The tone deaf economic advisor strikes again

https://thehill.com/policy/finance/509210-kudlow-gop-plan-will-include-increased-business-deductions-for-meals-and

Some cynics would say this: “Rep. Lloyd Doggett (D-Texas), a senior member of the House Ways and Means Committee, said in a statement Monday that a provision to expand deductions for meals and entertainment would be “the latest example of a tax provision tailor-made to benefit the Trump family finding its way into major tax legislation.”” And they could be accurate.

Reality, IMO, says this “Kyle Pomerleau, a resident fellow at the right-leaning American Enterprise Institutewrote in a blog post earlier this month that expanding deductions for meals and entertainment would be “poorly targeted in the context of COVID-19,” because many Americans are uncomfortable eating in restaurants due to the virus.

“Ultimately, the most effective way to help the restaurant and entertainment industries is to get the virus under control,” he wrote.”

Tax deductions for those who don’t need it. Sounds like 2017 all over again. I miss the good old days.

9 thoughts on “The tone deaf economic advisor strikes again

  1. So, restaurants have not raised their prices to cover the occupancy restrictions?

    If the cost of a business lunch goes up, should not the size of the deduction go up to match?

    Like

    1. Don proves his tone deafness, as well.

      Did you read what the fellow from AEI stated? Apparently not.

      And the deduction is based on the RATE, not the total bill. People are not going out because of the virus. A targeted tax deduction for those who use restaurants and “entertainment venues ” (I read that potentially as strip clubs, but…) is not going to benefit anyone except those that use or abuse that benefit.

      Like

        1. That is what “Fat Leonard” did to secure naval contracts. Of course he tossed in “room service” and cash, but we are quibbling over details.

          Liked by 1 person

        2. Yo’re being as tone deaf as Kudlow. There is no reason, whatsoever, except to pander to businesses that can take advantage of this credit, to increase it. it will NOT help the restaurant businesses in question if NO ONE IS GOING OUT!

          Like

        3. RE: “it will NOT help the restaurant businesses in question if NO ONE IS GOING OUT!”

          But people are going out. My wife and I, for example, had lunch at Bubba’s Seafood just last week. It was packed.

          Since the idea is to encourage spending at restaurants, the expanded business deduction makes perfect sense.

          Like

          1. “But people are going out.” … ” It was packed.”

            And we wonder why there is a spike in Virginia COVID cases. No more need to wonder.

            Now things are going to be curtailed because inconsiderate and ignorant people are not following simple guidelines to keep as many safe as possible.

            The expanded business deduction makes no sense to the girl working the cash register at the local IHOP, or the guy working the register at Lowe’s, or the folks restocking the shelves at the local grocery stores. And it sure as hell is not going to help the restaurant owners. They aren’t going to see any increase in business because of this; business is going to slow way down now.

            I refer back to the comment from REP. Doggett. This ain’t for any of us here; it is for Trump-like oligarchs, American style. And NONE of it is gonna trickle down to Don, Todd, Len, Adam, Bob or Jim.

            Like

  2. Republicans want to cut the $600/week unemployment boost because it discourages work.

    Yes, well let’s just take a quick look at why?

    “ Economists at the University of Chicago estimate that more than two-thirds of the workers on unemployment insurance are making more in jobless benefits than they did at work — in some cases two to three times as much. It’s a stark reminder of just how low the pay is in many hard-hit industries such as restaurants and retail.”

    https://www.npr.org/2020/05/26/861906616/when-returning-to-your-job-means-a-cut-in-pay

    Before the pandemic, according to BLS, 42% of all jobs in the US paid at or less than $15/hr, which will be the new minimum wage in about 5 years in most states.

    If $600 boost to mostly paltry unemployment insurance rates of often less than $150/week is a huge pay raise, then we had a low wage economy. Which is part of the problem why so many Americans had so little to fall back on when we shutdown the economy.

    This is after the very costly tax cuts and 3.5% unemployment.

    And here is the real gagging point: most of the “essential” jobs pay less than $15/hr, often $8-12/hr. These are the jobs we cannot operate without.

    Bottom line, the meal and entertainment tax cut boost is a slap in the face of damn near 1/2 of hard working Americans.

    Before anyone argues that if you go back to school and improve your skills, the low wage jobs will be in your rear view mirror, forget it. Those low wage jobs are the jobs we have to pick from…and can’t do without.

    Liked by 1 person

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s