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Economy

GOP August recess: A time for lies, damned lies, and tax reform

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Believe it or not, we are only one week away from the August recess for the GOP-controlled House of Representatives. Recess . . . Washington-speak for thirty days of taxpayer-funded campaigning ahead of the November election. Besides, it’s required by law.

To be fair, the Gang Of Phonies need this undeserved time off away from a job they failed to show up for in the first place. Being away from Washington will free them up to create a new batch of election-year lies designed to convince the people back home that the GOP will really keep their promises this time if given a chance to keep their majority.

No small task, considering the political trail of tears their constituents have been forced to walk after being on the receiving end of one broken promise after another, effectively depriving the governed their constitutionally protected power over the government.

One of the lies we can expect to hear will appear to have a ring of truth to it — tax reform. Trump and the GOP will be heralding the Tax Cuts and Jobs Act (TCJA) as they repeat the talking points used when the law was passed — almost like everything they promised really happened.

They will tell us how tax cuts have provided people with extra money to spend and how this new spending is causing explosive economic growth. And they will claim that tax cuts have for corporations have resulted in the creation of thousands of new jobs with higher wages.

Unfortunately, despite Trump’s “Promises Made, Promises Kept” 2020 campaign rhetoric, these talking points are just that — talk. Simply put, the TCJA has failed to deliver as promised.

While Trump has been touting a GDP of 4% or higher, it has only managed Obama-level performance and has fallen since the tax cuts to around 2%.

Corporations haven’t been using their tax cut windfall to create jobs. Instead, they’ve been using it to buy back their own stock at record levels. While that has kept Wall Street afloat, it hasn’t done much to create jobs.

Trump’s tax cuts are failing to deliver on the wage front as well. While Trump and the GOP promised higher wages, real hourly compensation has fallen dramatically since the TCJA became law and has done little to help workers.

As bad as this news is, it’s made worse thanks to Trump’s schizophrenic trade war. His nationalist approach to “fair trade” is creating inflationary pressure on the economy and forcing corporations to move operations outside the US — an outcome that the Federal Reserve warned in 2016 would happen under Trump’s economic policies.

The bottom line is that the Tax Cuts and Jobs Act has failed, leaving the GOP with no choice but to break out the election-year playbook and deploy the three-step strategy they have relied on for years: Make promises – Break promises – Repeat.

Originally posted on The Strident Conservative.

 


David Leach is the owner of The Strident Conservative. His daily radio commentary is distributed by the Salem Radio Network and is heard on stations across America.

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Economy

Thomas Sowell makes a clear point about Medicare-for-All

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Thomas Sowell makes a clear point about Medicare-for-All

How was the left able to take heat away from their Medicare-for-All proposal, and more specifically the estimated $32 trillion price tag over a decade? They tripled down with the Green New Deal, which some estimate would cost upwards near $100 trillion.

So, the price tag of the Democrats’ desired replacement for utterly failing Obamacare is to take current government control over healthcare and put it on a regiment of steroids and methamphetamine. When you’re going through Hell, keep going, I suppose.

But all of this could be alleviated if voters and politicians took a moment to think about the prospects of Medicare-for-All logically. Let’s erase, for a moment, the Utopian notion that taxing rich people extreme amounts will give us enough money to make healthcare free for everyone while also improving the quality. That’s the goal, right? Cheaper, better healthcare is what most people want. Conservatives believe it’s best to pull government administration out of the equation and put it all on a competitive capitalist model that has worked for nearly every other industry for over a century. Hyper-leftists want to add more government control.

Conservative commentator Thomas Sowell has some thoughts on the matter. One in particular can be wrapped up into an eloquent quote that should be ideological checkmate allowing us to win the healthcare debate.

“It is amazing that people who think we cannot afford to pay for doctors, hospitals, and medication somehow think that we can afford to pay for doctors, hospitals, medication and a government bureaucracy to administer it.”

Of course, our version of checkmate requires common sense, logic, and basic math skills. These attributes aren’t as readily present on the left, therefore they might hear this logic and still think single-payer makes sense.

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Democrats

Bernie 2020, the union: How organized labor is the latest play for primary points

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Bernie 2020 the union How organized labor is the latest play for primary points

When one Democratic candidate goes to the left, the other candidates lurch to match. We’ve seen it in support for the Green New Deal, Medicare-for-All, and super-high tax rates for the rich. We’re about to see it in regards to organized labor as Bernie Sanders’s campaign has become the first group in presidential campaign history to form a union.

My Take

Whether this was a decision by campaign leadership to demonstrate their boss’s leftist credibility or of they’re simply being the leftists that they are, we can’t be sure. In fact, we’ll almost certainly never know. Either way, it’s done and now all of the other leftist campaigns have to respond.

Expect every major campaign team to unionize soon. It’s not because it will make them more effective. It won’t help them get better benefits or retain their jobs for longer term since the organization will fundamentally change following the election. All it will do is allow them to make the claim they’re so pro-union, they’re willing to accept the lost productivity associated with organized labor.

This is quickly becoming the most symbol-driven primary election season we’ve seen in decades, perhaps ever. It would all be very entertaining if it weren’t so dangerous to the American psyche.

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Economy

Busted: The myth that old 90% tax rates actually worked

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Busted The myth that old 90 tax rates actually worked

One of the favorite tactics for the new Democrats to push their idea of super-high taxes on the rich is to invoke Dwight D. Eisenhower. They say even a Republican President once believed in high taxes on the rich, a time in which the highest tax bracket was 90%.

John Stossel an economic historian Phillip Magness debunked the myth that rich people actually paid the extreme tax rates of the past in this video. As usual, Democrats have selective memories when it comes to anything they want to press.

Back in the days of high taxes for the rich, there were enough loopholes intentionally left open for them to cut their actual tax rates tremendously. According to Magness, the actual average rate paid by millionaires back then was around 41%. With fewer loopholes available today, the highest tax bracket of 37% is close to what is actually paid by those earning the most money. But what would happen if the high tax rates of the past were combined with the lack of loopholes of today? We’d have an economic collapse that would hit so swiftly, there’s no way Democrats would have time to react.

The bottom line is this: the best producers in America will no longer have an incentive to produce here. Some would leave. Others would simply stop producing. It’s easier for them to reduce their revenue and live off their accumulated riches than to earn money for the government to take. Even at a “more reasonable” 70% tax rate, as proposed by some of the top Democrats today, the increase would be too great for most wealthy Americans to bear. We saw this play out in France. We could see it play out here if the Democrats get their way.

Fighting the talking points of the left is one of the biggest reasons conservative sites like NOQ Report exist. We call on those who want to help prevent the rise of socialistic ideas to contribute to us; as a news outlet that is crowdfunded, you’ll notice a conspicuous lack of spammy ads that you find on other sites. This is intentional and allows us to reach a broader audience with the conservative truth.

Democrats love pretending like raising taxes on the rich will solve all of our problems. They know it’s not true, but it certainly sound good in campaign speeches. This isn’t really a tax grab. It’s a power grab designed to confuse the people.

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