Blog/The Hunt for Taxes
Posted Jan 26, 2017 by Martin Armstrong
Of course, the left is focusing on how much the “rich” pay while ignoring the entire issue of taxes. When I debated Steve Forbes and Governor James Florio at Princeton University, it was the Democrat Florio who I turned. I simply said that the tax code borrowed from the poor and middle class, handed them refund checks at the end of the year, and was borrowing from them without paying any interest. I then added that Social Security was just a tax that denied the average person the RIGHT to prepare for their future by investing that money, yet they argue that the stock market rises and ONLY the rich get richer. The left are brilliant conmen because they always point at how the rich don’t pay enough, but they NEVER look closely what government does to the average person.
Already, all we hear is how Trump is trying to lower taxes for himself and friends. The stupidity of those who even say this is beyond belief. They are so brainwashed that you have to wonder if they are capable of independent thoughts. Trump’s tax plan involves collapsing the current seven-tier bracket system into just three brackets. The lower bracket, those who make less than $75,000, would pay only 12%. The next tier would be those who earn $75,000-$225,000, who would then pay 25%. Those in the third-tier are workers with incomes of more than $225,000 who would pay 33%. This boils down to expanding the net disposable income for taxpayers making between $48,000 and $88,000 annually, as they would save between $1,174 and $7,052, according to the Tax Foundation.
The top rate proposed by the new administration (33%) is substantially lower than the maximum rate under President Obama (43.8%). Furthermore, a standard deduction of $12,000 means, on average, the middle class will get an additional $12k worth of tax-exempt income. Economic growth comes from CONSUMER spending. Increase the net disposable income and that will jump-start the economy. Of course, the Democrats will oppose this because they never saw a dollar they did not want to get their hands on. They tend to forget their history; the FIRST tax cut after World War II was implemented by John F. Kennedy.
“It is a paradoxical truth that tax rates are too high and tax revenues are too low and the soundest way to raise the revenues in the long run is to cut the rates now … Cutting taxes now is not to incur a budget deficit, but to achieve the more prosperous, expanding economy which can bring a budget surplus.”
– John F. Kennedy, Nov. 20, 1962, president’s news conference
“Lower rates of taxation will stimulate economic activity and so raise the levels of personal and corporate income as to yield within a few years an increased – not a reduced – flow of revenues to the federal government.”
– John F. Kennedy, Jan. 17, 1963, annual budget message to the Congress, fiscal year 1964
“In today’s economy, fiscal prudence and responsibility call for tax reduction even if it temporarily enlarges the federal deficit – why reducing taxes is the best way open to us to increase revenues.”
– John F. Kennedy, Jan. 21, 1963, annual message to the Congress: “The Economic Report Of The President”