Can Steve Daines be Bought?  We are about to find out

Today, Senator Steve Daines announced that he was opposed to the current iteration of the Trump tax plan.  A plan that would add trillions to the debt, cut taxes for corporations, and raise taxes on regular Montanans (you know, the ones who didn’t work at RightNow Technologies and make millions).

Daines announced his opposition on a Monday and the bill won’t come up for a vote until later in the week.  That means the special interests and Mitch McConnell have a few days to bribe ole Steve.

In Montana, we are already seeing these groups at work.  Television and radio ads are targeting Daines and urging him to support McConnel’s tax cuts.  These ads bank-rolled by out-of-state billionaires are already polluting our airwaves.  Will Daines fold to the outside pressure?  This blogger thinks so.

This is reminiscent of when Daines pretended to be undecided on the GOP health care plan.  Step one: tell Montana media he’s undecided.  Step two: get a couple good rounds of stories back home showing him seeming to listen to his constituents, then BAM, get right back under Mitch McConnell’s thumb.

It is a nice dance for Daines at this point.  As his constituent, I am just a little sick of watching folks fall for it.  

You can take it to the bank, Senator Daines will be a yes on this tax cuts for millionaires package because it will help out the most important Montanan of all: himself.  

While a Montana teacher can no longer deduct school supplies he purchase, Senator Daines can buy a bigger home!  When the taxes go up for most Montanans come 2021, Senator Daines will probably have stockpiled a Scrooge McDucky level of gold coins in his panic room/basement.  When thousands of Montanans are left without health insurance, get sick, go to the doctor and lose their home to try and pay for life saving treatment, Senator Daines will be laughing all the way to the bank.  

With the elimination of taxes on private jets maybe Senator Daines will get himself a plane!  He will need it to continue to avoid his constituents.  Daines already avoids public meetings, how much longer until he avoids the public in general for fear that they might  ask him about his robber baron politics and cartoon villian-esque disdain for ordinary Montanans.

I can only imagine Daines bounces his ideas off of his mentor and best pal Greg Gianforte out there in DC.  No wonder Daines is looking to improve the lives of millionaires and billionaires, they are the only people who have his ear.

In the next few days we will see just what the price is for Steve Daines’ vote for the Senate leadership.  Is it a million dollar TV buy?  A couple thousand dollar radio ad campaign?  What’s the point of electing our corporate overlords if they can be swayed by a couple of ad buys?   Montanans can flood his office with calls, but unless they write the checks, he is not listening.

Regardless of the price of Daines’ vote, if he votes for these tax cuts for rich people at the expense of ordinary Montanans, it will ultimately cost him his job.

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102 Comments on "Can Steve Daines be Bought?  We are about to find out"

  1. Nice bait-and-switch, Hatman. You note that Daines objects to the current version of the Tax cut plan. Then you go off on a rant about how the tax cut will single-handedly destroy the Earth, hitting women, children, and minorities hardest, and implying that he shares your fears.

    Daines’ objection to the plan is not for all the nonsense reasons that you try to put into his mouth; rather, he is concerned that small businesses will not get ENOUGH of a tax cut, compared with larger businesses. That is, he wants even more of a tax cut, not less of one.

    Now let’s take a short cruise through the dire consequences that you forecast:

    1. “A plan that would add trillions to the debt”
    – No, Hatman, it won’t. First off, it’s not the amount of money coming in that creates debt, it’s the amount that’s going out. Government is long overdue for a diet from its spending frenzy. 50 years of the “Great Society” have not reduced the number of poor- but it has broken our national defense and chalked up 20 trillion in debt. It’s time to stop digging the hole, and let the private sector create more wealth so as to feed the DC Beast with enough funds to rebuild defense and support Constitutionally mandated expenditures.

    2. “Cut taxes for corporations”
    – So? Why would you want to keep taxes high on Corporations? Those taxes are added to the price of goods so that corporations can stay in business. Corporate taxes should be zero- they are nothing more than indirect taxes on the poor. Corporations provide wealth creation opportunities in our capitalist society. It’s worked extremely well for those who decide to play. If you don’t play, you can’t win.

    3. “Raise taxes on regular Montanans”
    – Nonsense. What is a “regular” Montanan, anyway.” The tax cut plan isn’t anywhere near final, so how could you make such a statement? Nice try, but just saying something doesn’t make it so.

    4. “Senator Daines can buy a bigger home!”
    – So? If people keep more of their own money, everyone can buy a bigger home. Eliminating piss-ant deductions while greatly lowering overall rates results in simpler, fairer tax code. (That’s a good thing).

    5. “Maybe Senator Daines will get himself a plane!”
    – I bet that if this were a hundred years ago, you might have said “Maybe Daines will get himself one of them new-fangled automobiles,” as if that would be outrageous.
    I’d like to have a plane, wouldn’t you? Perhaps an economy boosted by more money in the private sector will make it possible for many more Americans to have airplanes.

    Here’s an open question to those of you reading: Why do you hate the rich? Did they steal from you? Did they harm you in any way? Or are you just envious of people who paid attention in school, worked hard, spent little, invested regularly, and are now reaping the rewards?

    Before you ask “what about those who inherited their wealth?” I will point out that that inherited money is what’s left after taxes have already been paid. Wouldn’t you want to leave some for your kids? Where is it written that all must start at zero? If that were true, wouldn’t we take children from their parents at birth and put them into government run homes? Hmmm…. I’ll bet Hatman might like that idea.

    Be honest, you would all like to be rich? If you woke up with an extra million in your bank account, would you be unhappy? Would you burn it? Would you not buy a bigger house, or an airplane, because you’d be afraid of what your friends might think?

    Class warfare is even more ridiculous than other types of identity politics; the Left wants people to believe that all good flows from Government, that people would not survive without Government help, and that the private sector (which fuels Government) is evil. Come again?

    Drain the Swamp.

    • Spot on. Thanks for your comments. Keep up the good work. There are people out there that see these posts and they can make common sense interpretations. We will remember who voted against tax cuts next November. Not Daines, but Tester.

      Drain the Swamp.

    • More excuse making from the right…you know the party that hated deficit spending only when they could pin it on the black guy.

      You ask why do we hate the rich…why do you grovel like it’s your job to make them richer at your own expense. This is the idiocy the right plays when it comes to saying “NO Russians shouldn’t be hacking and interfering in our elections.” “Oh yeah so why do you hate the russians now?”

      And so expecting the rich to pay parts of the freight for the system, constructs and government under which they’ve become very successful and rich – as they have for the modern era of this country is now and argument that weak minded wingers want to reduce to “WHY ARE YOU SO MEAN TO THE INNOCENT RICH PEOPLE…why would you assume you shouldn’t sacrifice more to make life easier for them”

      It’s ridiculous…why do the right assume I should fund their next mansion, or that they should get special privileges, breaks and ever dime possible at our expense? nobody I know wants a FREE RIDE, but you guys sure seem hellbent on making the ride as free as possible for the ultra wealthy with use providing all of the tokens to pay for it.

      And the rest of your lies: Now let’s take a short cruise through the dire consequences that you forecast:

      1. “A plan that would add trillions to the debt”
      Sure it will…and the same party and leaders who are saying that it will pay for itself are the same leaders who said the same thing in 2002 when they last did this routine – and crashed the economy. And the same party that created about well over 60-70 percent of that deficit (see last time they cut the taxes for the rich and the economy crashed). We wouldn’t have those revenue issues if you didn’t keep cutting the taxes of the rich under whatever idiotic plan that seems to believe they don’t have to share in the burden of being keeping our american system working once they accumulate enough wealth.

      It’s also idiotic to pretend defense needs to be rebuilt…military spending is at all times highs and we have a military budget many times over most of our top ten enemies combined. You wingers lie badly and show your hypcpocrisy on this…it’s spend spend spend when you’re giving big corporate contract and gifts to the right people, cut the taxes of those same people and make people earning less than 50K a year carry that burden…sure that’s sounds fair.

      2. “Cut taxes for corporations”
      Taxes aren’t high on corporations. The same voice that claim that they are too high on rich people even when they are at near historic lows are running this campaign. In fact, some of the elements of the plan seem to push corporations via regional taxing to push more work overseas. sure that will help create jobs won’t it?

      3. “Raise taxes on regular Montanans”
      A regular montanan is somebody in the middle and working classes – you know about 90% of montana. A nd yes, there is direct language that shows raising taxes for those making less than 50K over the next 10 years to pay for more tax cuts for the rich. So reading is fundamental…try it and learn.

      4. “Senator Daines can buy a bigger home!”
      – But Senator Daines, GG and the rich are the only ones keeping their money. Anyone who isn’t rich is only getting a pittance – at best maybe a few thousand over 5 years (and while losing key deductions) and then paying more in taxes over the next 5 years9and still not having the same deductions).

      5. “Maybe Senator Daines will get himself a plane!”
      Ah, the shameless “we’re all just temporarily depressed millionaires – so why expect the rich to ante up to keep the heath of this country intact. Do you actually believe you’re under more obligation to pay taxes and help keep this country running that the rich you aspire to join…or are you really just this big a troll?

      • I stand by all of my comments, especially seeing as how you refuted none of them; you just got out your socialist banjo and ran through your favorite commie choruses.

        Let’s try just one item, and I’ll make it an easy one: if military spending is at an all time high, why is the Air Force only 40 percent of the size that it was in 1990? I guess it’s those ultra rich generals who are keeping the money, hmmm?

        • PS: I’m pretty sure that it was Obozo’s white half that made him spend too much.

        • Let me guess, you had an ancestor at the bastille asking the crowds of people why they hated the rich so much since they were only only exercising their god given right to run rampant over the people and treat them like disposable labor!?! What’s wrong with that…?

          Ever read any history? History’s focus is fairly clear in both rhetoric and appraisal, including our own over the years of government, dictators and systems of governments that create great levels of wealth inequality in place, and coincidently govern by the very rich, like Daines and Gianforte, making laws that enrich themselves. We’ve fought the politics of Banana Republics (which is exactly the kinds of level we’re currently at between classes). and how did all of those work out…? The inequity of the system whether oligarchy, dictatorship or other almost always fails at one point or another…the sole modern example would be North Korea which used brutal tactics to keep it’s starving population from attacking a rich ruling class and it’s military dictatorship. These are the economic models you aspire to join…serfs, hassles and lords are A-ok as long as you get to be one of the lords!

          And remind how hard do the rich have it? They pay half the top end tax they paid a mere 35 years ago, they have more ways to work around those through loopholes and the right wants to make it even less, with more loopholes and pass throughs to make it so they’ll impossible to collect any taxes from earnings. It makes no sense to live in a society where the middle and poor class actually pay a higher effective tax rate than multi millionaires, and often pay a much higher percentage of their income to overall taxes than the very rich…oh those poor rich people, thank god you are out there championing them!

          And by the way – your statements prove nothing to refute – you just basically repeated uniformed Koch talking points. What did you think your proved? Other than you wish you were rich and you’d rather everybody else suffered to help the rich not save 9% of their vast incomes? I guess you think you proved something by mentioning the air force? Beyond the fact that your guy dick cheney cut airforce personnel in 1991 what does that prove? The AF mission changed in several ways and was reorganized into other services to streamline their mission and objectives. Do you want to look at spending? Are you actually suggesting that our military isn’t as large as it is?

          This is the winger all over you…one lacking and unrelated figure makes you think you got fact/

          • MThauser, I don’t even know where to begin. Your arguments don’t even rise to the level of being wrong.

            Have you ever asked yourself why a successful American would ever dip his toes into politics? No need to, I guess- you assume that they’re doing it to become even richer, even though government service is a foolish way to try to enrich one’s self- unless you’re a socialist, of course.

            I truly wish that I could go back in time and prevent you from meeting the jackasses who sold you- and millions like you- on this nonsense, but I can’t. All I can do is hope that future generations won’t hate and envy the way you do.

  2. Don’t give Margie what it wants and that is attention. Keep posting your viewpoints while ignoring the troll. It will get bored and go away.

  3. Margerie is a Heritage Foundation/Heartland Institute brainwashed fool….if he had his way we would all be Corporate slaves. Over 200 years of Labor and Corporate History proves all he said above is false.

  4. I have no doubt that Senator Daines is going to vote for whatever tax cut bill is put forth in the Senate. Whether he gets the additional tax cut for small businesses or not, I will be surprised if he doesn’t jetison his “principles” and go along with the GOP leadership. Does it matter what I believe? I don’t have access to Daines other than what is reported and what he says and does. But if my beliefs are sustained by his subsequent actions, it is then clear he is not fooling everyone. And more and more Montanans will realize what he is up to.

    • There you go you lefty swine. Steve Daines is doing what the people of Montana elected him to do, to put the wealthy in their rightful place as the true leaders and allow them to reap the benefits of using their resources to create jobs for the little people who are ungrateful and should be glad they are not sterilized and are still allowed to breed.

      The lower classes should be grateful that they are not yet put into camps so they cannot contaminate the gene pool. We will get to that soon enough. Just as soon as we get rid of all the immigrants and the lower class blacks and Hispanics.

    • Hmmm… the Jeff-Bezos-Billions-Busted-By-Veritas-Washington-Amazon.com-Bimbo-Buying-Senatorial-Candidate-Smearing-Post? We can count on THAT story to be valid.
      Say.. Bezos defines Ultra-Rich; aren’t you supposed to hate him?

      • What’s with this bimbo buying nonsense about Bezos? Must be another rightwingnut conspiracy theory cooked up by Alex Jones and his fantasy factory.

        O’Keefe and his incompetent attempt at a sting (again) was exposed before he could even get it posted.

        • Don’t you think that it’s just a wee bit funny that all of these “accusers” of Moore’s came out of the woodwork all at the same time, after waiting for 40 years and ignoring numerous opportunities to attack Moore before now? Certainly Bezos’ Billions could not be at work there. Geez. Tell me another one.

          • PS: Vertias’ sting revealed exactly what the WaPo is all about- destroy Trump at all costs, regardless of the Truth.

            • I can’t help but notice your obsession with this site and your rapid response behavior given the very short turnaround between a comment to you and your reply.

              “The big revelations in this video: -Post takes news/editorial separation seriously -They grapple with how to cover insane Trump-era news cycles -Bezos came up with “Democracy Dies in Darkness”‘

              https://twitter.com/lachlan/status/935286471610814465

              Be it the actual truth or your revisionist version of it is what destroys tRump, I’ll be fine with that.

              Keep clapping, it’s the only thing keeping Tinkerbell alive.

              • “Democracy Dies in Darkness” is an assertion, not a warning. Bezos and his ilk have no love of democracy; they want to be in charge of your lives in every way. Now be a good useful idiot and let old Jeff think for you. That’s a good slave.

                • Nobody said it was anything but a phrase that he came up with.

                  Try to pay attention to what you’re reading instead of adding irrelevant connotations and descriptions to it.

  5. Class warfare is all that will be left in a very short time. You could call that socialist or communist, but really it’s just a statement of fact. Tax cuts clearly do not stimulate the economy for the bottom 90%. When the poor realize how skewed the rules are, they will no longer have any need to participate in a system that doesn’t include them except to imprison them.

    • Yikes! Get a grip, John! Who’s being imprisoned? And what makes it clear that tax cuts don’t stimulate the economy? Certainly not historical evidence. Class warfare is a tool of the Leftists to divide Americans. Don’t buy it!

      • I’ll indulge this once. Some jurisdictions are imprisoning people who can’t pay their bills. The US imprisons more people per capita than any other country. Most of them are poor. There is no historical evidence that trickle-down economics work. If you can find an independent source that proves that it does, please send me the link. Then I can call them liars with the data that the rich are growing richer and the poor are growing poorer. Even if these politicians are sincere, they have the problem of seeing a tax cut for the top as a cure for every ill. Your propaganda is fail. It’s not a left/right issue.

    • Well stated, John.

  6. Can Daines be bought? That question has long ago been answered.
    He is bought and paid for.

  7. Lots of made up comments here. Simply get the facts from the independent sources who have issued reports on this tax cut (which is what it is, NOT tax reform.) It will add at least 1.5 trillion to the national debt for our kids and grandkids to deal with. Ultimate case of irresponsibility and cowardice. It will primarily benefit the top 1 per cent. It will greatly benefit corporations. That’s pretty much it in a nutshell. You can try to paint the pig up but in the end it is still a pig, and it is not in the best interests of the nation. I think if Congress acted in a bipartisan way, we could get meaningful tax reform and a much better health care plan. As an Independent, frankly right now, I would say that Jon Tester is doing a better job of representing all Montanans. Daines and GG are lapdogs for the big whig party bosses as far as I can determine.

    • “..this tax cut (which is what it is, NOT tax reform.)”
      – Orv, “reform” means to change for the better. Tax cuts will allow people to keep more of their money. That’s better.

      “It will add at least 1.5 trillion to the national debt for our kids and grandkids to deal with.”
      – You must be thinking about Obamacare, which is spending money that we don’t have, just as our “Great Society” has done for the last 50 years. It’s not the amount of money coming in that puts one in debt, it’s the amount that goes out. There’s no reason that the Feds can’t spend less money, and spend it on less wasteful things. Meanwhile, just as under Reagan, the tax cuts will grow the economy for everyone at a rate even HUGER than Trump is making it grow now (which, by the way, Obozo couldn’t be bothered to do).

      “It will primarily benefit the top 1 per cent.”
      – If you mean that their percentage will let them keep an amount that has more zeros on the end than the amount I get to keep, that’s because their taxes do, too. It’s their money, not yours. Your envy is showing. Fair means the same percentages, not the dollar amount. Fair also means that everyone should pay something.

      “It will greatly benefit corporations.”
      – Good. They greatly benefit America.

      “I think if Congress acted in a bipartisan way, we could get meaningful tax reform and a much better health care plan.”
      – If Congress did its Constitutionally mandated job, we’d be paying lower taxes. They also wouldn’t pretend that health care is somehow part of the role of Government, and they wouldn’t force your neighbors to pay for yours.

      Drain the Swamp

    • I don’t think so Orville.

      This post asks if Steve Daines can be bought, and I believe the answer is no, because he has a thriving business, and is making a fine living.

      But Jon Tester? He was a failing farmer before getting elected, and now out of State concerns are pumping millions into his re-election campaign. You don’t think he’s bought and being paid for? Wake up!

    • And I love the push now to have “triggers” in place so when this crashes the economy at the very time we should be cutting taxes to stimulate growth we will be forced to cut them. Like now-low unemployment, economy booming EVERY CLASSIC ECONOMICAL THEORY says raise taxes when times are good, cut when bad. The other thing the GOP has failed to consider is this-in ’32 we had an FDR to talk the rabble out of their necktie party for bankers. It’s 2017-see any FDR’s around? We have some fine Democrats out there but mostly I think they are more likely to lead the party instead of slow it down. I’ve been in a number of the gated communities around Whitefish and Big Sky and if the residents think those fences will help they are dreaming. Fascism might come to America but it will take smarter Fescists than the ones they are sending so far. Fescist? That’s a fascist doing a shitty job-like the ones running DC now…

  8. And Tester is not paid for? He is voting against the Tax Cuts. We will remember in November. Maybe I will get a bumper sticker: “No tax cuts Tester, remember in November.”

    • The original Art Fenske | November 29, 2017 11:02 AM at 11:02 AM | Reply

      I will remember and vote for him because of it. But remined me when the election gets closer.

      • I will, I do not like the idea of that Pelosi and Schumer think they are better at spending my money then I am and I am not rich.

        • The original Art Fenske | November 29, 2017 4:52 PM at 4:52 PM | Reply

          Meanwhile you ignore the fact that Mitch and Paul are about to balloon the deficit by 1.5 Trillion? I am not rich either and I am kind of old and have no kids. The next generations are going to be stuck paying for this “Tax Cut” along with the war in Iraq and the cost of the Great Recession.

          Meanwhile, party on.

          • You and Obama doubled the deficit from 10 Tril to 20 Tril and you didn’t seem to concerned and what did you do in the 8 years? Nothing. Lets see now what happens to the deficit.

            • The original Art Fenske | November 29, 2017 6:56 PM at 6:56 PM | Reply

              Me? I don’t think so you asshole?

              Was I in the Congress? I don’t think so again. Nothing? We came back from a net job loss of several hundred thousand per month to positive jobs gains. But of course you never like to think about that. You don’t like to think about much of anything.

              Keep in mind how long the GOP has controlled the budgets and then look in a mirror.

              What about the war in Iraq? You seem to have left that off your pithy response?

              What about the Great Recession and the Bush Tax cuts?

              Convenient memory loss or did you hit your head or are you just engaging in that tried and true conservative deflection “your team” seems to love?

              You really think because of some unicorns “economic growth” that this 1.5 trillion dollar party will somehow pay for itself?

              Wake he fuck you you buffoon. You have been played by your leaders. Again.

              I can’t tell if you are A. just woefully stupid or B. a troll.

              Which is it? No cheating just answer, A or B.

              Thank you very much.

            • And dumbfuckya doubled the deficit from 5 Tril to 10 Tril plus the 2 Tril for the war they lied us into that he and Cheney kept in a separate set of books, like Mafia gangsters. Obama brought those 2 Tril out of the darkness and made it public.

              Cheney famously said, “Deficits don’t matter.” And they don’t, when Republicans are in power.

          • Yes, everyone thanks you for all those jobs at McDonalds and Chilies that replaced those Ford and GM Plants that moved to Mexico. Good job for covering these. And we could have had Hillary in charge. How is the Clinton Foundation going?

            • Moving the goalposts again? How very Republican of you.

              • Don’t worry, Bobs- once the illegal alien population has grown enough to overwhelm the American population, Goal posts will disappear entirely- they’ll be replaced by soccer nets. Unfortunately there won’t be any kneeling during the national anthem, because it too will be replaced- by something in Spanish.

                • Don’t give Margie what it wants and that is attention. Keep posting your viewpoints while ignoring the troll. It will get bored and go away.

                • You really are afraid of those brown people aren’t you?

                  Maybe start an Amerika First group and Trump will tweet your hate speech.

                  • Hardly, given that I’ve got a lot more melanin than most. However, for you white Leftists who see no threat from the illegal invaders, you should consider that a lot of them hate you just because you’re white.

                    “Texas student newspaper blasted over anti-white ‘Your DNA is an abomination’ column”

                    A Texas college’s student newspaper is apologizing after coming under fire for running an opinion column called “Your DNA is an abomination” that accuses white people of being oppressors who “shouldn’t exist.” “Whiteness will be over because we want it to be,” the article reads. “And when it dies, there will be millions of cultural zombies aimlessly wandering across a vastly changed landscape.”
                    In addition to stating “white death will mean liberation for all,” the columnist also says whiteness is “a construct used to perpetuate a system of racist power” and white people are “an aberration.”

                    “Until then, remember this: I hate you because you shouldn’t exist,” the column adds. “You are both the dominant apparatus on the planet and the void in which all other cultures, upon meeting you, die.”

                    The column was written by Texas State University senior Rudy Martinez, a philosophy major who said in a past article he was one of the more than 200 people who was arrested on Jan. 20 protesting “the inauguration of proto-fascist Donald Trump.”

  9. You bet, Doug honey!

  10. Steve just stated that due to (not clearly defined) changes in the tax bill he will now vote for it… Cha ching!

  11. Everyone on both sides of the aisle agrees that the U.S. corporate tax system needs to be reformed, because the current worldwide system encourages a lot of economically wasteful tax avoidance. We need a fair tax system that will raise significant revenue without harming American businesses or the U.S. economy. It’s not an easy task.

    But while the Republican plan unveiled Thursday would lower the corporate rate to 20% from 35% and establish a territorial tax system, it wouldn’t do much to stop the tax-avoidance gimmicks. Why? Because there would still be an incentive to shift profits to countries that have a tax rate that’s even lower.

    A few weeks ago, House Speaker Paul Ryan argued that the 20% rate would have prevented an American company, Assurant, from moving its legal headquarters to Bermuda, which doesn’t impose any corporate income tax at all.

    But the last I checked, 20% is higher than 0%. The Trump-Ryan-Brady plan wouldn’t eliminate the incentive for U.S. companies to shift their operations or to shift their profits using creative transfer pricing techniques.

    Nearly every tax expert who’s studied this issue agrees that the problem identified by Ryan would remain even after his bill is approved.

  12. Here’s how this works: U.S. corporations have sheltered more than $2.6 trillion in offshore profits, much of it booked in dubious foreign subsidiaries that are largely an accounting fiction. A lot of these profits are earned on work that’s done in the United States, but the profits are attributed to a foreign subsidiary to avoid taxes. The U.S. Treasury loses more than $100 billion a year.

    U.S. tech and pharmaceutical companies have been particularly aggressive in fictional accounting that attributes ownership of the company’s intellectual property — patents, copyrights and trade secrets — to a foreign subsidiary located in a low-tax country. Using transfer prices between units of the same company, revenue and profits earned by the company can be transferred to the foreign subsidiary for tax purposes.

    The federal tax that is owed on these profits is deferred as long as the corporation doesn’t “repatriate” the funds into the U.S.

    In practice, corporations are able to use these accumulated profits indirectly for almost any purpose, without legally repatriating them and triggering the tax. The funds aren’t “trapped” overseas. The hoard of cash overseas isn’t preventing any company from investing in America.

  13. At least 366 of the Fortune 500 companies have established subsidiaries in tax-haven countries. The companies pay an average tax rate of 6.1% on their “foreign” earnings, evading a cumulative $750 billion in federal taxes. Some of these foreign subsidiaries are legitimate businesses, with actual operations that produce actual goods and services. But many are an accounting fiction, created for the sole purpose of evading taxes. For instance, U.S. companies claim to earn profits in Bermuda that are 18 times larger than the island’s gross domestic product. These U.S. companies claim to earn 43% of their foreign profits in just five tax-haven countries — Bermuda, Ireland, Luxembourg, the Netherlands and Switzerland — yet these five countries employ just 4% of these companies’ foreign workers and have only 7% of their foreign investments.

  14. According to a Senate investigation, Apple structured two subsidies in Ireland in a way that shielded it from paying taxes to either the U.S. or Ireland. The European Commission found that Apple’s creative accounting allowed the world’s most profitable company to pay a tax rate of just 0.005% on its 2014 European earnings, and ordered Apple to pay $14.5 billion in taxes to Ireland.

  15. The Trump administration claims its plan would reduce the incentives to create these fictional subsidiaries because it would reduce the U.S. statutory rate to 20%. With a lower U.S. rate, companies wouldn’t save as much money as before by setting up a post-office box in a tax haven.

    But as the Apple example shows, even Ireland’s 12.5% tax rate won’t keep companies from trying to shelter their income.

    Nothing in the Trump-Ryan plan would prevent this kind of monumental tax dodging. In fact, it would tell corporations to go right ahead.

    Instead of closing this loophole, the Republican tax plan would attempt to force companies to pay a one-time “repatriation tax,” a tiny fraction of what they now owe. Going forward, the Republican plan would establish a territorial tax system, and invite corporations to shift their profits to low-tax foreign jurisdictions. Even with a minimum 10% tax on the profits of “high-profit” foreign subsidiaries, the Republican plan would give U.S. corporations the green light to shift profits.

  16. Under the existing U.S. international system, U.S. multinationals have myriad opportunities to avoid paying U.S. taxes on their foreign profits—as well as to avoid taxes on their domestic profits by characterizing them as having been earned overseas. The United States allows multinational companies to delay paying tax on their foreign earnings until they repatriate the earnings—in other words, until their foreign subsidiaries dividend the earnings to their U.S. parent companies. By categorizing these earnings as permanently reinvested offshore on their financial statements, many firms avoid paying U.S. tax indefinitely. Multinationals also often repatriate earnings selectively in ways that maximize the reduction of U.S. tax using foreign tax credits. By contrast, domestic corporate earnings are taxed in the year they are earned.

  17. The existing system creates two mutually reinforcing incentives for U.S. corporations—to earn profits overseas and to report profits as earned overseas even if they were earned in the United States. Through aggressive “transfer pricing”—manipulating the terms of intercompany transactions so that more profits appear to be earned by foreign affiliates and less appear to earned by U.S. affiliates—and other tactics, U.S. multinationals have artificially shifted hundreds of billions of dollars in profits to a handful of small countries that impose virtually no corporate tax.

    To level the playing field between multinational and domestic businesses, corporations should not be allowed to defer paying tax on their foreign profits. As a presidential candidate in 2016, Trump proposed taxing the domestic and foreign earnings of U.S. companies at the same rate, without the opportunity to defer taxes on foreign earnings. But this year, the president changed his position 180 degrees and now aligns with House Republicans in proposing to shift to a “territorial” tax system, in which U.S. corporations would never owe U.S. tax on the profits they report overseas.

    Moving in the direction of a territorial system would exacerbate the biggest problems with our current international tax system. Rather than being able to defer U.S. tax on foreign earnings, multinationals would be able to avoid U.S. tax entirely—creating an even bigger incentive to artificially shift profits from the United States to tax havens. The biggest winners from the change to such a system would be the multinational corporations that have been the most aggressive and effective at avoiding taxes by parking their profits in tax havens.

  18. Steve Daines
    @SteveDaines
    [1/2] There has been some good progress for Main Street businesses in the tax cut bill. I was able to secure more than 60 billion in tax cuts for Main Street businesses. These Main Street businesses will be able to provide more jobs and higher wages in Montana and across the
    [2/2] country. I’ve seen enough progress to vote yes to move the debate forward.

  19. Daines says the more generous tax cut that he and Ron Johnson favor would cost about $60 billion more over 10 years — and they have a proposal to pay for it: Eliminate the income-tax deduction that corporations can take for the state and local taxes they pay. The Senate bill cuts the corporate rate to 20 percent, while creating a special deduction for business income from pass-through entities that would leave many owners paying an effective top rate of more than 30 percent. Ron Johnson wants to give those owners a larger deduction.

    Not clear what the “progress” was on “Main Street” pass-through business taxes rates.

  20. At the heart of the debate is whether to more favorably treat small businesses and other so-called pass-through entities — businesses whose profits are distributed to their owners and taxed at rates for individuals. Seventy percent of pass-through income flows to the top 1 percent of American earners, according to research by Owen Zidar, an economist at the University of Chicago’s Booth School of Business. Johnson and Daines have said that they will vote against the plan if it does not do more to help the owners of those businesses, possibly by increasing the individual income tax deduction for such owners from the 17.4 percent rate currently in the Senate bill.

  21. Presumably the lower rate for C corps (as opposed to pass-through S corps and LLCs) is because dividends for C corps are paid after-tax and are taxed again through personal IT, whereas pass-through income is taxed only once.

  22. The House-passed Tax Cuts and Jobs Act collapses the current seven-bracket system to four and eliminates many itemized deductions — medical and classroom expenses as well as state and local taxes, for example — in favor of higher standard deductions.

    Both the House and Senate bills double the current estate tax exemption for individuals to $11 million, which the House bill eventually repeals in 2024, but the Senate bill keeps. The Senate version scraps the Obamacare individual mandate, while the House doesn’t mention it.

    The Senate version is different because of the chamber’s rules. To pass the Senate with 51 votes instead of 60, the bill cannot drive up the long-term deficit. So the Senate measure terminates the individual tax provisions designed to benefit the middle class, including the doubled child tax credit and lower tax rates at each income brackets, by 2026.

    The House version drives up the deficit by 1.08 trillion over the next 10 years — about double the Senate version, according to the Tax Foundation, a conservative-leaning think tank.

  23. Corporations won’t re-invest in more jobs or raise wages.

    “Major companies including Cisco Systems Inc., Pfizer Inc. and Coca-Cola Co. say they’ll turn over most gains from proposed corporate tax cuts to their shareholders, undercutting President Donald Trump’s promise that his plan will create jobs and boost wages for the middle class.

    The president has held fast to his pledge even as top executives’ comments have run counter to it for months. Instead of hiring more workers or raising their pay, many companies say they’ll first increase dividends or buy back their own shares.

    Robert Bradway, chief executive of Amgen Inc., said in an Oct. 25 earnings call that the company has been “actively returning capital in the form of growing dividend and buyback and I’d expect us to continue that.” Executives including Coca-Cola CEO James Quincey, Pfizer Chief Financial Officer Frank D’Amelio and Cisco CFO Kelly Kramer have recently made similar statements.”

    “At a Nov. 14 speech to the Wall Street Journal CEO Council by Trump’s top economic adviser, Gary Cohn, the moderator asked business leaders in the audience for a show of hands if they planned to reinvest tax cut proceeds. Few people responded.

    “Why aren’t the other hands up?” Cohn asked.”

    https://www.bloomberg.com/news/articles/2017-11-29/trump-s-tax-promises-undercut-by-ceo-plans-to-reward-investors

    • Why shouldn’t investors receive increased returns? That is economic growth in action. After years of third world economic malaise under Obama, investors are long overdue for higher returns. In response to those higher returns, they will invest even more, turning that money over again, and back into the economy. It also means that they will be less likely to need government assistance when they retire- a good thing, since the Ponzi scheme that is Social Insecurity won’t last much longer.

  24. Wanna bet 5 years from now the GOP is pushing cuts to Social Security and Medicare to “fix” the deficits created when the big boom fails to arrive and our Debt balloons another $4 Trillion? And complaining about our depleted military spending!!!

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