tax Reform Act of 1986 changed the definition of AGI, so data above and below this line not strictly comparable
1987 $2,814 $347 $722 $316 $1,038 $671 $1,709 $664 $2,374 $440
1988 $3,124 $474 $891 $342 $1,233 $718 $1,951 $707 $2,658 $466
1989 $3,299 $468 $918 $368 $1,287 $768 $2,054 $751 $2,805 $494
1990 $3,451 $483 $953 $385 $1,338 $806 $2,144 $788 $2,933 $519
1991 $3,516 $457 $943 $400 $1,343 $832 $2,175 $809 $2,984 $532
1992 $3,681 $524 $1,031 $413 $1,444 $856 $2,299 $832 $3,131 $549
1993 $3,776 $521 $1,048 $426 $1,474 $883 $2,358 $854 $3,212 $563
1994 $3,961 $547 $1,103 $449 $1,552 $929 $2,481 $890 $3,371 $590
1995 $4,245 $620 $1,223 $482 $1,705 $985 $2,690 $938 $3,628 $617
1996 $4,591 $737 $1,394 $515 $1,909 $1,043 $2,953 $992 $3,944 $646
1997 $5,023 $873 $1,597 $554 $2,151 $1,116 $3,268 $1,060 $4,328 $695
1998 $5,469 $1,010 $1,797 $597 $2,394 $1,196 $3,590 $1,132 $4,721 $748
1999 $5,909 $1,153 $2,012 $641 $2,653 $1,274 $3,927 $1,199 $5,126 $783
2000 $6,424 $1,337 $2,267 $688 $2,955 $1,358 $4,314 $1,276 $5,590 $834
The IRS changed methodology, so data above and below this line not strictly comparable
2001 $6,116 $492 $1,065 $1,934 $666 $2,600 $1,334 $3,933 $1,302 $5,235 $881
2002 $5,982 $421 $960 $1,812 $660 $2,472 $1,339 $3,812 $1,303 $5,115 $867
2003 $6,157 $466 $1,030 $1,908 $679 $2,587 $1,375 $3,962 $1,325 $5,287 $870
2004 $6,735 $615 $1,279 $2,243 $725 $2,968 $1,455 $4,423 $1,403 $5,826 $908
2005 $7,366 $784 $1,561 $2,623 $778 $3,401 $1,540 $4,940 $1,473 $6,413 $953
2006 $7,970 $895 $1,761 $2,918 $841 $3,760 $1,652 $5,412 $1,568 $6,980 $990
2007 $8,622 $1,030 $1,971 $3,223 $905 $4,128 $1,770 $5,898 $1,673 $7,571 $1,051
2008 $8,206 $826 $1,657 $2,868 $905 $3,773 $1,782 $5,555 $1,673 $7,228 $978
2009 $7,579 $602 $1,305 $2,439 $878 $3,317 $1,740 $5,058 $1,620 $6,678 $900
2010 $8,040 $743 $1,517 $2,716 $915 $3,631 $1,800 $5,431 $1,665 $7,096 $944
2011 $8,317 $737 $1,556 $2,819 $956 $3,775 $1,866 $5,641 $1,716 $7,357 $961
2012 $9,042 $1,017 $1,977 $3,331 $997 $4,328 $1,934 $6,262 $1,776 $8,038 $1,004
2013 $9,034 $816 $1,720 $3,109 $1,034 $4,143 $2,008 $6,152 $1,844 $7,996 $1,038
2014 $9,709 $986 $1,998 $3,491 $1,093 $4,583 $2,107 $6,690 $1,924 $8,615 $1,094
Year Total Top 0.1% Top 1% Top 5% Between 5% & 10% Top 10% Between 10% & 25% Top 25% Between 25% & 50% Top 50% Bottom 50%
Table 4. Total Income Tax after Credits, 1980–2014 ($Billions)
Source: Internal Revenue Service.
1980 $249 $47 $92 $31 $123 $59 $182 $50 $232 $18
1981 $282 $50 $99 $36 $135 $69 $204 $57 $261 $21
1982 $276 $53 $100 $34 $134 $66 $200 $56 $256 $20
1983 $272 $55 $101 $34 $135 $64 $199 $54 $252 $19
1984 $297 $63 $113 $37 $150 $68 $219 $57 $276 $22
1985 $322 $70 $125 $41 $166 $73 $238 $60 $299 $23
1986 $367 $94 $156 $44 $201 $78 $279 $64 $343 $24
The Tax Reform Act of 1986 changed the definition of AGI, so data above and below this line not strictly comparable
1987 $369 $92 $160 $46 $205 $79 $284 $63 $347 $22
1988 $413 $114 $188 $48 $236 $85 $321 $68 $389 $24
1989 $433 $109 $190 $51 $241 $93 $334 $73 $408 $25
1990 $447 $112 $195 $52 $248 $97 $344 $77 $421 $26
1991 $448 $111 $194 $56 $250 $96 $347 $77 $424 $25
1992 $476 $131 $218 $58 $276 $97 $374 $78 $452 $24
1993 $503 $146 $238 $60 $298 $101 $399 $80 $479 $24
1994 $535 $154 $254 $64 $318 $108 $425 $84 $509 $25
1995 $588 $178 $288 $70 $357 $115 $473 $88 $561 $27
1996 $658 $213 $335 $76 $411 $124 $535 $95 $630 $28
1997 $727 $241 $377 $82 $460 $134 $594 $102 $696 $31
1998 $788 $274 $425 $88 $513 $139 $652 $103 $755 $33
1999 $877 $317 $486 $97 $583 $150 $733 $109 $842 $35
2000 $981 $367 $554 $106 $660 $164 $824 $118 $942 $38
The IRS changed methodology, so data above and below this line not strictly comparable
2001 $885 $139 $294 $462 $101 $564 $158 $722 $120 $842 $43
2002 $794 $120 $263 $420 $93 $513 $143 $657 $104 $761 $33
2003 $746 $115 $251 $399 $85 $484 $133 $617 $98 $715 $30
2004 $829 $142 $301 $467 $91 $558 $137 $695 $102 $797 $32
2005 $932 $176 $361 $549 $98 $647 $145 $793 $106 $898 $33
2006 $1,020 $196 $402 $607 $108 $715 $157 $872 $113 $986 $35
2007 $1,112 $221 $443 $666 $117 $783 $170 $953 $122 $1,075 $37
2008 $1,029 $187 $386 $597 $115 $712 $168 $880 $117 $997 $32
2009 $863 $146 $314 $502 $101 $604 $146 $749 $93 $842 $21
2010 $949 $170 $355 $561 $110 $670 $156 $827 $100 $927 $22
2011 $1,043 $168 $366 $589 $123 $712 $181 $893 $120 $1,012 $30
2012 $1,185 $220 $451 $699 $133 $831 $193 $1,024 $128 $1,152 $33
2013 $1,232 $228 $466 $721 $139 $860 $203 $1,063 $135 $1,198 $34
2014 $1,374 $273 $543 $824 $150 $974 $219 $1,193 $144 $1,337 $38
Year Total Top 0.1% Top 1% Top 5% Between 5% & 10% Top 10% Between 10% & 25% Top 25% Between 25% & 50% Top 50% Bottom 50%
Table 5. Adjusted Gross Income Shares, 1980–2014 (percent of total AGI earned by each group)
Source: Internal Revenue Service.
1980 100% 8.46% 21.01% 11.12% 32.13% 24.57% 56.70% 25.62% 82.32% 17.68%
1981 100% 8.30% 20.78% 11.20% 31.98% 24.69% 56.67% 25.59% 82.25% 17.75%
1982 100% 8.91% 21.23% 11.03% 32.26% 24.53% 56.79% 25.50% 82.29% 17.71%
1983 100% 9.29% 21.74% 11.04% 32.78% 24.44% 57.22% 25.30% 82.52% 17.48%
1984 100% 9.66% 22.19% 11.06% 33.25% 24.31% 57.56% 25.00% 82.56% 17.44%
1985 100% 10.03% 22.67% 11.10% 33.77% 24.21% 57.97% 24.77% 82.74% 17.26%
1986 100% 11.30% 24.11% 11.02% 35.12% 23.92% 59.04% 24.30% 83.34% 16.66%
The Tax Reform Act of 1986 changed the definition of AGI, so data above and below this line not strictly comparable
1987 100% 12.32% 25.67% 11.23% 36.90% 23.85% 60.75% 23.62% 84.37% 15.63%
1988 100% 15.16% 28.51% 10.94% 39.45% 22.99% 62.44% 22.63% 85.07% 14.93%
1989 100% 14.19% 27.84% 11.16% 39.00% 23.28% 62.28% 22.76% 85.04% 14.96%
1990 100% 14.00% 27.62% 11.15% 38.77% 23.36% 62.13% 22.84% 84.97% 15.03%
1991 100% 12.99% 26.83% 11.37% 38.20% 23.65% 61.85% 23.01% 84.87% 15.13%
1992 100% 14.23% 28.01% 11.21% 39.23% 23.25% 62.47% 22.61% 85.08% 14.92%
1993 100% 13.79% 27.76% 11.29% 39.05% 23.40% 62.45% 22.63% 85.08% 14.92%
1994 100% 13.80% 27.85% 11.34% 39.19% 23.45% 62.64% 22.48% 85.11% 14.89%
1995 100% 14.60% 28.81% 11.35% 40.16% 23.21% 63.37% 22.09% 85.46% 14.54%
1996 100% 16.04% 30.36% 11.23% 41.59% 22.73% 64.32% 21.60% 85.92% 14.08%
1997 100% 17.38% 31.79% 11.03% 42.83% 22.22% 65.05% 21.11% 86.16% 13.84%
1998 100% 18.47% 32.85% 10.92% 43.77% 21.87% 65.63% 20.69% 86.33% 13.67%
1999 100% 19.51% 34.04% 10.85% 44.89% 21.57% 66.46% 20.29% 86.75% 13.25%
2000 100% 20.81% 35.30% 10.71% 46.01% 21.15% 67.15% 19.86% 87.01% 12.99%
The IRS changed methodology, so data above and below this line not strictly comparable
2001 100% 8.05% 17.41% 31.61% 10.89% 42.50% 21.80% 64.31% 21.29% 85.60% 14.40%
2002 100% 7.04% 16.05% 30.29% 11.04% 41.33% 22.39% 63.71% 21.79% 85.50% 14.50%
2003 100% 7.56% 16.73% 30.99% 11.03% 42.01% 22.33% 64.34% 21.52% 85.87% 14.13%
2004 100% 9.14% 18.99% 33.31% 10.77% 44.07% 21.60% 65.68% 20.83% 86.51% 13.49%
2005 100% 10.64% 21.19% 35.61% 10.56% 46.17% 20.90% 67.07% 19.99% 87.06% 12.94%
2006 100% 11.23% 22.10% 36.62% 10.56% 47.17% 20.73% 67.91% 19.68% 87.58% 12.42%
2007 100% 11.95% 22.86% 37.39% 10.49% 47.88% 20.53% 68.41% 19.40% 87.81% 12.19%
2008 100% 10.06% 20.19% 34.95% 11.03% 45.98% 21.71% 67.69% 20.39% 88.08% 11.92%
2009 100% 7.94% 17.21% 32.18% 11.59% 43.77% 22.96% 66.74% 21.38% 88.12% 11.88%
2010 100% 9.24% 18.87% 33.78% 11.38% 45.17% 22.38% 67.55% 20.71% 88.26% 11.74%
2011 100% 8.86% 18.70% 33.89% 11.50% 45.39% 22.43% 67.82% 20.63% 88.45% 11.55%
2012 100% 11.25% 21.86% 36.84% 11.03% 47.87% 21.39% 69.25% 19.64% 88.90% 11.10%
2013 100% 9.03% 19.04% 34.42% 11.45% 45.87% 22.23% 68.10% 20.41% 88.51% 11.49%
2014 100% 10.16% 20.58% 35.96% 11.25% 47.21% 21.70% 68.91% 19.82% 88.73% 11.27%
Year Total Top 0.1% Top 1% Top 5% Between 5% & 10% Top 10% Between 10% & 25% Top 25% Between 25% & 50% Top 50% Bottom 50%
Table 6. Total Income Tax Shares, 1980–2014 (percent of federal income tax paid by each group)
Source: Internal Revenue Service.
1980 100% 19.05% 36.84% 12.44% 49.28% 23.74% 73.02% 19.93% 92.95% 7.05%
1981 100% 17.58% 35.06% 12.90% 47.96% 24.33% 72.29% 20.26% 92.55% 7.45%
1982 100% 19.03% 36.13% 12.45% 48.59% 23.91% 72.50% 20.15% 92.65% 7.35%
1983 100% 20.32% 37.26% 12.44% 49.71% 23.39% 73.10% 19.73% 92.83% 7.17%
1984 100% 21.12% 37.98% 12.58% 50.56% 22.92% 73.49% 19.16% 92.65% 7.35%
1985 100% 21.81% 38.78% 12.67% 51.46% 22.60% 74.06% 18.77% 92.83% 7.17%
1986 100% 25.75% 42.57% 12.12% 54.69% 21.33% 76.02% 17.52% 93.54% 6.46%
The Tax Reform Act of 1986 changed the definition of AGI, so data above and below this line not strictly comparable
1987 100% 24.81% 43.26% 12.35% 55.61% 21.31% 76.92% 17.02% 93.93% 6.07%
1988 100% 27.58% 45.62% 11.66% 57.28% 20.57% 77.84% 16.44% 94.28% 5.72%
1989 100% 25.24% 43.94% 11.85% 55.78% 21.44% 77.22% 16.94% 94.17% 5.83%
1990 100% 25.13% 43.64% 11.73% 55.36% 21.66% 77.02% 17.16% 94.19% 5.81%
1991 100% 24.82% 43.38% 12.45% 55.82% 21.46% 77.29% 17.23% 94.52% 5.48%
1992 100% 27.54% 45.88% 12.12% 58.01% 20.47% 78.48% 16.46% 94.94% 5.06%
1993 100% 29.01% 47.36% 11.88% 59.24% 20.03% 79.27% 15.92% 95.19% 4.81%
1994 100% 28.86% 47.52% 11.93% 59.45% 20.10% 79.55% 15.68% 95.23% 4.77%
1995 100% 30.26% 48.91% 11.84% 60.75% 19.62% 80.36% 15.03% 95.39% 4.61%
1996 100% 32.31% 50.97% 11.54% 62.51% 18.80% 81.32% 14.36% 95.68% 4.32%
1997 100% 33.17% 51.87% 11.33% 63.20% 18.47% 81.67% 14.05% 95.72% 4.28%
1998 100% 34.75% 53.84% 11.20% 65.04% 17.65% 82.69% 13.10% 95.79% 4.21%
1999 100% 36.18% 55.45% 11.00% 66.45% 17.09% 83.54% 12.46% 96.00% 4.00%
2000 100% 37.42% 56.47% 10.86% 67.33% 16.68% 84.01% 12.08% 96.09% 3.91%
The IRS changed methodology, so data above and below this line not strictly comparable
2001 100% 15.68% 33.22% 52.24% 11.44% 63.68% 17.88% 81.56% 13.54% 95.10% 4.90%
2002 100% 15.09% 33.09% 52.86% 11.77% 64.63% 18.04% 82.67% 13.12% 95.79% 4.21%
2003 100% 15.37% 33.69% 53.54% 11.35% 64.89% 17.87% 82.76% 13.17% 95.93% 4.07%
2004 100% 17.12% 36.28% 56.35% 10.96% 67.30% 16.52% 83.82% 12.31% 96.13% 3.87%
2005 100% 18.91% 38.78% 58.93% 10.52% 69.46% 15.61% 85.07% 11.35% 96.41% 3.59%
2006 100% 19.24% 39.36% 59.49% 10.59% 70.08% 15.41% 85.49% 11.10% 96.59% 3.41%
2007 100% 19.84% 39.81% 59.90% 10.51% 70.41% 15.30% 85.71% 10.93% 96.64% 3.36%
2008 100% 18.20% 37.51% 58.06% 11.14% 69.20% 16.37% 85.57% 11.33% 96.90% 3.10%
2009 100% 16.91% 36.34% 58.17% 11.72% 69.89% 16.85% 86.74% 10.80% 97.54% 2.46%
2010 100% 17.88% 37.38% 59.07% 11.55% 70.62% 16.49% 87.11% 10.53% 97.64% 2.36%
2011 100% 16.14% 35.06% 56.49% 11.77% 68.26% 17.36% 85.62% 11.50% 97.11% 2.89%
2012 100% 18.60% 38.09% 58.95% 11.22% 70.17% 16.25% 86.42% 10.80% 97.22% 2.78%
2013 100% 18.48% 37.80% 58.55% 11.25% 69.80% 16.47% 86.27% 10.94% 97.22% 2.78%
2014 100% 19.85% 39.48% 59.97% 10.91% 70.88% 15.90% 86.78% 10.47% 97.25% 2.75%
Year Total Top 1% Top 5% Top 10% Top 25% Top 50%
Table 7. Dollar Cut-Off, 1980–2014 (Minimum AGI for Tax Returns to Fall into Various Percentiles; Thresholds Not Adjusted for Inflation)
1980 $80,580 $43,792 $35,070 $23,606 $12,936
1981 $85,428 $47,845 $38,283 $25,655 $14,000
1982 $89,388 $49,284 $39,676 $27,027 $14,539
1983 $93,512 $51,553 $41,222 $27,827 $15,044
1984 $100,889 $55,423 $43,956 $29,360 $15,998
1985 $108,134 $58,883 $46,322 $30,928 $16,688
1986 $118,818 $62,377 $48,656 $32,242 $17,302
The Tax Reform Act of 1986 changed the definition of AGI, so data above and below this line not strictly comparable
1987 $139,289 $68,414 $52,921 $33,983 $17,768
1988 $157,136 $72,735 $55,437 $35,398 $18,367
1989 $163,869 $76,933 $58,263 $36,839 $18,993
1990 $167,421 $79,064 $60,287 $38,080 $19,767
1991 $170,139 $81,720 $61,944 $38,929 $20,097
1992 $181,904 $85,103 $64,457 $40,378 $20,803
1993 $185,715 $87,386 $66,077 $41,210 $21,179
1994 $195,726 $91,226 $68,753 $42,742 $21,802
1995 $209,406 $96,221 $72,094 $44,207 $22,344
1996 $227,546 $101,141 $74,986 $45,757 $23,174
1997 $250,736 $108,048 $79,212 $48,173 $24,393
1998 $269,496 $114,729 $83,220 $50,607 $25,491
1999 $293,415 $120,846 $87,682 $52,965 $26,415
2000 $313,469 $128,336 $92,144 $55,225 $27,682
The IRS changed methodology, so data above and below this line not strictly comparable
2001 $1,393,718 $306,635 $132,082 $96,151 $59,026 $31,418
2002 $1,245,352 $296,194 $130,750 $95,699 $59,066 $31,299
2003 $1,317,088 $305,939 $133,741 $97,470 $59,896 $31,447
2004 $1,617,918 $339,993 $140,758 $101,838 $62,794 $32,622
2005 $1,938,175 $379,261 $149,216 $106,864 $64,821 $33,484
2006 $2,124,625 $402,603 $157,390 $112,016 $67,291 $34,417
2007 $2,251,017 $426,439 $164,883 $116,396 $69,559 $35,541
2008 $1,867,652 $392,513 $163,512 $116,813 $69,813 $35,340
2009 $1,469,393 $351,968 $157,342 $114,181 $68,216 $34,156
2010 $1,634,386 $369,691 $161,579 $116,623 $69,126 $34,338
2011 $1,717,675 $388,905 $167,728 $120,136 $70,492 $34,823
2012 $2,161,175 $434,682 $175,817 $125,195 $73,354 $36,055
2013 $1,860,848 $428,713 $179,760 $127,695 $74,955 $36,841
2014 $2,136,762 $465,626 $188,996 $133,445 $77,714 $38,173
Source: Internal Revenue Service.
Year Total Top 0.1% Top 1% Top 5% Between 5% & 10% Top 10% Between 10% & 25% Top 25% Between 25% & 50% Top 50% Bottom 50%
Table 8. Average Tax Rate, 1980–2014 (Percent of AGI Paid in Income Taxes)
Source: Internal Revenue Service.
1980 15.31% 34.47% 26.85% 17.13% 23.49% 14.80% 19.72% 11.91% 17.29% 6.10%
1981 15.76% 33.37% 26.59% 18.16% 23.64% 15.53% 20.11% 12.48% 17.73% 6.62%
1982 14.72% 31.43% 25.05% 16.61% 22.17% 14.35% 18.79% 11.63% 16.57% 6.10%
1983 13.79% 30.18% 23.64% 15.54% 20.91% 13.20% 17.62% 10.76% 15.52% 5.66%
1984 13.68% 29.92% 23.42% 15.57% 20.81% 12.90% 17.47% 10.48% 15.35% 5.77%
1985 13.73% 29.86% 23.50% 15.69% 20.93% 12.83% 17.55% 10.41% 15.41% 5.70%
1986 14.54% 33.13% 25.68% 15.99% 22.64% 12.97% 18.72% 10.48% 16.32% 5.63%
The Tax Reform Act of 1986 changed the definition of AGI, so data above and below this line not strictly comparable
1987 13.12% 26.41% 22.10% 14.43% 19.77% 11.71% 16.61% 9.45% 14.60% 5.09%
1988 13.21% 24.04% 21.14% 14.07% 19.18% 11.82% 16.47% 9.60% 14.64% 5.06%
1989 13.12% 23.34% 20.71% 13.93% 18.77% 12.08% 16.27% 9.77% 14.53% 5.11%
1990 12.95% 23.25% 20.46% 13.63% 18.50% 12.01% 16.06% 9.73% 14.36% 5.01%
1991 12.75% 24.37% 20.62% 13.96% 18.63% 11.57% 15.93% 9.55% 14.20% 4.62%
1992 12.94% 25.05% 21.19% 13.99% 19.13% 11.39% 16.25% 9.42% 14.44% 4.39%
1993 13.32% 28.01% 22.71% 14.01% 20.20% 11.40% 16.90% 9.37% 14.90% 4.29%
1994 13.50% 28.23% 23.04% 14.20% 20.48% 11.57% 17.15% 9.42% 15.11% 4.32%
1995 13.86% 28.73% 23.53% 14.46% 20.97% 11.71% 17.58% 9.43% 15.47% 4.39%
1996 14.34% 28.87% 24.07% 14.74% 21.55% 11.86% 18.12% 9.53% 15.96% 4.40%
1997 14.48% 27.64% 23.62% 14.87% 21.36% 12.04% 18.18% 9.63% 16.09% 4.48%
1998 14.42% 27.12% 23.63% 14.79% 21.42% 11.63% 18.16% 9.12% 16.00% 4.44%
1999 14.85% 27.53% 24.18% 15.06% 21.98% 11.76% 18.66% 9.12% 16.43% 4.48%
2000 15.26% 27.45% 24.42% 15.48% 22.34% 12.04% 19.09% 9.28% 16.86% 4.60%
The IRS changed methodology, so data above and below this line not strictly comparable
2001 14.47% 28.17% 27.60% 23.91% 15.20% 21.68% 11.87% 18.35% 9.20% 16.08% 4.92%
2002 13.28% 28.48% 27.37% 23.17% 14.15% 20.76% 10.70% 17.23% 8.00% 14.87% 3.86%
2003 12.11% 24.60% 24.38% 20.92% 12.46% 18.70% 9.69% 15.57% 7.41% 13.53% 3.49%
2004 12.31% 23.06% 23.52% 20.83% 12.53% 18.80% 9.41% 15.71% 7.27% 13.68% 3.53%
2005 12.65% 22.48% 23.15% 20.93% 12.61% 19.03% 9.45% 16.04% 7.18% 14.01% 3.51%
2006 12.80% 21.94% 22.80% 20.80% 12.84% 19.02% 9.52% 16.12% 7.22% 14.12% 3.51%
2007 12.90% 21.42% 22.46% 20.66% 12.92% 18.96% 9.61% 16.16% 7.27% 14.19% 3.56%
2008 12.54% 22.67% 23.29% 20.83% 12.66% 18.87% 9.45% 15.85% 6.97% 13.79% 3.26%
2009 11.39% 24.28% 24.05% 20.59% 11.53% 18.19% 8.36% 14.81% 5.76% 12.61% 2.35%
2010 11.81% 22.84% 23.39% 20.64% 11.98% 18.46% 8.70% 15.22% 6.01% 13.06% 2.37%
2011 12.54% 22.82% 23.50% 20.89% 12.83% 18.85% 9.70% 15.82% 6.98% 13.76% 3.13%
2012 13.11% 21.67% 22.83% 20.97% 13.33% 19.21% 9.96% 16.35% 7.21% 14.33% 3.28%
2013 13.64% 27.91% 27.08% 23.20% 13.40% 20.75% 10.11% 17.28% 7.31% 14.98% 3.30%
2014 14.16% 27.67% 27.16% 23.61% 13.73% 21.25% 10.37% 17.83% 7.48% 15.52% 3.45%
  1. For data prior to 2001, all tax returns that have a positive AGI are included, even those that do not have a positive income tax liability. For data from 2001 forward, returns with negative AGI are also included, but dependent returns are excluded.
  2. Income tax after credits (the measure of “income taxes paid” above) does not account for the refundable portion of EITC. If it were included, the tax share of the top income groups would be higher. The refundable portion is classified as a spending program by the Office of Management and Budget and therefore is not included by the IRS in these figures.
  3. The only tax analyzed here is the federal individual income tax, which is responsible for more than 25 percent of the nation’s taxes paid (at all levels of government). Federal income taxes are much more progressive than federal payroll taxes, which are responsible for about 20 percent of all taxes paid (at all levels of government), and are more progressive than most state and local taxes.
  4. AGI is a fairly narrow income concept and does not include income items like government transfers (except for the portion of Social Security benefits that is taxed), the value of employer-provided health insurance, underreported or unreported income (most notably that of sole proprietors), income derived from municipal bond interest, net imputed rental income, and others.
  5. The unit of analysis here is that of the tax return. In the figures prior to 2001, some dependent returns are included. Under other units of analysis (like the Treasury Department’s Family Economic Unit), these returns would likely be paired with parents’ returns.
  6. These figures represent the legal incidence of the income tax. Most distributional tables (such as those from CBO, Tax Policy Center, Citizens for Tax Justice, the Treasury Department, and JCT) assume that the entire economic incidence of personal income taxes falls on the income earner.

[1] Individual Income Tax Rates and Tax Shares, Internal Revenue Service Statistics of Income, http://www.irs.gov/uac/SOI-Tax-Stats-Individual-Income-Tax-Rates-and-Tax-Shares.

[2] See Congressional Budget Office, The Budget and Economic Outlook: 2017 to 2027, Jan. 2017, https://www.cbo.gov/sites/default/files/115th-congress-2017-2018/reports/52370-outlook.pdf.

[3] There is strong reason to believe that capital gains realizations were unusually depressed in 2013, due to the increase in the top capital gains tax rate from 15 percent to 23.8 percent. In 2013, capital gains accounted for 26.6 percent of the income of taxpayers with over $1 million in AGI received, compared to 31.7 percent in 2014 (these calculations apply for net capital gains reported on Schedule D). Table 1.4, Publication 1304, “Individual Income Tax Returns 2014,” Internal Revenue Service, https://www.irs.gov/uac/soi-tax-stats-individual-income-tax-returns-publication-1304-complete-report.

[4] Here, “average income tax rate” is defined as income taxes paid divided by adjusted gross income.

https://taxfoundation.org/summary-latest-federal-income-tax-data-2016-update/

Story 2: Stagnating United States Economy — The Great Stagnation — Videos —

Image result for us annual percentage change n real gdp 1950-2016

Image result for us annual percentage change n real gdp 1950-2016

Image result for us real gdp: percent change from previous quarter 2009-2017

Image result for stagnating economy usaImage result for real gdp: percent change from previous quarter 2009-2017

American Stasis (Episode 3/5)

Why Governments Create Inflation

Tyler Cowen, “The Complacent Class”

TEDxEast – Tyler Cowen – The Great Stagnation

Tyler Cowen: The Great Stagnation

The American Dream and the Complacent Class

The Complacent Class (Episode 1/5)

The New Era of Segregation (Episode 2/5)

American Stasis (Episode 3/5)

The Missing Men (Episode 4/5)

Tyler Cowen: The Rise and Fall of the Chinese Economy

The Great Stagnation by Tyler Cowen

National Income and Product Accounts
Gross Domestic Product: Fourth Quarter and Annual 2016 (Third Estimate)
Corporate Profits: Fourth Quarter and Annual 2016
Real gross domestic product (GDP) increased at an annual rate of 2.1 percent in the fourth quarter of
2016 (table 1), according to the "third" estimate released by the Bureau of Economic Analysis. In the
third quarter of 2016, real GDP increased 3.5 percent.

The GDP estimate released today is based on more complete source data than were available for the
"second" estimate issued last month.  In the second estimate, the increase in real GDP was 1.9 percent.
With this third estimate for the fourth quarter, the general picture of economic growth remains largely
the same; personal consumption expenditures (PCE) increased more than previously estimated (see
"Updates to GDP" on page 2).

Real GDP: Percent Change from Preceding Quarter
Real gross domestic income (GDI) increased 1.0 percent in the fourth quarter, compared with an
increase of 5.0 percent in the third. The average of real GDP and real GDI, a supplemental measure of
U.S. economic activity that equally weights GDP and GDI, increased 1.5 percent in the fourth quarter,
compared with an increase of 4.3 percent in the third quarter (table 1).

The increase in real GDP in the fourth quarter reflected positive contributions from PCE, private
inventory investment, residential fixed investment, nonresidential fixed investment, and state and local
government spending that were partly offset by negative contributions from exports and federal
government spending. Imports, which are a subtraction in the calculation of GDP, increased (table 2).

The deceleration in real GDP in the fourth quarter reflected downturns in exports and in federal
government spending, an acceleration in imports, and a deceleration in nonresidential fixed investment
that were partly offset by accelerations in private inventory investment and in PCE, and upturns in
residential fixed investment and in state and local government spending.

Current-dollar GDP increased 4.2 percent, or $194.1 billion, in the fourth quarter to a level of $18,869.4
billion. In the third quarter, current-dollar GDP increased 5.0 percent, or $225.2 billion (table 1 and
table 3).

The price index for gross domestic purchases increased 2.0 percent in the fourth quarter, compared
with an increase of 1.5 percent in the third quarter (table 4). The PCE price index increased 2.0 percent,
compared with an increase of 1.5 percent. Excluding food and energy prices, the PCE price index
increased 1.3 percent, compared with an increase of 1.7 percent (appendix table A).


Updates to GDP

The upward revision to the percent change in real GDP primarily reflected upward revisions to PCE and
to private inventory investment that were partly offset by downward revisions to nonresidential fixed
investment and to exports. Imports, which are a subtraction in the calculation of GDP, were revised
upward. For more information, see the Technical Note. For information on updates to GDP, see the
"Additional Information" section that follows.

                                       Advance Estimate          Second Estimate            Third Estimate

                                                     (Percent change from preceding quarter)
Real GDP                                     1.9                       1.9                       2.1
Current-dollar GDP                           4.0                       3.9                       4.2
Real GDI                                     ---                       ---                       1.0
Average of Real GDP and Real GDI             ---                       ---                       1.5
Gross domestic purchases price index         2.0                       1.9                       2.0
PCE price index                              2.2                       1.9                       2.0


2016 GDP

Real GDP increased 1.6 percent in 2016 (that is, from the 2015 annual level to the 2016 annual level),
compared with an increase of 2.6 percent in 2015 (table 1).

The increase in real GDP in 2016 reflected positive contributions from PCE, residential fixed investment,
state and local government spending, exports, and federal government spending that were partly offset
by negative contributions from private inventory investment and nonresidential fixed investment.
Imports, which are a subtraction in the calculation of GDP, increased (table 2).

The deceleration in real GDP from 2015 to 2016 reflected downturns in private inventory investment
and in nonresidential fixed investment and decelerations in PCE, in residential fixed investment, and in
state and local government spending that were partly offset by a deceleration in imports and
accelerations in federal government spending and in exports.

Current-dollar GDP increased 3.0 percent, or $532.5 billion, in 2016 to a level of $18,569.1 billion,
compared with an increase of 3.7 percent, or $643.5 billion, in 2015 (table 1 and table 3).

Real GDI increased 1.6 percent in 2016, compared with an increase of 2.5 percent in 2015 (table 1).

The price index for gross domestic purchases increased 1.0 percent in 2016, compared with an increase
of 0.4 percent in 2015 (table 4).

During 2016 (that is, measured from the fourth quarter of 2015 to the fourth quarter of 2016), real GDP
increased 2.0 percent, compared with an increase of 1.9 percent during 2015.  The price index for gross
domestic purchases increased 1.5 percent during 2016, compared with an increase of 0.4 percent during
2015.  Real GDI increased 1.9 percent during 2016, compared with an increase of 1.5 percent during
2015 (table 7).


Corporate Profits (table 12)

Profits from current production (corporate profits with inventory valuation adjustment and capital
consumption adjustment) increased $11.2 billion in the fourth quarter of 2016, compared with an
increase of $117.8 billion in the third quarter.

Profits of domestic financial corporations increased $26.5 billion in the fourth quarter, compared with
an increase of $50.1 billion in the third. Profits of domestic nonfinancial corporations decreased $60.4
billion, in contrast to an increase of $66.4 billion. The estimate of nonfinancial corporate profits in the
fourth quarter was reduced by a $4.95 billion ($19.8 billion at an annual rate) settlement between a U.S.
subsidiary of Volkswagen and the federal and state governments. For more information, see the FAQ,
"What are the effects of the Volkswagen buyback deal on GDP and the national accounts?”. The
rest-of-the-world component of profits increased $45.1 billion, compared with an increase of $1.3 billion.
This measure is calculated as the difference between receipts from the rest of the world and payments to
the rest of the world. In the fourth quarter, receipts increased $9.1 billion, and payments decreased
$36.0 billion.

In 2016, profits from current production decreased $2.3 billion, compared with a decrease of $64.0
billion in 2015. Profits of domestic financial corporations increased $20.5 billion, compared with an
increase of $8.5 billion. Profits of domestic nonfinancial corporations decreased $47.0 billion, compared
with a decrease of $47.3 billion. The rest-of-the-world component of profits increased $24.3 billion, in
contrast to a decrease of $25.2 billion.


                                      *          *          *
                           Next release:  April 28, 2017 at 8:30 A.M. EDT
                   Gross Domestic Product:  First Quarter 2017 (Advance Estimate)




                                       Additional Information

Resources

Additional Resources available at www.bea.gov:
•	Stay informed about BEA developments by reading the BEA blog, signing up for BEA’s email
        subscription service, or following BEA on Twitter @BEA_News.
•	Historical time series for these estimates can be accessed in BEA’s Interactive Data Application.
•	Access BEA data by registering for BEA’s Data Application Programming Interface (API).
•	For more on BEA’s statistics, see our monthly online journal, the Survey of Current Business.
•	BEA's news release scheduleNIPA Handbook:  Concepts and Methods of the U.S. National Income and Product Accounts

Definitions

Gross domestic product (GDP) is the value of the goods and services produced by the nation’s economy
less the value of the goods and services used up in production. GDP is also equal to the sum of personal
consumption expenditures, gross private domestic investment, net exports of goods and services, and
government consumption expenditures and gross investment.

Gross domestic income (GDI) is the sum of incomes earned and costs incurred in the production of GDP.
In national economic accounting, GDP and GDI are conceptually equal. In practice, GDP and GDI differ
because they are constructed using largely independent source data. Real GDI is calculated by deflating
gross domestic income using the GDP price index as the deflator, and is therefore conceptually
equivalent to real GDP.

Current-dollar estimates are valued in the prices of the period when the transactions occurred—that is,
at “market value.” Also referred to as “nominal estimates” or as “current-price estimates.”
Real values are inflation-adjusted estimates—that is, estimates that exclude the effects of price changes.
The gross domestic purchases price index measures the prices of final goods and services purchased by
U.S. residents.

The personal consumption expenditure price index measures the prices paid for the goods and services
purchased by, or on the behalf of, “persons.”

Profits from current production, referred to as corporate profits with inventory valuation adjustment
(IVA) and capital consumption adjustment (CCAdj) in the NIPAs, is a measure of the net income of
corporations before deducting income taxes that is consistent with the value of goods and services
measured in GDP. The IVA and CCAdj are adjustments that convert inventory withdrawals and
depreciation of fixed assets reported on a tax-return, historical-cost basis to the current-cost economic
measures used in the national income and product accounts.

For more definitions, see the Glossary: National Income and Product Accounts.


Statistical conventions

Annual rates. Quarterly values are expressed at seasonally-adjusted annual rates (SAAR), unless
otherwise specified. Dollar changes are calculated as the difference between these SAAR values. For
detail, see the FAQ “Why does BEA publish estimates at annual rates?”

Percent changes in quarterly series are calculated from unrounded data and are displayed at annual
rates, unless otherwise specified. For details, see the FAQ “How is average annual growth calculated?”

Quantities and prices. Quantities, or “real” volume measures, and prices are expressed as index
numbers with a specified reference year equal to 100 (currently 2009). Quantity and price indexes are
calculated using a Fisher-chained weighted formula that incorporates weights from two adjacent
periods (quarters for quarterly data and annuals for annual data). “Real” dollar series are calculated by
multiplying the published quantity index by the current dollar value in the reference year (2009) and
then dividing by 100. Percent changes calculated from real quantity indexes and chained-dollar levels
are conceptually the same; any differences are due to rounding.

Chained-dollar values are not additive because the relative weights for a given period differ from those
of the reference year. In tables that display chained-dollar values, a “residual” line shows the difference
between the sum of detailed chained-dollar series and its corresponding aggregate.


Updates to GDP

BEA releases three vintages of the current quarterly estimate for GDP:  "Advance" estimates are
released near the end of the first month following the end of the quarter and are based on source data
that are incomplete or subject to further revision by the source agency; “second” and “third” estimates
are released near the end of the second and third months, respectively, and are based on more detailed
and more comprehensive data as they become available.

Annual and comprehensive updates are typically released in late July. Annual updates generally cover at
least the 3 most recent calendar years (and their associated quarters) and incorporate newly available
major annual source data as well as some changes in methods and definitions to improve the accounts.
Comprehensive (or benchmark) updates are carried out at about 5-year intervals and incorporate major
periodic source data, as well as major conceptual improvements.
The table below shows the average revisions to the quarterly percent changes in real GDP between
different estimate vintages, without regard to sign.

Vintage                               Average Revision Without Regard to Sign
                                         (percentage points, annual rates)
Advance to second                                     0.5
Advance to third                                      0.6
Second to third                                       0.2
Advance to latest                                     1.1
Note - Based on estimates from 1993 through 2015. For more information on GDP updates, see Revision
Information on the BEA Web site.

The larger average revision from the advance to the latest estimate reflects the fact that periodic
comprehensive updates include major statistical and methodological improvements.

Unlike GDP, an advance current quarterly estimate of GDI is not released because data on domestic
profits and on net interest of domestic industries are not available. For fourth quarter estimates, these
data are not available until the third estimate.

https://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm 

The Pronk Pops Show Podcasts Portfolio

Listen To Pronk Pops Podcast or Download Shows 870

Listen To Pronk Pops Podcast or Download Shows 864-869

Listen To Pronk Pops Podcast or Download Shows 857-863

Listen To Pronk Pops Podcast or Download Shows 850-856

Listen To Pronk Pops Podcast or Download Shows 845-849

Listen To Pronk Pops Podcast or Download Shows 840-844

Listen To Pronk Pops Podcast or Download Shows 833-839

Listen To Pronk Pops Podcast or Download Shows 827-832

Listen To Pronk Pops Podcast or Download Shows 821-826

Listen To Pronk Pops Podcast or Download Shows 815-820

Listen To Pronk Pops Podcast or Download Shows 806-814

Listen To Pronk Pops Podcast or Download Shows 800-805

Listen To Pronk Pops Podcast or Download Shows 793-799

Listen To Pronk Pops Podcast or Download Shows 785-792

Listen To Pronk Pops Podcast or Download Shows 777-784

Listen To Pronk Pops Podcast or Download Shows 769-776

Listen To Pronk Pops Podcast or Download Shows 759-768

Listen To Pronk Pops Podcast or Download Shows 751-758

Listen To Pronk Pops Podcast or Download Shows 745-750

Listen To Pronk Pops Podcast or Download Shows 738-744

Listen To Pronk Pops Podcast or Download Shows 732-737

Listen To Pronk Pops Podcast or Download Shows 727-731

Listen To Pronk Pops Podcast or Download Shows 720-726

Listen To Pronk Pops Podcast or DownloadShows 713-719

Listen To Pronk Pops Podcast or DownloadShows 705-712

Listen To Pronk Pops Podcast or Download Shows 695-704

Listen To Pronk Pops Podcast or Download Shows 685-694

Listen To Pronk Pops Podcast or Download Shows 675-684

Listen To Pronk Pops Podcast or Download Shows 668-674

Listen To Pronk Pops Podcast or Download Shows 660-667

Listen To Pronk Pops Podcast or Download Shows 651-659

Listen To Pronk Pops Podcast or Download Shows 644-650

Listen To Pronk Pops Podcast or Download Shows 637-643

Listen To Pronk Pops Podcast or Download Shows 629-636

Listen To Pronk Pops Podcast or Download Shows 617-628

Listen To Pronk Pops Podcast or Download Shows 608-616

Listen To Pronk Pops Podcast or Download Shows 599-607

Listen To Pronk Pops Podcast or Download Shows 590-598

Listen To Pronk Pops Podcast or Download Shows 585- 589

Listen To Pronk Pops Podcast or Download Shows 575-584

Listen To Pronk Pops Podcast or Download Shows 565-574

Listen To Pronk Pops Podcast or Download Shows 556-564

Listen To Pronk Pops Podcast or Download Shows 546-555

Listen To Pronk Pops Podcast or Download Shows 538-545

Listen To Pronk Pops Podcast or Download Shows 532-537

Listen To Pronk Pops Podcast or Download Shows 526-531

Listen To Pronk Pops Podcast or Download Shows 519-525

Listen To Pronk Pops Podcast or Download Shows 510-518

Listen To Pronk Pops Podcast or Download Shows 500-509

Listen To Pronk Pops Podcast or Download Shows 490-499

Listen To Pronk Pops Podcast or Download Shows 480-489

Listen To Pronk Pops Podcast or Download Shows 473-479

Listen To Pronk Pops Podcast or Download Shows 464-472

Listen To Pronk Pops Podcast or Download Shows 455-463

Listen To Pronk Pops Podcast or Download Shows 447-454

Listen To Pronk Pops Podcast or Download Shows 439-446

Listen To Pronk Pops Podcast or Download Shows 431-438

Listen To Pronk Pops Podcast or Download Shows 422-430

Listen To Pronk Pops Podcast or Download Shows 414-421

Listen To Pronk Pops Podcast or Download Shows 408-413

Listen To Pronk Pops Podcast or Download Shows 400-407

Listen To Pronk Pops Podcast or Download Shows 391-399

Listen To Pronk Pops Podcast or Download Shows 383-390

Listen To Pronk Pops Podcast or Download Shows 376-382

Listen To Pronk Pops Podcast or Download Shows 369-375

Listen To Pronk Pops Podcast or Download Shows 360-368

Listen To Pronk Pops Podcast or Download Shows 354-359

Listen To Pronk Pops Podcast or Download Shows 346-353

Listen To Pronk Pops Podcast or Download Shows 338-345

Listen To Pronk Pops Podcast or Download Shows 328-337

Listen To Pronk Pops Podcast or Download Shows 319-327

Listen To Pronk Pops Podcast or Download Shows 307-318

Listen To Pronk Pops Podcast or Download Shows 296-306

Listen To Pronk Pops Podcast or Download Shows 287-295

Listen To Pronk Pops Podcast or Download Shows 277-286

Listen To Pronk Pops Podcast or Download Shows 264-276

Listen To Pronk Pops Podcast or Download Shows 250-263

Listen To Pronk Pops Podcast or Download Shows 236-249

Listen To Pronk Pops Podcast or Download Shows 222-235

Listen To Pronk Pops Podcast or Download Shows 211-221

Listen To Pronk Pops Podcast or Download Shows 202-210

Listen To Pronk Pops Podcast or Download Shows 194-201

Listen To Pronk Pops Podcast or Download Shows 184-193

Listen To Pronk Pops Podcast or Download Shows 174-183

Listen To Pronk Pops Podcast or Download Shows 165-173

Listen To Pronk Pops Podcast or Download Shows 158-164

Listen To Pronk Pops Podcast or Download Shows151-157

Listen To Pronk Pops Podcast or Download Shows 143-150

Listen To Pronk Pops Podcast or Download Shows 135-142

Listen To Pronk Pops Podcast or Download Shows 131-134

Listen To Pronk Pops Podcast or Download Shows 124-130

Listen To Pronk Pops Podcast or Download Shows 121-123

Listen To Pronk Pops Podcast or Download Shows 118-120

Listen To Pronk Pops Podcast or Download Shows 113 -117

Listen To Pronk Pops Podcast or Download Show 112

Listen To Pronk Pops Podcast or Download Shows 108-111

Listen To Pronk Pops Podcast or Download Shows 106-108

Listen To Pronk Pops Podcast or Download Shows 104-105

Listen To Pronk Pops Podcast or Download Shows 101-103

Listen To Pronk Pops Podcast or Download Shows 98-100

Listen To Pronk Pops Podcast or Download Shows 94-97

Listen To Pronk Pops Podcast or Download Show 93

Listen To Pronk Pops Podcast or Download Show 92

Listen To Pronk Pops Podcast or Download Show 91

Listen To Pronk Pops Podcast or Download Shows 88-90

Listen To Pronk Pops Podcast or Download Shows 84-87

Listen To Pronk Pops Podcast or Download Shows 79-83

Listen To Pronk Pops Podcast or Download Shows 74-78

Listen To Pronk Pops Podcast or Download Shows 71-73

Listen To Pronk Pops Podcast or Download Shows 68-70

Listen To Pronk Pops Podcast or Download Shows 65-67

Listen To Pronk Pops Podcast or Download Shows 62-64

Listen To Pronk Pops Podcast or Download Shows 58-61

Listen To Pronk Pops Podcast or Download Shows 55-57

Listen To Pronk Pops Podcast or Download Shows 52-54

Listen To Pronk Pops Podcast or Download Shows 49-51

Listen To Pronk Pops Podcast or Download Shows 45-48

Listen To Pronk Pops Podcast or Download Shows 41-44

Listen To Pronk Pops Podcast or Download Shows 38-40

Listen To Pronk Pops Podcast or Download Shows 34-37

Listen To Pronk Pops Podcast or Download Shows 30-33

Listen To Pronk Pops Podcast or Download Shows 27-29

Listen To Pronk Pops Podcast or Download Shows 17-26

Listen To Pronk Pops Podcast or Download Shows 16-22

Listen To Pronk Pops Podcast or Download Shows 10-15

Listen To Pronk Pops Podcast or Download Shows 1-9

 

Advertisements
Read Full Post | Make a Comment ( None so far )

The Pronk Pops Show 805, Story 1: Trump Speech At Carrier — Saved 1,100 American Jobs — 1,300 Jobs Losted To Mexico — Winners and Losers — Videos — Story 2: Trump Thank You Tour Rally in Cincinnati, Ohio — Don’t Tell Anybody — Trump Selects Retired Marine James General Mattis As Secretary of Defense — Trump Making America Great Again! — Videos

Posted on December 2, 2016. Filed under: American History, Banking System, Benghazi, Blogroll, Breaking News, Budgetary Policy, Business, Communications, Computers, Congress, Constitutional Law, Countries, Defense Spending, Donald J. Trump, Donald J. Trump, Donald Trump, Donald Trump, Economics, Elections, Empires, Employment, Energy, Fast and Furious, Federal Government, Fiscal Policy, Foreign Policy, Free Trade, Government, Government Spending, History, House of Representatives, Human, Illegal Immigration, Illegal Immigration, Immigration, Independence, Iran Nuclear Weapons Deal, Labor Economics, Law, Legal Immigration, Life, Media, Medicare, Monetary Policy, News, Obama, Philosophy, Photos, Politics, Polls, President Trump, Progressives, Radio, Raymond Thomas Pronk, Regulation, Scandals, Security, Senate, Social Networking, Tax Policy, Taxation, Taxes, Technology, Trade Policy, Unemployment, United States Constitution, United States of America, Videos, Violence, Wealth, Welfare Spending, Wisdom | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

Project_1

The Pronk Pops Show Podcasts

Pronk Pops Show 805: December 1, 2016

Pronk Pops Show 804: November 30, 2016

Pronk Pops Show 803: November 29, 2016

Pronk Pops Show 802: November 28, 2016

Pronk Pops Show 801: November 22, 2016

Pronk Pops Show 800: November 21, 2016

Pronk Pops Show 799: November 18, 2016

Pronk Pops Show 798: November 17, 2016

Pronk Pops Show 797: November 16, 2016

Pronk Pops Show 796: November 15, 2016

Pronk Pops Show 795: November 14, 2016

Pronk Pops Show 794: November 10, 2016

Pronk Pops Show 793: November 9, 2016

Pronk Pops Show 792: November 8, 2016

Pronk Pops Show 791: November 7, 2016

Pronk Pops Show 790: November 4, 2016

Pronk Pops Show 789: November 3, 2016

Pronk Pops Show 788: November 2, 2016

Pronk Pops Show 787: October 31, 2016

Pronk Pops Show 786: October 28, 2016

Pronk Pops Show 785: October 27, 2016

Pronk Pops Show 784: October 26, 2016 

Pronk Pops Show 783: October 25, 2016

Pronk Pops Show 782: October 24, 2016

Pronk Pops Show 781: October 21, 2016

Pronk Pops Show 780: October 20, 2016

Pronk Pops Show 779: October 19, 2016

Pronk Pops Show 778: October 18, 2016

Pronk Pops Show 777: October 17, 2016

Pronk Pops Show 776: October 14, 2016

Pronk Pops Show 775: October 13, 2016

Pronk Pops Show 774: October 12, 2016

Pronk Pops Show 773: October 11, 2016

Pronk Pops Show 772: October 10, 2016

Pronk Pops Show 771: October 7, 2016

Pronk Pops Show 770: October 6, 2016

Pronk Pops Show 769: October 5, 2016 

Pronk Pops Show 768: October 3, 2016

Pronk Pops Show 767: September 30, 2016

Pronk Pops Show 766: September 29, 2016

Pronk Pops Show 765: September 28, 2016

Pronk Pops Show 764: September 27, 2016

Pronk Pops Show 763: September 26, 2016

Pronk Pops Show 762: September 23, 2016

Pronk Pops Show 761: September 22, 2016

Pronk Pops Show 760: September 21, 2016

Pronk Pops Show 759: September 20, 2016

Pronk Pops Show 758: September 19, 2016

Pronk Pops Show 757: September 16, 2016

Pronk Pops Show 756: September 15, 2016

Pronk Pops Show 755: September 14, 2016

Pronk Pops Show 754: September 13, 2016

Pronk Pops Show 753: September 12, 2016

Pronk Pops Show 752: September 9, 2016

Pronk Pops Show 751: September 8, 2016

Pronk Pops Show 750: September 7, 2016

Pronk Pops Show 749: September 2, 2016

Pronk Pops Show 748: September 1, 2016

Story 1: Trump Speech At Carrier — Videos — 

Image result for cartoons on donald j trump speech at carrierImage result for donald j trump speech at carrier\
Image result for cartoons on donald j trump speech at carrier

Image result for cartoon trump wall

Image result for cartoon trump wall

Image result for cartoons on donald j trump on stoping united technologies going to Mexico

Image result for cartoon trump wall

Image result for cartoon trump wall

Image result for cartoon trump wall

Image result for cartoons on donald j trump jobs

Image result for cartoon trump wall

Image result for cartoon trump wall

Image result for cartoon trump wall

Image result for cartoon trump wallImage result for cartoon trump wall

Image result for cartoons on donald j trump jobs

Image result for cartoon trump wall

Image result for cartoon trump wall

Trump Celebrates Saved Carrier Jobs While Nearby Plant Plans Mexico Move

MUST WATCH: First MAJOR Donald Trump Speech Since Winning Election – Carrier Victory Lap in Indiana

Trump begins to uphold his promises

Trump returns to his element, holds rally for supporters

Carrier employee thanks Trump, Pence for saving jobs

Big win for Donald Trump

Carrier reaches deal with Trump administration to keep nearly 1,000 jobs in Indianapolis

Carrier Employees Reaction To Trump Keeping Jobs Here

Trump on Carrier jobs 6pm

OBAMA’s RESPONSE (Must Watch) to Carrier JOBS Leaving for MEXICO – “They are not coming back”

10 Differences Between Trump And Obama

Story 2: Trump Thank You Tour Rally in Cincinnati, Ohio — Videos

Image result for donald j trump thank you speech in ohio

Image result for donald j trump thank you speech in ohio

Image result for donald j trump thank you speech in cincinnatii, ohio december 1 2016

Image result for cartoon trump wall

Image result for donald j trump thank you speech in ohio december 1 2016

Image result for general james mattisImage result for general james mattisImage result for general james mattisImage result for general james mattisImage result for general james mattisImage result for general james mattis

Image result for general james mattisImage result for general james mattisImage result for general james mattisImage result for general james mattisImage result for general james mattis

Full Speech: President-Elect Donald Trump “THANK YOU” Rally in Cincinnati, Ohio (12-1-2016)

Donald Trump Thank You Tour FULL SPEECH – Donald Trump’s Victory Tour Speech

Trump and Pence kick off nationwide ‘thank you’ tour

Will General Mattis make a good Secretary of Defense?

The Kelly File hosted by Megyn Kelly / Full Episode / Trump Victory Tour Ohio / December 1, 2016

Tucker Carlson Newt Gingrich Interview Before Trump Ohio Thank You Rally – 12/1/16

President-elect Donald Trump’s First Thank You Tour Full Speech | The New York Times

Leadership Lessons from Gen. James Mattis (Ret.)

General Jim (Mad Dog) Mattis on the Nature of War

Reflections with General James Mattis – Conversations with History

The Pronk Pops Show Podcasts Portfolio

Listen To Pronk Pops Podcast or Download Shows 800-805

Listen To Pronk Pops Podcast or Download Shows 793-799

Listen To Pronk Pops Podcast or Download Shows 785-792

Listen To Pronk Pops Podcast or Download Shows 777-784

Listen To Pronk Pops Podcast or Download Shows 769-776

Listen To Pronk Pops Podcast or Download Shows 759-768

Listen To Pronk Pops Podcast or Download Shows 751-758

Listen To Pronk Pops Podcast or Download Shows 745-750

Listen To Pronk Pops Podcast or Download Shows 738-744

Listen To Pronk Pops Podcast or Download Shows 732-737

Listen To Pronk Pops Podcast or Download Shows 727-731

Listen To Pronk Pops Podcast or Download Shows 720-726

Listen To Pronk Pops Podcast or DownloadShows 713-719

Listen To Pronk Pops Podcast or Download Shows 705-712

Listen To Pronk Pops Podcast or Download Shows 695-704

Listen To Pronk Pops Podcast or Download Shows 685-694

Listen To Pronk Pops Podcast or Download Shows 675-684

Listen To Pronk Pops Podcast or Download Shows 668-674

Listen To Pronk Pops Podcast or Download Shows 660-667

Listen To Pronk Pops Podcast or Download Shows 651-659

Listen To Pronk Pops Podcast or Download Shows 644-650

Listen To Pronk Pops Podcast or Download Shows 637-643

Listen To Pronk Pops Podcast or Download Shows 629-636

Listen To Pronk Pops Podcast or Download Shows 617-628

Listen To Pronk Pops Podcast or Download Shows 608-616

Listen To Pronk Pops Podcast or Download Shows 599-607

Listen To Pronk Pops Podcast or Download Shows 590-598

Listen To Pronk Pops Podcast or Download Shows 585- 589

Listen To Pronk Pops Podcast or Download Shows 575-584

Listen To Pronk Pops Podcast or Download Shows 565-574

Listen To Pronk Pops Podcast or Download Shows 556-564

Listen To Pronk Pops Podcast or Download Shows 546-555

Listen To Pronk Pops Podcast or Download Shows 538-545

Listen To Pronk Pops Podcast or Download Shows 532-537

Listen To Pronk Pops Podcast or Download Shows 526-531

Listen To Pronk Pops Podcast or Download Shows 519-525

Listen To Pronk Pops Podcast or Download Shows 510-518

Listen To Pronk Pops Podcast or Download Shows 500-509

Listen To Pronk Pops Podcast or Download Shows 490-499

Listen To Pronk Pops Podcast or Download Shows 480-489

Listen To Pronk Pops Podcast or Download Shows 473-479

Listen To Pronk Pops Podcast or Download Shows 464-472

Listen To Pronk Pops Podcast or Download Shows 455-463

Listen To Pronk Pops Podcast or Download Shows 447-454

Listen To Pronk Pops Podcast or Download Shows 439-446

Listen To Pronk Pops Podcast or Download Shows 431-438

Listen To Pronk Pops Podcast or Download Shows 422-430

Listen To Pronk Pops Podcast or Download Shows 414-421

Listen To Pronk Pops Podcast or Download Shows 408-413

Listen To Pronk Pops Podcast or Download Shows 400-407

Listen To Pronk Pops Podcast or Download Shows 391-399

Listen To Pronk Pops Podcast or Download Shows 383-390

Listen To Pronk Pops Podcast or Download Shows 376-382

Listen To Pronk Pops Podcast or Download Shows 369-375

Listen To Pronk Pops Podcast or Download Shows 360-368

Listen To Pronk Pops Podcast or Download Shows 354-359

Listen To Pronk Pops Podcast or Download Shows 346-353

Listen To Pronk Pops Podcast or Download Shows 338-345

Listen To Pronk Pops Podcast or Download Shows 328-337

Listen To Pronk Pops Podcast or Download Shows 319-327

Listen To Pronk Pops Podcast or Download Shows 307-318

Listen To Pronk Pops Podcast or Download Shows 296-306

Listen To Pronk Pops Podcast or Download Shows 287-295

Listen To Pronk Pops Podcast or Download Shows 277-286

Listen To Pronk Pops Podcast or Download Shows 264-276

Listen To Pronk Pops Podcast or Download Shows 250-263

Listen To Pronk Pops Podcast or Download Shows 236-249

Listen To Pronk Pops Podcast or Download Shows 222-235

Listen To Pronk Pops Podcast or Download Shows 211-221

Listen To Pronk Pops Podcast or Download Shows 202-210

Listen To Pronk Pops Podcast or Download Shows 194-201

Listen To Pronk Pops Podcast or Download Shows 184-193

Listen To Pronk Pops Podcast or Download Shows 174-183

Listen To Pronk Pops Podcast or Download Shows 165-173

Listen To Pronk Pops Podcast or Download Shows 158-164

Listen To Pronk Pops Podcast or Download Shows151-157

Listen To Pronk Pops Podcast or Download Shows 143-150

Listen To Pronk Pops Podcast or Download Shows 135-142

Listen To Pronk Pops Podcast or Download Shows 131-134

Listen To Pronk Pops Podcast or Download Shows 124-130

Listen To Pronk Pops Podcast or Download Shows 121-123

Listen To Pronk Pops Podcast or Download Shows 118-120

Listen To Pronk Pops Podcast or Download Shows 113 -117

Listen To Pronk Pops Podcast or Download Show 112

Listen To Pronk Pops Podcast or Download Shows 108-111

Listen To Pronk Pops Podcast or Download Shows 106-108

Listen To Pronk Pops Podcast or Download Shows 104-105

Listen To Pronk Pops Podcast or Download Shows 101-103

Listen To Pronk Pops Podcast or Download Shows 98-100

Listen To Pronk Pops Podcast or Download Shows 94-97

Listen To Pronk Pops Podcast or Download Show 93

Listen To Pronk Pops Podcast or Download Show 92

Listen To Pronk Pops Podcast or Download Show 91

Listen To Pronk Pops Podcast or Download Shows 88-90

Listen To Pronk Pops Podcast or Download Shows 84-87

Listen To Pronk Pops Podcast or Download Shows 79-83

Listen To Pronk Pops Podcast or Download Shows 74-78

Listen To Pronk Pops Podcast or Download Shows 71-73

Listen To Pronk Pops Podcast or Download Shows 68-70

Listen To Pronk Pops Podcast or Download Shows 65-67

Listen To Pronk Pops Podcast or Download Shows 62-64

Listen To Pronk Pops Podcast or Download Shows 58-61

Listen To Pronk Pops Podcast or Download Shows 55-57

Listen To Pronk Pops Podcast or Download Shows 52-54

Listen To Pronk Pops Podcast or Download Shows 49-51

Listen To Pronk Pops Podcast or Download Shows 45-48

Listen To Pronk Pops Podcast or Download Shows 41-44

Listen To Pronk Pops Podcast or Download Shows 38-40

Listen To Pronk Pops Podcast or Download Shows 34-37

Listen To Pronk Pops Podcast or Download Shows 30-33

Listen To Pronk Pops Podcast or Download Shows 27-29

Listen To Pronk Pops Podcast or Download Shows 17-26

Listen To Pronk Pops Podcast or Download Shows 16-22

Listen To Pronk Pops Podcast or Download Shows 10-15

Listen To Pronk Pops Podcast or Download Shows 1-9

Read Full Post | Make a Comment ( None so far )

The Pronk Pops Show 779, October 19, 2016, Story 1: Trump Wins With A Landslide Game Changer — Fire Up Our Economic Engine By Going To A FairTax and Rolling Back The 30-50 Million Illegal Alien Invasion of United States– The Videos — Story 2: Turning Out The Low Information Voters or The DOTS (Dummies On The Street) To Vote — Mission Impossible — The National Enquirer — Videos

Posted on October 19, 2016. Filed under: 2016 Presidential Campaign, 2016 Presidential Candidates, American History, Banking System, Benghazi, Breaking News, Budgetary Policy, College, Communications, Congress, Constitutional Law, Corruption, Countries, Defense Spending, Donald J. Trump, Donald J. Trump, Donald Trump, Donald Trump, Economics, Employment, Fast and Furious, Fiscal Policy, Foreign Policy, Fourth Amendment, Free Trade, Government, Government Spending, Health, Health Care, Health Care Insurance, Hillary Clinton, Hillary Clinton, Hillary Clinton, History, House of Representatives, Human, Human Behavior, Illegal Immigration, Illegal Immigration, Immigration, Impeachment, Independence, Insurance, Investments, Iran Nuclear Weapons Deal, IRS, Labor Economics, Language, Law, Legal Immigration, Life, Media, Medicare, Monetary Policy, News, Obama, Philosophy, Photos, Politics, Polls, Pro Life, Progressives, Radio, Raymond Thomas Pronk, Scandals, Second Amendment, Social Science, Social Security, Success, Taxation, Taxes, Terror, Terrorism, Unemployment, United States Constitution, United States Supreme Court, Videos, Violence, Wall Street Journal, War, Wealth, Weapons, Welfare Spending | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

Project_1

The Pronk Pops Show Podcasts

Pronk Pops Show 779: October 19, 2016

Pronk Pops Show 778: October 18, 2016

Pronk Pops Show 777: October 17, 2016

Pronk Pops Show 776: October 14, 2016

Pronk Pops Show 775: October 13, 2016

Pronk Pops Show 774: October 12, 2016

Pronk Pops Show 773: October 11, 2016

Pronk Pops Show 772: October 10, 2016

Pronk Pops Show 771: October 7, 2016

Pronk Pops Show 770: October 6, 2016

Pronk Pops Show 769: October 5, 2016 

Pronk Pops Show 768: October 3, 2016

Pronk Pops Show 767: September 30, 2016

Pronk Pops Show 766: September 29, 2016

Pronk Pops Show 765: September 28, 2016

Pronk Pops Show 764: September 27, 2016

Pronk Pops Show 763: September 26, 2016

Pronk Pops Show 762: September 23, 2016

Pronk Pops Show 761: September 22, 2016

Pronk Pops Show 760: September 21, 2016

Pronk Pops Show 759: September 20, 2016

Pronk Pops Show 758: September 19, 2016

Pronk Pops Show 757: September 16, 2016

Pronk Pops Show 756: September 15, 2016

Pronk Pops Show 755: September 14, 2016

Pronk Pops Show 754: September 13, 2016

Pronk Pops Show 753: September 12, 2016

Pronk Pops Show 752: September 9, 2016

Pronk Pops Show 751: September 8, 2016

Pronk Pops Show 750: September 7, 2016

Pronk Pops Show 749: September 2, 2016

Pronk Pops Show 748: September 1, 2016

Pronk Pops Show 747: August 31, 2016

Pronk Pops Show 746: August 30, 2016

Pronk Pops Show 745: August 29, 2016

Pronk Pops Show 744: August 26, 2016

Pronk Pops Show 743: August 25, 2016

Pronk Pops Show 742: August 24, 2016

Pronk Pops Show 741: August 23, 2016

Pronk Pops Show 740: August 22, 2016

Pronk Pops Show 739: August 18, 2016

Pronk Pops Show 738: August 17, 2016

Pronk Pops Show 737: August 16, 2016

Pronk Pops Show 736: August 15, 2016

Pronk Pops Show 735: August 12, 2016

Pronk Pops Show 734: August 11, 2016

Pronk Pops Show 733: August 9, 2016

Pronk Pops Show 732: August 8, 2016

Pronk Pops Show 731: August 4, 2016

Pronk Pops Show 730: August 3, 2016

Pronk Pops Show 729: August 1, 2016

Pronk Pops Show 728: July 29, 2016

Pronk Pops Show 727: July 28, 2016

Pronk Pops Show 726: July 27, 2016

Pronk Pops Show 725: July 26, 2016

Pronk Pops Show 724: July 25, 2016

Pronk Pops Show 723: July 22, 2016

Pronk Pops Show 722: July 21, 2016

Pronk Pops Show 721: July 20, 2016

Pronk Pops Show 720: July 19, 2016

Pronk Pops Show 719: July 18, 2016

Pronk Pops Show 718: July 15, 2016

Pronk Pops Show 717: July 14, 2016

Pronk Pops Show 716: July 13, 2016

Pronk Pops Show 715: July 12, 2016

Pronk Pops Show 714: July 7, 2016

Pronk Pops Show 713: July 6, 2016

Pronk Pops Show 712: July 5, 2016

Pronk Pops Show 711: July 1, 2016

Story 1: Trump Wins With A Landslide Game Changer — Fire Up Our Economic Engine By Going To A FairTax and Rolling Back The 30-50 Million Illegal Alien Invasion of United States– The Videos 

FairTax: Fire Up Our Economic Engine (Official HD)

Freedom from the IRS! – FairTax Explained in Detail

Pence on the Fair Tax

Eric Trump Doesn’t Know Where Mike Pence Comes From

Eric Trump Interview: Telling The Truth About Clinton Foundation

Judge Napolitano ~ Pence Defends Trump Taxes

Is America’s Tax System Fair?

What’s Killing the American Dream?

Private Sector vs. Public Sector

Rep. Woodall Testifies on the FairTax at Ways and Means Hearing

Rep. Woodall Discusses FairTax with Colleagues on House Floor

Introducing the FairTax in the 114th Congress

EAT THE RICH!

Do the Rich Pay Their Fair Share?

Dan Mitchell explains the fair tax

Flat Tax vs. National Sales Tax

Bill Gates: Don’t tax my income, tax my consumption

Bill Gates: A conversation on poverty and prosperity

The Rich Are Taxed Enough- Debate -Intelligence Squared U.S.

Rep. Woodall Discusses FairTax with Colleagues on House Floor

Rep. Woodall Discusses Nation’s Fiscal Issues on House Floor

FAIRtax-What is It? Replaces income tax and payroll tax with sales tax

Q&A on the FAIRTAX pt.1

Q&A on the FAIRTAX pt.2

FairTax Prebate Explained

The FairTax: It’s Time

John Stossel Inconvenient Taxes Part 1 of 5

John Stossel Inconvenient Taxes Part 2 of 5

John Stossel Inconvenient Taxes Part 3 of 5

John Stossel Inconvenient Taxes Part 4 of 5

John Stossel Inconvenient Taxes Part 5 of 5

Story 2: Turning Out The Low Information Voters or The DOTS (Dummies On The Street) To Vote — Mission Impossible — The National Enquirer Turnout the DOTS — Videos

Image result for Hillary clinton nation enquirer October 19, 2016 Hillary Hitman tells all

Image result for Hillary clinton nation enquirer

Image result for Hillary clinton nation enquirer

CLICKBAIT: How Media Has Ruined The 2016 Election | Louder With Crowder

Trump’s “Tools of Persuasion” according to Dilbert creator Scott Adams

Trump’s Tactics and Hillary’s Persuasion Game (Scott Adams Interview)

Donald Trump’s Debates: 5 Mental Tricks You Didn’t Notice

How to improve your daily decision making: Top 4 cognitive biases you should avoid

This low information voter lists the rational reasons to vote Trump

HILLARY WIKILEAKS: Top 10 You Must Know

Glenn Greenwald : WikiLeaks Emails Show Media’s ‘Serious Impropriety’

Wikileaks: Julian Assange Cut Off From Internet – America’s Newsroom

BREAKING: Russia Today Shut Down,

WikiLeaks Assange Believed Dead

Desperate Hillary Courts Low-Info Voters, Illegals (Limbaugh)

5/6/15 O’Reilly on low information voters

Young Hillary Voters Can’t Name An Accomplishment Of Hers

Hillary Clinton Supporters Actually Don’t Support Hillary

Hillary Supporters Endorse SHARIA LAW in AMERICA!

4 Reasons Not To Vote For Hillary Clinton

TRUMP: the COMING LANDSLIDE. ~Ancient Prophecy Documentary of Donald Trump / 2016

Original Obamaphone Lady: Obama Voter Says Vote for Obama because he gives a free Phone

BREAKING NEWS

Hillary Fixer Breaks Ranks: I Arranged Sex Trysts For Her — With Men & WOMEN

Stunning revelations of Clinton bag man!

hillary clinton lesbian sex claims scandals

Hillary Clinton is a secret sex freak who paid fixers to set up illicit romps with both men AND women!

That’s the blockbuster revelation from a former Clinton family operative who is sensationally breaking ranks with his one-time bosses to speak to The National ENQUIRER in a bombshell 9-page cover story — on newsstands Wednesday.

“I arranged a meeting for Hillary and a woman in an exclusive Beverly Hills hotel,” the man, who was hired by the Clintons, via a Hollywood executive, to cover up their scandals, told The ENQUIRER.

PHOTOS: Revenge! Donald Trump Fighting Back Against Hillary Clinton’s Smear Campaign

“She had come to the studio to see the filming of a movie in 1994.”

“While I was there, I helped her slip out of a back exit for a one-on-one session with the other woman. It was made to look casual, leaving quietly [rather] that being caught up in the melee … but really it was for something presumably more sordid.”

What’s more, it wasn’t just Hillary’s flings with women that the shadowy Mr. Fix It helped to orchestrate!

PHOTOS: Hillary’s Lies EXPOSED! Clinton’s Top 5 Debate Whoppers

Hillary’s former bagman finally confessed to The ENQUIRER just how he helped her to cover up her affair with married lover VinceFoster, too!

The shadowy figure — who provided PROOF of his employment for the Clintons — also revealed 12 fixes he covered up, including:

+ How Hillary secretly plotted to a counter-attack on Bill’s mistress Monica Lewinsky — via a document buried for two decades!

PHOTOS: Leaked Emails Detail Hillary Clinton’s Desperate Health Crisis Cover-Ups

+ What crooked reporters were on the take from the Clinton camp!

+ How he covered up Bill’s seedy romp with hookers!

+ Which A-list celebrity had a secret affair with Bill during his presidency!

PHOTOS: Crooked Hillary’s Lies EXPOSED! Clinton’s 13 Most Infamous Scandals — So Far

In the bombshell exposé, The ENQUIRER will reveal the fixer’s dossier of smoking gun proof, including 24-years of documents, notes, and journals.

He also tells his “Confessions of a Clinton bagman!” story — in his own words — for the very first time!

http://www.nationalenquirer.com/celebrity/hillary-clinton-lesbian-sex-claims-vince-foster-fixer/ 

The Pronk Pops Show Podcasts Portfolio

Listen To Pronk Pops Podcast or Download Shows 777-779

Listen To Pronk Pops Podcast or Download Shows 769-776

Listen To Pronk Pops Podcast or Download Shows 759-768

Listen To Pronk Pops Podcast or Download Shows 751-758

Listen To Pronk Pops Podcast or Download Shows 745-750

Listen To Pronk Pops Podcast or Download Shows 738-744

Listen To Pronk Pops Podcast or Download Shows 732-737

Listen To Pronk Pops Podcast or Download Shows 727-731

Listen To Pronk Pops Podcast or Download Shows 720-726

Listen To Pronk Pops Podcast or Download Shows 713-719

Listen To Pronk Pops Podcast or Download Shows 705-712

Listen To Pronk Pops Podcast or Download Shows 695-704

Listen To Pronk Pops Podcast or Download Shows 685-694

Listen To Pronk Pops Podcast or Download Shows 675-684

Listen To Pronk Pops Podcast or Download Shows 668-674

Listen To Pronk Pops Podcast or Download Shows 660-667

Listen To Pronk Pops Podcast or Download Shows 651-659

Listen To Pronk Pops Podcast or Download Shows 644-650

Listen To Pronk Pops Podcast or Download Shows 637-643

Listen To Pronk Pops Podcast or Download Shows 629-636

Listen To Pronk Pops Podcast or Download Shows 617-628

Listen To Pronk Pops Podcast or Download Shows 608-616

Listen To Pronk Pops Podcast or Download Shows 599-607

Listen To Pronk Pops Podcast or Download Shows 590-598

Listen To Pronk Pops Podcast or Download Shows 585- 589

Listen To Pronk Pops Podcast or Download Shows 575-584

Listen To Pronk Pops Podcast or Download Shows 565-574

Listen To Pronk Pops Podcast or Download Shows 556-564

Listen To Pronk Pops Podcast or Download Shows 546-555

Listen To Pronk Pops Podcast or Download Shows 538-545

Listen To Pronk Pops Podcast or Download Shows 532-537

Listen To Pronk Pops Podcast or Download Shows 526-531

Listen To Pronk Pops Podcast or Download Shows 519-525

Listen To Pronk Pops Podcast or Download Shows 510-518

Listen To Pronk Pops Podcast or Download Shows 500-509

Listen To Pronk Pops Podcast or Download Shows 490-499

Listen To Pronk Pops Podcast or Download Shows 480-489

Listen To Pronk Pops Podcast or Download Shows 473-479

Listen To Pronk Pops Podcast or Download Shows 464-472

Listen To Pronk Pops Podcast or Download Shows 455-463

Listen To Pronk Pops Podcast or Download Shows 447-454

Listen To Pronk Pops Podcast or Download Shows 439-446

Listen To Pronk Pops Podcast or Download Shows 431-438

Listen To Pronk Pops Podcast or Download Shows 422-430

Listen To Pronk Pops Podcast or Download Shows 414-421

Listen To Pronk Pops Podcast or Download Shows 408-413

Listen To Pronk Pops Podcast or Download Shows 400-407

Listen To Pronk Pops Podcast or Download Shows 391-399

Listen To Pronk Pops Podcast or Download Shows 383-390

Listen To Pronk Pops Podcast or Download Shows 376-382

Listen To Pronk Pops Podcast or Download Shows 369-375

Listen To Pronk Pops Podcast or Download Shows 360-368

Listen To Pronk Pops Podcast or Download Shows 354-359

Listen To Pronk Pops Podcast or Download Shows 346-353

Listen To Pronk Pops Podcast or Download Shows 338-345

Listen To Pronk Pops Podcast or Download Shows 328-337

Listen To Pronk Pops Podcast or Download Shows 319-327

Listen To Pronk Pops Podcast or Download Shows 307-318

Listen To Pronk Pops Podcast or Download Shows 296-306

Listen To Pronk Pops Podcast or Download Shows 287-295

Listen To Pronk Pops Podcast or Download Shows 277-286

Listen To Pronk Pops Podcast or Download Shows 264-276

Listen To Pronk Pops Podcast or Download Shows 250-263

Listen To Pronk Pops Podcast or Download Shows 236-249

Listen To Pronk Pops Podcast or Download Shows 222-235

Listen To Pronk Pops Podcast or Download Shows 211-221

Listen To Pronk Pops Podcast or Download Shows 202-210

Listen To Pronk Pops Podcast or Download Shows 194-201

Listen To Pronk Pops Podcast or Download Shows 184-193

Listen To Pronk Pops Podcast or Download Shows 174-183

Listen To Pronk Pops Podcast or Download Shows 165-173

Listen To Pronk Pops Podcast or Download Shows 158-164

Listen To Pronk Pops Podcast or Download Shows151-157

Listen To Pronk Pops Podcast or Download Shows 143-150

Listen To Pronk Pops Podcast or Download Shows 135-142

Listen To Pronk Pops Podcast or Download Shows 131-134

Listen To Pronk Pops Podcast or Download Shows 124-130

Listen To Pronk Pops Podcast or Download Shows 121-123

Listen To Pronk Pops Podcast or Download Shows 118-120

Listen To Pronk Pops Podcast or Download Shows 113 -117

Listen To Pronk Pops Podcast or Download Show 112

Listen To Pronk Pops Podcast or Download Shows 108-111

Listen To Pronk Pops Podcast or Download Shows 106-108

Listen To Pronk Pops Podcast or Download Shows 104-105

Listen To Pronk Pops Podcast or Download Shows 101-103

Listen To Pronk Pops Podcast or Download Shows 98-100

Listen To Pronk Pops Podcast or Download Shows 94-97

Listen To Pronk Pops Podcast or Download Show 93

Listen To Pronk Pops Podcast or Download Show 92

Listen To Pronk Pops Podcast or Download Show 91

Listen To Pronk Pops Podcast or Download Shows 88-90

Listen To Pronk Pops Podcast or Download Shows 84-87

Listen To Pronk Pops Podcast or Download Shows 79-83

Listen To Pronk Pops Podcast or Download Shows 74-78

Listen To Pronk Pops Podcast or Download Shows 71-73

Listen To Pronk Pops Podcast or Download Shows 68-70

Listen To Pronk Pops Podcast or Download Shows 65-67

Listen To Pronk Pops Podcast or Download Shows 62-64

Listen To Pronk Pops Podcast or Download Shows 58-61

Listen To Pronk Pops Podcast or Download Shows 55-57

Listen To Pronk Pops Podcast or Download Shows 52-54

Listen To Pronk Pops Podcast or Download Shows 49-51

Listen To Pronk Pops Podcast or Download Shows 45-48

Listen To Pronk Pops Podcast or Download Shows 41-44

Listen To Pronk Pops Podcast or Download Shows 38-40

Listen To Pronk Pops Podcast or Download Shows 34-37

Listen To Pronk Pops Podcast or Download Shows 30-33

Listen To Pronk Pops Podcast or Download Shows 27-29

Listen To Pronk Pops Podcast or Download Shows 17-26

Listen To Pronk Pops Podcast or Download Shows 16-22

Listen To Pronk Pops Podcast or Download Shows 10-15

Listen To Pronk Pops Podcast or Download Shows 1-9

Read Full Post | Make a Comment ( None so far )

The Pronk Pops Show 768, October 3, 2016, Story 1: The Solution To Trump’s Tax Returns and Making America Great Again — No More Income, Capital Gains, Estate and Gift and Payroll Taxes, No More Tax Returns, No More IRS Plus Monthly Check of $1,000 Tax Prebate For Every Adult American Citizen or $12,000 Per Year For Taxes On Essential Goods and Service — 20% Broad Based Consumption Tax — Fair Tax Less — Videos– Story 2: Wikileaks October Surprise On Hillary Clinton Emails Coming Soon? — Videos

Posted on October 3, 2016. Filed under: 2016 Presidential Campaign, 2016 Presidential Candidates, American History, Banking System, Blogroll, Breaking News, Budgetary Policy, Communications, Congress, Countries, Culture, Donald J. Trump, Donald J. Trump, Donald Trump, Donald Trump, Economics, Elections, Employment, Federal Government, Fiscal Policy, Foreign Policy, Government, Hillary Clinton, Hillary Clinton, History, House of Representatives, Investments, Law, Monetary Policy, News, Philosophy, Photos, Politics, Polls, Progressives, Raymond Thomas Pronk, Regulation, Scandals, Senate, Success, Tax Policy, Taxation, Taxes, Trade Policy, United States of America, Videos, Violence, War, Wealth, Wisdom | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

Project_1

The Pronk Pops Show Podcasts

Pronk Pops Show 768: October 3, 2016

Pronk Pops Show 767: September 30, 2016

Pronk Pops Show 766: September 29, 2016

Pronk Pops Show 765: September 28, 2016

Pronk Pops Show 764: September 27, 2016

Pronk Pops Show 763: September 26, 2016

Pronk Pops Show 762: September 23, 2016

Pronk Pops Show 761: September 22, 2016

Pronk Pops Show 760: September 21, 2016

Pronk Pops Show 759: September 20, 2016

Pronk Pops Show 758: September 19, 2016

Pronk Pops Show 757: September 16, 2016

Pronk Pops Show 756: September 15, 2016

Pronk Pops Show 755: September 14, 2016

Pronk Pops Show 754: September 13, 2016

Pronk Pops Show 753: September 12, 2016

Pronk Pops Show 752: September 9, 2016

Pronk Pops Show 751: September 8, 2016

Pronk Pops Show 750: September 7, 2016

Pronk Pops Show 749: September 2, 2016

Pronk Pops Show 748: September 1, 2016

Pronk Pops Show 747: August 31, 2016

Pronk Pops Show 746: August 30, 2016

Pronk Pops Show 745: August 29, 2016

Pronk Pops Show 744: August 26, 2016

Pronk Pops Show 743: August 25, 2016

Pronk Pops Show 742: August 24, 2016

Pronk Pops Show 741: August 23, 2016

Pronk Pops Show 740: August 22, 2016

Pronk Pops Show 739: August 18, 2016

Pronk Pops Show 738: August 17, 2016

Pronk Pops Show 737: August 16, 2016

Pronk Pops Show 736: August 15, 2016

Pronk Pops Show 735: August 12, 2016

Pronk Pops Show 734: August 11, 2016

Pronk Pops Show 733: August 9, 2016

Pronk Pops Show 732: August 8, 2016

Pronk Pops Show 731: August 4, 2016

Pronk Pops Show 730: August 3, 2016

Pronk Pops Show 729: August 1, 2016

Pronk Pops Show 728: July 29, 2016

Pronk Pops Show 727: July 28, 2016

Pronk Pops Show 726: July 27, 2016

Pronk Pops Show 725: July 26, 2016

Pronk Pops Show 724: July 25, 2016

Pronk Pops Show 723: July 22, 2016

Pronk Pops Show 722: July 21, 2016

Pronk Pops Show 721: July 20, 2016

Pronk Pops Show 720: July 19, 2016

Pronk Pops Show 719: July 18, 2016

Pronk Pops Show 718: July 15, 2016

Pronk Pops Show 717: July 14, 2016

Pronk Pops Show 716: July 13, 2016

Pronk Pops Show 715: July 12, 2016

Pronk Pops Show 714: July 7, 2016

Pronk Pops Show 713: July 6, 2016

Pronk Pops Show 712: July 5, 2016

Pronk Pops Show 711: July 1, 2016

Story 1:  The Solution To Trump’s Tax Returns and Making America Great Again — No More Income, Capital Gains, Estate and Gift and Payroll Taxes, No More Tax Returns, No More IRS Plus Monthly Check of $1,000 Tax Prebate  For Every Adult American Citizen or $12,000 Per Year For Taxes On Essential Goods and Service — 20% Broad Based Consumption Tax — Fair Tax Less — Videos

Will tax returns help Trumps campaign

Giuliani: Trump is a genius for not paying taxes

New York Times Publishes Donald Trump’s Tax Records | True News

New York Times reports on leaked 1995 Trump tax returns

Did NY Times break the law publishing Trump’s tax return?

Trump: If Clinton releases emails, I’ll release taxes

Can You Trust The Press?

Is America’s Tax System Fair?

What’s Killing the American Dream?

Private Sector vs. Public Sector

FairTax: Fire Up Our Economic Engine (Official HD)

Freedom from the IRS! – FairTax Explained in Detail

Rep. Woodall Testifies on the FairTax at Ways and Means Hearing

Rep. Woodall Discusses FairTax with Colleagues on House Floor

Introducing the FairTax in the 114th Congress

Pence on the Fair Tax

EAT THE RICH!

Do the Rich Pay Their Fair Share?

Dan Mitchell explains the fair tax

Flat Tax vs. National Sales Tax

Bill Gates: Don’t tax my income, tax my consumption

Bill Gates: A conversation on poverty and prosperity

The Rich Are Taxed Enough- Debate -Intelligence Squared U.S.

Rep. Woodall Discusses FairTax with Colleagues on House Floor

Rep. Woodall Discusses Nation’s Fiscal Issues on House Floor

FAIRtax-What is It? Replaces income tax and payroll tax with sales tax

Q&A on the FAIRTAX pt.1

Q&A on the FAIRTAX pt.2

FairTax Prebate Explained

The FairTax: It’s Time

Freedom from the IRS! – FairTax Explained in Detail

John Stossel Inconvenient Taxes Part 1 of 5

John Stossel Inconvenient Taxes Part 2 of 5

John Stossel Inconvenient Taxes Part 3 of 5

John Stossel Inconvenient Taxes Part 4 of 5

John Stossel Inconvenient Taxes Part 5 of 5

Net Operating Loss (NOL): What Is It & How Do I Write It Off

Net operating losses (NOL) carryback, carryforward CH 19 p 7 –

Net Operating Loss Carryback & Carryforward (Tax Refund, Tax Benefit Due, Deferred Tax Asset)

Net Operating Loss – NOL

What is a ‘Net Operating Loss – NOL’

A net operating loss (NOL) is a loss taken in a period where a company’s allowable tax deductions are greater than its taxable income. When more expenses than revenues are incurred during the period, the net operating loss for the company can generally be used to recover past tax payments. The reasoning behind this is that corporations deserve some form of tax relief when they lose money, so they may apply the net operating loss to future income tax payments, reducing the need to make payments in future periods.

BREAKING DOWN ‘Net Operating Loss – NOL’

An NOL makes a company unprofitable for tax purposes. For example, Company A has taxable income of $500,000, tax deductions of $700,000 and a corporate tax rate of 30%. Its NOL is $500,000 – $700,000 = -$200,000. Because Company A does not have taxable income, it does not pay taxes that year. Otherwise it would have paid $250,000 x 30% = $75,000 in taxes. Because the company had an NOL the previous year, it may put the NOL toward the current year’s tax bill or apply it against taxable income in previous years.

Rules for Applying an NOL

A business may carry the taxable amount back to the two previous years and apply it against taxable income for a refund. For example, an NOL occurring in 2015 may be used for lowering tax payments in 2013 or 2014. Because the time value of money shows that tax savings at that time is more valuable than in the future, this is the more beneficial choice. However, if the business did not pay taxes in prior years, or the owner’s income is expected to substantially increase in the future and raise the company’s tax rate, the business may also carryforward the amount over the next 20 years, reducing the amount of taxable income during that time.

If a business creates NOLs in more than one year, they are to be drawn down completely in the order they are created before drawing down another NOL. Because any remaining NOL is canceled after 20 years, this reduces the risk of the NOL not being used.

Section 382 Limitation

An NOL may be considered a valuable asset because it can lower a company’s amount of taxable income. For this reason, the Internal Revenue Service (IRS) has a restriction on using an acquired company simply for its NOL’s tax benefits. Section 382 of the Internal Revenue Code states that if a company with a NOL has at least a 50% ownership change, the acquiring company may use only that part of the NOL in each concurrent year that is based on the long-term tax-exempt bond rate multiplied by the stock of the acquired company. However, purchasing a business with a substantial NOL may mean an increased amount of money going to the acquired company’s shareholders than if the business possessed a smaller NOL.

Net Operating Loss – NOL Definition | Investopedia http://www.investopedia.com/terms/n/netoperatingloss.asp#ixzz4M3n0HHtr

 

Some Corporations Pay Zero Federal Taxes – and There’s No Problem With That

This morning, the Government Accountability Office (GAO) published a report on corporate income taxes, which found that 19.5 percent of “profitable large corporations” paid zero corporate income taxes in 2012.

Senator Bernie Sanders, whose campaign has been circulating the report, had this to say:

“There is something profoundly wrong in America when one out of five profitable corporations pay nothing in federal income taxes… We need real tax reform to ensure that the most profitable corporations in America pay their fair share in taxes. That means closing corporate tax loopholes to raise the revenue necessary to rebuild America and create millions of jobs.”

Should you be as outraged as Senator Sanders about the number of U.S. corporations that pay no corporate income tax?

In fact, there is good reason to think that many of the corporations that the GAO identifies as “profitable” did not actually earn a profit. In such cases, it would have been a mistake to collect corporate income taxes from these companies.

Defining Profitable Corporations

To understand why some unprofitable corporations might have been considered profitable by the recent GAO report, we need to distinguish between three concepts: book income, taxable income, and economic profit.

  • Book income refers to the income that a corporation reports on its publicly filed financial statement. Corporations generally seek to report book incomes that are as high as possible, in order to appear as profitable as possible to their shareholders.
  • Taxable income refers to the amount of income that a corporation reports on its tax return. Much of the U.S. tax code is devoted to defining corporate taxable income, which often differs somewhat from book income. Corporations with more than $10 million in assets are required to file Schedule M-3 to reconcile their book income with their taxable income.
  • Economic profit refers to a company’s revenues minus its expenditures. There are a few important differences between book income and economic profit, as described below.

The recent GAO report defines “profitable large corporations” as “those that did not report net losses in their financial statements.” In other words, the GAO’s 19.5 percent statistic applies to corporations with positive book income in 2012.

However, there are many clear-cut cases in which a corporation with positive book income should not owe federal corporate income taxes:

1. Corporations with Carried-Forward Net Operating Losses

Especially over the last decade, many U.S. corporations have experienced volatile earnings, with large gains in some years and large losses in other years. The U.S. tax code allows companies with losses in one tax year to deduct those losses from their profits in future tax years.

To see why this is important, imagine a company that had $3 million in losses in 2014 and made $1 million in profits in 2015. Over the two-year period, the corporation experienced a net loss, and should not be required to pay corporate income taxes on its income over that period.

The deduction for carried-forward losses allows the corporation to reduce its tax liability in 2015 to zero, to reflect that it still recovering from past losses. But if the company were not able to carry its losses forward, it would owe a positive tax liability in 2015, even though it made a net loss over the two year period.

2014 2015 2014-2015
Net profit/loss -$3 million +$1 million -$2 million
Tax liability zero zero zero
Tax liability if the corporation is not allowed to carry losses forward zero positive positive

In all likelihood, some of the “profitable” corporations in the GAO report that paid zero corporate income taxes in 2012 were carrying forward losses from past years. These corporations might have had positive book incomes in 2012, but might have had no taxable income, due to carried-forward losses from the Great Recession.

The deduction for carried-forward losses is an important provision in the U.S. tax code, which prevents corporations with long-term net losses from being taxed. If some corporations in 2012 paid zero corporate income taxes because they were carrying forward past losses, this should be seen as a normal feature of the U.S. tax code, not a cause for concern.

2. Corporations with Foreign Profits and Domestic Losses

Many large U.S. corporations conduct business in multiple countries. It is likely that some of the corporations that were categorized as “profitable” by the GAO in 2012 did not actually earn positive profits in the United States.

As an example, we can imagine a U.S. multi-national corporation that brought back $2 million in 2012 from its overseas business but lost $1 million on its domestic business. Such a business would be categorized as profitable by the recent GAO report, because its total book income (foreign and domestic) adds up to $1 million.

Foreign income Domestic income Total (book) income
+$2 million -$1 million $1 million

However, there are good reasons why such a corporation would still face zero corporate tax under the U.S. law. The U.S. tax code offers corporations tax credits for the taxes they pay to foreign governments on their foreign income. The corporation in this example would probably be able to reduce its tax liability to zero by claiming a credit for the foreign taxes paid on its $2 million of overseas business income.

Foreign tax credits are a feature, not a bug, of the U.S. tax system. There are several good arguments for why U.S. corporations should not face U.S. corporate taxes on income earned abroad. Foreign tax credits help mitigate the double tax that arises when both a foreign government and the U.S. government try to tax the same foreign income.

To the extent that some of the “profitable” corporations in the GAO report earned only foreign profits, rather than domestic profits, it is entirely reasonable that these corporations should not be subject to any U.S. corporate tax burden.

3. Corporations with Large Capital Investments

The most important difference between book income, taxable income, and economic profit has to do with the treatment of investment costs. Under typical U.S. accounting standards, when a corporation makes a capital investment, it is only able to treat a small fraction of that investment as a current-year expense. However, the U.S. tax code allows corporations to treat a much larger fraction of the investment as a current year expense. Meanwhile, when calculating a corporation’s economic profit, it is appropriate to treat the entire cost of an investment as a current year expense.

As a result of these different calculation rules, a corporation with significant book income could have a much lower taxable income and an even lower economic profit. For example, we can imagine a corporation with $1 million in operating profits and $2 million in investment costs. Depending on how much of the investment the corporation treats as a current-year expense, the corporation could be making a large profit, no profit, or negative profit (see the example below).

Measuring the income of a corporation with $1 million in operating profit and $2 million in investments
Book income Taxable income Economic profit
+$800,000 $0 -$1,000,000
Note: the calculation for book income assumes that the corporation depreciates 10% of its investment. The calculation for taxable income assumes that the corporation depreciates 50% of its investment. The calculation for economic profit treats the full cost of the investment as an expense.

This blog post is not the place to argue how corporations should treat their capital investments for tax purposes (although the Tax Foundation has pretty strong opinionsabout this). The important point is that some U.S. corporations with positive book income might have negative taxable income: not because of any tricks or loopholes, but simply because the tax code operates under different accounting rules.

It is likely that many of the “profitable” corporations that owed zero corporate tax in 2012 were corporations with significant capital investments, who had positive book income under one accounting method but zero or negative taxable income under another accounting method. These corporations are not evading taxes or taking advantage of loopholes; they’re simply less profitable according to the tax code’s definitions than they are according to the GAO’s.

In conclusion, there are real, legitimate reasons why a “profitable” corporation would not and should not be required to pay corporate income taxes in a given year. Politicians should avoid jumping to the conclusion that there is something “profoundly wrong” when a large minority of corporations do not pay corporate income taxes.

http://taxfoundation.org/blog/some-corporations-pay-zero-federal-taxes-and-there-s-no-problem

 

Story 2: Wikileaks October Surprise On Hillary Clinton Emails Coming Soon? — Videos

WikiLeaks ‘October surprise’

FULL: Wikileaks Press Conference (10-4-2016) | Assange Trolls Trump World

Julian Assange A Sell Out? | No Hillary Clinton October Surprise By Wikileaks |

Alex Jones Goes Off On Julian Assange

Internet Enraged By Assange / Wikileaks Standown / Trolling of Public

Roger Stone: “Wednesday Hillary Clinton is done” Wikileaks release

HILLARY CLINTON WANTED TO DRONE WIKILEAKS!!!

AFRAID: Hillary Clinton Wikileaks Reveal, Due Tuesday, CANCELLED

Judicial Watch Panel: Clinton Scandal Update – Emails and the Clinton Foundation

Can Assange turn it around for Trump? Wikileaks boss WILL release ‘damaging information’ about Hillary tomorrow after initially cancelling ‘October Surprise’ speech from embassy balcony

  • Julian Assange had originally planned to address the world from the balcony of the Ecuadorian embassy in London on Monday
  • He was due to speak at the tenth anniversary of the founding of WikiLeaks 
  • Assange will instead speak video link to an event in Berlin on Tuesday
  • The organisation earlier released information hacked from the Democrats 
  • It came as a new report claimed Clinton had proposed a drone strike to take out Assange in 2010 

WikiLeaks founder Julian Assange cancelled a planned appearance to mark the 10th anniversary of his organization from the balcony of the Ecuadorian embassy in London over security fears on Monday.

He had been planning to give a speech – amid claims he was about to release damaging information about Clinton which some claimed could be an ‘October Surprise’ which would swing the presidential election.

However, Assange, who is wanted by Swedish authorities for questioning in connection with an alleged rape, will make an announcement via video link to an event in Berlin on Tuesday morning.

In a tweet on Monday afternoon, WikiLeaks said Assange’s speech in London was moved to Berlin due to ‘specific information’ but did not elaborate further.

Scroll down for video 

Wikileaks founder Julian Assange, pictured here in February on the balcony of the Ecuadorian embassy in London, had been planning to address a press conference later this week

Wikileaks founder Julian Assange, pictured here in February on the balcony of the Ecuadorian embassy in London, had been planning to address a press conference later this week

In a tweet on Monday afternoon, WikiLeaks said Assange's speech in London was moved to Berlin due to 'specific information' but did not elaborate further

In a tweet on Monday afternoon, WikiLeaks said Assange’s speech in London was moved to Berlin due to ‘specific information’ but did not elaborate further

Donald Trump’s former right-hand man Roger Stone claimed the new WikiLeaks revelations would destroy Clinton’s campaign.

In August this year, Assange told Fox News that he was holding information on Clinton which yielded ‘some quite unexpected angles, that are quite interesting, some even entertaining’.

He said he would release the information before the November 8 election.

Assange claimed the information could alter the election result, adding: ‘I think it’s significant. It depends on how it catches fire in the public and in the media.’

Meanwhile, a new report claims that Clinton once proposed a military drone strike to take out Assange in a bid to silence WikiLeaks.

Clinton discussed the possible assassination while she was Secretary of State in a meeting with her staff in 2010 about how to prevent a WikiLeaks document dump dubbed ‘CableGate,’ TruePundit reports.

Donald Trump supporters believe Wikileaks will release highly damaging information later this week on Hillary Clinton's presidential campaign in a so-called October Surprise event 

Donald Trump supporters believe Wikileaks will release highly damaging information later this week on Hillary Clinton’s presidential campaign in a so-called October Surprise event

Conservative political commentator Roger Stone believes Clinton's campaign will collapse

Conservative political commentator Roger Stone believes Clinton’s campaign will collapse

At the time, Assange had been declaring his intention to release 250,000 secret cables – revealing a huge amount of damning communications between State Department officials and its foreign allies between 1966 and 2010.

‘Can’t we just drone this guy?’ Clinton asked during the meeting on November 23, 2010, the website reports citing State Department sources.

The sources said that her controversial query drew laughter in the room, but that it quickly died down when Clinton continued to speak in a ‘terse’ manner.

She allegedly called Assange a soft target as he was walking around freely at the time and not fearful of any reprisals.

Clinton and the Obama administration feared the content of the cables would damage US intelligence gathering operations as well as compromise private communication and intelligence shared with foreign governments.

In 2010, Assange had already released records that divulged secret US documents about the war in Afghanistan in July and about the war in Iraq in October.

A new report claims that Clinton once proposed a military drone strike to take out Assange in a bid to silence WikiLeaks. Above, one of Clinton's aides sent an email with the subject line ‘an SP memo on possible legal and nonlegal strategies re Wikileaks’

A new report claims that Clinton once proposed a military drone strike to take out Assange in a bid to silence WikiLeaks. Above, one of Clinton’s aides sent an email with the subject line ‘an SP memo on possible legal and nonlegal strategies re Wikileaks’

After Clinton allegedly proposed a drone strike, another solution was reportedly brought up to solve the WikiLeaks problem: place a bounty for Assange’s capture and extradition to the United States.

Figures discussed were in the area of $10million, according to TruePundit.

And following that meeting, one of Clinton’s top aides – Anne-Marie Slaughter, the State Department’s director of policy planning – wrote an email to Clinton, Clinton’s aides Huma Abedin and Jacob Sullivan as well as Chief of Staff Cheryl Mills with the subject line ‘an SP memo on possible legal and nonlegal strategies re Wikileaks.’

Assange will make an announcement via video link to an event in Berlin on Tuesday morning 

Assange will make an announcement via video link to an event in Berlin on Tuesday morning

This year, WikiLeaks has already released information stolen by unknown hackers from the Democratic leadership in advance of the party’s convention.

The 20,000 leaked emails showed how party officials had tried to undermine Clinton’s rival Bernie Sanders.

The release of the emails forced the resignation of Debbie Wasserman Schultz, chair of the Democratic National Committee.

Assange said: ‘In the case of the DNC leaks for example, we pushed as fast as we could to try and get it in before the Democratic Nomination Conference, because obviously people had a right to understand who it is that they’re nominating.

‘The same is true here for the US electoral process.’

Tuesday’s anniversary party in Berlin will commemorate the 2006 registration of the domain name wikileaks.org.

WikiLeaks launched in January 2007, with Assange saying it would use encryption and a censorship-proof website to protect sources and publicise secret information.

The site has since published more than 10million leaked documents.

It first caught the world’s attention when it released manuals for prison guards at Guantanamo Bay.

But it really hit its stride in 2010, unveiling logs of US military operations in Iraq and Afghanistan and a video showing a US helicopter crew mowing down a group of unarmed civilians – including two journalists – in Baghdad.

That same year, it also published a cache of diplomatic cables from US embassies around the world, deeply embarrassing Washington.

In an interview with Der Spiegel over the weekend, Assange said: ‘The most important single collection of material we have published is the US diplomatic cable series.’

But 2010 also saw grave blows to the organization.

Assange was accused of having sex with a woman while she was asleep after the two met at a Stockholm conference.

The white-haired WikiLeaks founder took refuge in the Embassy of Ecuador, London – which granted him political asylum in 2012 after he lost a legal battle to block his extradition to Sweden.

The 45-year-old has always maintained the allegations are false and has refused to travel to Stockholm for questioning due to concerns that Sweden will hand him over to the US to stand trial for espionage.

WikiLeaks has been accused of allowing foreign powers to influence November’s presidential election by publishing information which may have been gathered by Russian hackers.

He said: ‘We’re not going to start censoring our publications because there is a US election. Our role is to publish. We believe in what we’re doing. The attacks only make us stronger.’

http://www.dailymail.co.uk/news/article-3819237/Is-October-Surprise-cancelled-WikiLeaks-scraps-event-Julian-Assange-release-damaging-information-Hillary-Clinton.html#ixzz4M5IdtsZN
k

 

Julian Assange

From Wikipedia, the free encyclopedia
Julian Assange
Julian Assange August 2014.jpg

Assange in the Ecuadorian Embassy, London (August 2014)
Born 3 July 1971 (age 45)
Townsville, Queensland, Australia
Residence Embassy of Ecuador, London, England, United Kingdom
Nationality Australian
Alma mater
Occupation Editor-in-chief of WikiLeaks
Home town Melbourne, Victoria, Australia

Julian Paul Assange (/əˈsɒnʒ/;[1] born 3 July 1971) is an Australian computer programmer, publisher and journalist. He is editor-in-chief of the organisation WikiLeaks, which he founded in 2006.

Since November 2010, Assange has been subject to extradition to Sweden, where he is wanted for questioning concerning an allegation of rape. Assange denies the allegation and has expressed concern that he will be extradited from Sweden to the United States due to his perceived role in publishing secret American documents.[2][3]

After exhausting his legal options in the United Kingdom, Assange failed to surrender for extradition. Instead, he sought and was granted asylum by Ecuador in August 2012. Assange has since remained in the Embassy of Ecuador in London, and he is unable to leave without being arrested for breaching his bail conditions.[4] The United Nations’ Working Group on Arbitrary Detention found, by a majority, that he has been “arbitrarily detained” and that his detention should be brought to an end;[5] UK Foreign Secretary Philip Hammond said the claim was “ridiculous” and that the group was “made up of lay people”, and called Assange a fugitive from justice.[6]

Early life

Assange was born in the north Queensland city of Townsville,[7][8] to Christine Ann Hawkins (b. 1951),[9] a visual artist,[10] and John Shipton, an anti-war activist and builder.[11] The couple had separated before Assange was born.[11]

When he was a year old, his mother married Richard Brett Assange,[12][13][14] an actor, with whom she ran a small theatre company.[15] They divorced around 1979, and Christine Assange then became involved with Leif Meynell, also known as Leif Hamilton, a member of the Australian New Age group the Family, with whom she had a son before the couple broke up in 1982.[7][16][17] Assange had a nomadic childhood, and had lived in over thirty[18][19]different Australian towns by the time he reached his mid-teens, when he settled with his mother and half-brother in Melbourne, Victoria.[12][20]

He attended many schools, including Goolmangar Primary School in New South Wales (1979–1983)[15] and Townsville State High School,[21] as well as being schooled at home.[13] He studied programming, mathematics, and physics at Central Queensland University (1994)[22] and the University of Melbourne (2003–2006),[12][23] but did not complete a degree.[24]

Hacking

In 1987 Assange began hacking under the name Mendax.[13][25] He and two others—known as “Trax” and “Prime Suspect”—formed a hacking group they called the International Subversives.[13] During this time he hacked into the Pentagon and other US Department of Defense facilities, MILNET, the US Navy, NASA, and Australia’s Overseas Telecommunications Commission; Citibank, Lockheed Martin, Motorola, Panasonic, and Xerox; and theAustralian National University, La Trobe University, and Stanford University’sSRI International.[26] He is thought to have been involved in the WANK (Worms Against Nuclear Killers) hack at NASA in 1989, but he does not acknowledge this.[27][28]

In September 1991, Assange was discovered hacking into the Melbourne master terminal of Nortel, a Canadian multinationaltelecommunications corporation.[13] The Australian Federal Police tapped Assange’s phone line (he was using a modem), raided his home at the end of October,[29] and eventually charged him in 1994 with 31 counts of hacking and related crimes.[13] In December 1996, he pleaded guilty to 25 charges (the other six were dropped), was ordered to pay reparations of A$2,100 and released on a good behaviour bond,[27][30] avoiding a heavier penalty due to the perceived absence of malicious or mercenary intent and his disrupted childhood.[31][32][33][34] After the trial, Assange lived in Melbourne, where he survived on single-parent income support.[30]

Programming

In 1993 Assange gave technical advice to the Victoria Police Child Exploitation Unit and assisted with prosecutions.[35] In the same year he was involved in starting one of the first public Internet service providers in Australia, Suburbia Public Access Network.[12][36] He began programming in 1994, authoring or co-authoring the Transmission Control Protocol port scanner strobe.c (1995);[37][38] patches to the open-source database PostgreSQL(1996);[39][40] the Usenet caching software NNTPCache (1996);[41] the Rubberhosedeniable encryption system (1997),[42][43] which reflected his growing interest in cryptography;[44] and Surfraw, a command-line interface for web-based search engines (2000).[45] During this period he also moderated the AUCRYPTO forum;[44] ran Best of Security, a website “giving advice on computer security” that had 5,000 subscribers in 1996;[46] and contributed research to Suelette Dreyfus’sUnderground (1997), a book about Australian hackers, including the International Subversives.[25][47] In 1998, he co-founded the company Earthmen Technology.[33]

In 1999 Assange registered the domain leaks.org, but, as he put it, “I didn’t do anything with it.”[33][unreliable source?] He did, however, publicise a patent granted to the National Security Agency in August 1999 for voice-data harvesting technology: “This patent should worry people. Everyone’s overseas phone calls are or may soon be tapped, transcribed and archived in the bowels of an unaccountable foreign spy agency.”[44] Systematic abuse of technology by governments against fundamental freedoms of world citizens remained an abiding concern — more than a decade later in the introduction to Cypherpunks (2012) Assange summarized “the Internet, our greatest tool for emancipation, has been transformed into the most dangerous facilitator of totalitarianism we have ever seen”.[48]

WikiLeaks

Main article: WikiLeaks

Assange, c. 2006

After his period of study at the University of Melbourne, Assange and others established WikiLeaks in 2006. Assange is a member of the organisation’s advisory board[49] and describes himself as the editor-in-chief.[50] From 2007 to 2010, Assange travelled continuously on WikiLeaks business, visiting Africa, Asia, Europe and North America.[13][19][51][52][53]

WikiLeaks published secret information, news leaks,[54] and classified media from anonymous sources.[55] By 2015 WikiLeaks had published more than 10 million documents and associated analyses, and was described by Assange himself as “a giant library of the world’s most persecuted documents”.[56] The published material between 2006 and 2009 attracted various degrees of publicity,[57] but it was only after it began publishing documents supplied by Chelsea Manning that Wikileaks became a household name.[58] The Manning material included the Collateral Murder video (April 2010)[59] which showed US soldiers shooting dead 18 people from a helicopter in Iraq, [60] the Afghanistan war logs (July 2010), the Iraq war logs(October 2010), a quarter of a million diplomatic cables (November 2010), and the Guantánamo files (April 2011).

 

Opinions of Assange at this time were divided. Australian Prime Minister Julia Gillard described his activities as “illegal,”[61] but the police said that he had broken no Australian law.[62] US Vice President Joe Biden and others called him a “terrorist.”[63][64][65][66][67] Some called for his assassination or execution.[68][69][70][71] Support came from people including the Brazilian President Luiz Inacio Lula da Silva,[72][73] Ecuadorian President Rafael Correa,[74] Russian President Dmitry Medvedev,[75][76] Britain’s Labour Party leader Jeremy Corbyn,[77] Spain’sPodemos party leader Pablo Iglesias,[78] UN High Commissioner for Human Rights Navi Pillay,[79] Argentina‘s ambassador to the UK Alicia Castro,[80] and activists and celebrities including Tariq Ali,[81] John Perry Barlow,[82]Daniel Ellsberg,[83][84] Mary Kostakidis,[85] John Pilger,[86][87] Ai Weiwei,[88] Michael Moore,[89] Noam Chomsky,[88] Vaughan Smith,[90][91] and Oliver Stone.[92]

The year 2010 culminated with the Sam Adams Award, which Assange accepted in October,[93] and a string of distinctions in December—the Le Monde readers’ choice award for person of the year,[94][95] the Time readers’ choice award for person of the year (he was also a runner-up in Time’s overall person of the year award),[96][97] a deal for his autobiography worth at least US$1.3 million,[98][99][100] and selection by the Italian edition of Rolling Stone as “rockstar of the year.”[101][102]

Assange announced that he would run for the Australian Senate in March 2012 under the newly created WikiLeaks Party,[103][104] had his own talk show on Russia Today in April–July and Cypherpunks[48] was published in November. In the same year, he analysed the Kissinger cables held at the US National Archives and released them in searchable form.[105][106] On 15 September 2014, he appeared via remote video link on Kim Dotcom‘sMoment of Truth town hall meeting held in Auckland.[107]

The following February he won the Sydney Peace Foundation Gold Medal for Peace with Justice, previously awarded to only three people—Nelson Mandela, the Dalai Lama, and Buddhist spiritual leader Daisaku Ikeda.[108] Two weeks later he filed for the trademark “Julian Assange” in Europe, which was to be used for “Public speaking services; news reporter services; journalism; publication of texts other than publicity texts; education services; entertainment services.”[109][110][111] For several years a member of the Australian journalists’ union and still an honorary member,[112][113][114] he was awarded the Martha Gellhorn Prize for Journalism in June,[115][116] and theWalkley Award for Most Outstanding Contribution to Journalism in November,[117][118] having earlier won the Amnesty International UK Media Award (New Media) in 2009.[119]

Assange wrote on WikiLeaks in February 2016: “I have had years of experience in dealing with Hillary Clinton and have read thousands of her cables. Hillary lacks judgement and will push the United States into endless, stupid wars which spread terrorism. … she certainly should not become president of the United States.”[120]

On 22 July 2016, WikiLeaks released emails and files sent from or received by Democratic National Committee (DNC). The New York Times reported that “Assange accused Mrs. Clinton of having been among those pushing to indict him…” and that he had timed the release to coincide with the 2016 Democratic National Convention.[121] In an interview with Robert Peston of ITV News Assange suggested that he saw Hillary Clinton as a personal foe.[122][123] He said in an interview with “Democracy Now!” that choosing between Hillary Clinton and Donald Trump is like choosing between cholera or gonorrhea. “Personally, I would prefer neither.”[124]

US criminal investigation

Assange speaks on the steps of St Paul’s Cathedral in London, 16 October 2011

After WikiLeaks released the Manning material, US authorities began investigating WikiLeaks and Assange personally with a view to prosecuting them under the Espionage Act of 1917.[125] In November 2010 US Attorney-General Eric Holder said there was “an active, ongoing criminal investigation” into WikiLeaks.[126] It emerged from legal documents leaked over the ensuing months that Assange and others were being investigated by a federal grand jury in Alexandria, Virginia.[127][128][129] An email from an employee of intelligence consultancy Strategic Forecasting, Inc. (Stratfor) leaked in 2012 said, “We have a sealed indictment on Assange.”[130] The US government denies the existence of such an indictment.[131][132]

In December 2011 prosecutors in the Chelsea Manning case revealed the existence of chat logs between Manning and an alleged WikiLeaks interlocutor they claimed to be Assange;[133][134] he denied this,[135][136] dismissing the alleged connection as “absolute nonsense.”[137] The logs were presented as evidence during Manning’s court-martial in June–July 2013. The prosecution argued that they show WikiLeaks helping Manning reverse-engineer a password.[138][139] The evidence that the interlocutor was Assange is circumstantial, however, and Manning insists she acted alone.[129][139]

Assange was being examined separately by “several government agencies” in addition to the grand jury, most notably the FBI.[140] Court documents published in May 2014 suggest that Assange was still under “active and ongoing” investigation at that time.[141]

Moreover, some Snowden documents published in 2014 show that the United States government put Assange on the “2010 Manhunting Timeline”,[142] and in the same period they urged their allies to open criminal investigations into the editor-in-chief of WikiLeaks.[143] In the same documents there was a proposal by the NSA to designate WikiLeaks as a “malicious foreign actor”, thus increasing the surveillance against it.

On 26 January 2015, WikiLeaks revealed that three members of the organisation received notice that “Google had handed over all their emails and metadata to the United States government”.[144]In the notifications, there was the list of possible charges that originated the warrant to Google and that the secret grand jury intends to use against WikiLeaks and likely Assange too. They were espionage, conspiracy to commit espionage, theft or conversion of property belonging to the United States government, violation of the Computer Fraud and Abuse Act and general conspiracy. They carry up to a minimum of 45 years in prison, if they amount to one charge per these five types; otherwise, even more years could be added.

The United States investigation confirmed its ongoing proceedings against WikiLeaks in a 15 December 2015 court submission.[145]

Swedish sexual assault allegations

Demonstration in support of Assange in front of Sydney Town Hall, 10 December 2010

In November 2010 Assange was alleged to have committed several crimes against two different women during a visit to Sweden that August. He was wanted for questioning in Sweden over two counts of sexual molestation, one count of unlawful coercion and one count of “lesser-degree rape” (mindre grov våldtäkt). Assange denies the allegations.[146][147]

After 18 August 2015, Assange could no longer be charged for all three of the less serious allegations, as the Swedish prosecutors did not succeed in interviewing Assange before the statute of limitations for these alleged crimes ran out. However, he is still wanted for questioning over the allegation of rape. The preliminary investigation still continues as the statute of limitations here will only expire in 2020.[148][149][150][151][152]

Political asylum and life at the Ecuadorian embassy

Julian Assange on a balcony in the Ecuadorian embassy in London

On 19 June 2012, Ecuadorian Foreign Minister Ricardo Patiño announced that Assange had applied for political asylum, that his government was considering the request, and that Assange was at the Ecuadorian embassy in London.[153][154][155][156]

Assange and his supporters claim he is concerned not about any proceedings in Sweden as such, but that his deportation to Sweden could lead to politically motivated deportation to the United States, where he could face severe penalties, up to the death sentence, for his activities related to WikiLeaks.[60]

Ecuadoran Foreign Minister Ricardo Patiño met with Julian Assange in the Ecuadorian Embassy on 16 June 2013

On 16 August 2012, Foreign Minister Patiño announced that Ecuador was granting Assange political asylum because of the threat represented by the United States secret investigation against him and several calls for assassination from many American politicians.[157][158][159][160] In its formal statement, Ecuador reasoned that “as a consequence of [Assange’s] determined defense to freedom of expression and freedom of press… in any given moment, a situation may come where his life, safety or personal integrity will be in danger”.[161] Latin American states expressed support for Ecuador.[162][163][164][165] Ecuadorian President Rafael Correa confirmed on 18 August that Assange could stay at the embassy indefinitely,[166][167][168] and the following day Assange gave his first speech from the balcony.[169][170][171][172] Assange’s supporters forfeited £293,500 in bail[173] and sureties.[173][174] His home since then has been an office converted into a studio apartment, equipped with a bed, telephone, sun lamp, computer, shower, treadmill, and kitchenette.[175][176][177]

Just before Assange was granted asylum, the UK Government wrote to Foreign Minister Patiño stating that the police were entitled to enter the embassy and arrest Assange under UK law.[178] Patiño criticised what he claimed to be an implied threat, stating that “such actions would be a blatant disregard of the Vienna Convention“. Officers of the Metropolitan Police Service were stationed outside the building from June 2012 to October 2015 in order to arrest Assange for extradition and for breach of bail, should he leave the embassy. The police guard was withdrawn on grounds of cost in October 2015, but the police said they would still deploy “a number of overt and covert tactics to arrest him”. The cost of the policing for the period was reported to have been £12.6 million.[179]

In April 2015, during a video conference to promote the documentary Terminal F about Edward Snowden, Bolivia‘s ambassador to Russia, María Luisa Ramos Urzagaste, accused Assange of putting the life of Bolivian presidentEvo Morales at risk by intentionally providing the United States with false rumours that Snowden was on the president’s plane when it was forced to land in Vienna in July 2013. “It is possible that in this wide-ranging game that you began my president did not play a crucial role, but what you did was not important to my president, but it was to me and the citizens of our country. And I have faith that when you planned this game you took into consideration the consequences,” the ambassador told Assange. Assange stated that the plan “was not completely honest, but we did consider that the final result would have justified our actions. We weren’t expecting this outcome. The result was caused by the United States’ intervention. We can only regret what happened.”[180] Later, in an interview[181] with Democracy Now, Assange explained the story of the grounding of Morales’ plane, claiming that after the United States cancelled Snowden’s passport, WikiLeaks thought about other strategies to take him to Latin America, and they considered private presidential jets of those countries which offered support. The appointed jet was that of Venezuelan President Nicolás Maduro, but Assange stated that “our code language that we used deliberately swapped the presidential jet that we were considering for the Bolivian jet […] and in some of our communications, we deliberately spoke about that on open lines to lawyers in the United States. And we didn’t think much more of it. […] We didn’t think this was anything more than just distracting.” Eventually, the plan was not pursued and, under Assange’s advice, Snowden sought asylum in Russia.

Paris newspaper Le Monde in its edition of 3 July 2015 published an open letter from Assange to French President François Hollande in which Assange urged the French government to grant him refugee status.[182] Assange wrote that “only France now has the ability to offer me the necessary protection against, and exclusively against, the political persecution that I am currently the object of.”[183] In the letter Assange wrote, “By welcoming me, France would fulfill a humanitarian but also probably symbolic gesture, sending an encouragement to all journalists and whistleblowers … Only France is now able to offer me the necessary protection … France can, if it wishes, act.”[182][183]

In a statement issued by the Élysée Palace on 3 July 2015 in response to this letter, the French President said: “France cannot act on his request. The situation of Mr Assange does not present an immediate danger.”[184]

On 4 July 2015, in response to the denial of asylum by France, a spokesman for Assange denied that Assange had actually “filed” a request for asylum in France. Speaking on behalf of Assange, Baltasar Garzón, head of his legal team, said that Assange had sent the open letter to French president Francois Hollande; but Assange had only expressed his willingness “to be hosted in France if and only if an initiative was taken by the competent authorities”.[183]

UNWGAD ruling

On 5 February 2016, the UN’s Working Group on Arbitrary Detention decided that Assange had been subject to arbitrary detention by the UK and Swedish Governments since 7 December 2010, including his time in prison, on conditional bail and in the Ecuadorian embassy. According to the group, Assange should be allowed to walk free and be given compensation.[185][186]

The UK and Swedish governments rejected the ruling,[187] as did the UK Secretary of State for Foreign and Commonwealth Affairs, Philip Hammond, and the UK and Swedish prosecutors.[188][189] The UK maintained it would arrest Assange should he leave the Ecuadorian embassy.[190] Mark Ellis, executive director of the International Bar Association, stated that the ruling is “not binding on British law.”[191] United Nations High Commissioner for Human Rights Zeid Ra’ad al Hussein has said that the ruling is based on binding international law.[192]

Writings

Assange is an advocate of information transparency and market libertarianism.[193] He has written a few short pieces, including “State and terrorist conspiracies” (2006),[194] “Conspiracy as governance” (2006),[195] “The hidden curse of Thomas Paine” (2008),[196] “What’s new about WikiLeaks?” (2011),[197] and the foreword to Cypherpunks (2012).[48] He also contributed research to Suelette Dreyfus’s Underground (1997),[25] and received a co-writer credit for the Calle 13 song “Multi_Viral” (2013).

Cypherpunks is primarily a transcript of the The World Tomorrow episode eight two-part interview between Assange, Jacob Appelbaum, Andy Müller-Maguhn, and Jérémie Zimmermann.

Assange’s book, When Google Met WikiLeaks, was published by OR Books on 18 September 2014.[198] The book recounts when Google CEO Eric Schmidt requested a meeting with Assange, while he was under house arrest in rural Norfolk, UK. Schmidt was accompanied by Jared Cohen, director of Google Ideas; Lisa Shields, vice-president of the Council on Foreign Relations; and Scott Malcomson, the communications director for the International Crisis Group. Excerpts were published on the Newsweek website, while Assange participated in a Q&A event that was facilitated by the Reddit website and agreed to an interview with Vogue magazine.[199][200][201]

Personal life

While in his teens, Assange married a woman named Teresa, and in 1989 they had a son, Daniel Assange, now a software designer.[12][24][202] The couple separated and initially disputed custody of the child.[13] Assange was Daniel’s primary carer for much of his childhood.[203] In an open letter to French President François Hollande, Assange stated his youngest child lives in France with his/her mother. He also claimed that his family had faced death threats and harassment due to his work, forcing them to change identities and reduce contact with him.[204]

Work

Bibliography

Filmography

Producer
As himself

Honours and awards

Works about Assange

Books

Essays

Films

See also

References …

https://en.wikipedia.org/wiki/Julian_Assange

The Pronk Pops Show Podcasts Portfolio

Listen To Pronk Pops Podcast or Download Shows 759-768

Listen To Pronk Pops Podcast or Download Shows 751-758

Listen To Pronk Pops Podcast or Download Shows 745-750

Listen To Pronk Pops Podcast or Download Shows 738-744

Listen To Pronk Pops Podcast or Download Shows 732-737

Listen To Pronk Pops Podcast or Download Shows 727-731

Listen To Pronk Pops Podcast or Download Shows 720-726

Listen To Pronk Pops Podcast or Download Shows 713-719

Listen To Pronk Pops Podcast or Download Shows 705-712

Listen To Pronk Pops Podcast or Download Shows 695-704

Listen To Pronk Pops Podcast or Download Shows 685-694

Listen To Pronk Pops Podcast or Download Shows 675-684

Listen To Pronk Pops Podcast or Download Shows 668-674

Listen To Pronk Pops Podcast or Download Shows 660-667

Listen To Pronk Pops Podcast or Download Shows 651-659

Listen To Pronk Pops Podcast or Download Shows 644-650

Listen To Pronk Pops Podcast or Download Shows 637-643

Listen To Pronk Pops Podcast or Download Shows 629-636

Listen To Pronk Pops Podcast or Download Shows 617-628

Listen To Pronk Pops Podcast or Download Shows 608-616

Listen To Pronk Pops Podcast or Download Shows 599-607

Listen To Pronk Pops Podcast or Download Shows 590-598

Listen To Pronk Pops Podcast or Download Shows 585- 589

Listen To Pronk Pops Podcast or Download Shows 575-584

Listen To Pronk Pops Podcast or Download Shows 565-574

Listen To Pronk Pops Podcast or Download Shows 556-564

Listen To Pronk Pops Podcast or Download Shows 546-555

Listen To Pronk Pops Podcast or Download Shows 538-545

Listen To Pronk Pops Podcast or Download Shows 532-537

Listen To Pronk Pops Podcast or Download Shows 526-531

Listen To Pronk Pops Podcast or Download Shows 519-525

Listen To Pronk Pops Podcast or Download Shows 510-518

Listen To Pronk Pops Podcast or Download Shows 500-509

Listen To Pronk Pops Podcast or Download Shows 490-499

Listen To Pronk Pops Podcast or Download Shows 480-489

Listen To Pronk Pops Podcast or Download Shows 473-479

Listen To Pronk Pops Podcast or Download Shows 464-472

Listen To Pronk Pops Podcast or Download Shows 455-463

Listen To Pronk Pops Podcast or Download Shows 447-454

Listen To Pronk Pops Podcast or Download Shows 439-446

Listen To Pronk Pops Podcast or Download Shows 431-438

Listen To Pronk Pops Podcast or Download Shows 422-430

Listen To Pronk Pops Podcast or Download Shows 414-421

Listen To Pronk Pops Podcast or Download Shows 408-413

Listen To Pronk Pops Podcast or Download Shows 400-407

Listen To Pronk Pops Podcast or Download Shows 391-399

Listen To Pronk Pops Podcast or Download Shows 383-390

Listen To Pronk Pops Podcast or Download Shows 376-382

Listen To Pronk Pops Podcast or Download Shows 369-375

Listen To Pronk Pops Podcast or Download Shows 360-368

Listen To Pronk Pops Podcast or Download Shows 354-359

Listen To Pronk Pops Podcast or Download Shows 346-353

Listen To Pronk Pops Podcast or Download Shows 338-345

Listen To Pronk Pops Podcast or Download Shows 328-337

Listen To Pronk Pops Podcast or Download Shows 319-327

Listen To Pronk Pops Podcast or Download Shows 307-318

Listen To Pronk Pops Podcast or Download Shows 296-306

Listen To Pronk Pops Podcast or Download Shows 287-295

Listen To Pronk Pops Podcast or Download Shows 277-286

Listen To Pronk Pops Podcast or Download Shows 264-276

Listen To Pronk Pops Podcast or Download Shows 250-263

Listen To Pronk Pops Podcast or Download Shows 236-249

Listen To Pronk Pops Podcast or Download Shows 222-235

Listen To Pronk Pops Podcast or Download Shows 211-221

Listen To Pronk Pops Podcast or Download Shows 202-210

Listen To Pronk Pops Podcast or Download Shows 194-201

Listen To Pronk Pops Podcast or Download Shows 184-193

Listen To Pronk Pops Podcast or Download Shows 174-183

Listen To Pronk Pops Podcast or Download Shows 165-173

Listen To Pronk Pops Podcast or Download Shows 158-164

Listen To Pronk Pops Podcast or Download Shows151-157

Listen To Pronk Pops Podcast or Download Shows 143-150

Listen To Pronk Pops Podcast or Download Shows 135-142

Listen To Pronk Pops Podcast or Download Shows 131-134

Listen To Pronk Pops Podcast or Download Shows 124-130

Listen To Pronk Pops Podcast or Download Shows 121-123

Listen To Pronk Pops Podcast or Download Shows 118-120

Listen To Pronk Pops Podcast or Download Shows 113 -117

Listen To Pronk Pops Podcast or Download Show 112

Listen To Pronk Pops Podcast or Download Shows 108-111

Listen To Pronk Pops Podcast or Download Shows 106-108

Listen To Pronk Pops Podcast or Download Shows 104-105

Listen To Pronk Pops Podcast or Download Shows 101-103

Listen To Pronk Pops Podcast or Download Shows 98-100

Listen To Pronk Pops Podcast or Download Shows 94-97

Listen To Pronk Pops Podcast or Download Show 93

Listen To Pronk Pops Podcast or Download Show 92

Listen To Pronk Pops Podcast or Download Show 91

Listen To Pronk Pops Podcast or Download Shows 88-90

Listen To Pronk Pops Podcast or Download Shows 84-87

Listen To Pronk Pops Podcast or Download Shows 79-83

Listen To Pronk Pops Podcast or Download Shows 74-78

Listen To Pronk Pops Podcast or Download Shows 71-73

Listen To Pronk Pops Podcast or Download Shows 68-70

Listen To Pronk Pops Podcast or Download Shows 65-67

Listen To Pronk Pops Podcast or Download Shows 62-64

Listen To Pronk Pops Podcast or Download Shows 58-61

Listen To Pronk Pops Podcast or Download Shows 55-57

Listen To Pronk Pops Podcast or Download Shows 52-54

Listen To Pronk Pops Podcast or Download Shows 49-51

Listen To Pronk Pops Podcast or Download Shows 45-48

Listen To Pronk Pops Podcast or Download Shows 41-44

Listen To Pronk Pops Podcast or Download Shows 38-40

Listen To Pronk Pops Podcast or Download Shows 34-37

Listen To Pronk Pops Podcast or Download Shows 30-33

Listen To Pronk Pops Podcast or Download Shows 27-29

Listen To Pronk Pops Podcast or Download Shows 17-26

Listen To Pronk Pops Podcast or Download Shows 16-22

Listen To Pronk Pops Podcast or Download Shows 10-15

Listen To Pronk Pops Podcast or Download Shows 1-9

Read Full Post | Make a Comment ( None so far )

The Pronk Pops Show 526, September 3, 2015, Story 1: All 2016 Republican Presidential Candidates Sign Loyalty Pledge To Support Republican Presidential Candidate in 2016 — Donald Trump Just Wanted Fairness — American People Want Trump To Support The FairTax — Grassroot Movements Change The World — Make America Great Again — Videos

Posted on September 3, 2015. Filed under: Blogroll, Communications, Constitutional Law, Economics, Education, Government, Government Dependency, Government Spending, Illegal Immigration, Immigration, Law, Legal Immigration, News, Philosophy, Photos, Politics, Raymond Thomas Pronk, Security, Social Science, Spying, Success, Taxation, Taxes, Videos, Wealth, Wisdom | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

Project_1

The Pronk Pops Show Podcasts

Pronk Pops Show 526: September 3, 2015  

Pronk Pops Show 525: September 2, 2015 

Pronk Pops Show 524: August 31, 2015  

Pronk Pops Show 523: August 27, 2015  

Pronk Pops Show 522: August 26, 2015 

Pronk Pops Show 521: August 25, 2015 

Pronk Pops Show 520: August 24, 2015 

Pronk Pops Show 519: August 21, 2015 

Pronk Pops Show 518: August 20, 2015  

Pronk Pops Show 517: August 19, 2015 

Pronk Pops Show 516: August 18, 2015

Pronk Pops Show 515: August 17, 2015

Pronk Pops Show 514: August 14, 2015

Pronk Pops Show 513: August 13, 2015

Pronk Pops Show 512: August 12, 2015

Pronk Pops Show 511: August 11, 2015

Pronk Pops Show 510: August 10, 2015

Pronk Pops Show 509: July 24, 2015

Pronk Pops Show 508: July 20, 2015

Pronk Pops Show 507: July 17, 2015

Pronk Pops Show 506: July 16, 2015

Pronk Pops Show 505: July 15, 2015

Pronk Pops Show 504: July 14, 2015

Pronk Pops Show 503: July 13, 2015

Pronk Pops Show 502: July 10, 2015

Pronk Pops Show 501: July 9, 2015

Pronk Pops Show 500: July 8, 2015

Pronk Pops Show 499: July 6, 2015

Pronk Pops Show 498: July 2, 2015

Pronk Pops Show 497: July 1, 2015

Pronk Pops Show 496: June 30, 2015

Pronk Pops Show 495: June 29, 2015

Pronk Pops Show 494: June 26, 2015

Pronk Pops Show 493: June 25, 2015

Pronk Pops Show 492: June 24, 2015

Pronk Pops Show 491: June 23, 2015

Pronk Pops Show 490: June 22, 2015

Pronk Pops Show 489: June 19, 2015

Pronk Pops Show 488: June 18, 2015

Pronk Pops Show 487: June 17, 2015

Pronk Pops Show 486; June 16, 2015

Pronk Pops Show 485: June 15, 2015

Pronk Pops Show 484: June 12, 2015

Pronk Pops Show 483: June 11, 2015

Pronk Pops Show 482; June 10, 2015

Pronk Pops Show 481: June 9, 2015

Pronk Pops Show 480: June 8, 2015

Pronk Pops Show 479: June 5, 2015

Pronk Pops Show 478: June 4, 2015

Pronk Pops Show 477: June 3, 2015

Pronk Pops Show 476: June 2, 2015

Pronk Pops Show 475: June 1, 2015

Story 1: All 2016 Republican Presidential Candidates Sign Loyalty Pledge To Support Republican Presidential Candidate in 2016 — Donald Trump Just Wanted Fairness — American People Want Trump To Support The FairTax — Grassroot Movements Change The World — Make America Great Again — Videos

Election 2016 Presidential Polls

Thursday, September 3

Race/Topic   (Click to Sort) Poll Results Spread
2016 Republican Presidential Nomination Monmouth Trump 30, Carson 18, Bush 8, Cruz 8, Rubio 5, Walker 3, Fiorina 4, Huckabee 4, Kasich 2, Christie 2, Paul 2, Perry 1, Santorum 0, Jindal 0, Pataki 0 Trump +12

Wednesday, September 2

Iowa Republican Presidential Caucus Gravis Trump 32, Carson 16, Cruz 7, Walker 6, Fiorina 5, Bush 4, Rubio 6, Huckabee 3, Paul 1, Kasich 1, Jindal 5, Christie 2, Santorum 1, Perry 1, Graham 0 Trump +16

Donald Trump signs loyalty pledge with GOP

Donald Trump Signs Loyalty Pledge to GOP FULL Press Conference Sept. 3, 2015

Trump: Bush should speak English when in the U.S.

Donald Trump success story | Documentary | [Biography of famous people in english]

 fair_tax_bookthe_truth_fairtaxgood_evil_taxes

FairTax: Fire Up Our Economic Engine (Official HD)

The FairTax: It’s Time

What is the FairTax legislation?

Introducing the FairTax in the 114th Congress

Congressman Woodall Discusses the FairTax

Sen. Moran Discusses FairTax Legislation on U.S. Senate Floor

How does the FairTax affect the economy?

Freedom from the IRS! – FairTax Explained in Detail

Trump’s party loyalty pledge ends one GOP problem, brings others

September 3

Donald Trump on Thursday signed a loyalty pledge to the Republican Party — and, with that, the renegade candidate became a little less of a renegade and a party establishment unsure of what to do with the bedeviling front-runner brought him more fully into its embrace.

The document the GOP presidential front-runner signed promises that he will support the Republican nominee in next year’s general election, effectively ruling out a third-party or independent run.

“I will be totally pledging my allegiance to the Republican Party and the conservative principles for which it stands,” Trump said at an event at Trump Tower in New York, surrounded by backers holding “TRUMP” posters next to the skyscraper’s steep elevators. He held up the single sheet of paper with his name scribbled in thick black marker. “We will go out and fight hard, and we will win. We will win,” he said.

The bustling scene, attended by a crowd of reporters and television cameras, was more political theater than the marking of a formal pact, since Trump is under no legal obligation to abide by the political document.

But the promise, which Trump has long avoided making, does bring him closer to a party whose rank-and-file activists he has thrilled this summer and whose leadership has at times viewed his rapid ascent with alarm — especially the prospect of an outside bid that could siphon away votes from the eventual Republican standard-bearer.

By bringing Trump more fully within the party’s tent, Republicans gain reassurance about his intentions — and court possible fallout for working closely with the unpredictable and sharp-tongued billionaire, who has angered Hispanic leaders with his controversial comments on illegal immigration.

Trump made his announcement at an afternoon news conference after meeting with the loyalty statement’s author, Republican National Committee chairman Reince Priebus, whose relationship with the mogul has been cordial but delicate since Trump entered the 2016 race.

http://www.washingtonpost.com/politics/trump-to-sign-gop-pledge-commit-to-back-party-nominee/2015/09/03/c5d9ea7c-5242-11e5-9812-92d5948a40f8_story.html

The Pronk Pops Show Podcasts Portfolio

Listen To Pronk Pops Podcast or Download Show 526

Listen To Pronk Pops Podcast or Download Show 519-525

Listen To Pronk Pops Podcast or Download Show 510-518

Listen To Pronk Pops Podcast or Download Show 500-509

Listen To Pronk Pops Podcast or Download Show 490-499

Listen To Pronk Pops Podcast or Download Show 480-489

Listen To Pronk Pops Podcast or Download Show 473-479

Listen To Pronk Pops Podcast or Download Show 464-472

Listen To Pronk Pops Podcast or Download Show 455-463

Listen To Pronk Pops Podcast or Download Show 447-454

Listen To Pronk Pops Podcast or Download Show 439-446

Listen To Pronk Pops Podcast or Download Show 431-438

Listen To Pronk Pops Podcast or Download Show 422-430

Listen To Pronk Pops Podcast or Download Show 414-421

Listen To Pronk Pops Podcast or Download Show 408-413

Listen To Pronk Pops Podcast or Download Show 400-407

Listen To Pronk Pops Podcast or Download Show 391-399

Listen To Pronk Pops Podcast or Download Show 383-390

Listen To Pronk Pops Podcast or Download Show 376-382

Listen To Pronk Pops Podcast or Download Show 369-375

Listen To Pronk Pops Podcast or Download Show 360-368

Listen To Pronk Pops Podcast or Download Show 354-359

Listen To Pronk Pops Podcast or Download Show 346-353

Listen To Pronk Pops Podcast or Download Show 338-345

Listen To Pronk Pops Podcast or Download Show 328-337

Listen To Pronk Pops Podcast or Download Show 319-327

Listen To Pronk Pops Podcast or Download Show 307-318

Listen To Pronk Pops Podcast or Download Show 296-306

Listen To Pronk Pops Podcast or Download Show 287-295

Listen To Pronk Pops Podcast or Download Show 277-286

Listen To Pronk Pops Podcast or Download Show 264-276

Listen To Pronk Pops Podcast or Download Show 250-263

Listen To Pronk Pops Podcast or Download Show 236-249

Listen To Pronk Pops Podcast or Download Show 222-235

Listen To Pronk Pops Podcast or Download Show 211-221

Listen To Pronk Pops Podcast or Download Show 202-210

Listen To Pronk Pops Podcast or Download Show 194-201

Listen To Pronk Pops Podcast or Download Show 184-193

Listen To Pronk Pops Podcast or Download Show 174-183

Listen To Pronk Pops Podcast or Download Show 165-173

Listen To Pronk Pops Podcast or Download Show 158-164

Listen To Pronk Pops Podcast or Download Show 151-157

Listen To Pronk Pops Podcast or Download Show 143-150

Listen To Pronk Pops Podcast or Download Show 135-142

Listen To Pronk Pops Podcast or Download Show 131-134

Listen To Pronk Pops Podcast or Download Show 124-130

Listen To Pronk Pops Podcast or Download Shows 121-123

Listen To Pronk Pops Podcast or Download Shows 118-120

Listen To Pronk Pops Podcast or Download Shows 113 -117

Listen To Pronk Pops Podcast or Download Show 112

Listen To Pronk Pops Podcast or Download Shows 108-111

Listen To Pronk Pops Podcast or Download Shows 106-108

Listen To Pronk Pops Podcast or Download Shows 104-105

Listen To Pronk Pops Podcast or Download Shows 101-103

Listen To Pronk Pops Podcast or Download Shows 98-100

Listen To Pronk Pops Podcast or Download Shows 94-97

Listen To Pronk Pops Podcast or Download Shows 93

Listen To Pronk Pops Podcast or Download Shows 92

Listen To Pronk Pops Podcast or Download Shows 91

Listen To Pronk Pops Podcast or Download Shows 88-90

Listen To Pronk Pops Podcast or Download Shows 84-87

Listen To Pronk Pops Podcast or Download Shows 79-83

Listen To Pronk Pops Podcast or Download Shows 74-78

Listen To Pronk Pops Podcast or Download Shows 71-73

Listen To Pronk Pops Podcast or Download Shows 68-70

Listen To Pronk Pops Podcast or Download Shows 65-67

Listen To Pronk Pops Podcast or Download Shows 62-64

Listen To Pronk Pops Podcast or Download Shows 58-61

Listen To Pronk Pops Podcast or Download Shows 55-57

Listen To Pronk Pops Podcast or Download Shows 52-54

Listen To Pronk Pops Podcast or Download Shows 49-51

Listen To Pronk Pops Podcast or Download Shows 45-48

Listen To Pronk Pops Podcast or Download Shows 41-44

Listen To Pronk Pops Podcast or Download Shows 38-40

Listen To Pronk Pops Podcast or Download Shows 34-37

Listen To Pronk Pops Podcast or Download Shows 30-33

Listen To Pronk Pops Podcast or Download Shows 27-29

Listen To Pronk Pops Podcast or Download Shows 17-26

Listen To Pronk Pops Podcast or Download Shows 16-22

Listen To Pronk Pops Podcast or Download Shows 10-15

Listen To Pronk Pops Podcast or Download Shows 01-09

Read Full Post | Make a Comment ( None so far )

The Pronk Pops Show 512, August 12, 2015, Story 1: Trump Attracting American Working People With Emphasis On Jobs and Stopping Illegal Immigration — Make America Great Again — Americans Like Winners — Videos

Posted on August 13, 2015. Filed under: 2016 Presidential Campaign, American History, Banking System, Benghazi, Blogroll, Breaking News, Budgetary Policy, Communications, Congress, Constitutional Law, Corruption, Economics, Employment, Federal Government, Fiscal Policy, Foreign Policy, Free Trade, Government, Government Spending, Hillary Clinton, History, Independence, Law, Media, Monetary Policy, News, Obama, Philosophy, Photos, Politics, Polls, Radio, Raymond Thomas Pronk, Scandals, Social Science, Success, Tax Policy, Taxation, Taxes, Terror, Terrorism, Trade Policy, Unemployment, Violence, Wall Street Journal, Wealth, Wisdom | Tags: , , , , , , |

Project_1

The Pronk Pops Show Podcasts

Pronk Pops Show 512: August 12, 2015

Pronk Pops Show 511: August 11, 2015 

Pronk Pops Show 510: August 10, 2015

Pronk Pops Show 509: July 24, 2015

Pronk Pops Show 508: July 20, 2015

Pronk Pops Show 507: July 17, 2015

Pronk Pops Show 506: July 16, 2015

Pronk Pops Show 505: July 15, 2015

Pronk Pops Show 504: July 14, 2015

Pronk Pops Show 503: July 13, 2015

Pronk Pops Show 502: July 10, 2015

Pronk Pops Show 501: July 9, 2015

Pronk Pops Show 500: July 8, 2015

Pronk Pops Show 499: July 6, 2015

Pronk Pops Show 498: July 2, 2015

Pronk Pops Show 497: July 1, 2015

Pronk Pops Show 496: June 30, 2015

Pronk Pops Show 495: June 29, 2015

Pronk Pops Show 494: June 26, 2015

Pronk Pops Show 493: June 25, 2015

Pronk Pops Show 492: June 24, 2015

Pronk Pops Show 491: June 23, 2015

Pronk Pops Show 490: June 22, 2015

Pronk Pops Show 489: June 19, 2015

Pronk Pops Show 488: June 18, 2015

Pronk Pops Show 487: June 17, 2015

Pronk Pops Show 486; June 16, 2015

Pronk Pops Show 485: June 15, 2015

Pronk Pops Show 484: June 12, 2015

Pronk Pops Show 483: June 11, 2015

Pronk Pops Show 482; June 10, 2015

Pronk Pops Show 481: June 9, 2015

Pronk Pops Show 480: June 8, 2015

Pronk Pops Show 479: June 5, 2015

Pronk Pops Show 478: June 4, 2015

Pronk Pops Show 477: June 3, 2015

Pronk Pops Show 476: June 2, 2015

Pronk Pops Show 475: June 1, 2015

Pronk Pops Show 474; May 29, 2015

Pronk Pops Show 473: May 28, 2015

Pronk Pops Show 472: May 27, 2015

Pronk Pops Show 471: May 26, 2015

Pronk Pops Show 470: May 22, 2015

Pronk Pops Show 469: May 21, 2015

Pronk Pops Show 468: May 20, 2015

Pronk Pops Show 467: May 19, 2015

Pronk Pops Show 466: May 18, 2015

Pronk Pops Show 465: May 15, 2015

Pronk Pops Show 464; May 14, 2015

Pronk Pops Show 463; May 13, 2015

Pronk Pops Show 462: May 8, 2015

Pronk Pops Show 461: May 7, 2015

Pronk Pops Show 460; May 6, 2015

Pronk Pops Show 459: May 4, 2015

Pronk Pops Show 458: May 1, 2015

 Story 1: Trump  Attracting American Working People With Emphasis On Jobs and Stopping Illegal Immigration — Make America Great Again — Americans Like Winners — Videos

Trump Jet - Copygop bus

CQ trump busTrumpTower2Make america great again

Wednesday, August 12
Race/Topic   (Click to Sort) Poll Results Spread
Iowa Republican Presidential Caucus CNN/ORC Trump 22, Carson 14, Walker 9, Fiorina 7, Cruz 8, Rubio 5, Bush 5, Huckabee 7, Paul 5, Kasich 2, Christie 3, Jindal 2, Perry 1, Santorum 1, Graham 2 Trump +8
Iowa Democratic Presidential Caucus CNN/ORC Clinton 50, Sanders 31, Biden 12, O’Malley 1, Webb 1, Chafee 0 Clinton +19
New Hampshire 2016 Democratic Primary Boston Herald/FPU Clinton 37, Sanders 44, Biden 9, O’Malley 0, Webb 1, Chafee 0 Sanders +7
Michigan Republican Presidential Primary FOX 2/Mitchell Trump 20, Bush 12, Carson 12, Rubio 10, Walker 4, Fiorina 15, Cruz 8, Huckabee 4, Kasich 8, Christie 4, Paul 2, Santorum, Perry, Graham Trump +5
Tuesday, August 11
Race/Topic   (Click to Sort) Poll Results Spread
2016 Republican Presidential Nomination Rasmussen Trump 17, Bush 10, Walker 9, Rubio 10, Carson 8, Cruz 7, Huckabee 3, Paul 4, Christie 4, Fiorina 9, Kasich 4, Perry 1, Santorum 1, Jindal 1, Graham 1 Trump +7
New Hampshire Republican Presidential Primary Boston Herald/FPU Trump 18, Bush 13, Kasich 12, Walker 4, Christie 3, Paul 6, Carson 4, Cruz 10, Rubio 4, Fiorina 9, Huckabee 3, Jindal 1, Pataki 1, Perry 1, Graham 1 Trump +5
Iowa Republican Presidential Caucus Suffolk Trump 17, Carson 9, Walker 12, Fiorina 7, Cruz 7, Rubio 10, Bush 5, Huckabee 2, Paul 2, Kasich 3, Christie 2, Jindal 1, Perry 1, Santorum 1, Graham 0 Trump +5
Monday, August 10
Race/Topic   (Click to Sort) Poll Results Spread
Iowa Republican Presidential Caucus PPP (D) Trump 19, Carson 12, Walker 12, Fiorina 10, Cruz 9, Rubio 6, Bush 11, Huckabee 6, Paul 3, Kasich 3, Christie 1, Jindal 2, Perry 2, Santorum 2, Graham 0 Trump +7
Iowa Democratic Presidential Caucus PPP (D) Clinton 52, Sanders 25, Biden, O’Malley 7, Webb 3, Chafee 1 Clinton +27
Iowa: Bush vs. Clinton PPP (D) Clinton 44, Bush 40 Clinton +4
Iowa: Walker vs. Clinton PPP (D) Clinton 43, Walker 44 Walker +1
Iowa: Trump vs. Clinton PPP (D) Clinton 43, Trump 40 Clinton +3
Iowa: Rubio vs. Clinton PPP (D) Rubio 43, Clinton 42 Rubio +1
Iowa: Fiorina vs. Clinton PPP (D) Clinton 42, Fiorina 40 Clinton +2
Iowa: Kasich vs. Clinton PPP (D) Clinton 41, Kasich 39 Clinton +2
Iowa: Huckabee vs. Clinton PPP (D) Clinton 43, Huckabee 44 Huckabee +1
Iowa: Paul vs. Clinton PPP (D) Clinton 43, Paul 40 Clinton +3
Iowa: Carson vs. Clinton PPP (D) Carson 44, Clinton 40 Carson +4
Iowa: Cruz vs. Clinton PPP (D) Clinton 44, Cruz 42 Clinton +2
Iowa: Christie vs. Clinton PPP (D) Clinton 41, Christie 39 Clinton +2
Friday, August 7
Race/Topic   (Click to Sort) Poll Results Spread
Florida Republican Presidential Primary Florida Times-Union Bush 26, Trump 27, Rubio 7, Walker 6, Cruz 8, Huckabee 4, Paul 2, Carson 8, Fiorina 2, Kasich 3, Jindal 2, Perry 1, Christie 1, Graham 0 Trump +1
Georgia Republican Presidential Primary WSB/Landmark Trump 34, Bush 12, Carson 8, Walker 10, Huckabee 8, Cruz 5, Rubio 5, Kasich 5, Christie 3, Paul 2, Fiorina, Perry, Jindal, Graham Trump +22
Georgia Democratic Presidential Primary WSB/Landmark Clinton 56, Biden 18, Sanders 11, Webb 2, O’Malley 1 Clinton +38
Thursday, August 6
Race/Topic   (Click to Sort) Poll Results Spread
New Hampshire: Bush vs. Clinton WMUR/UNH Bush 46, Clinton 45 Bush +1
New Hampshire: Walker vs. Clinton WMUR/UNH Walker 45, Clinton 43 Walker +2
New Hampshire: Trump vs. Clinton WMUR/UNH Clinton 50, Trump 40 Clinton +10
New Hampshire: Rubio vs. Clinton WMUR/UNH Clinton 44, Rubio 43 Clinton +1
New Hampshire: Paul vs. Clinton WMUR/UNH Clinton 43, Paul 45 Paul +2
South Carolina Republican Presidential Primary Augusta Chronicle Trump 31, Bush 14, Carson 10, Walker 6, Huckabee 9, Graham 7, Rubio 2, Cruz 4, Christie 4, Kasich 3, Fiorina 2, Paul 2, Perry 0, Jindal 1 Trump +17
Georgia Republican Presidential Primary FOX 5/Morris News Trump 30, Bush 17, Carson 10, Walker 5, Huckabee 7, Cruz 6, Rubio 3, Kasich 3, Christie 3, Paul 3, Fiorina 3, Perry 2, Jindal 2, Graham 0 Trump +13
Wednesday, August 5
Race/Topic   (Click to Sort) Poll Results Spread
2016 Democratic Presidential Nomination Monmouth Clinton 52, Sanders 16, Biden 12, Webb 2, O’Malley 2, Chafee 0 Clinton +36
New Hampshire 2016 Democratic Primary WMUR/UNH Clinton 42, Sanders 36, Biden 5, O’Malley 1, Webb 1, Chafee 0 Clinton +6
New Hampshire Republican Presidential Primary Gravis Trump 32, Bush 7, Kasich 15, Walker 8, Christie 9, Paul 6, Carson 8, Cruz 3, Rubio 3, Fiorina 2, Huckabee 1, Jindal 2, Pataki 1, Perry 0, Graham 2 Trump +17
New Hampshire 2016 Democratic Primary Gravis Marketing Clinton 43, Sanders 39, Biden 6, O’Malley 2, Webb 2, Chafee 0 Clinton +4

Trump surges higher in Iowa following GOP debate

Donald Trump on Sean Hannity – FULL INTERVIEW – August 12, 2015 – Fox News

Trump Urges Simpler Tax Code- ‘I Want to Make It So the Middle Class Benefits’

Donald Trump: I pay as little as possible in taxes

Is Donald Trump serious about tax reform?

Donald Trump Talks Taxes – I Pay As Little As Possible, I Fight Like Hell – Stuart Varney

Rand Paul: Donald Trump, Chris Christie, GOP Debate, Flat Tax (Fox News)

FULL SPEECH: Donald Trump EXPLOSIVE Rally In Birch Run, MI (8-11-15)

Donald Trump We’ve Had Enough Bush’s in the White House

Donald Trump: Presidential Rally Campaign In Lowa (August 13, 2015)

Donald Trump Press Conference Questions Make America Great Again Iowa

Donald Trump FULL Speech in Iowa Campaign Rally – July 25, 2015

Newsmax Prime | Peter Schiff talks about China devaluing it’s currency

An Iowa surprise: Donald Trump is actually trying to win

August 13 at 3:32 PM
DESMOINES — For five days, the royal-blue bus rumbled through miles of cornfields alongside a popular annual bicycle trek across Iowa. It showed up at a country music concert in Cherokee and at a bacon festival in Ottumwa.And when the hulking vehicle with thick white block letters that spell T-R-U-M-P pulled into aWalmart parking lot in Fort Dodge this week, people flocked to it. It didn’t matter that Donald Trump wasn’t inside. The bus alone — with the “Make America Great Again” slogan extending across its sides — created an irresistible oasis of celebrity politics amid a desert of minivans and shopping carts.“One hundred people showing up for a staffer? I’ve never seen anything like it,” said ChuckLaudner, a veteran Iowa organizer who oversees Trump’s efforts here. “They kept saying the same thing: They want something different.”For many Americans, the Trump presidential campaign amounts to a billionaire talking endlessly, and entertainingly, on television. But here in Iowa, it’s another story. Trump is trying to beat the politicians at their own game, building one of the most extensive field organizations in the Republican field.The groundwork laid by Trump’s sizeable Iowa staff, with 10 paid operatives and growing, is the clearest sign yet that the unconventional candidate is looking beyond his summer media surge and attempting to win February’s first-in-the-nation caucuses.

This is becoming a cause of concern for rival campaigns.

“I see them as a major threat to all the other campaigns because of the aggressiveness of their ground game,” said Sam Clovis, a prominent Iowa conservative who leads former Texas governor Rick Perry’s campaign.

“You cannot swing a dead cat in Iowa and not hit a Trump person,” Clovis continued. “It’s unlike anything I’ve ever seen.. . .Every event we go to — theBoone County Eisenhower Social, the Black Hawk County Lincoln Dinner, the Boots and BBQ down in Denison — the Trump people are everywhere with literature and T-shirts and signing people up.

“The Trump bus will pull into an empty parking lot and just be there on the main drag, like the little town of Le Mars, ‘the ice cream capital of the world.’. . . People will pull over, go sign up. They’ll get 50 people in an hour, and go to another town. That happens all over the state.”

Veterans of former congressman Ron Paul’s presidential campaigns, which were well organized in Iowa, see Trump appealing to Paul’s base here despite the competing candidacy of Paul’s son, Rand, Kentucky’s junior senator.

“He’s catching on with the average Americans who have had it with foreign wars, our trade policies and a stalled economy,” said Drew Ivers, Ron Paul’s 2012 Iowa campaign chairman.

Trump’s colorful assault on the political establishment and strident opposition to illegal immigration has propelled his candidacy to the lead here and nationally. A CNN-ORC poll on Wednesday showed him in first place in Iowa, with 22 percent, followed by retired neurosurgeon Ben Carson in second with 14 percent. Wisconsin Gov. Scott Walker, who is counting on the caucuses, fell to third at 9 percent.

Trump will make a theatrical return to Iowa on Saturday. He plans to touch down in Des Moines by private helicopter, landing at a field just outside the Iowa State Fairgrounds, and then visit the famed butter cow, according to Republicans familiar with the campaign. He also plans private meetings with local activists.

Candidates traditionally give a speech and take questions at the fair’s Des Moines Register soapbox, but Trump is not planning to do so. He is in a feud with the Register; after the newspaper editorial board called on him to withdraw, Trump slammed the newspaper and began barring its reporters from covering his events.

Other candidates are building solid ground games here as well. Former Florida governor Jeb Bush, whose Iowa operation has about a dozen paid staff, announced campaign chairs in 22 of Iowa’s 99 counties on Wednesday, with more to come. Walker, whose staffing level was not available, unveiled a 65-member Iowa leadership team last week that includes many state lawmakers, mayors, sheriffs, county treasurers and party stalwarts.

But Trump is taking a different approach. His state director is Laudner, a highly-regarded grassroots organizer and adviser to Rep. Steve King (R), who is a powerful force on the hard right. This time four years ago, Laudner drove Rick Santorum around the state in his pick-up truck, guiding the former Pennsylvania senator to a surprise victory in the 2012 caucuses.

“I’ve told people from the beginning: Never underestimate Donald Trump,” said Bob Vander Plaats, president of the Family Leader, a powerful social conservative group here. “He has been very successful for a reason. He knows how to market and specifically he knows how to market himself very well. He also understands what the customer wants.”

It is an open question, however, whether Trump’s singular brand of politics will stay in vogue until the February caucuses. And there are doubts that Trump can win enough votes from evangelical Christian conservatives, who are being courted aggressively by Sen. Ted Cruz of Texas, former Arkansas governor Mike Huckabee and others.

Last month at the Family Leader’s candidate summit in Ames, Trump, a Presbyterian, caused unease when he said he had never asked God for forgiveness and spoke casually about Holy Communion.

“When I drink my little wine — which is about the only wine I drink — and have my little cracker, I guess that is a form of asking for forgiveness,” Trump said.

Iowa talk radio host Steve Deace said he would be “very surprised” if Trump wins here. “Whatever chance he had to get evangelicals to coalesce around him went out the window at the Family Leader,” he said. “Everyone was paying attention, especially those who are fed up with the Republican Party, but he didn’t sell them.”

But Trump is trying to defy conventional wisdom about the caucuses by creating a unique coalition.

It has become a punch line among establishment types that Trump’s Iowa co-chair is Tana Goertz, a political neophyte best known for being a runner-up on Trump’s NBC show, “The Apprentice.”

But others on the Trump team are experienced political operatives. Co-chair Richard Thornton is an attorney plugged into state legislative politics, and deputy state director Chris Hupke is a former head of the South Dakota Family Policy Council known for his field organizing. Another top aide is Ryan Keller, who ran congressional campaigns and the Republican Party in Polk County, Iowa’s largest.

Trump has made only occasional campaign stops in Iowa, and he eschews the small retail stops that other candidates make.

Making up for his absence is the Trump-emblazoned bus. The campaign advertises in local newspapers when the bus will be in town. Residents turn out to get Trump yard signs, Trump pins and Trump T-shirts. More importantly, they leave their names and contact information and take home kits explaining how to become caucus captains in their precincts, distribute bumper stickers and write letters to the editor of local papers.

Political organizing in Iowa requires sophistication because of the state’s unique system. Voters gather at a designated time with their neighbors and advocate for their preferred candidates before ballots are cast.

Turnout in Iowa caucuses is historically low. In 2012, only 121,000 of the state’s roughly 600,000 registered Republican voters participated. In 2016, strategists expect turnout to increase to 140,000 or higher.

The Trump campaign is targeting voters who may not have participated in a caucus before, modeling its strategy on Barack Obama’s 2008 Iowa campaign when mobilized tens of thousands of new caucus-goers.

“We’re reaching people that the Republican apparatus doesn’t even know exist,” Laudner said. “The other day, one woman came up to say, ‘Hello, a lifelong Iowan.’ Her first question to us was, ‘What’s a caucus?’ After we told her, she wanted to help. . . .Politics has not been the biggest thing in a lot of these peoples’ lives. They’ve got lots of stuff going on with their jobs or families. But they feel Donald Trump is what this country needs.”

Carson also is trying to use his political outsider status to attract new voters into his coalition. The challenge for both candidates will be getting people to show up on a cold Tuesday night in February.

“It’s these non-traditional candidates, Carson and Trump, who are going out there really trying to bring new people into the process,” said Craig Robinson, editor in chief of The Iowa Republican. “If motivated, sure these people will caucus.”

On a Saturday in late July, Trump swept into Oskaloosa, a town of about 11,000, where he addressed an overflow crowd at the local high school as his bus sat parked outside. Wearing a salmon pink tie and dark suit, he gushed about the state.

“Whoa! Beautiful, beautiful,” Trump said. “It’s a terrific place, Iowa. Terrific! We just got in and I’m driving through these beautiful fields. I want to grab that corn like you’ve never seen. So rich, so beautiful.”

Costa reported from Washington.

http://www.washingtonpost.com/politics/an-iowa-surprise-donald-trump-is-actually-trying-to-win/2015/08/13/564a9f50-4142-11e5-8e7d-9c033e6745d8_story.html

TRUMP: SIMPLIFY TAX CODE WITH ‘INTELLIGENCE,’ ‘REDUCE TAXES,’ WON’T GIVE WHOLE PLAN YET

Republican presidential candidate Donald Trump stated that on taxes he supports, simplifying the tax code and wants to “reduce taxes” on Tuesday’s broadcast of the Fox News Channel’s “Fox & Friends.” Although, he later added on CNN’s “New Day” that “I know exactly what I want to do, I just don’t want to announce it yet.”

Trump began the interview by saying to host Steve Doocy, “Well, we are friends, Steve. We’ve always been friends, and it’s great to be back with you” after Doocy remarked, “glad we’re friends.”

Asked about his tax plan, Trump said, “You have so many plans Steve, and you have the Fair Tax, and you have the flat tax, and you have the current system, but it’s too complicated. Frankly, what we should do is…start it off by simplifying our current system, put H&R Block out of business, knock them out, put them out of business. A simple return, people have to go out and pay a lot of money to get help, to fill out their tax returns. And I’m talking about a simple return. We have to simplify our code, we have to bring down taxes, but we have to simplify our code, Steve, it’s too complicated. You can’t do it. You have to go — in my case, I have lawyers all over the place. I have accounting firms all over the place, everybody. You have to simplify this tax code. And from that point on, you can maybe do something else. But before we do anything, simplify it. Make it nice and easy for people to understand, and reduce taxes.”

In an interview on CNN’s “New Day” shortly after, Trump was asked, “You know you’re have to do better than that, as you go forward here, in terms of putting out ideas that people can cling to. What do you think should be the top tax rate, for someone, let’s say, like you who’s a billionaire?”

Trump answered, “I don’t think I have to do a lot better right now. I mean, we’re in a very formative part of the campaign. And I’m also forming — you know, you don’t understand, to be a successful person and a businessperson, you have to be flexible. You know, the boxers say you have to go with punches. You have to be flexible. You can’t just be boom, boom, hard and fast.” And said that when he bought properties he didn’t have 14-point plans, but “I went in and got it. So, a lot of this stuff, you don’t want to hear about the plans, you got to get in and you got to get it done.”

He added, “Our tax code is too complicated, and we can simplify it so easily.” When asked how, he answered, “Using intelligence. By having common sense,” and re-iterated that he wants to put H&R Block out of business.

He continued, “You can have a Fair Tax, you can have a flat tax, or you can leave the system alone, which is probably the simplest at this point. Leave the system alone, and take out deductions, and lower taxes, and do lots of really good things, leaving the system the way it is. And I know exactly what I want to do, I just don’t want to announce it yet.”

Earlier in the Fox interview, Trump criticized the economic and governing record of fellow GOP candidate Wisconsin Governor Scott Walker, and said that an ABC News story citing a senior adviser of his that Trump is “now seriously considering promising not to run as an independent if he does not win the Republican nomination” wasn’t true, and that while he wants to run as a Republican, he’s going to “keep that door open in case I don’t get treated fairly.”

Trump also addressed his relationship with Democratic Hillary Clinton, stating that he would “give to everybody” as businessman, and the fact that people treated him nicely due to this showed a flaw within the political system. He added that he doesn’t need anyone else’s money and has no special interests of lobbyists behind his campaign.

When asked about ISIS, Trump pointed to his earlier criticism of the Iraq War, and argued the US should fight ISIS by taking their oil.

http://www.breitbart.com/video/2015/08/11/trump-simplify-tax-code-with-intelligence-reduce-taxes-wont-give-whole-plan-yet/

The Pronk Pops Show Podcasts Portfolio

Listen To Pronk Pops Podcast or Download Show 510-512

Listen To Pronk Pops Podcast or Download Show 500-509

Listen To Pronk Pops Podcast or Download Show 490-499

Listen To Pronk Pops Podcast or Download Show 480-489

Listen To Pronk Pops Podcast or Download Show 473-479

Listen To Pronk Pops Podcast or Download Show 464-472

Listen To Pronk Pops Podcast or Download Show 455-463

Listen To Pronk Pops Podcast or Download Show 447-454

Listen To Pronk Pops Podcast or Download Show 439-446

Listen To Pronk Pops Podcast or Download Show 431-438

Listen To Pronk Pops Podcast or Download Show 422-430

Listen To Pronk Pops Podcast or Download Show 414-421

Listen To Pronk Pops Podcast or Download Show 408-413

Listen To Pronk Pops Podcast or Download Show 400-407

Listen To Pronk Pops Podcast or Download Show 391-399

Listen To Pronk Pops Podcast or Download Show 383-390

Listen To Pronk Pops Podcast or Download Show 376-382

Listen To Pronk Pops Podcast or Download Show 369-375

Listen To Pronk Pops Podcast or Download Show 360-368

Listen To Pronk Pops Podcast or Download Show 354-359

Listen To Pronk Pops Podcast or Download Show 346-353

Listen To Pronk Pops Podcast or Download Show 338-345

Listen To Pronk Pops Podcast or Download Show 328-337

Listen To Pronk Pops Podcast or Download Show 319-327

Listen To Pronk Pops Podcast or Download Show 307-318

Listen To Pronk Pops Podcast or Download Show 296-306

Listen To Pronk Pops Podcast or Download Show 287-295

Listen To Pronk Pops Podcast or Download Show 277-286

Listen To Pronk Pops Podcast or Download Show 264-276

Listen To Pronk Pops Podcast or Download Show 250-263

Listen To Pronk Pops Podcast or Download Show 236-249

Listen To Pronk Pops Podcast or Download Show 222-235

Listen To Pronk Pops Podcast or Download Show 211-221

Listen To Pronk Pops Podcast or Download Show 202-210

Listen To Pronk Pops Podcast or Download Show 194-201

Listen To Pronk Pops Podcast or Download Show 184-193

Listen To Pronk Pops Podcast or Download Show 174-183

Listen To Pronk Pops Podcast or Download Show 165-173

Listen To Pronk Pops Podcast or Download Show 158-164

Listen To Pronk Pops Podcast or Download Show 151-157

Listen To Pronk Pops Podcast or Download Show 143-150

Listen To Pronk Pops Podcast or Download Show 135-142

Listen To Pronk Pops Podcast or Download Show 131-134

Listen To Pronk Pops Podcast or Download Show 124-130

Listen To Pronk Pops Podcast or Download Shows 121-123

Listen To Pronk Pops Podcast or Download Shows 118-120

Listen To Pronk Pops Podcast or Download Shows 113 -117

Listen To Pronk Pops Podcast or Download Show 112

Listen To Pronk Pops Podcast or Download Shows 108-111

Listen To Pronk Pops Podcast or Download Shows 106-108

Listen To Pronk Pops Podcast or Download Shows 104-105

Listen To Pronk Pops Podcast or Download Shows 101-103

Listen To Pronk Pops Podcast or Download Shows 98-100

Listen To Pronk Pops Podcast or Download Shows 94-97

Listen To Pronk Pops Podcast or Download Shows 93

Listen To Pronk Pops Podcast or Download Shows 92

Listen To Pronk Pops Podcast or Download Shows 91

Listen To Pronk Pops Podcast or Download Shows 88-90

Listen To Pronk Pops Podcast or Download Shows 84-87

Listen To Pronk Pops Podcast or Download Shows 79-83

Listen To Pronk Pops Podcast or Download Shows 74-78

Listen To Pronk Pops Podcast or Download Shows 71-73

Listen To Pronk Pops Podcast or Download Shows 68-70

Listen To Pronk Pops Podcast or Download Shows 65-67

Listen To Pronk Pops Podcast or Download Shows 62-64

Listen To Pronk Pops Podcast or Download Shows 58-61

Listen To Pronk Pops Podcast or Download Shows 55-57

Listen To Pronk Pops Podcast or Download Shows 52-54

Listen To Pronk Pops Podcast or Download Shows 49-51

Listen To Pronk Pops Podcast or Download Shows 45-48

Listen To Pronk Pops Podcast or Download Shows 41-44

Listen To Pronk Pops Podcast or Download Shows 38-40

Listen To Pronk Pops Podcast or Download Shows 34-37

Listen To Pronk Pops Podcast or Download Shows 30-33

Listen To Pronk Pops Podcast or Download Shows 27-29

Listen To Pronk Pops Podcast or Download Shows 17-26

Listen To Pronk Pops Podcast or Download Shows 16-22

Listen To Pronk Pops Podcast or Download Shows 10-15

Listen To Pronk Pops Podcast or Download Shows 01-09

578

Read Full Post | Make a Comment ( None so far )

The Pronk Pops Show 245, April 16, 2014, Story 1: FairTax Less — 20% Consumption Tax Replacing All Federal Income, Payroll and Estate and Gift Taxes With A $500 Per Month Prebate For Every Adult American and $100 Per Child Per Month! — Videos

Posted on April 16, 2014. Filed under: American History, Blogroll, Budgetary Policy, Computers, Constitutional Law, Culture, Economics, Education, Employment, Federal Government, Fiscal Policy, Government, History, Law, Philosophy, Politics, Regulation, Resources, Social Science, Tax Policy, Taxes, Technology, Unemployment, United States Constitution, Videos, War, Wealth, Wisdom | Tags: , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , |

Project_1

The Pronk Pops Show Podcasts

Pronk Pops Shhow 245: April 16, 2014

Pronk Pops Show 244: April 15, 2014

Pronk Pops Show 243: April 14, 2014

Pronk Pops Show 242: April 11, 2014

Pronk Pops Show 241: April 10, 2014

Pronk Pops Show 240: April 9, 2014

Pronk Pops Show 239: April 8, 2014

Pronk Pops Show 238: April 7, 2014

Pronk Pops Show 237: April 4, 2014

Pronk Pops Show 236: April 3, 2014

Pronk Pops Show 235: March 31, 2014

Pronk Pops Show 234: March 28, 2014

Pronk Pops Show 233: March 27, 2014

Pronk Pops Show 232: March 26, 2014

Pronk Pops Show 231: March 25, 2014

Pronk Pops Show 230: March 24, 2014

Pronk Pops Show 229: March 21, 2014

Pronk Pops Show 228: March 20, 2014

Pronk Pops Show 227: March 19, 2014

Pronk Pops Show 226: March 18, 2014

Pronk Pops Show 225: March 17, 2014

Pronk Pops Show 224: March 7, 2014

Pronk Pops Show 223: March 6, 2014

Pronk Pops Show 222: March 3, 2014

Pronk Pops Show 221: February 28, 2014

Pronk Pops Show 220: February 27, 2014

Pronk Pops Show 219: February 26, 2014

Pronk Pops Show 218: February 25, 2014

Pronk Pops Show 217: February 24, 2014

Pronk Pops Show 216: February 21, 2014

Pronk Pops Show 215: February 20, 2014

Pronk Pops Show 214: February 19, 2014

Pronk Pops Show 213: February 18, 2014

Pronk Pops Show 212: February 17, 2014

Pronk Pops Show 211: February 14, 2014

Pronk Pops Show 210: February 13, 2014

Pronk Pops Show 209: February 12, 2014

Pronk Pops Show 208: February 11, 2014

Pronk Pops Show 207: February 10, 2014

Pronk Pops Show 206: February 7, 2014

Pronk Pops Show 205: February 5, 2014

Pronk Pops Show 204: February 4, 2014

Pronk Pops Show 203: February 3, 2014

Pronk Pops Show 202: January 31, 2014

Pronk Pops Show 201: January 30, 2014

Pronk Pops Show 200: January 29, 2014

Pronk Pops Show 199: January 28, 2014

Pronk Pops Show 198: January 27, 2014

Pronk Pops Show 197: January 24, 2014

Pronk Pops Show 196: January 22, 2014

Pronk Pops Show 195: January 21, 2014

Pronk Pops Show 194: January 17, 2014

Pronk Pops Show 193: January 16, 2014

Pronk Pops Show 192: January 14, 2014

Pronk Pops Show 191: January 13, 2014

Pronk Pops Show 190: January 10, 2014

Pronk Pops Show 189: January 9, 2014

Pronk Pops Show 188: January 8, 2014

Pronk Pops Show 187: January 7, 2014

Pronk Pops Show 186: January 6, 2014

Pronk Pops Show 185: January 3, 2014

FairTax.org

“The Case for the Fair Tax”

The FairTax: It’s Time

Freedom from the IRS! – FairTax Explained – Educate Yourself!

FairTax explained – a 2 minute introduction

What is the FairTax legislation?

How is the FairTax collected?

How does the FairTax affect the economy?

How does the FairTax rate compare to today’s?

Can I pretend to be a business to avoid the sales tax?

Do corporations get a windfall break from the FairTax?

What is the impact of the FairTax on business?

If people bring home their whole paychecks how can prices fall?

Does the FairTax protect privacy and other civil liberties?

What assumptions does the FairTax make about government spending?

Why is the FairTax better than a flat income tax?

Is consumption a reliable source of revenue?

Is the FairTax rate really 23%?

How do we keep exemptions and exclusions from undermining the FairTax?

How does the FairTax impact retailers?

How will used goods be taxed?

How will the FairTax affect state sales tax systems?

What will happen to government programs like Social Security and Medicare?

How will Social Security payments be calculated under the FairTax?

How does the FairTax impact the middle class?

How will the FairTax impact seniors?

How does the FairTax impact savings?

Will the FairTax drive the economy down if people stop buying?

How does the FairTax affect tax preparers and CPAs?

How will the FairTax affect state sales tax systems?

If people bring home their whole paychecks how can prices fall?

Isn’t it a stretch to say the IRS will go away?

Will the FairTax lead to a massive underground economy?

How does the “prebate” work?

Is it fair for rich people to get the same prebate as poor people?

Wouldn’t it be more fair to exempt food and medicine from the FairTax?

Will the prebate create a massive new entitlement system?

Is the FairTax truly progressive?

How does the FairTax affect compliance costs?

How will the FairTax help people who don’t hire an accountant?

How can you tax life saving medical treatment?

How does the FairTax impact charitable giving?

Will government pay taxes under the FairTax?

What will the transition be like from the income tax to the FairTax?

Will the FairTax hurt home ownership with no mortgage interest deduction?

Is education taxed under the FairTax?

Are any significant economies funded by a sales tax?

What will happen to cities who depend on tax free bonds?

Can’t Americans just cross the border to avoid the FairTax

How does the FairTax affect illegal immigration?

How is the FairTax different from a Value Added Tax (VAT)?

Dave Ramsey Supports the Fair Tax

Neal Boortz Explain the FAIRTAX

Rob Woodall Floor Speech: The FairTax will bring jobs back to America.

Woodall: Taxing consumption instead of taxing income will grow the American economy.

Flat Tax vs. National Sales Tax

Grover Norquist: Flat Tax vs Fair Tax

Fair Tax Presentation

FairTax Show – Part 1

FairTax Show – Part 2

FairTax Show – Part 3

FairTax: Fire Up Our Economic Engine (Official HD)

My FAIRTAX Story_Paul Wizikowski

Woodall FairTax Special Order

 

Congressman John Linder, Father of the FairTax

John Linder devoted some 35 years of his life to public service, starting in the Georgia House of Representatives in 1975, and in Congress 1993 – 2011. Linder is nationally known as the father of the FairTax Act which he sponsored in Washington. Linder and radio commentator Neal Boortz wrote two books about why the FairTax is fairer than current taxation schemes. Linder spoke to the Public Policy Foundation on May 21, 1993, just a few months after he was sworn into Congress for the first of his nine terms.

 

FairTax.org

 

 

Background Information and Videos

FairTax

From Wikipedia, the free encyclopedia
The FairTax is a proposal to reform the federal tax code of the United States. It would replace all federal income taxes (including the alternative minimum taxcorporate income taxes, and capital gains taxes), payroll taxes(including Social Security and Medicare taxes), gift taxes, and estate taxes with a single broad national consumption tax on retail sales. The Fair Tax Act (H.R. 25/S. 122) would apply a tax, once, at the point of purchase on all new goods and services for personal consumption. The proposal also calls for a monthly payment to all family households of lawful U.S. residents as an advance rebate, or “prebate”, of tax on purchases up to the poverty level.[1][2] First introduced into the United States Congress in 1999, a number of congressional committees have heard testimony on the bill; however, it has not moved from committee and has yet to have any effect on the tax system. In recent years, a tax reform movement has formed behind the FairTax proposal.[3] Increased attention was created after talk radio personality Neal Boortz and Georgia Congressman John Linderpublished The FairTax Book in 2005 and additional visibility was gained in the 2008 presidential campaign.As defined in the legislation, the tax rate is 23% for the first year. This percentage is based on the total amount paid including the tax ($23 out of every $100 spent in total). This would be equivalent to a 30% traditional U.S. sales tax ($23 on top of every $77 spent—$100 total).[4] The rate would then be automatically adjusted annually based on federal receipts in the previous fiscal year.[5] With the rebate taken into consideration, the FairTax would be progressive on consumption,[2] but would also be regressive on income at higher income levels (as consumption falls as a percentage of income).[6][7] Opponents argue this would accordingly decrease the tax burden on high-income earners and increase it on the middle class.[4][8] Supporters contend that the plan would effectively tax wealth, increase purchasing power,[9][10] and decrease tax burdens by broadening the tax base.The plan’s supporters believe that a consumption tax would have a positive effect on savings and investment, that it would ease tax compliance, and that the tax would result in increased economic growth, incentives forinternational business to locate in the U.S., and increased U.S. competitiveness in international trade.[11][12][13] The plan is intended to increase cost transparency for funding the federal government, and supporters believe it would have positive effects on civil liberties, the environment, and advantages with taxing illegal activity and undocumented immigrants.[11][14] Opponents contend that a consumption tax of this size would be extremely difficult to collect, and would lead to pervasive tax evasion.[4][6] They also argue that the proposed sales tax rate would raise less revenue than the current tax system, leading to an increased budget deficit.[4][15]There are also concerns regarding the proposed repeal of the Sixteenth Amendment, removal of tax deduction incentives, transition effects on after-tax savings, incentives on credit use, and the loss of tax advantages tostate and local bonds.

 

Legislative overview and history

Rep John Linder holding the 133 page Fair Tax Act of 2007 in contrast to the then-current U.S. tax code and IRS regulations.

The Fair Tax Act is designed to replace all federal income taxes (including the alternative minimum taxcorporate income taxes, and capital gains taxes), payroll taxes (including Social Security and Medicare taxes), gift taxes, andestate taxes with a national retail sales tax on new goods and services. The legislation would remove the Internal Revenue Service (after three years), and establish an Excise Tax Bureau and a Sales Tax Bureau in the Department of the Treasury.[16] The states are granted the primary authority for the collection of sales tax revenues and the remittance of such revenues to the Treasury. The plan was created by Americans For Fair Taxation, an advocacy group formed to change the tax system. The group states that, together with economists, it developed the plan and the name “Fair Tax”, based on interviews, polls, and focus groups of the general public.[4] The FairTax legislation has been introduced in the House by Georgia Republicans John Linder (1999–2010) and Rob Woodall (2011-2014), while being introduced in the Senate by Georgia Republican Saxby Chambliss (2003-2014).

Linder first introduced the Fair Tax Act (H.R. 2525) on July 14, 1999 to the 106th United States Congress and a substantially similar bill has been reintroduced in each subsequent session of Congress. The bill attracted a total of 56 House and Senate cosponsors in the 108th Congress,[17][18] 61 in the 109th,[19][20] 76 in the 110th,[21][22] 70 in the 111th,[23][24] 78 in the 112th,[25][26] and 81 in the 113th (H.R. 25/S. 122). Former Speaker of the HouseDennis Hastert (Republican) had cosponsored the bill in the 109th–110th Congress, but it has not received support from the Democratic leadership, which still controls the Senate.[20][21][27] Democratic Representative Collin Peterson of Minnesota and Democratic Senator Zell Miller of Georgia cosponsored and introduced the bill in the 108th Congress, but Peterson is no longer cosponsoring the bill and Miller has left the Senate.[17][18] In the 109th–111th Congress, Representative Dan Boren has been the only Democrat to cosponsor the bill.[19][21] A number of congressional committees have heard testimony on the FairTax, but it has not moved from committee since its introduction in 1999. The legislation was also discussed with President George W. Bush and his Secretary of the Treasury Henry M. Paulson.[28]

To become law, the bill will need to be included in a final version of tax legislation from the U.S. House Committee on Ways and Means, pass both the House and the Senate, and finally be signed by the President. In 2005, President Bush established an advisory panel on tax reform that examined several national sales tax variants including aspects of the FairTax and noted several concerns. These included uncertainties as to the revenue that would be generated, and difficulties of enforcement and administration, which made this type of tax undesirable to recommend in their final report.[8] The panel did not examine the Fairtax as proposed in the legislation. The FairTax received visibility in the 2008 presidential election on the issue of taxes and the IRS, with several candidates supporting the bill.[29][30] A poll in 2009 by Rasmussen Reports found that 43% of Americans would support a national sales tax replacement, with 38% opposed to the idea; the sales tax was viewed as fairer by 52% of Republicans, 44% of Democrats, and 49% of unaffiliateds.[31] President Barack Obama does not support the bill,[32] arguing for more progressive changes to the income and payroll tax systems.

Tax rate

The sales tax rate, as defined in the legislation for the first year, is 23% of the total payment including the tax ($23 of every $100 spent in total—calculated similar to income taxes). This would be equivalent to a 30% traditional U.S. sales tax ($23 on top of every $77 spent—$100 total, or $30 on top of every $100 spent—$130 total).[4] After the first year of implementation, this rate is automatically adjusted annually using a predefined formula reflecting actual federal receipts in the previous fiscal year.

The effective tax rate for any household would be variable due to the fixed monthly tax rebate that are used to rebate taxes paid on purchases up to the poverty level.[2] The tax would be levied on all U.S. retail sales for personal consumption on new goods andservices. Critics argue that the sales tax rate defined in the legislation would not be revenue neutral (that is, it would collect less for the government than the current tax system), and thus would increase the budget deficit, unless government spending were equally reduced.[4]

Sales tax rate

During the first year of implementation, the FairTax legislation would apply a 23% federal retail sales tax on the total transaction value of a purchase; in other words, consumers pay to the government 23 cents of every dollar spent in total (sometimes called tax-inclusive, and presented this way to provide a direct comparison with individual income and employment taxes which reduce a person’s available money before they can make purchases). The equivalent assessed tax rate is 30% if the FairTax is applied to the pre-tax price of a good like traditional U.S. state sales taxes (sometimes called tax-exclusive; this rate is not directly comparable with existing income and employment taxes).[4] After the first year of implementation, this tax rate would be automatically adjusted annually using a formula specified in the legislation that reflects actual federal receipts in the previous fiscal year.[5]

Effective tax rate

A household’s effective tax rate on consumption would vary with the annual expenditures on taxable items and the fixed monthly tax rebate. The rebate would have the greatest effect at low spending levels, where they could lower a household’s effective rate to zero or below.[33] The lowest effective tax rate under the FairTax could be negative due to the rebate for households with annual spending amounts below poverty level spending for a specified household size. At higher spending levels, the rebate has less impact, and a household’s effective tax rate would approach 23% of total spending. A person spending at the poverty level would have an effective tax rate of 0%, whereas someone spending at four times the poverty level would have an effective tax rate of 17.2%.[33] Buying or otherwise receiving items and services not subject to federal taxation (such as a used home or car) can contribute towards a lower effective tax rate. The total amount of spending and the proportion of spending allocated to taxable items would determine a household’s effective tax rate on consumption.[33] If a rate is calculated on income, instead of the tax base, the percentage could exceed the statutory tax rate in a given year.

Monthly tax rebate[edit]

Proposed 2012 FairTax Prebate Schedule[34]
One adult household Two adult household
Family
Size
Annual
Consumption
Allowance
Annual
Prebate
Monthly
Prebate
Family
Size
Annual
Consumption
Allowance
Annual
Prebate
Monthly
Prebate
1 person $11,170 $2,569 $214 couple $22,340 $5,138 $428
and 1 child $15,130 $3,480 $290 and 1 child $26,300 $6,049 $504
and 2 children $19,090 $4,391 $366 and 2 children $30,260 $6,960 $580
and 3 children $23,050 $5,302 $442 and 3 children $34,220 $7,871 $656
and 4 children $27,010 $6,212 $518 and 4 children $38,180 $8,781 $732
and 5 children $30,970 $7,123 $594 and 5 children $42,140 $9,692 $808
and 6 children $34,930 $8,034 $699 and 6 children $46,100 $10,603 $884
and 7 children $38,890 $8,945 $745 and 7 children $50,060 $11,514 $959
The annual consumption allowance is based on the 2012 DHHS Poverty Guidelines as published in theFederal Register, January 26, 2012. There is no marriage penalty as the couple amount is twice the amount that a single adult receives. For each additional child above 7, add $3,960 to the annual consumption allowance, $911 to the annual rebate, and $76 to the monthly rebate amount. The annual consumption allowance is the amount of spending that is “untaxed” under the FairTax. Note: Alaska and Hawaii have different poverty levels and would have different FairTax rebate amounts.

Under the FairTax, family households of lawful U.S. residents would be eligible to receive a “Family Consumption Allowance” (FCA) based on family size (regardless of income) that is equal to the estimated total FairTax paid on poverty level spending according to the poverty guidelines published by the U.S. Department of Health and Human Services.[1] The FCA is a tax rebate (known as a “prebate” as it would be an advance) paid in twelve monthly installments, adjusted for inflation. The rebate is meant to eliminate the taxation of household necessities and make the plan progressive.[4] Households would register once a year with their sales tax administering authority, providing the names and social security numbers of each household member.[1] The Social Security Administration would disburse the monthly rebate payments in the form of a paper check via U.S. Mail, an electronic funds transfer to a bank account, or a “smartcard” that can be used like a debit card.[1]

Opponents of the plan criticize this tax rebate due to its costs. Economists at the Beacon Hill Institute estimated the overall rebate cost to be $489 billion (assuming 100% participation).[35] In addition, economist Bruce Bartlett has argued that the rebate would create a large opportunity for fraud,[36] treats children disparately, and would constitute a welfarepayment regardless of need.[37]

The President’s Advisory Panel for Federal Tax Reform cited the rebate as one of their chief concerns when analyzing their national sales tax, stating that it would be the largestentitlement program in American history, and contending that it would “make most American families dependent on monthly checks from the federal government”.[8][38] Estimated by the advisory panel at approximately $600 billion, “the Prebate program would cost more than all budgeted spending in 2006 on the Departments of Agriculture, Commerce, Defense, Education, Energy, Homeland Security, Housing and Urban Development, and Interior combined.”[8] Proponents point out that income tax deductions, tax preferences, loopholescredits, etc. under the current system was estimated at $945 billion by the Joint Committee on Taxation.[35] They argue this is $456 billion more than the FairTax “entitlement” (tax refund) would spend to cover each person’s tax expenses up to the poverty level. In addition, it was estimated for 2005 that the Internal Revenue Service was already sending out $270 billion in refund checks.[35]

Presentation of tax rate

Mathematically, a 23% tax out of $100 yields the same as a 30% tax on $77.

Sales and income taxes behave differently due to differing definitions of tax base, which can make comparisons between the two confusing. Under the existing individual income plus employment (Social Security; Medicare; Medicaid) tax formula, taxes to be paid are included in the base on which the tax rate is imposed (known as tax-inclusive). If an individual’s gross income is $100 and the sum of their income plus employment tax rate is 23%, taxes owed equals $23. Traditional state sales taxes are imposed on a tax base equal to the pre-tax portion of a good’s price (known as tax-exclusive). A good priced at $77 with a 30% sales tax rate yields $23 in taxes owed. To adjust an inclusive rate to an exclusive rate, divide the given rate by one minus that rate (i.e. .23/.77 = .30).

The FairTax statutory rate, unlike most U.S. state-level sales taxes, is presented on a tax base that includes the amount of FairTax paid. For example, a final after-tax price of $100 includes $23 of taxes. Although no such requirement is included in the text of the legislation, Congressman John Linder has stated that the FairTax would be implemented as an inclusive tax, which would include the tax in the retail price, not added on at checkout—an item on the shelf for five dollars would be five dollars total.[28][39] The legislation requires the receipt to display the tax as 23% of the total.[40] Linder states the FairTax is presented as a 23% tax rate for easy comparison to income and employment tax rates (the taxes it would be replacing). The plan’s opponents call the semantics deceptive. FactCheck called the presentation misleading, saying that it hides the real truth of the tax rate.[41] Bruce Bartlett stated that polls show tax reform support is extremely sensitive to the proposed rate,[37] and called the presentation confusing and deceptive based on the conventional method of calculating sales taxes.[42] Proponents believe it is both inaccurate and misleading to say that an income tax is 23% and the FairTax is 30% as it implies that the sales tax burden is higher.

Revenue neutrality

A key question surrounding the FairTax is whether the tax has the ability to be revenue-neutral; that is, whether the tax would result in an increase or reduction in overall federal tax revenues. Economists, advisory groups, and political advocacy groups disagree about the tax rate required for the FairTax to be truly revenue-neutral. Various analysts use different assumptions, time-frames, and methods resulting in dramatically different tax rates making direct comparison among the studies difficult. The choice between static ordynamic scoring further complicates any estimate of revenue-neutral rates.[43]

A 2006 study published in Tax Notes by the Beacon Hill Institute at Suffolk University and Dr. Laurence Kotlikoff estimated the FairTax would be revenue-neutral for the tax year 2007 at a rate of 23.82% (31.27% tax-exclusive).[44] The study states that purchasing power is transferred to state and local taxpayers from state and local governments. To recapture the lost revenue, state and local governments would have to raise tax rates or otherwise change tax laws in order to continue collecting the same real revenues from their taxpayers.[38][44] The Argus Group and Arduin, Laffer & Moore Econometrics each published an analysis that defended the 23% rate.[45][46][47] While proponents of the FairTax concede that the above studies did not explicitly account for tax evasion, they also claim that the studies did not altogether ignore tax evasion under the FairTax. These studies presumably incorporated some degree of tax evasion in their calculations by using National Income and Product Account based figures, which is argued to understate total household consumption.[44] The studies also did not account for capital gains that may be realized by the U.S. government if consumer prices were allowed to rise, which would reduce the real value of nominal U.S. government debt.[44] Nor did these studies account for any increased economic growth that many economists researching the plan believe would occur.[44][47][48][49]

In contrast to the above studies, William G. Gale of the Brookings Institution published a study in Tax Notes that estimated a rate of 28.2% (39.3% tax-exclusive) for 2007 assuming full taxpayer compliance and an average rate of 31% (44% tax-exclusive) from 2006–2015 (assumes that the Bush tax cuts expire on schedule and accounts for the replacement of an additional $3 trillion collected through the Alternative Minimum Tax).[4][15][50] The study also concluded that if the tax base were eroded by 10% due to tax evasion, tax avoidance, and/or legislative adjustments, the average rate would be 34% (53% tax-exclusive) for the 10 year period. A dynamic analysis in 2008 by the Baker Institute For Public Policy concluded that a 28% (38.9% tax-exclusive) rate would be revenue neutral for 2006.[51] The President’s Advisory Panel for Federal Tax Reform performed a 2006 analysis to replace the individual and corporate income tax with a retail sales tax and estimated the rate to be 25% (34% tax-exclusive) assuming 15% tax evasion, and 33% (49% tax-exclusive) with 30% tax evasion.[8] The rate would need to be substantially higher to replace the additional taxes replaced by the FairTax (payroll, estate, and gift taxes). Several economists criticized the President’s Advisory Panel’s study as having allegedly altered the terms of the FairTax, using unsound methodology, and/or failing to fully explain their calculations.[35][44][52]

Taxable items and exemptions

The tax would be levied once at the final retail sale for personal consumption on new goods and services. Purchases of used items, exports and business-to-business intermediate transactions would not be taxed. Also excluded are investments, such as purchases ofstock, corporate mergers and acquisitions and capital investmentsSavings and education tuition expenses would be exempt as they would be considered an investment (rather than final consumption).[53]

A good would be considered “used” and not taxable if a consumer already owns it before the FairTax takes effect or if the FairTax has been paid previously on the good, which may be different from the item being sold previously. Personal services such as health care, legal services, financial services, and auto repairs would be subject to the FairTax, as would renting apartments and other real property.[4] Food, clothing, prescription drugs and medical services would be taxed. (State sales taxes generally exempt these types of basic-need items in an effort to reduce the tax burden on low-income families. The FairTax would use a monthly rebate system instead of the common state exclusions.) Internet purchases would be taxed, as would retail international purchases (such as a boat or car) that are imported to the United States (collected by the U.S. Customs and Border Protection).[53]

Distribution of tax burden

Boston University study of the FairTax. Lower rates claimed on workers from a larger tax base, replacing regressive taxes, and wealth taxation.

President’s Advisory Panel’s analysis of a hybrid National Sales Tax. Higher rates claimed on the middle-class for an income tax replacement (excludes payroll, estate, and gift taxes replaced under the FairTax).

The FairTax’s effect on the distribution of taxation or tax incidence (the effect on the distribution of economic welfare) is a point of dispute. The plan’s supporters argue that the tax would broaden the tax base, that it would be progressive, and that it would decrease tax burdens and start taxing wealth (reducing the economic gap).[9][54] Opponents argue that a national sales tax would be inherently regressiveand would decrease tax burdens paid by high-income individuals.[4][55] A person earning $2 million a year could live well spending $1 million, and as a result pay a mere 11% of that year’s income in taxes.[4]Households at the lower end of the income scale spend almost all their income, while households at the higher end are more likely to devote a portion of income to saving. Therefore, according to economistWilliam G. Gale, the percentage of income taxed is regressive at higher income levels (as consumption falls as a percentage of income).[6]

Income earned and saved would not be taxed until spent under the proposal. Households at the extreme high end of consumption often finance their purchases out of savings, not income.[6][37] EconomistLaurence Kotlikoff states that the FairTax could make the tax system much more progressive and generationally equitable,[2] and argues that taxing consumption is effectively the same as taxing wages plus taxing wealth.[2] A household of three persons (this example will use two adults of any gender plus one child; the rebate does not consider marital status) spending $30,000 a year on taxable items would devote about 3.4% of total spending ( [$6,900 tax minus $5,888 rebate]/$30,000 spending ) to the FairTax after the rebate. The same household spending $125,000 on taxable items would spend around 18.3% ( [$28,750 tax minus $5,888 rebate]/$125,000 spending ) on the FairTax. At higher spending levels, the rebate has less impact and the rate approaches 23% of total spending. Thus, according to economist Laurence Kotlikoff, the effective tax rate is progressive on consumption.[2]

Studies by Kotlikoff and Daivd Rapson state that the FairTax would significantly reduce marginal taxes on work and saving, lowering overall average remaining lifetime tax burdens on current and future workers.[9][56] A study by Kotlikoff and Sabine Jokisch concluded that the long term effects of the FairTax would reward low-income households with 26.3% more purchasing power, middle-income households with 12.4% more purchasing power, and high-income households with 5% more purchasing power.[10] The Beacon Hill Institute reported that the FairTax would make the federal tax system more progressive and would benefit the average individual in almost all expenditures deciles.[7] In another study, they state the FairTax would offer the broadest tax base (an increase of over $2 trillion), which allows the FairTax to have a lower tax rate than current tax law.[57]

Gale analyzed a national sales tax (though different from the FairTax in several aspects[7][45]) and reported that the overall tax burden on middle-income Americans would increase while the tax burden on the top 1% would drop.[6] A study by the Beacon Hill Institute reported that the FairTax may have a negative effect on the well-being of mid-income earners for several years after implementation.[49]According to the President’s Advisory Panel for Federal Tax Reform report, which compared the individual and corporate income tax (excluding other taxes the FairTax replaces) to a sales tax with rebate,[8][35] the percentage of federal taxes paid by those earning from $15,000–$50,000 would rise from 3.6% to 6.7%, while the burden on those earning more than $200,000 would fall from 53.5% to 45.9%.[8] The report states that the top 5% of earners would see their burden decrease from 58.6% to 37.4%.[8][58] FairTax supporters argue that replacing the regressive payroll tax (a 15.3% total tax not included in the Tax Panel study;[8] payroll taxes include a 12.4% Social Security tax on wages up to $97,500 and a 2.9% Medicare tax, a 15.3% total tax that is often split between employee and employer) greatly changes the tax distribution, and that the FairTax would relieve the tax burden on middle-class workers.[2][52]

Predicted effects

The predicted effects of the FairTax are a source of disagreement among economists and other analysts.[41][42][55] According to Money magazine, while many economists and tax experts support the idea of a consumption tax, many of them view the FairTax proposal as having serious problems with evasion and revenue neutrality.[4] Some economists argue that a consumption tax (the FairTax is one such tax) would have a positive effect on economic growth, incentives for international business to locate in the U.S., and increased U.S. international competitiveness (border tax adjustment in global trade).[11][12][13] The FairTax would be tax-free on mortgage interest (up to a basic interest rate) and donations, but some law makers have concerns about losing tax incentives on home ownership and charitable contributions.[59] There is also concern about the effect on the income tax industry and the difficulty of repealing the Sixteenth Amendment (to prevent Congress from re-introducing an income tax).[60]

Economic

For more details on this topic, see Predicted effects of the FairTax: Economic effects

Americans For Fair Taxation states the FairTax would boost the United States economy and offers a letter signed by eighty economists, including Nobel Laureate Vernon L. Smith, that have endorsed the plan.[12] The Beacon Hill Institute estimated that within five years real GDP would increase 10.7% over the current system, domestic investment by 86.3%, capital stock by 9.3%, employment by 9.9%, real wages by 10.2%, and consumption by 1.8%.[49] Arduin, Laffer & Moore Econometrics projected the economy as measured by GDP would be 2.4% higher in the first year and 11.3% higher by the 10th year than it would otherwise be.[47] Economists Laurence Kotlikoff and Sabine Jokisch reported the incentive to work and save would increase; by 2030, the economy’s capital stock would increase by 43.7% over the current system, output by 9.4%, and real wages by 11.5%.[10] Economist John Golob estimates a consumption tax, like the FairTax, would bring long-term interest rates down by 25–35%.[61] An analysis in 2008 by the Baker Institute For Public Policy indicated that the plan would generate significant overall macroeconomic improvement in both the short and long-term, but warned of transitional issues.[51]

FairTax proponents argue that the proposal would provide tax burden visibility and reduce compliance and efficiency costs by 90%, returning a large share of money to the productive economy.[2] The Beacon Hill Institute concluded that the FairTax would save $346.51 billion in administrative costs and would be a much more efficient taxation system.[62] Bill Archer, former head of the House Ways and Means Committee, asked Princeton University Econometrics to survey 500 European and Asian companies regarding the effect on their business decisions if the United States enacted the FairTax. 400 of those companies stated they would build their next plant in the United States, and 100 companies said they would move their corporate headquarters to the United States.[63] Supporters argue that the U.S. has the highest combined statutory corporate income tax rate among OECD countries along with being the only country with no border adjustment element in its tax system.[64][65] Proponents state that because the FairTax eliminates corporate income taxes and is automatically border adjustable, the competitive tax advantage of foreign producers would be eliminated, immediately boosting U.S. competitiveness overseas and at home.[66]

Opponents point to a study commissioned by the National Retail Federation in 2000 that found a national sales tax bill filed by Billy Tauzin, the Individual Tax Freedom Act (H.R. 2717), would bring a three-year decline in the economy, a four-year decline in employment and an eight-year decline in consumer spending.[67] Wall Street Journal columnist James Taranto states the FairTax is unsuited to take advantage of supply-side effects and would create a powerful disincentive to spend money.[55] John Linder states an estimated $11 trillion is held in foreign accounts (largely for tax purposes), which he states would be repatriated back to U.S. banks if the FairTax were enacted, becoming available to U.S. capital markets, bringing down interest rates, and otherwise promoting economic growth in the United States.[11] Attorney Allen Buckley states that a tremendous amount of wealth was already repatriated under law changes in 2004 and 2005.[68] Buckley also argues that if the tax rate was significantly higher, the FairTax would discourage the consumption of new goods and hurt economic growth.[68]

Transition

For more details on this topic, see Predicted effects of the FairTax: Transition effects

Stability of the Tax Base: A comparison of Personal Consumption Expenditures and Adjusted Gross Income.

During the transition, many or most of the employees of the IRS (105,978 in 2005)[69] would face loss of employment.[44] The Beacon Hill Institute estimate is that the federal government would be able to cut $8 billion from the IRS budget of $11.01 billion (in 2007), reducing the size of federal tax administration by 73%.[44] In addition, income tax preparers (many seasonal), tax lawyers, tax compliance staff in medium-to-large businesses, and software companies which sell tax preparation software could face significant drops, changes, or loss of employment. The bill would maintain the IRS for three years after implementation before completely decommissioning the agency, providing employees time to find other employment.[16]

In the period before the FairTax is implemented, there could be a strong incentive for individuals to buy goods without the sales tax using credit. After the FairTax is in effect, the credit could be paid off using untaxed payroll. If credit incentives do not change, opponents of the FairTax worry it could exacerbate an existing consumer debt problem.[70] Proponents of the FairTax state that this effect could also allow individuals to pay off their existing (pre-FairTax) debt more quickly,[11] and studies suggest lower interest rates after FairTax passage.[61]

Individuals under the current system who accumulated savings from ordinary income (by choosing not to spend their money when the income was earned) paid taxes on that income before it was placed in savings (such as a Roth IRA or CD). When individuals spend above the poverty level with money saved under the current system, that spending would be subject to the FairTax. People living through the transition may find both their earnings and their spending taxed.[71] Critics have stated that the FairTax would result in unfair double taxation for savers and suggest it does not address the transition effect on some taxpayers who have accumulated significant savings from after-tax dollars, especially retirees who have finished their careers and switched to spending down their life savings.[38][71] Supporters of the plan argue that the current system is no different, since compliance costs and “hidden taxes” embedded in the prices of goods and services cause savings to be “taxed” a second time already when spent.[71] The rebate would supplement accrued savings, covering taxes up to the poverty level. The income taxes on capital gains, estates, social security and pension benefits would be eliminated under FairTax. In addition, the FairTax legislation adjusts Social Security benefits for changes in the price level, so a percentage increase in prices would result in an equal percentage increase to Social Security income.[16] Supporters suggest these changes would offset paying the FairTax under transition conditions.[11]

Other indirect effects

For more details on this topic, see Predicted effects of the FairTax: Other indirect effects

The FairTax would be tax free on mortgage interest up to the federal borrowing rate for like-term instruments as determined by the Treasury,[72] but since savings, education, and other investments would be tax free under the plan, the FairTax could decrease the incentive to spend more on homes. An analysis in 2008 by the Baker Institute For Public Policy concluded that the FairTax would have significant transitional issues for the housing sector since the investment would no longer be tax-favored.[51] In a 2007 study, the Beacon Hill Institute concluded that total charitable giving would increase under the FairTax, although increases in giving would not be distributed proportionately amongst the various types of charitable organizations.[73] The FairTax may also affect state and local government debt as the federal income tax system provides tax advantages to municipal bonds.[74] Proponents believe environmental benefits would result from the FairTax through environmental economics and the re-use and re-sale of used goods.[75] Former Senator Mike Gravel states the significant reduction of paperwork for IRS compliance and tax forms is estimated to save about 300,000 trees each year.[75] Advocates argue the FairTax would provide an incentive for illegal immigrants to legalize as they would otherwise not receive the rebate.[1][11] Proponents also believe that the FairTax would have positive effects on civil liberties that are sometimes charged against the income tax system, such as social inequalityeconomic inequalityfinancial privacyself-incrimination,unreasonable search and seizureburden of proof, and due process.[14][76]

If the FairTax bill were passed, permanent elimination of income taxation would not be guaranteed; the FairTax bill would repeal much of the existing tax code, but the Sixteenth Amendment would remain in place. Preventing new legislation from reintroducing income taxation would require a repeal of the Sixteenth Amendment to the United States Constitution with a separate provision expressly prohibiting a federal income tax.[60] This is referred to as an “aggressive repeal”. Separate income taxes enforced by individual states would be unaffected by the federal repeal. Passing the FairTax would require only a simple majority in each house of the United States Congress along with the signature of the President, whereas enactment of a constitutional amendment must be approved by two thirds of each house of the Congress, and three-quarters of the individual U.S. states. It is therefore possible that passage of the FairTax bill would simply add another taxation system. If a new income tax bill were passed after the FairTax passage, a hybrid system could develop; albeit, there is nothing preventing a bill for a hybrid system today. To address this issue and preclude that possibility, in the 111th Congress John Linder introduced a contingent sunset provision in H.R. 25. It would require the repeal of the Sixteenth Amendment within 8 years after the implementation of the FairTax or, failing that, the FairTax would expire.[77] Critics have also argued that a tax on state government consumption could be unconstitutional.[68]

Changes in the retail economy

See also: Tax: Economics of taxationEffect of taxes and subsidies on price

Since the FairTax would not tax used goods, the value would be determined by the supply and demand in relation to new goods.[78] The price differential/margins between used and new goods would stay consistent, as the cost and value of used goods are in direct relationship to the cost and value of the new goods. Because the U.S. tax system has a hidden effect on prices, it is expected that moving to the FairTax would decrease production costs from the removal of business taxes and compliance costs, which is predicted to offset a portion of the FairTax effect on prices.[11]

Value of used goods

Since the FairTax would not tax used goods, some critics have argued that this would create a differential between the price of new and used goods, which may take years to equalize.[37] Such a differential would certainly influence the sale of new goods like vehicles and homes. Similarly, some supporters have claimed that this would create an incentive to buy used goods, creating environmental benefits of re-use and re-sale.[75] Conversely, it is argued that like the income tax system that contains embedded tax cost (seeTheories of retail pricing),[79] used goods would contain the embedded FairTax cost.[71] While the FairTax would not be applied to the retail sales of used goods, the inherent value of a used good includes the taxes paid when the good was sold at retail. The value is determined by the supply and demand in relation to new goods.[78] The price differential / margins between used and new goods should stay consistent, as the cost and value of used goods are in direct relationship to the cost and value of the new goods.

Theories of retail pricing

supply and demand diagram illustrating taxes’ effect on prices.

Based on a study conducted by Dale Jorgenson, proponents state that production cost of domestic goods and services could decrease by approximately 22% on average after embedded tax costs are removed, leaving the sale nearly the same after taxes. The study concludes that producer prices would drop between 15% and 26% (depending on the type of good/service).[80] Jorgenson’s research included all income and payroll taxes in the embedded tax estimation, which assumes employee take-home pay (net income) remains unchanged from pre-FairTax levels.[4][81] Price and wage changes after the FairTax would largely depend on the response of the Federal Reserve monetary authorities.[28][37][82] Non-accommodation of the money supply would suggest retail prices and take home pay stay the same—embedded taxes are replaced by the FairTax. Full accommodation would suggest prices and incomes rise by the exclusive rate (i.e. 30%)—embedded taxes become windfall gains. Partial accommodation would suggest a varying degree in-between.[28][82]

If businesses provided employees with gross pay (including income tax withholding and the employee share of payroll taxes),[44] Arduin, Laffer & Moore Econometrics estimated production costs could decrease by a minimum of 11.55% (partial accommodation).[47] This reduction would be from the removal of the remaining embedded costs, including corporate taxes, compliance costs, and the employer share of payroll taxes. This decrease would offset a portion of the FairTax amount reflected in retail prices, which proponents suggest as the most likely scenario.[28] Bruce Bartlett states that it is unlikely that nominal wages would be reduced, which he believes would result in a recession, but that the Federal Reserve would likely increase the money supply to accommodate price increases.[37] David Tuerck states “The monetary authorities would have to consider how the degree of accommodation, varying from none to full, would affect the overall economy and how it would affect the well-being of various groups such as retirees.”[82]

Social Security benefits would be adjusted for any price changes due to FairTax implementation.[16] The Beacon Hill Institute states that it would not matter, apart from transition issues, whether prices fall or rise—the relative tax burden and tax rate remains the same.[44] Decreases in production cost would not fully apply to imported products; so according to proponents, it would provide tax advantages for domestic production and increase U.S. competitiveness in global trade (see Border adjustability). To ease the transition, U.S. retailers will receive a tax credit equal to the FairTax on their inventory to allow for quick cost reduction. Retailers would also receive an administrative fee equal to the greater of $200 or 0.25% of the remitted tax as compensation for compliance costs,[83] which amounts to around $5 billion.

Effects on tax code compliance

One avenue for non-compliance is the black market. FairTax supporters state that the black market is largely untaxed under the current tax system. Economists estimate the underground economy in the United States to be between one and three trillion dollars annually.[84][85] By imposing a sales tax, supporters argue that black market activity would be taxed when proceeds from such activity are spent on legal consumption.[86] For example, the sale of illegal narcotics would remain untaxed (instead of being guilty of income tax evasion, drug dealers would be guilty of failing to submit sales tax), but they would face taxation when they used drug proceeds to buy consumer goods such as food, clothing, and cars. By taxing this previously untaxed money, FairTax supporters argue that non-filers would be paying part of their share of what would otherwise be uncollected income and payroll taxes.[11][87]

Other economists and analysts have argued that the underground economy would continue to bear the same tax burden as before.[13][86][87][88] They state that replacing the current tax system with a consumption tax would not change the tax revenue generated from the underground economy—while illicit income is not taxed directly, spending of income from illicit activity results in business income and wages that are taxed.[13][86][87]

Tax compliance and evasion

“No, No! Not That Way”—Political cartoonfrom 1933 commenting on a general sales tax over an income tax.

Proponents state the FairTax would reduce the number of tax filers by about 86% (from 100 million to 14 million) and reduce the filing complexity to a simplified state sales tax form.[52] The Government Accountability Office(GAO), among others, have specifically identified the negative relationship between compliance costs and the number of focal points for collection.[89] Under the FairTax, the federal government would be able to concentrate tax enforcement efforts on a single tax. Retailers would receive an administrative fee equal to the greater of $200 or 0.25% of the remitted tax as compensation for compliance costs.[83] In addition, supporters state that the overwhelming majority of purchases occur in major retail outlets, which are very unlikely to evade the FairTax and risk losing their business licenses.[44] Economic Census figures for 2002 show that 48.5% of merchandise sales are made by just 688 businesses (“Big-Box” retailers). 85.7% of all retail sales are made by 92,334 businesses, which is 3.6% of American companies. In the service sector, approximately 80% of sales are made by 1.2% of U.S. businesses.[28]

The FairTax is a national tax, but can be administered by the states rather than a federal agency,[90] which may have a bearing on compliance as the states’ own agencies could monitor and audit businesses within that state. The 0.25% retained by the states amounts to $5 billion the states would have available for enforcement and administration. For example, California should receive over $500 million for enforcement and administration, which is more than the $327 million budget for the state’s sales and excise taxes.[91] Because the federal money paid to the states would be a percentage of the total revenue collected, John Linder claims the states would have an incentive to maximize collections.[11] Proponents believe that states that choose to conform to the federal tax base would have advantages in enforcement, information sharing, and clear interstate revenue allocation rules.[89][90] A study by the Beacon Hill Institute concluded that, on average, states could more than halve their sales tax rates and that state economies would benefit greatly from adopting a state-level FairTax.[89]

FairTax opponents state that compliance decreases when taxes are not automatically withheld from citizens, and that massive tax evasion could result by collecting at just one point in the economic system.[37] Compliance rates can also fall when taxed entities, rather than a third party, self-report their tax liability. For example, ordinary personal income taxes can be automatically withheld and are reported to the government by a third party. Taxes without withholding and with self-reporting, such as the FairTax, can see higher evasion rates. Economist Jane Gravelle of the Congressional Research Service found studies showing that evasion rates of sales taxes are often above 10%, even when the sales tax rate is in the single digits.[87] Tax publications by the Organisation for Economic Co-operation and Development (OECD), IMF, and Brookings Institution have suggested that the upper limit for a sales tax is about 10% before incentives for evasion become too great to control.[37] According to the GAO, 80% of state tax officials opposed a national sales tax as an intrusion on their tax base.[37]Opponents also raise concerns of legal tax avoidance by spending and consuming outside of the U.S. (imported goods would be subject to collection by the U.S. Customs and Border Protection).[92]

Economists from the University of Tennessee concluded that while there would be many desirable macroeconomic effects, adoption of a national retail sales tax would also have serious effects on state and local government finances.[93] Economist Bruce Bartlett stated that if the states did not conform to the FairTax, they would have massive confusion and complication as to what is taxed by the state and what is taxed by the federal government.[37] In addition, sales taxes have long exempted all but a few services because of the enormous difficulty in taxing intangibles—Bartlett suggests that the state may not have sufficient incentive to enforce the tax.[42] University of Michigan economist Joel Slemrod argues that states would face significant issues in enforcing the tax. “Even at an average rate of around five percent, state sales taxes are difficult to administer.”[94] University of Virginia School of Law professor George Yin states that the FairTax could have evasion issues with export and import transactions.[38] The President’s Advisory Panel for Federal Tax Reform reported that if the federal government were to cease taxing income, states might choose to shift their revenue-raising to income.[8] Absent the Internal Revenue Service, it would be more difficult for the states to maintain viable income tax systems.[8][93]

Underground economy

Opponents of the FairTax argue that imposing a national retail sales tax would drive transactions underground and create a vast underground economy.[4] Under a retail sales tax system, the purchase of intermediate goods and services that are factors of productionare not taxed, since those goods would produce a final retail good that would be taxed. Individuals and businesses may be able to manipulate the tax system by claiming that purchases are for intermediate goods, when in fact they are final purchases that should be taxed. Proponents point out that a business is required to have a registered seller’s certificate on file, and must keep complete records of all transactions for six years. Businesses must also record all taxable goods bought for seven years. They are required to report these sales every month (see Personal vs. business purchases).[40] The government could also stipulate that all retail sellers provide buyers with a written receipt, regardless of transaction type (cash, credit, etc.), which would create a paper trail for evasion with risk of having the buyer turn them in (the FairTax authorizes a reward for reporting tax cheats).[52]

While many economists and tax experts support a consumption tax, problems could arise with using a retail sales tax rather than a value added tax (VAT).[4][37] A VAT imposes a tax at every intermediate step of production, so the goods reach the final consumer with much of the tax already in the price. The retail seller has little incentive to conceal retail sales, since he has already paid much of the good’s tax. Retailers are unlikely to subsidize the consumer’s tax evasion by concealing sales. In contrast, a retailer has paid no tax on goods under a sales tax system. This provides an incentive for retailers to conceal sales and engage in “tax arbitrage” by sharing some of the illicit tax savings with the final consumer. Laurence Kotlikoff has stated that the government could compel firms to report, via 1099-type forms, their sales to other firms, which would provide the same records that arise under a VAT.[52] In the United States, a general sales tax is imposed in 45 states plus the District of Columbia (accounting for over 97% of both population and economic output), which proponents argue provides a large infrastructure for taxing sales that many countries do not have.

Personal versus business purchases

Businesses would be required to submit monthly or quarterly reports (depending on sales volume) of taxable sales and sales tax collected on their monthly sales tax return. During audits, the business would have to produce invoices for the “business purchases” that they did not pay sales tax on, and would have to be able to show that they were genuine business expenses.[40] Advocates state the significant 86% reduction in collection points would greatly increase the likelihood of business audits, making tax evasion behavior much more risky.[52] Additionally, the FairTax legislation has several fines and penalties for non-compliance, and authorizes a mechanism for reporting tax cheats to obtain a reward.[40] To prevent businesses from purchasing everything for their employees, in a family business for example, goods and services bought by the business for the employees that are not strictly for business use would be taxable.[40] Health insurance or medical expenses would be an example where the business would have to pay the FairTax on these purchases. Taxable property and services purchased by a qualified non-profit or religious organization “for business purposes” would not be taxable.[95]

FairTax movement

A FairTax rally in Orlando, Florida on July 28, 2006.

The creation of the FairTax began with a group of businessmen from Houston, Texas, who initially financed what has become the political advocacy group Americans For Fair Taxation (AFFT), which has grown into a large tax reform movement.[3][28] This organization, founded in 1994, claims to have spent over $20 million in research, marketing, lobbying, and organizing efforts over a ten-year period and is seeking to raise over $100 million more to promote the plan.[96] AFFT includes a staff in Houston and a large group of volunteers who are working to get the FairTax enacted. Bruce Bartlett has charged that the FairTax was devised by the Church of Scientology in the early 1990s.[42] Representative John Linder told the Atlanta Journal-Constitution that Bartlett confused the FairTax movement with the Scientology-affiliated Citizens for an Alternative Tax System,[97] which also seeks to abolish the federal income tax and replace it with a national retail sales tax. Leo Linbeck, AFFT Chairman and CEO, stated “As a founder of Americans For Fair Taxation, I can state categorically, however, that Scientology played no role in the founding, research or crafting of the legislation giving expression to the FairTax.”[96]

Much support has been achieved by talk radio personality Neal Boortz.[98] Boortz’s book (co-authored by Georgia Congressman John Linder) entitled The FairTax Book, explains the proposal and spent time atop the New York Times Best Seller list. Boortz stated that he donates his share of the proceeds to charity to promote the book.[98] In addition, Boortz and Linder have organized several FairTax rallies to publicize support for the plan. Other media personalities have also assisted in growing grassroots support including former radio and TV talk show host Larry Elder, radio host and former candidate for the 2012 GOP Presidential Nomination Herman Cain, Fox News and radio host Sean Hannity, and Fox Business Host John Stossel.[99] The FairTax received additional visibility as one of the issues in the 2008 presidential election. At a debate on June 30, 2007, several Republican candidateswere asked about their position on the FairTax and many responded that they would sign the bill into law if elected.[29] The most vocal promoters of the FairTax during the 2008 primary elections were Republican candidate Mike Huckabee and Democratic candidate Mike Gravel. Since 2008, the tax has been popular at Tea Party protests.[100] The Internet, blogosphere, and electronic mailing lists have contributed to promoting, organizing, and gaining support for the FairTax. In the 2012 Republican presidential primary, and his ensuing Libertarian Party presidential run, former Governor of New Mexico and businessman Gary Johnson actively campaigned for the FairTax.[101] Former CEO of Godfather’s Pizza Herman Cain has been promoting the FairTax as a final step in a multiple-phase tax reform.[102] Outside of the United States, the Christian Heritage Party of Canada adopted a FairTax proposal as part of their 2011 election platform[103] but won no seats in that election.

See also

Notes

  1. Jump up to:a b c d e Fair Tax Act, 2009, Chapter 3
  2. Jump up to:a b c d e f g h Kotlikoff, 2005
  3. Jump up to:a b Linbeck statement, 2005
  4. Jump up to:a b c d e f g h i j k l m n o p q Regnier, 2005
  5. Jump up to:a b Fair Tax Act, 2009, Chapter 1
  6. Jump up to:a b c d e Gale, 1998
  7. Jump up to:a b c Tuerk et al., 2007
  8. Jump up to:a b c d e f g h i j k Tax Reform Panel Report, Ch. 9
  9. Jump up to:a b c Kotlikoff and Rapson, 2006
  10. Jump up to:a b c Kotlikoff and Jokisch, 2007
  11. Jump up to:a b c d e f g h i j The FairTax Book
  12. Jump up to:a b c Open Letter to the President
  13. Jump up to:a b c d Auerbach, 2005
  14. Jump up to:a b Sipos, 2007
  15. Jump up to:a b Gale, 2005
  16. Jump up to:a b c d Fair Tax Act, 2009, Title III
  17. Jump up to:a b H.R.25 108th Cosponsors
  18. Jump up to:a b S.1493 108th Cosponsors
  19. Jump up to:a b H.R.25 109th Cosponsors
  20. Jump up to:a b S.25 109th Cosponsors
  21. Jump up to:a b c H.R.25 110th Cosponsors
  22. Jump up^ S.1025 110th Cosponsors
  23. Jump up^ H.R.25 111th Cosponsors
  24. Jump up^ S.296 111th Cosponsors
  25. Jump up^ H.R.25 112th Cosponsors
  26. Jump up^ S.13 112th Cosponsors
  27. Jump up^ Bender, 2005
  28. Jump up to:a b c d e f g Boortz and Linder, 2008
  29. Jump up to:a b Davis, 2007
  30. Jump up^ CBS News, 2007
  31. Jump up^ Rasmussen Reports, 2009
  32. Jump up^ Obama, 2008
  33. Jump up to:a b c Walby, 2005
  34. Jump up^ 2012 prebate
  35. Jump up to:a b c d e Rebuttal to Tax Panel Report, 2006
  36. Jump up^ Bartlett, 2007
  37. Jump up to:a b c d e f g h i j k Bartlett, 2007, Tax Notes
  38. Jump up to:a b c d Yin, 2006, Fla. L. Rev.
  39. Jump up^ Linder and Boortz, 2007
  40. Jump up to:a b c d e Fair Tax Act, 2009, Chapter 5
  41. Jump up to:a b Miller, 2007
  42. Jump up to:a b c d Bartl