Elder Patriot – President Trump finally got the tax cuts he wanted. The outcry from the Democrats let us know just how effective these cuts will be in fueling an even more robust economy.
Senate Minority Leader Chuck Schumer, who blocked every Senate Dem from lending any input into the bill, played the role of an economic fool following the vote when he said:
“This tax bill will be an anchor around the ankles of every Republican. If they haven’t learned it yet, they will learn it next November. Republicans will rue the day they passed this bill and Americans will never let them forget it.
“What has been sold as a job creator and wage booster will, of course, do little of either as companies are already initiating stock buybacks worth hundreds of millions of dollars instead of hiring more workers and raising wages. Ultimately, Republicans have taken what they called a once-in-a-generation opportunity on tax reform and squandered it on corporate welfare and tax cuts for the rich.”
House Minority Leader Nancy Pelosi’s comments made Schumer sound like he had praised the bill:
“Today, we gather on this floor in the midst of a holy season. In this season we celebrate the miraculous blessings of God. We reflect on the wondrous joy of children and our responsibility to them. We remember our duty to live justly. And for those of us blessed to serve in this Congress, we must remember our special responsibility to govern fairly, to meet the needs of all of God’s children. In this holy time, the moral obscenity and unrepentant greed of the GOP tax scam stands out even more clearly.
“This GOP tax scam is simply theft, monumental, brazen theft from the American middle class and from every person who aspires to reach it. The GOP tax scam is not a vote for an investment in growth or jobs. It is a vote to install a permanent plutocracy in our nation. They’ll be cheering that later. It does violence to the vision of our Founders. It disrespects the sacrifice of our men and women in uniform, who are a large part of our middle class and to whom we owe a future worthy of their sacrifice. And it betrays the future and betrays the aspirations of our children. It demands, it morally demands a no vote from every member of this house of the people.”
It’s hard to see any moral or legislative historical ground Schumer and Pelosi might stand on. Like Republicans do today, Democrats controlled the White House and both Chambers of Congress in 2009 and 2010 when they reset the tax code to where it was until today.
The tax reform they passed resulted in $10 trillion dollars in new debt over the last 8 years, massive growth in the disparity of wealth between the rich and the poor, the middle class shrunk, economic growth was the lowest ever over an entire presidential term, and the growth in good jobs ground to a halt. Oh, and reliance on federal assistance programs soared.
Otherwise, Pelosi and Schumer have a fine track record from which to criticize this bill.
On the other hand, President Trump has made a career of turning around distressed and bankrupt businesses. He understands that he can’t take over a failing business and give pay increases to the employees until after he has turned the business around and it is generating profits.
With $20 trillion in operating debt, America is a failing enterprise. Even if our children can find a way to carry that debt burden their futures will be handcuffed by that debt.
Trump’s challenge is to get America working again. With economic growth come jobs, good paying jobs with a future and not the minimum wage jobs Obama used to pad his employment numbers.
When people go back to work the stress they put on government assistance programs is eliminated. A shrinking base of government dependents puts balancing the budget more within our reach.
A growing economy requires more employees. More people that are gainfully employed the less stress put on the personal burden of each taxpayer.
The Dems had their chance to participate in the tax cut legislation, just like they had the opportunity to help craft healthcare reform, but they chose to stand as a unified block resisting anything that might burnish President Trump’s leadership record.
More’s the pity. Demagoguery like that was spewed about Ronald Reagan’s historic tax cuts, and will come back to bite them in the backside when these tax cuts result in the doubling of the GDP over the next eight years as it did under Ronaldus Magnus. Such success will essentially cut the negative effects of the deficit in half by itself.
That is exactly what Trump is doing. Any savvy businessman knows that the task in launching the recovery of a failing enterprise is to get revenues up before anything else.
The 40% cut in corporate tax rates will do exactly that. Coupled with massive reductions in government regulations, corporations will be encouraged to put more money into expanding their operations in the U.S. That means jobs, lots of jobs.
The lowering of the repatriation rate for money currently stashed overseas by corporations is dropping from 35% to 12%. That drops further to 5% on non-cash corporation repatriations. Estimates are at least 2.5 trillion will be returned and reinvested here to supercharge our economy.
But, we have only discussed large corporations so far.
Entrepreneurs had been so besieged under the Obama administrations high tax, highly regulated, economy that Main Street businesses could no longer compete and began shuttering at a distressing rate.
Under Linda McMahon’s leadership the Small Business Administration has streamlined its loan application making money more easily available to fund small business start-ups and the expansion of others. Entrepreneurs have been reinvigorated and are once against taking the risks of opening new businesses.
Small business has historically accounted for 75% of all new jobs in America.
With tax cuts, regulatory reforms, and the increased ease of borrowing, small business will once again flourish. More jobs mean more upward mobility for employees. Coupled with President Trump’s coming immigration curbs the increased demand for workers will drive wages for all working Americans up. This is something that the Democrats’ policies failed to do.
Americans will be given a chance to work their way out of the mess they allowed the Democrats to create for their children. That is if they still want to work and still care about what they have wrought with their votes.
And, for those who go back to work, along with those already working, they’ll find the tax brackets have been raised to reflect the effect inflation has had on their compensation and that the tax rates in those brackets have been lowered.
There’s something for everyone in Trump’s tax plan and it’s just the first bite at the apple. If Bill Clinton was right and it’s really “the economy stupid” then the Republicans should have another seven chances to make our tax policy even better.
Trump promised and Trump delivered.