Tax Cuts lead to Skyrocketing Investment Job Creation
By Peter Ferrara
Texas Insider Report: WASHINGTON D.C. 2018 is an election year and typically the party that holds the White House gets thrashed in the midterms. Just the opposite will happen this year for several reasons.
For the first reason Trumps tax cuts and reform are working spectacularly with his deregulation efforts to finally restore booming economic growth of 4 a year or more. Just like President John F. Kennedys tax cuts in the 1960s and President Ronald Reagans tax cuts in the 1980s the critical tax rate cuts in the 2017 tax reform legislation will result in:
- Skyrocketing Investment
- Flooding Job Creation
- Surging Wages
- Swelling Labor Supply
- Rocking Business Expansion
- Rolling Business Creation and
- Booming Growth
That will result because of tax cuts provided to the middle class and working people directly which the Democrat-controlled media seeks mightily to keep secret.
Even bigger for middle class and working people is the cut in the federal corporate rate from 35 to 21.
Experience and the latest economic studies confirm that roughly 80 of corporate income taxes are paid by workers in the form of lost wages and jobs. Thats because in todays global economy capital is freer than families are to move across international borders.
Americas formerly outdated corporate tax rates averaged nearly 40 counting state corporate taxes roughly double Asias 20.1 and Europes 18.9 Other countries worldwide have been cutting their corporate tax rates for decades creating this crippling tax disadvantage.
Those countries responded to global competition and the latest economic studies showing that workers in modern economies actually bear most of the corporate and business tax burden.
America is falling behind the times crippled by socialist media and misleading Democratic rhetoric.
This is why tax reform focused on cutting corporate and business taxes bravely doing the right thing for working people and the middle class. Too many voters do not understand this because the Democrat-controlled media wont tell them.
Besides the tax cuts the boom will also result from the expensing of capital investment and the immediate deduction replacing depreciation over many years territoriality in taxation of overseas investment and the repatriation that brings back to America trillions of dollars held overseas by American companies.
Investment will flow into America just as it did under Kennedy and Reagan.
This economic boom will boost Republican candidates by November all the more because
not one Democrat voted for the Tax Cuts. The boom will also rapidly nullify any increase in the deficit with further help from spending restraint further boosting Republicans.
Democrats will be hurt when voters realize that they and their media lied to them about the Tax Cuts and Donald Trumps Tax Reform. Blue collar workers and the middle class will see their taxes decline and the fabrications about over 80 of the tax benefits going to the top 1t will be disrobed.
The realization that Democrats and their media were wrong about tax reform and Trumps deregulation will spread across America... wildly. Voters will see that they dont understand economics and consequently arent able to represent working people and the middle class who want jobs and higher wages.
For over 200 years Americans have voted for economic growth not the Democratic Partys model of higher taxes and redistribution trying to buy votes.
The sharp contrast between Trumps boom and Obamas stagnation over the last decade will help Republicans
and hurt Democrats. The economy never really recovered from the steep 2008-09 recession even though the historical American record has been the steeper the recession the stronger the recovery.
The Democratic record of less than 2 average real growth is the worst recovery from a recession since the Great Depression.
Trumps energy deregulation will further the boom as America takes its place as the worlds #1 producer of oil natural gas and coal. Democratic extremism embarrassed in front of the debunked and falsified global warming hysterics will further sink Democrats. Republicans will ride even faster growth.
The Democratic failure will affect even blue states which will suffer continued stagnation as Democrats resist cutting their painfully high taxes. State tax revolts will further benefit brave and articulate Republicans even in these places.
Peter Ferrara served in the White House Office of Policy Development under President Ronald Reagan and as Associate Deputy Attorney General under President George H.W. Bush. He is currently a Senior Fellow at the Heartland Institute and a Senior Policy Advisor to the National Tax Limitation Foundation.
