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Post 24 Oct 2017, 9:52 am

rayjay
Perhaps you don't understand what I'm saying? That's why I asked for #s. My point is that "living wage" is both complicated and not fulfilled where you are, or maybe anywhere

Oh I understand entirely what you are saying.
You are saying, The problem is too complicated to even attempt to solve.
The problem being that poor people can work at a job full time, and yet they still need outside aid to eat, or house themselves, etc.
If you would like to decrease government handouts and involvement in poor peoples lives, increase the minimum wage. The more money they make for 40 hours week, the less they will need assistance.
That's really not complicated.


As far as your claim that a "living wage" has been attained anywhere.. So its unattainable..
Well, would you agree that "its complicated" and complex. The best way to measure how well a nation is doing has to include the whole population, and especially how well the poorest get along.
Perhaps the Social Progress Index is the best attempt at a holistic measure.

https://www.socialprogressindex.com/results

The US currently ranks 18th...in this index. Denmark is number 1.
The US is by far the richer nation.
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Post 24 Oct 2017, 10:37 am

Freeman:
(1) I understand that you have a good faith belief that the tax plan will be good for the economy and I guess lift everyone's boats but I did want to call your attention to the wealth stratification issue and that this tax plan is almost certainly going to make it worse.


Liberal economists are saying that Trumps corporate tax cuts will increase wages by $1,000 per worker. Conservative ones are saying $3,500 to $9,000. In 1989 the US corporate tax rate was 39% vs. 43% in the OECD. Today the OECD is at 24% but the US hasn't changed. Capital can move across borders very easily so the US has to correct this. Obama should have gotten it done.

2) If the charts are biased I would be happy to see fairer ones. I really never see counter-arguments to arguments on wealth stratification. The other side just stays silent


You are evaluating the economy based on the wrong measure so your solutions are not going to help us where we need help. The most important measure is median family income. The important thing is for the bottom 50% to do better. It's less important how well the top 50% do. After all, Venezuela and MAO's China had much lower wealth stratification but that isn't success. Median family income will show your point, but it will also show that improvements under Reagan and Clinton were strong, but under Obama were weak.

What policies can you think of that will benefit the middle 60% (not the bottom 20% or top 20%).


Lower corporate taxes and much simpler regulation. Really.

(7) The difference in money in politics is that people like the Hunt Brothers and Sheldon Addison (and yes George Soros but there are more on the pro-business side) can invest in politics not for their own personal interest but for ideological reasons and also as an expression of power. They have so much money they can throw it away in influencing politics without hoping for a payback.


So it's better for corporations / unions / individuals to influence policy for pecuniary reasons as opposed to philosophical ones? Public sector unions have massive influence and it is for their personal economic interest, and not yours.

Freeman:
(8) We spend a lot on infrastructure? Maybe but our road, bridges, and transportation system are in decay and our educational system costs a lot more


Perhaps the answer to this paradox is that it is inefficient spending that is benefiting unions but not funding what we really need. Providing even more money may not solve the paradox.
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Post 24 Oct 2017, 11:17 am

Private sectors unions are 6.3% of workers so they are pretty non-existent at this much. Not sure why you think unions representing 6 percent of workers are having such a large impact when 94 percent of workers on the private sector are not unionized. In the public sectors still have power as they represent about 35% of workers there. (went back...are you saying that only public unions have political power, whereas agreeing that private unions are pretty weak at this point?. I missed your emphasis on public unions.)

A minimum wage increase raises incomes by $2,000 for a poor family for every dollar raised. And it will probably caused an upward shift on wages for those making above the minimum wage so I am not that impressed with a $1,000 increase in wages, particularly when we have to pay that back in higher taxes due to higher deficits. I think you would be hard pressed to find most economists thinking that the Trump's tax plan will be revenue neutral. Here is an assessment by someone who liked the 1986 tax reforms (but not the 1981 ones) and thinks this plan is very corporate friendly.

https://www.google.com/amp/s/www.bloomb ... n-tax-cuts
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Post 24 Oct 2017, 3:29 pm

Freeman:
(went back...are you saying that only public unions have political power, whereas agreeing that private unions are pretty weak at this point?. I missed your emphasis on public unions.)
Yes.

I'm under the impression that most minimum wages earners are at their state's higher level, and not the fed rate. So, the feds can raise rates in the middle and south of the country, but that wouldn't impact the coasts which already have higher minimum wages and can support those higher rates. Sure, we can go up a buck or two but after that you aren't doing anyone any favors.
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Post 24 Oct 2017, 3:57 pm

For your amusement:

Ricky p6:
And I wonder, gentlemen, why any business that can't exist unless it pays its employees a less than living wage ... should exist. ? .... The people that work for less than a living wage end up costing society and tax payers because its from this working poverty that most crime comes...it this working poverty from which public health problems occur and which ultimately cost the tax payer as these people eventually end up in emergency wars...

Ricky p7
Any business that demands a commitment to 35 hours a week or more from an employee, but doesn't value those 35 hours enough to pay them a living wage ..... needs to reevaluate why it exists.


Ray Jay p 9:
Freeman has used the term "living wage" many times. I do think this needs to be defined to have a conversation on the merits.


Ricky p12:
rayjay
Perhaps you are advocating that the employer interview his/her employees, ensure that they are not on the dole (say because their spouse's or parent's income puts them over the top) and then hire them.


I'm advocating that governments set a minimum wage that ensures that they will not have to use tax revenues to support people who are working full time.


Ricky p12 again:
The easiest solution is to ensure that employment income is sufficient to meet these basics. (A living minimum wage)
As it is, for many hard working people, low wage jobs also come with the indignities of receiving a handout.


Ray Jay p 12:
The term "living wage" is more complicated than you realize.


Ricky p 12 in response:
No its really not. Its insisting its complicated that keeps people
fooled.

Ray Jay p13:
If it's so easy, what is the hourly rate for the living wage in Canada? Use numbers.


Ricky in response:
A living wage:
• enables working families to have sufficient income to cover
reasonable costs;
• promotes social inclusion;
• supports healthy child development principles;
• ensures that families are not under severe financial stress;
• is a conservative, reasonable estimate;
• engenders significant and wide ranging community support;
and
• is a vehicle for promoting the benefits of social programs
such as childcare
Ray Jay:
Did you use #s? What's the hourly pay rate where you live?


Ricky:
Average? Minimum? Living?
Because there are differing cost of living,a living wage differs by locale.
Canadian minimum wage doesn't meet a living wage either by the way... (By the definition used...)
...
In my town they calculate a living wage to be $17.05 an hour.. Expensive town.
feel better now?

Ray Jay p14
Perhaps you don't understand what I'm saying? That's why I asked for #s. My point is that "living wage" is both complicated and not fulfilled where you are, or maybe anywhere
Ricky in response:
Oh I understand entirely what you are saying.
You are saying, The problem is too complicated to even attempt to solve.
The problem being that poor people can work at a job full time, and yet they still need outside aid to eat, or house themselves, etc.
If you would like to decrease government handouts and involvement in poor peoples lives, increase the minimum wage. The more money they make for 40 hours week, the less they will need assistance.
That's really not complicated. As far as your claim that a "living wage" has been attained anywhere.. So its unattainable..
Well, would you agree that "its complicated" and complex
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Post 25 Oct 2017, 9:07 am

There's no one who argues with rickyp quite as effectively as . . . rickyp!

:laugh:
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Post 25 Oct 2017, 9:12 am

Meanwhile, there's one thing we know: every employer should pay a living wage. After all, it's just good business.

http://www.bostonglobe.com/metro/2017/1 ... newsletter

Launched in 2015, the fair-wage pizza shop will close at the end of the year, according to Bing Broderick, executive director for the nonprofit Haley House, which oversees the shop. While popular, the shop is not breaking even financially, which has put stress on the wider nonprofit organization.

“I don’t think anyone is looking at it as a failure,” said Luther Pinckney, a team leader at Dudley Dough, which is in the Bruce C. Bolling Municipal Building. “It’s an experiment, and some very good things came out of that, such as skill-building for staff and being in this building at this time of gentrification and change in this community.”

Pitched as “pizza with purpose,” the restaurant offered above-average pay as well as culinary and leadership training.

. . .

The challenge for Dudley Dough was to support itself, Broderick said. An offshoot of the Haley House, a Boston organization that provides food and housing to low-income residents, the pizza shop attempted to put a social enterprise model into action.

But after an analysis of the business’s operations and trends, the board determined that Haley House could not continue to subsidize the pizza shop without putting in peril its own efforts. Three other restaurants opened in the area around the same time as Dudley Dough and are still operating.

Last year, Robert Kraft, owner of the New England Patriots, donated $100,000 to Haley House, specifically for Dudley Dough. Despite the board’s decision, Broderick said, a “significant effort” is being made to support the staff at the shop as they transition to new jobs.


Huh. Weird.
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Post 25 Oct 2017, 11:11 am

Bottom line: Trump's tax plan helps the rich and corporations. Maybe some of it will "trickle" down to the middle-class and working poor.. And by trickle I mean a trickle, almost nothing. And we will have to pay higher taxes to fund the higher deficits that will result. We have seen this act before. The only time we got the deficit under control was when Clinton had a tax increase. The economy boomed. Bush II cut taxes twice and what did we get? A Financial Crisis. Obama does not cut taxes and we get an economic recovery and deficits stabilize. Now again we get another trickle-down plan that will help business and the wealthy and hopefully with the extra money they will hire more employees. Supposedly. And why are they going to pay existing employees more when they don't have me to? Or...maybe they will just buy back more company stock to increase the stock price. We have seen this act before..many, many times since 1980. How about a trickle-up plan? Help the middle-class and working poor...and maybe it will trickle up. It probably will because it will increase consumer demand. Cutting taxes for the wealthy and rich when the Dow is through the roof...does not increase consumer demand much. If at all.
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Post 25 Oct 2017, 11:41 am

freeman3 wrote:Bottom line: Trump's tax plan helps the rich and corporations. Maybe some of it will "trickle" down to the middle-class and working poor..


What specific part of the plan are you referring to?

And we will have to pay higher taxes to fund the higher deficits that will result.


So, giving people more money--they won't spend it? Don't Democrats argue the opposite all the time? And, if they do spend it, won't there be a dynamic effect?

We have seen this act before.


Yes we have. Under Obama--biggest deficits in history over 8 years. Well done! Now, Democrats are fiscal hawks!

Great. Let's reform entitlements? Let's transform public housing. Let's find ways to reduce dependence on food stamps.

Democrats: "No."

The only time we got the deficit under control was when Clinton had a tax increase.


O brother. That had far more to do with the dot-com boom than anything the government did.

If they find a way to repatriate the corporate money that is currently overseas, that will have a decided impact.
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Post 25 Oct 2017, 1:33 pm

The old bring back the corporate money held overseas argument? Well, first some companies actually hold that money in US bans here through subsidiaries so that money is not overseas. Secondly, the last time we did that in 2004 "the National Bureau of Economic Research later concluded that 92 cents on every dollar was used for dividends, stock buybacks or executive bonuses. A study by the Congressional Joint Committee on Taxation estimated that a similar program would result in $79 billion in forgone tax revenue over a decade."

https://mobile.nytimes.com/2013/05/22/b ... attan.html

So I think we can throw that whole corporate tax holiday as helping the economy into the trash can.

By the way, Reagan came in with a deficit of 73 billion and left with a deficit of 205 billion, Bush took that 205 billion and raised it to 300 billion, Clinton REDUCED it to 32 billion (with a couple surpluses along the way), Bush II took that 32 billion and raised it to 1.5 trillion, and Obama took that 1.5 trillion and reduced it to 644 billion. And now Trump wants to cut taxes for the wealthy which will cause higher deficits. We don't need to cut taxes, particularly when we are in a recovery! It's really just absurd that we would cut taxes when we have high deficits caused by Bush II's tax cuts.

https://www.whitehouse.gov/sites/whiteh ... st01z1.xls
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Post 25 Oct 2017, 2:03 pm

freeman3 wrote:The old bring back the corporate money held overseas argument? Well, first some companies actually hold that money in US bans here through subsidiaries so that money is not overseas. Secondly, the last time we did that in 2004 "the National Bureau of Economic Research later concluded that 92 cents on every dollar was used for dividends, stock buybacks or executive bonuses. A study by the Congressional Joint Committee on Taxation estimated that a similar program would result in $79 billion in forgone tax revenue over a decade."

https://mobile.nytimes.com/2013/05/22/b ... attan.html

So I think we can throw that whole corporate tax holiday as helping the economy into the trash can.

By the way, Reagan came in with a deficit of 73 billion and left with a deficit of 205 billion, Bush took that 205 billion and raised it to 300 billion, Clinton REDUCED it to 32 billion (with a couple surpluses along the way), Bush II took that 32 billion and raised it to 1.5 trillion, and Obama took that 1.5 trillion and reduced it to 644 billion. And now Trump wants to cut taxes for the wealthy which will cause higher deficits. We don't need to cut taxes, particularly when we are in a recovery! It's really just absurd that we would cut taxes when we have high deficits caused by Bush II's tax cuts.

https://www.whitehouse.gov/sites/whiteh ... st01z1.xls


So, your prescription is that the government must do what? Seize all wealth and distribute it "fairly?"

Again, what precisely are you protesting? You know, since the plan won't be out for more than a week?
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Post 26 Oct 2017, 10:49 pm

I just saw something that said that Republicans want about 5 trillion in tax cuts...so they have to off-set with a 3.5 trillion increase in taxes in other areas.. That's the rub...
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Post 27 Oct 2017, 7:48 am

freeman3 wrote:I just saw something that said that Republicans want about 5 trillion in tax cuts...so they have to off-set with a 3.5 trillion increase in taxes in other areas.. That's the rub...


Why do you think the Republicans have to increase taxes if there are cuts?
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Post 27 Oct 2017, 8:04 am

bbauska wrote:
freeman3 wrote:I just saw something that said that Republicans want about 5 trillion in tax cuts...so they have to off-set with a 3.5 trillion increase in taxes in other areas.. That's the rub...


Why do you think the Republicans have to increase taxes if there are cuts?


I remember way, way, way back. There was a time when Republicans looked to shrink the size of government, thereby saving money.

Now, we have two "big government" parties. Surprisingly, our Debt just grows and grows.
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Post 27 Oct 2017, 8:11 am

freeman3 wrote:The old bring back the corporate money held overseas argument? Well, first some companies actually hold that money in US bans here through subsidiaries so that money is not overseas. Secondly, the last time we did that in 2004 "the National Bureau of Economic Research later concluded that 92 cents on every dollar was used for dividends, stock buybacks or executive bonuses. A study by the Congressional Joint Committee on Taxation estimated that a similar program would result in $79 billion in forgone tax revenue over a decade."

https://mobile.nytimes.com/2013/05/22/b ... attan.html

So I think we can throw that whole corporate tax holiday as helping the economy into the trash can.


From your link:
A similar policy was enacted in 2004, which prompted American companies to return more than $300 billion in foreign earnings at the reduced rate of 5.25 percent.


Currently we have $2.5 trillion sitting overseas and it looks like it will be a one time 10% tax rate so that could raise as much as $250 billion for the treasury in 1 year. That's a very nice free lunch just sitting out there.

http://www.businessinsider.com/trump-ta ... electric-1

Freeman:

By the way, Reagan came in with a deficit of 73 billion and left with a deficit of 205 billion, Bush took that 205 billion and raised it to 300 billion, Clinton REDUCED it to 32 billion (with a couple surpluses along the way), Bush II took that 32 billion and raised it to 1.5 trillion, and Obama took that 1.5 trillion and reduced it to 644 billion. And now Trump wants to cut taxes for the wealthy which will cause higher deficits. We don't need to cut taxes, particularly when we are in a recovery! It's really just absurd that we would cut taxes when we have high deficits caused by Bush II's tax cuts.

https://www.whitehouse.gov/sites/whiteh ... st01z1.xls


You also have to look at which party controlled congress to properly do the analysis.