As it stands the average American worker works six months of every calendar year to pay their taxes… this is not only irresponsible it is highway robbery considering what we get in return for our bucks…
Looking at the Market today — surpassing 22K – we can easily ascertain they are ignoring the DC scutterbut and continue to trade at a robust rate — enough to make our market soar for the time being. Why? Because they like our gold-spinning Commander in Chief, regardless what the media and Democrats would like for you to believe! They know Trump and know him well.
History, history and more history…
The way many on the Hill are reacting to the Tax Reform proposal, one would wonder if it is a good thing but in fact, history shows us, it’s always a good economy when Americans and business are not weighed down by high taxes. Historically speaking, presidents like Calvin Coolidge, John F. Kennedy and Ronald Reagan proved to us when taxes are low, everything good in our business culture goes up.
In all three periods of history, American industry and personal consumer power soared and produced healthy economies. With Kennedy, in 1962, a staggering $3 Trillion in tax revenue came in — all because he lowered the high taxation rates on American workers and businesses. In the early Eighties, our economy recovered swiftly from the disastrous Carter years where housing mortgage interest rates were 19-22%. After Reagan implemented his Reaganomics, a surge in home purchases (and building) along with car purchases went through the roof, affording Americans to buy and jobs to be healthy!
It was not hard to find a job in those days because American business was all too eager to bolster their staff pools because they finally had a business-friendly government again! Of course, today is a bit different because we now have the Obamacare albatross hanging around everyone’s throat but with any luck, President Trump will executive order a lot of the suffocating measures from that disaster of a Liberal BS and let the winds of business go forth and prosper!
Here’s a few factoids or rather, chain of events which happens when taxation is kept to a reasonable level.
Jobs, jobs, and more jobs…
Jobs are a critical point in any tax situation because when businesses have more money to spend on their own infrastructure, adding to the workforce is always the first to be implemented. This adds to the work pool and, essentially, adding more taxpayers to the rolls. Hence, even though individually, the tax rate goes down, the revenue goes up because there’s more people paying taxes.
A good job also makes a person feel better about themselves and their life… unless severely depressed which is a subject for another article. Therefore, many people are so happy, this euphoria spills over into generosity. Generosity leads to giving to others! Did you know that charity spending often goes up substantially when the economy is good? Yes, it does and many charities live for those ‘good times’ in order to help those in need navigate their tough times.
Generosity doesn’t just end with philanthropy. Inherited wealth also goes up and allows future generations the ability to spend and create more wealth. Therefore, how can any legislator ever impose something like a death tax when it only rapes future generations of future prosperity which leads to more jobs and more tax revenue? Make sense?
Buy, buy and more buying!
Buying power inevitably goes up when Americans have more disposable income. They don’t think twice about buying that second vehicle or the newest TV on the market when they have money to spare. Much to financial planners’ chagrin, most consumers are not big savers. They live for the moment and fall prey to the latest and greatest being advertised. Good for retailers and good for America.
Consumer credit also go up and unfortunately, when downturns occur, this causes many woes; however, if Congress would quit thinking tax increases solves all their problems, Americans would continue to buy if their taxes were at a reasonable level. It also affords people to be able to get health insurance that suits their needs in a ‘free-market’ system! This can only bolster the healthcare industry as more money flows in, but it must be left up to the ‘supply and demand’ model without governmental interference.
Eat the Rich is always good unless you’re the Rich…
We can increase taxes but only on the rich but what occurs is much like what occurred in France when they tried to do this a few years back. The rich can afford to do what? Relocate. They can go to countries more rich-friendly and leave high taxation behind. When one has a large disposable income like the extremely wealthy, they don’t really have to be beholden to any one country. They’re free to move to other countries because they have the money (and clout) to do so. What country is going to turn away Oprah or Gates? Bringing their wealth to other countries only bolsters their economies while leaving ours lacking.
Democrats have proffered this Eat the Rich mentality for a long time, but what most don’t realize is, many Democrats are in fact, the rich they talk about. When you look at net worths for people like Pelosi and Feinstein, they’ve got considerable wealth and liquidity considering their lifetime in public service. This didn’t happen by accident. And they certainly don’t mean for those laws for the little people to apply to them, too. As we saw with healthcare, they write exemptions in these tax codes which excludes them from the same percentages. Therefore, the mid-line wealthy – the ones who actually run small businesses in our communities are those hit hardest by their irresponsible legislation.
As you can see, tax reform isn’t the big bad elephant in the room, which leaves us to wonder why Paul Ryan (a man with a few million in the bank) is so adamantly against it. He has no skin in the game because he doesn’t employ anyone nor does he depend on anyone for his fat paychecks – voters to him, are hardly bosses – even though the Constitution says they are his directors.
What’s Congress got to do with it?
So why is it such a problem? Does Congress really have that much shortsightedness that they can’t see the money forest for the trees? It would seem so. A thriving economy always produces more in the workforce which leads to higher revenue streams. It’s kind of like the Walmart model on a governmental scale. Lots of taxes makes for lots of money to government – not only from income but sales taxes as well. Yes, we don’t have a federal sales tax but every time you buy something from a company, they pay taxes (ideally) on that revenue generated from that sale.
This is the way government should get is money but often times, we miss the fine strokes when blinded by the broad ones. It would be a good course if Congress members were forced to take economics classes in addition to Constitutional classes before ever serving their areas because if they did, they would have a full understanding of how capitalism is supposed to work and why it works without fail when left unfettered by a nosy government.
The Trump Factor dipped in Gold (or should we say Platinum?)
As a former business mogul, our very own Billionaire to the people, President Trump understands and embraces these nuances. The laws of supply and demand are not lost on him like many in Congress because he’s actually played the gam and won it – many times. Much to the liberal media’s disdain, even in spite of bankruptcy, Trump’s ability to spin gold is indisputable. Perhaps it would be wise for our legislators to sit down with him and get an education before going off half-cocked on some wild goose chase only to meet back in the middle again.
If we’re going to be competitive in any market, we need a workforce who has the dollars to go forth and spend, save and invest. The only way to do this is let us keep a majority of the money we make!