{"id":251145,"date":"2017-10-17T15:59:59","date_gmt":"2017-10-17T19:59:59","guid":{"rendered":"https:\/\/admin.rushlimbaugh.com\/?p=251145"},"modified":"2017-10-19T16:00:41","modified_gmt":"2017-10-19T20:00:41","slug":"how-will-tax-reform-give-you-a-4000-raise","status":"publish","type":"post","link":"https:\/\/admin.rushlimbaugh.com\/daily\/2017\/10\/17\/how-will-tax-reform-give-you-a-4000-raise\/","title":{"rendered":"How Will Tax Reform Give You a $4,000 Raise?"},"content":{"rendered":"

RUSH: Okay. Clarification on the $4,000-a-year wage increase. I mean, that\u2019s what the headline said. It\u2019s from Paul Ryan\u2019s office. “New Report: Tax Reform Will Raise Wages at Least $4,000 on Average<\/a>.” (chuckles) Now, look, no way that tax reform can “raise your wages.” Your employer raises your wages. But, see, this is where I, as the mayor of Realville, get into trouble. They say something that can\u2019t possibly be true, so I try to analyze what they really mean and then somebody says, “No, no, no, no. Let me tell you what it really means.”<\/p>\n

\"\"And this is what they\u2019re saying it really means. The “pay raise” — which, there isn\u2019t a pay raise here. Unless Congress is ordering your employer to increase your gross or your net (however they calculate the four grand), “the pay raise is as the result of reforms that help keep businesses in the United States,” so that\u2019s the repatriation of foreign revenue, “and bring jobs and capital back home from abroad.” Oh. So Apple has a cash pile — let\u2019s round it up — $250 billion.<\/p>\n

Now, 75 to 80% of it\u2019s overseas because the American corporate tax rate\u2019s 35%. Apple can… Why bring it back if you gotta pay 35% on it when there\u2019s no comparable tax rate in any other country? So they leave it in the countries where it\u2019s earned, and I think they park it in an account in Ireland. I\u2019m not really sure about that. But the point is tax reform is gonna lower the corporate tax rate and there\u2019s gonna be a special repatriation surcharge or some kind of thing.<\/p>\n

It\u2019ll be a one-time deal, where — if you\u2019re Apple or any other company that has a lot of your assets held overseas — there will be a period of time where you can bring it all back for a very, very small tax rate. And what the Ryan office is saying is that this is gonna result in $4,000 pay raise. Again. “The pay raise is a result of reforms that help keep businesses in the United States and bring jobs and capital back home from abroad. (And this pay raise is even before tax cuts that Americans can expect to see.)<\/p>\n

“Today, America has one of the highest corporate tax rates in the industrialized world at 35%. By slashing this rate to 20%, and bringing trillions of dollars in profits back home from overseas, we will unleash real wage growth not seen in a generation.” Well, we hope that happens. Theoretically, it could and it should happen. But the legislation does not contain language that requires American businesses to increase the salaries or pay of people that work there by whatever amount of money.<\/p>\n

\"\"<\/a>So all of this is a calculation based on what benefits will derive from the tax reform package. So it\u2019s a little bit… “Tax reform will raise wages at least $4,000 on average.” That… (sigh) I don\u2019t know. Yeah. Corporations, businesses, will have more money with the reduction of corporate tax rate and repatriation. But I guess they\u2019re calculating some of that\u2019s gonna go to increased wages, but I don\u2019t think they\u2019re mandating that, so go figure.<\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: We start with Brent in Cleveland. Welcome, sir. Great to have you with us.<\/p>\n

CALLER: Hello. Thank you for having me on. I just wanted to make the point that the $4,000 that Speaker Ryan is the speaking of may be just kind of a moot point. Because if you bring $2 trillion into the American economy, we\u2019re probably going to see a huge increase in inflation, and so that even could be where he\u2019s getting the $4,000 is just a simple price increase of inflation.<\/p>\n

RUSH: Well, I\u2019m not sure that that\u2019s where he\u2019s getting the $4,000, unless you\u2019re saying that the resulting inflation from infusing the economy with that much money repatriated would cause salaries to approximate expanding by $4,000 a year. But, of course, if it\u2019s inflation induced, then there\u2019s no net benefit to it (chuckles) and that\u2019s not what Ryan\u2019s saying. What Ryan\u2019s saying is, “Hey, our tax reform is gonna get you a $4,000-a-year raise.” That\u2019s what it says. Now, I\u2019m sorry, folks. I\u2019m the mayor of Realville.<\/p>\n

I can\u2019t read something like that and simply go, “Right on, man! Right on, let\u2019s do it! Let\u2019s do tax reform and get everybody, on average, a $4,000-a-year raise.” It\u2019s based on the fact that American corporations are gonna have a whole bunch of money in America to use that they can\u2019t use now because they can\u2019t bring it back because the tax rate\u2019s too high. So they\u2019re gonna lower the corporate tax rate plus make a one-time offer of very low taxes on the repatriated amount.<\/p>\n

That\u2019s gonna equal more money being held by American businesses domestically, and that means that everybody gets a $4,000 raise? (snorts) Is there something in the bill that mandates businesses pay higher wages with the money? Now, he\u2019s gotta mean something. Because of my analysis of this… I mean, anybody\u2019s not just me is gonna look at this with giant question marks. They\u2019ve put this out the way they\u2019ve put it out. They have to be able to back it up with something. I just can\u2019t figure out what it is.<\/p>\n

\"\"Because government doesn\u2019t give you a raise, unless you\u2019re on welfare, and for that to happen, they have to take money from somebody else to do it.<\/p>\n

Redistribution of income.<\/p>\n

They\u2019re not talking about this as redistribution. They\u2019re talking about this as corporations having more money equaling corporations paying employees more. Now, theoretically, it\u2019d be wonderful — and it may happen in some places, but it may not. You know, not all employers are nice. That may come as a surprise to you. (chuckling) Anyway. I may be overthinking this. But as the mayor of Realville and America\u2019s supreme literalist, I need to have this one explained to me. The inflationary aspect of this I had not considered.<\/p>\n

So I guess we just shouldn\u2019t do it all, then, right?<\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: All right. I\u2019m being facetious. I was only kidding when I said I hadn\u2019t thought about the inflationary aspect. “Maybe we\u2019d better not cut taxes any…” I was joking, folks.<\/p>\n

BREAK TRANSCRIPT<\/p>\n

RUSH: Frank in Orlando, Florida. Hey, what\u2019s happening? What\u2019s up?<\/p>\n

CALLER: Rush, thank you for everything you\u2019ve is done and continue to do for the country, sir.<\/p>\n

RUSH: Well, I appreciate it. Thank you very much, sir.<\/p>\n

\"\"CALLER: You were talking about tax cuts earlier and the influx of capital that would result. Some guy that obviously didn\u2019t know anything about economics called in and said, “Well, that will cause inflation.” Well, excuse me, but, you know, I\u2019m no Thomas Sowell, but I do have a bachelor of science in business administration; I took a lot of economics in college. And what causes inflation is when the government prints money in order to pay their bills, because that\u2019s basically creating money out of thin air, see? But when the private sector injects money into the system, that\u2019s money that already exists and absolutely will not cause inflation.<\/p>\n

RUSH: In fact, you might say that would actually be a stimulus.<\/p>\n

CALLER: Thank you.<\/p>\n

RUSH: That\u2019s a great point. You know, I didn\u2019t think of that. You\u2019re right. This is money already earned by American companies; they\u2019re holding it overseas. And they\u2019re not repatriating it because the tax rate\u2019s so high. It makes no business sense to do it. So the tax reform plan lowers the corporate tax rate and has a one-time special rate for repatriation.<\/p>\n

Let\u2019s say there\u2019s two trillion total. One trillion. Pick a number. That money comes back, it\u2019s not gonna cause inflation because it\u2019s money that theoretically is already backed by the financial system. It\u2019s not printed, nor is it borrowed from somewhere else by the government. When they print it or borrow it, they take it out of the existing economy as it is and then put it back in. There\u2019s no stimulus whatsoever. That\u2019s a good point. Your economic studies have been validated today, worthwhile.<\/p>\n","protected":false},"excerpt":{"rendered":"

RUSH: This is where I, as the mayor of Realville, get into trouble. They say something that can't possibly be true, so I try to analyze what they really mean and then somebody says, "No, no, no, no. Let me tell you what it really means."<\/p>\n","protected":false},"author":56,"featured_media":251152,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","ngg_post_thumbnail":0},"categories":[12,1],"tags":[],"yoast_head":"\nHow Will Tax Reform Give You a $4,000 Raise? - The Rush Limbaugh Show<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/live-rush-limbaugh.pantheonsite.io\/daily\/2017\/10\/17\/how-will-tax-reform-give-you-a-4000-raise\/\" \/>\n<meta name=\"twitter:card\" content=\"summary\" \/>\n<meta name=\"twitter:title\" content=\"How Will Tax Reform Give You a $4,000 Raise? - The Rush Limbaugh Show\" \/>\n<meta name=\"twitter:description\" content=\"RUSH: This is where I, as the mayor of Realville, get into trouble. 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