Something that has been lurking at the back of my mind lately is why isn’t anyone (like Republicans running for Congress) talking about the advantages the “Average American” has seen because of the big tax cut? Democrats have managed to stifle the GOP from blowing their own horn about how great this thing is.
Why is that?
I’d like to talk about how the stifling works with this example.
On Monday night during the rally in Houston, President Trump talked about enacting a 10% tax cut "for the middle class". He said that he would work with Kevin Brady, et al, to get the legislation written and ready to go in the next couple of weeks.
And nobody's talking about it. This is a major policy announcement, and no one talked about it.
When did giving you back your money (or not taking it in the first place) become not noteworthy?
Well, it’s like this, there are people in the media who are talking about the "costs" of the proposed cut. The analysis done by Market Watch seems to indicate that about $90 billion a year less would be flowing directly to the Treasury if people making less than $200K a year got a 10% tax cut.
I don't know about the well-paid mandarins at MarketWatch, but 10% tax savings is a bit more than crumbs to some of us.
MarketWatch has announced that with the 10% tax cut for people making less than $200K, we won't be able to fund the border wall. Now, that’s kind of interesting, no?
Here MarketWatch is asking "what's more important? You getting to keep your money, or a wall to keep out the poor migrant caravans?"
From Market Watch:
It’s still not clear what President Donald Trump’s mooted 10% tax cut to middle-income workers actually entails, much less whether it would stand a chance in Congress.
But even in the narrowest possible construction, the cost of funding such a reduction would be several times the funding level needed for the wall the president wants on the southern border of the U.S.
Let’s give further credit for a presumed boost to economic expansion from the additional tax cuts. Tax rebates were tried in 2001 and 2008, though the evidence from those programs was that the rebates were used for debt reduction rather than new spending.
Assuming a 19% tax rate and a pretty generous $1.19 in additional GDP per each rebate dollar, and now the program costs about $64 billion for a single year.
Compare that kind of price tag with the estimated $25 billion cost of a Trump border wall that has gotten nowhere in Congress. Legislation proposed by House Majority Leader Kevin McCarthy would provide a slightly slimmer $23.4 billion.
As blog readers know, while I love me some tax cuts, I am also really rigorous on the point that Congress has got to stop spending other peoples’ money.
And yet, no one is covering the fact that Trump has asked his cabinet members to cut at least 5% from their budgets....Hmmm.
Of course, he'd have to shove a repeal of baseline budgeting through Congress in order to really have an effect on our national finances. But he has put the Executive Branch’s stake in the ground by saying to his Cabinet “Stop spending other peoples’ money.” It’s a start.
However, if we believe the media like MarketWatch, we are only going to be given a binary choice—Tax Cut or a Border Wall. Which will it be, you rightwing nut jobs? Your money or your life?
And the media does this EVERY. SINGLE. TIME. They play on our fears and doubts, and try to make it seem as if we cannot live without our overlords in the government.
You can't have your money, they say, because it's the government program that is keeping you safe. The government invests, you'll just probably spend it on barbecue or sock it away in your retirement plan.
I cry BS on this argument, and let’s flip it around. Let’s tell Congress—Our Money or Your Job. Because the only way to get both is to force our Congresscritters to make that binary choice.
Our Money or Your Job—which will it be?
Vote early if you can. If you can’t, be prepared on Election Day, November 6th. Know your polling place, bring your ID. And take responsibility for the future of the nation.
Follow me on Twitter @JanevonMises
TOPSHOT - Honduran migrants heading in a caravan to the US, walk alongside the road in Huixtla on their way to Mapastepec Chiapas state, Mexico, on October 24, 2018. - Thousands of mainly Honduran migrants heading to the United States, a caravan President Donald Trump has called an 'assault on our country', continued their march to the US after one-day rest in Huixtla, Chiapas state in Mexico. (Photo by PEDRO PARDO / AFP/Getty Images)