Blog/2016 U.S. Presidential Election
Posted Nov 18, 2016 by Martin Armstrong
While people keep criticizing Trump’s tax plan saying the wealthy will get more back by lowering the top bracket from 39.6% to 33%, all they focus on is class warfare. Trump’s tax plan collapses the seven federal income tax brackets into three, reducing the top marginal rate from 39.6% to 33%, and lowers the corporate tax rate from 35% to 15%, among other things. The criticism is always just the socialist view and never address the vast waste and corruption in government. They say the national debt will explode by $5 trillion if Trump cuts taxes as if $1 trillion deficits under Obama was somehow OK. They also ignore the fact that lowering the corporate rate to 15% matches the best rates overseas and will then encourage them to bring their money home and with that JOBS! There is nearly $3 trillion offshore that will not return because the socialists demand high taxes. So it will not return. Saying the deficit will rise by cutting the tax rate assumes nobody will return home. That same position was taken with the Reagan tax cuts and proved to be DEAD WRONG!
Kennedy Revenue Act of 1964 (Pub.L. 88–272), also known as the Tax Reduction Act, was the Kennedy tax cut plan that was signed by President Lyndon Johnson on February 26, 1964. Individual income tax rates were cut across the board by approximately 20%. In addition to individual income tax cuts, the act slightly reduced corporate tax rates and introduced a minimum standard deduction. The economic growth virtually doubled.
The Ronald Reagan tax cuts that the Democrats hated and called “trickle down economics” reduced the top rate from 70% to 28% between 1983 and 1990. The GDP growth soared from -3% to +8%, yet Democrats continue to call this a failure. It was Bush who raised taxes in 1991, but it was the massive tax increase of Bill Clinton jumping the top bracket to 39.6%. The Democrats tried to claim that tax increase “produced the one period of shared prosperity in this past era (since 1980).”
Let’s face the facts. The source of data for the chart above is the Bureau Economic Analysis. So this is the government’s own data. This clearly shows that the Democrats just want to tax people who have more than they do EVEN IF it hurts jobs and lowers the economic growth. This to them is just about punishing people. Their claims that “trickle down” economics did not work is total lies. This is not about letting the rich pay less, this is about EVERYONE enjoying the fruits of their own labor.If you cannot discriminate for race, creed, or gender, then why is it OK to discriminate against anyone because they have more than you or work harder?
With India just cancelling currency, Australia and Sweden probably next, then Europe and Japan, all we have standing in the way is Trump. If he fights against this trend to tax everything in sight and further shrink the world economy, then just maybe we can save the United States from the worst of it. Otherwise, we are going down without a life-jacket to cling to in 2017. At some point, it just pays to quit and not produce anything; Ayn Rand.