Posted on 08/29/2017 2:53:53 AM PDT by IBD editorial writer
Income Taxes: With President Trump turning his attention to tax reform, Democrats are busy dusting off their shopworn claims about federal income taxes. Almost nothing they say about taxes is true.
Trump plans to make a pitch for tax reform on Wednesday at an event in Springfield, Mo. He will likely explain that tax cuts are the key to a bigger economy, more jobs and increased incomes. Pundits are busy explaining that getting tax reform done this year won't be easy. True enough. But it will be made more difficult because of misinformation spread by Democrats and their allies in the press about the U.S. tax code.
Here are the three big lies:
Bush tax cuts didn't work. "The American people," says Winnie Stachelberg of the Center for American Progress, "know from experience under the Bush era that tax cuts for millionaires and corporations will not benefit the U.S. economy, jobs, or the middle class." They also supposedly boosted the deficit.
Democrats have been peddling this lie for so long that no amount of hard data will likely stop them. But here goes, anyway.
Federal deficits steadily declined after Bush signed the 2003 tax law, which retroactively cut income tax rates — the deficits dropped from $470 billion in 2004 to $167 billion by 2007.
The economy perked up, with GDP jumping 6.9% in Q3 2003 and 4.8% in Q4. In the six quarters after Bush signed those tax cuts, average quarterly GPD growth topped 4%, compared with 2.1% in the previous six quarters. Anyone want to guess how Obama's tax hikes affected GDP growth?
By the end of 2007, the unemployment rate had dropped to 4.7% — down from 6.1% when Bush signed the 2003 tax cuts into law. Median household income climbed 3%.
(Excerpt) Read more at investors.com ...
The concern I have is that tax reform has already been priced into current stock prices. If tax reform fails, investors may be inclined to retreat with their money and Trump will be blamed for the ensuing decline in the stock market and who knows how deep the decline will be.
You can count on Republican squishes to kill tax reform because they’re afraid of being blamed for cutting taxes on the wealthy.
Guess to whom Wall Street hedge fund managers donate?
Tax cuts fails in congress, stock market crashes. Stock value is based on future earnings. No tax cut, no business future.
The poor should pay their fair share.
There could be no greater gift to the American People than a 15% business tax rate, coupled with cheap energy and less regulation. The boom that ensues would dwarf growth that seems unattainable now. Left and right would get what they want. High employment, high immigration. Higher tax revenues, sound Social Security and Medicare. Rising real wages, some inflation to get asset price appreciation. Savings and capital formation. More self reliance, less govt. dependancy. Business would re-locate here form all over the world, ending the outward express, reducing Chinese influence. It truly is the road out of serfdom.
That’s only what the media is saying.
Would you buy a new car or house because the middle class is supposed to be getting a tax cut and it will free up more income for a higher. Payment? In my case, it’s actually causing me to postpone buying now.
Left would get what they absolutely do not want - a population learning they can thrive without government help.
bkmk
The poor should get off welfare. Currently the poor are penalized for working and rewarded for not working.
Income is taxed; not wealth; however, this does not stop the Left from repeating this lie over and over again as it fits in well with the Left's promotion of class warfare...
Illinois and Cook County democrats raised taxes on the poor to pay public employees bloated pensions.
That’s one reason Dems oppose tax cuts and deregulation. They know they will work!
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