I typed this from Boston as I watched the White House unveiling of the Trump administration tax reform plan. I was there to speak at Boston University on the future of the American Republic.
What is so amazing to me is that the press corps NEVER challenged the Obama administration on its failure with our economy. And to hear these chuckleheads bombard the treasury secretary and economic advisor about President Trump’s taxes was just appalling.
Fundamentally the presented concept is solid, and yes, everyone is going to await a Congressional Budget Office score, which is not exactly indicative of true economic growth. The CBO does what’s called a “static analysis” and doesn’t account for what is termed “dynamic analysis,” which assesses the second, third and fourth order economic growth effects. For instance, there will be no reflection of the results of trillions of dollars of capital returning to the United States for investment. Yes, the “devil is in the details” and this tax reform concept will go to the House Ways and Means committee, which by the Constitution, all revenue generating measures must originate in the House of Representatives.
We can expect the typical rhetoric from the progressive socialist left which doesn’t comprehend economic empowerment, but rather continues to advance the failed idea of economic enslavement. This is going to be touted as helping the “rich” — yep, right when Barack Obama is going to get $400,000 for talking about the failure of Obamacare — gimme a break!
We need to closely look at the market reaction to this tax reform plan, and it has been strong. So, we’re witnessing a growth in individual 401(k) investments, and that is a good thing. You’re no longer hearing all about the Federal Reserve, as they did in the Obama administration, manipulating interest rates and printing money to sustain an artificial economy. We now have the chance to return to a true free market economy, where individual American investment and entrepreneurship wins the day. We must reject the abhorrent Obama belief that one to two percent GDP growth is a new normal. Heck, since when do Americans settle for the minimum?
So President Trump’s plan brings down the highest corporate business tax rate in the world from 35 percent to 15 percent. And with a lower tax rate, you can eliminate all those deductions and exemptions, just a simple flat tax rate. As well, we shall have a one time repatriation of the trillions of dollars that was forced by Obama to leave our shores…remember, if you own a business, you didn’t build that. What’s even better – this is personally heartening, after having served on the Small Business Committee — is that our small businesses will have a 15 percent tax rate, not the 39 percent they currently have. That will be a huge boost to our small businesses, the backbone of our country’s economic system.
On the personal tax side, we’ll see only three brackets — not the insidious seven — going from 15 to 35 percent. But the best news is that those laundry list of personal exemptions and deductions drops down to just two: mortgage interest and charitable contributions.
As well, individuals will be allowed to deduct their state income taxes — I bet that’ll go over well in a state like Massachusetts, and the Alternative Minimum Tax goes away. Capital gains and dividend taxes will be reduced — both were increased as part of Obamacare. What did that have to do with affordable healthcare, Barack? But the sweetest news is the elimination of the Death Tax. Only our federal government would conceive taxing you in life, and death.
Now, all of this is grand, but unless the federal government gets its spending under control, they’ll still find ways to usurp our financial resources. That means we must not hear any talk about Value Added Tax (VAT) or the stupid Border Adjustment Tax idea.
The fiscal principles presented today are sound. Lower rates mean reduced deductions and exemptions, resulting in greater revenues resulting from economic growth.
Senator Chuck Schumer is already talking about making sure this doesn’t benefit the rich? You mean like David Geffen and his 500- foot yacht where Barack Obama was cruising? It’s time we end this whole socialist mantra of a government determining how much we can make along with how much they can take. The future of the America Republic comes down to individual economic sovereignty as opposed to this antithetical notion that government knows best what to do with our largesse.
Frankly, a quick assessment of Venezuela, or any case study in socialism, doesn’t bode well for the case liberal progressives are trying to present. If the Democrat Party wants to stand in the way of economic growth for the American people…well, good luck with that. And you just keep sending out Tom Perez acting like a fool, and lose more political seats. That would suit me and many of us just fine.