Chuck Schumer calls the GOP tax bills (there are still two bills and only one will ultimately go the the President’s desk for signature into law) “wealthfare”. Nancy Pelosi says they are “give-aways to big corporations and billionaires”. Elizabeth (aka Pocahontas) Warren says the tax cuts will “deliver massive cuts to corporations” and will “kick working families to the curb”. Bernie Sanders says the tax cuts are “morally repugnant” because the rich don’t pay their “fair share”. Oh boy…where does one start?
First, let’s get real. When over 80% of all federal taxes are paid by less than 10% of the taxpayers, any tax reform is going to impact those who pay virtually all the taxes! Let’s look at this another way. The bottom 50% of taxpayers pay a whopping 3% of the Federal tax bill. Folks, tax reform and cuts will, by definition, impact the people who pay the taxes! The democrat leadership cannot get out of its own way. They pander to the people, preying on their emotions and fears. They will say and do anything to attack the GOP.
Let’s talk about another myth. Democrats and liberal think tanks are ridiculing the GOP bills because they increase the deficit. That is rich, isn’t it? Democrats are concerned about the deficit. Give me a break! You need to know two things:
- In 1962, President John F. Kennedy slashed investment taxes. After his assassination, his broader tax cuts were enacted, producing eight years of soaring growth — 5 percent a year.In the 1980s, President Ronald Reagan slashed rates again, giving the nation nearly a decade of robust 3.8 percent growth.
In 2003, George W. Bush’s tax cut boosted the economy, producing 4 percent growth for six straight quarters.
Compare this vigorous growth with President Barack Obama’s eight years of stagnation. Obama’s economy lumbered along at around 2 percent growth because high taxes and over-regulation discouraged companies from investing. Democrats still insist that 2 percent growth is the new normal. Nonsense. Roll back regulations and taxes, and the economy will surge. (Betsy McCaughey–NY Post, October 1, 2017)
- If the deficit increases over the next decade, it will do so because no one has had the guts to control run-away spending on entitlements. Just look at the chart above. Our federal spending on social programs is a disaster waiting to happen.
Time and again over the decades, tax reform has led to increased revenues to the US Treasury. When the environment is right for investment, American companies (big and small) have always spent money, hired people, and generated more tax revenue to Uncle Sam. Our deficit problems have nothing to do with tax reform. They are solely a function of the lack of willpower to come to grips with social spending that is completely out of control!
So, you can listen to the same-old, same-old palaver spewed out by democrat leadership, or you can let history guide you to what will be a good outcome for the United States. Tax reform works. It has always worked. But if we do not get a handle on Federal Government spending, no amount of economic stimulus will be able to stop the tsunami that is headed in our direction. Let’s get the tax bill passed, then focus on passing legislation that corrals our irresponsible escalation in social spending.
More to follow-