The amount of misinformation about our tax system and tax cuts is appalling. It means that once again we have to state some bare facts and remove the lies that Democrats keep proclaiming.
First of all, in regards to income inequality there area few big points to make among many:
- What one person earns is not a takeaway from another. The economy is not frozen into a immovable number that needs to be fairly divided. The economy shrinks and grows every day, every week, every month, every year, every decade……….. So if we can grow the economy then there is more wealth available for everybody. But what one person does to increase his or her wealth is separate from what others are doing. Any individual can become richer. It is within their power to do so without harming others.
- The top 1% pay 39% of all Federal Income Taxes. The top 20% pay 88% of all federal income taxes. The top 50% pay 98% of all federal income taxes. This means that the bottom 50% pay little or no federal income taxes.
- If Congress legislates a tax cut it cannot cut the taxes of those who pay no taxes. So, yes, perhaps they are tax cuts for the rich but the cuts are not at the expense of poorer Americans who pay no taxes. For those who pay no taxes we cannot lower their tax rate any more than what they pay now which is nothing.
- Lowering the Corporate Tax rate is not a tax cut for the rich. A Corporation is not a human being it is an inanimate entity. A corporation is jointly owned by all those who have stock in the corporation. If you have a 401K through your job, as many Americans do, you are part owner of many corporations.
- THIS IS A BIG ONE. Tax cuts in many instances do not reduce federal tax revenues, they increase them. This is the case with the Trump Tax Cuts. Democrats who say the cuts are adding to the deficit are just plain wrong. One needs to look at the Laffer Curve for an explanation of this phenomenon.
Government does not create jobs. Government has no money except for that which it takes from individuals. This is called taxes. The government does not create wealth. The government does not grow the economy.
If Americans have more money in their pockets they will spend and invest more money thus growing the economy. If businesses have more money (profits) they will expand and create more jobs or new business will form creating more jobs and thus growing the economy.
THE RICHER THE NATION THE MORE IT CAN AFFORD TO TAKE CARE OF ITS POOR
You want to see what the opposite of this is just look at what was once the richest nation in South America, Venezuela. People are now starving in the streets there. lt’s because they did what most Democrats want to do to our economy. In contrast the Trump economy is booming!
The good economic news is hard to hide, but the press does its best
The U.S. economy is soaring at all levels. Employment is at record lows, taxes are down, the stock market is up, investment is up, and the U.S. has captured the world’s top spot for economic competitiveness. But the mainstream media, particularly the big television networks, are doing its best to ignore and underreport the good news because the goal of most journalists is to elect Democrats and destroy President Trump. Reporting the actual news isn’t as important to them as acting as unpaid stenographers for the Democratic Party, so they just can’t allow the public to read the truth.
America first: The US is the most competitive country in the world
Amid Donald Trump starting trade wars across the globe, the World Economic Forum just unveiled the United States has reclaimed the crown as the most competitive country in the world.
Every year WEF releases its benchmark Global Competitiveness Report that takes a look 98 indicators across 140 countries to determine the overall ranking. Each indicator uses a scale from 0 to 100, to signify how close an economy is to the ideal state or “frontier” of competitiveness. Those indicators are then organized into 12 pillars, such as health, skills, financial system, infrastructure, and institutions.
So in less than two years, President Trump and the Republicans have again made the U.S. the most competitive country to do business by reducing taxes and regulations. The implications of that are vast, given the money that will flow here from abroad and the investment that will take place inside. That means more jobs, more tax revenue for the government, and more innovation, plus, more money for charity.
Here’s another that hasn’t made the top of the headlines:
There are 7.1 million job openings, a record high, according to the JOLTS report through August, as tracked by the Bureau of Labor Statistics.
Job openings continue to soar above the number of people seeking jobs. This lifts people of all races, all genders and all education levels. It shows that tax cuts indeed trickle down as they always have.
Here’s another one:
Americans quitting their jobs at fastest rate since 2001 — and that’s a good thing.
The percentage of people in the private sector who left their jobs by choice rose to 2.7% from 2.5%, the government said this week. The so-called quits rate among all workers edged up to 2.4% from 2.3%. Both hit the highest levels since 2001.
People are quitting their jobs at a high rate, knowing that there are other jobs out there and raises, bonuses and other benefits are probably available.
And there’s this:
The federal government collected a record $1,683,537,000,000 in individual income taxes in fiscal 2018 (October 2017 through September 2018),
Individual tax revenues went up $93 billion (about 6%) between FY 2017 and FY 2018. They did not fall as predicted. As always, tax cuts yield more economic growth and more revenue to government entities throughout the U.S. Over the next several years this economic improvement will yield an even greater amount of revenue. It is a simple concept that if individuals and businesses are allowed to keep more of their own money that the economy will improve, yet journalists and Democrats seem unable to grasp these elementary economic principles.
Individual income taxes totaled up to 1.59 trillion U.S. dollars in 2017,
The last IRS statistics that are available are from 2015 and they show that the top 1% of taxpayers paid much more than the bottom 90% combined yet we are told by Democrats that the tax code is not progressive enough.
The most important statistic is that the top 1% of taxpayers paid 39% of income taxes even though they only earned 20% of the income. How can anyone say with a straight face that people who pay around double the share of taxes than their share of income is not enough? I have never seen anything so greedy as the Democrats who always want more power and money for the government and themselves. There is never enough. Here are the data from the Tax Foundation:
- In 2015, 141.2 million taxpayers reported earning $10.14 trillion in adjusted gross income and paid $1.45 trillion in individual income taxes.
- The share of reported income earned by the top 1 percent of taxpayers rose slightly to 20.7 percent in 2015. Their share of federal individual income taxes fell slightly, to 39.0 percent.
- In 2015, the top 50 percent of all taxpayers paid 97.2 percent of all individual income taxes while the bottom 50 percent paid the remaining 2.8 percent.
- The top 1 percent paid a greater share of individual income taxes (39.0 percent) than the bottom 90 percent combined (29.4 percent).
- The top 1 percent of taxpayers paid a 27.1 percent individual income tax rate, which is more than seven times higher than taxpayers in the bottom 50 percent (3.6 percent).
So what do Democrats propose in response to the great economic news that is obviously related to President Trump policies? They propose reversing the tax cuts and increasing the regulations to get back to Obama-era policies that yielded the slowest economic recovery in seventy years. What sheer brilliance. They want less drilling, fewer pipelines and less coal so we can be more dependent on Saudi Arabia and Russia. More absolute brilliance. They want a sanctuary country which is pure stupidity.
Their biggest proposal is to go to national health care, or as they call it, Medicare for all. They say that the cost would be $32 trillion over ten years, but we know the cost of entitlement programs have always been massively underestimated (my guess is the underestimate is intentional because the underestimate is so consistent) They also consistently underestimate economic growth and tax revenue from pro-private sector policies (again this looks intentional since they ignore actual history of previous tax cuts).
The $32 trillion cost also does not appear to take into account the absolute disastrous economic destruction that would occur in the private sector if the private health insurance industry and other related entities are destroyed. The multiplier effect of the destruction would be astonishing throughout the country.
I cannot think of anything as stupid as a party that wants government power above all else, that seeks to make more people dependent on government instead of giving them more power to move up the economic ladder and a party that doesn’t support policies that have again made the U.S. the most attractive place to do business in the world.
Why do they do that, and why do their media and entertainment allies back them so adoringly? I certainly can’t answer that question because the answer would not be logical.