The Trump administration is promising big tax cuts as the solution for our economy, but it might not be as simple as that. That is what this bog is all about.
What I am hearing from the news is that Trump is proposing a reduction in individual income taxes as well tax on businesses. When 10% of the tax payers pay 90% of the taxes, do you really think that we need to reduce individual income taxes on the middle class? I think that many of these politicians think that it will put more money into the pockets of tax payers and that they will spend that money and drive our economy higher. I ask you, "How is giving a family who is not paying a significant amount it income tax now going to have enough extra money to spend on something "made in the USA" when most of what they buy is not made in the USA"? Where are they going to get all these new jobs? Will it be as a greeter at WalMart or some other retailer of imported products? The increased cost of Obamacare is going to eat up any pay increase, no matter how it is done. Even if Trump gets rid of Obamacare, it appears that he is going to keep some of the "mandates" that continue to increase family and business costs significantly.
Given that most voters do not understand basic economics, I think that Trump may be throwing them a bone to keep them under control while he does things that actually do help the economy and jobs. There are several things that affect the number of jobs and the pay rate for those jobs and earning more for doing the same thing is not some thing that helps to create more jobs. Obama has made it more difficult for businesses more by his regulations and mandates than the affect of taxes. High tax on businesses is a slight of hand trick that politicians use to pull the wool over the voter's eyes. They do not seem to have the character to face voters and explain to them that workers pay the tax in the end any way.
You can increase the GNP by a couple of ways and getting more of our voters off welfare and into jobs is one way. Workers only deserve higher paying jobs when they are "worth" more by producing more, not when they use extortion or political pressure. We are the dumping grounds for almost every country in the world for their products. We have a lot of agriculture products, but many of the countries around the world who need the food are so poor that they can not afford to pay "full" price. We have all kinds of programs that subsidize these countries with out tax money. The bottom line is that we need more exports a fewer imports. How do we do that? Simple, right? Make our products cost less and imported products cost more. I think that a 3rd grader can understand that.
How do we do that? Shift the tax and things like social security and health care for the poor off the backs of businesses and onto "consumption". That means "sales tax"! People who cheat on their income tax with the "black market", now would end up paying their share of taxes. Illegal drugs is a big business here and they don't pay any tax. Shifting to more of our taxes coming from "value added" tax would mean that we would be taxing their illegal income. Imported products from places like Mexico and China would cost more and thus level the playing field for our businesses.
The bottom line is that Trump should not lower income tax for middle class. He needs to work on getting the middle class to be "worth" more and thus able to pay their share of tax.
What I am hearing from the news is that Trump is proposing a reduction in individual income taxes as well tax on businesses. When 10% of the tax payers pay 90% of the taxes, do you really think that we need to reduce individual income taxes on the middle class? I think that many of these politicians think that it will put more money into the pockets of tax payers and that they will spend that money and drive our economy higher. I ask you, "How is giving a family who is not paying a significant amount it income tax now going to have enough extra money to spend on something "made in the USA" when most of what they buy is not made in the USA"? Where are they going to get all these new jobs? Will it be as a greeter at WalMart or some other retailer of imported products? The increased cost of Obamacare is going to eat up any pay increase, no matter how it is done. Even if Trump gets rid of Obamacare, it appears that he is going to keep some of the "mandates" that continue to increase family and business costs significantly.
Given that most voters do not understand basic economics, I think that Trump may be throwing them a bone to keep them under control while he does things that actually do help the economy and jobs. There are several things that affect the number of jobs and the pay rate for those jobs and earning more for doing the same thing is not some thing that helps to create more jobs. Obama has made it more difficult for businesses more by his regulations and mandates than the affect of taxes. High tax on businesses is a slight of hand trick that politicians use to pull the wool over the voter's eyes. They do not seem to have the character to face voters and explain to them that workers pay the tax in the end any way.
You can increase the GNP by a couple of ways and getting more of our voters off welfare and into jobs is one way. Workers only deserve higher paying jobs when they are "worth" more by producing more, not when they use extortion or political pressure. We are the dumping grounds for almost every country in the world for their products. We have a lot of agriculture products, but many of the countries around the world who need the food are so poor that they can not afford to pay "full" price. We have all kinds of programs that subsidize these countries with out tax money. The bottom line is that we need more exports a fewer imports. How do we do that? Simple, right? Make our products cost less and imported products cost more. I think that a 3rd grader can understand that.
How do we do that? Shift the tax and things like social security and health care for the poor off the backs of businesses and onto "consumption". That means "sales tax"! People who cheat on their income tax with the "black market", now would end up paying their share of taxes. Illegal drugs is a big business here and they don't pay any tax. Shifting to more of our taxes coming from "value added" tax would mean that we would be taxing their illegal income. Imported products from places like Mexico and China would cost more and thus level the playing field for our businesses.
The bottom line is that Trump should not lower income tax for middle class. He needs to work on getting the middle class to be "worth" more and thus able to pay their share of tax.
