The following post (below) is originally from 3/5/17. It was written well before the details and the minutiae of the recently signed tax “reform” plan were laid out. Those of us who voted for our new President were hopeful he would have a solid understanding and respect for what truly built this country – entrepreneurial capitalism and freedom. Ronald Reagan certainly understood this, as explained in this post. Donald Trump, and the “free enterprise” loving Republicans in Congress should have read and reread this quote from President Reagan:
“Entrepreneurs and their small enterprises are responsible for almost all the economic growth in the United States.”
Getting some (non-targeted) tax relief for small American businesses and for American taxpayers is always welcome. Not discussed during the marketing tour is that, in the shorter-term, cutting taxes “works” much better when the Washington spending machine is running full throttle (and bonds are in a secular bull market). However certainly in the long-run, both slashing spending and slashing tax rates across the board, is truly how to attain a strong vibrant economy.
But the main marketing (centerpiece) for this tax package has been about assuming, predicting, guessing that the corporate tax cuts would indirectly help American workers via strong economic growth, thus resulting in more hiring and better wages and salaries. There are economic studies all over the place espousing these theories, as discussed in this post from (the always “non-partisan”) Bloomberg:
“When all variables are measured properly (assuming), it seems (guessing) major companies are paying out to shareholders about 22 percent of their net income. It’s therefore unlikely (predicting) that new profit, as might follow from lower corporate tax rates, will simply be drained out of the corporation.”
Yet just two weeks later, the same Bloomberg ran this story totally contradicting their previous assuming, predicting, guessing post. The second post called into question all of the claims about how the tax package would certainly increase hiring and salaries and wages:
“Major companies including Cisco Systems Inc., Pfizer Inc. and Coca-Cola Co. say they’ll turn over most gains from proposed corporate tax cuts to their shareholders, undercutting President Donald Trump’s promise that his plan will create jobs and boost wages for the middle class.”
And Zero Hedge ran an excellent post emphasizing all of this, with executives dissing Gary Cohn during his tax “reform” marketing tour.
Be bold, be fair, be direct – let us keep our money right up front. There is one thing which is certainly a fact – regarding a direct, not an indirect, benefit for Americans. And it does not involve assuming, predicting, or guessing. That fact is whenever taxes are cut across the board for American taxpayers, then yes we do (get to) increase our own net salaries and wages. There is zero assuming involved, it is a direct route to us, not a (hopeful) indirect route to us.
Of course all of this nonsense falls under the huge umbrella regarding how governments literally believe they own everything, thus they get to decide how much we get to (they allow us to) keep. Adam Smith’s “Wealth of Nations“, and Milton Friedman’s “Capitalism and Freedom“, and other fine works, showed us that it is freedom, not overlords, which will build a strong, vibrant, diverse, and fair economy. Unfortunately the last few decades, the Western nations have proven what steps to take in order to build a weak, static, monolithic, and unjust economy. We already understood Congress is 100% about keeping the power and the control (the source of the injustice) of our wonderful country in the hands of a very small group of slimeballs. And disgustingly, a large part of that group are people not from our country (globalism). Each country and their own great citizens should decide their own path. But it is the group of globalists, not markets and freedom, who chooses winners and losers via regulations, spending, monetary policy, and tax policy. The tax “reform” package won’t change this.
There are leftist/Marxist groups all over the world who claim they are battling the injustice of “capitalism”. News flash. There is no capitalism anymore, except for the very smallest of businesses. And the injustice they claim to be fighting against stems directly from globalism, not from entrepreneurial capitalism. It is the governments, along with their globalist comrades, who are the source of all the injustice. And it is freedom and markets which can rescue us. Let markets, small business “men”, and entrepreneurs – (freedom) – choose the winners and the losers. And let the globalist corporations fail. Because it is globalism which allows the multinationals (whatever that means anymore) to succeed. So of course they want globalism to continue to run smoothly.
American small businesses are the true hard-working, patriotic Americans who will Make America Great Again. It is not the globalist corporations. True capitalism, markets, and freedom would be their death knell. Hence the Revenge of the Blue Collar Man.
Liberals love government welfare, just as much as the globalist corporations and the one percenters. It’s just who’s getting the welfare which is the question. And as always, it’s the politicians who vote on (dole out) and decide who are the lucky ones. And guaranteed it isn’t American middle-class/upper middle-class taxpayers, nor American small business entrepreneurs, who will get the pork. We’ve been paying for all of the welfare for far too long.
Why should taxes be cut for globalists corporations who have been screwing workers for decades, and they will continue to do just that, especially as robots become more entrenched in the workplace. That trend will not stop. So how about giving all American workers, along with all American small businesses entrepreneurs, an across the board tax cut first. You know, those same entrepreneurs who drive all net economic vibrant activity in capitalist economies. And “pay” for the tax cuts by finally eliminating the 100’s billions (or more) in globalist corporate welfare.
The President talks about cutting “waste” in Washington, by making it run more “smoothly”. What a joke, except the joke is on the 99%ers among the American workers, not on the elites. You only make government run more “smoothly” by completely eliminating programs and departments. If you don’t completely eliminate them, these programs and departements pop right back up. So Mr. President, let’s start making things run “smoothly” by eliminating globalist corporate welfare (pork) first. Their pork has been doled out for decades, and even with you, Mr. President, in there, it continues unabated. The grotesque corporate lobbyists are in Washington at this very moment with the politicians. And the lobbyists are schmoozing, cajoling, providing hookers, favors, and bribing, to ensure their gravy train continues running “smoothly”. But it’s time the globalists felt some pain and had to sacrifice. Meaning they (the globalists) need to feel the turbulence. The rest of us have borne the brunt for decades.
So Mr. President, how about “paying” for corporate tax cuts, by actually cutting corporate pork. Even though you are doing some good things Mr. President, you are not going to cut the pork, because the globalists are still in total control. So when the globalist corporations start their whining about their tax cuts (not ours), let’s point out something to them. Let’s allow true entrepreneurial capitalism to work by doing across the board tax cutting, and also by having a truly smaller government. The only way to make government run more “smoothly” is via a machete. Then even with our toxic debt and derivatives situations, and our mounting inflation problems, we can revitalize the economy somewhat. Therefore we American workers and entrepreneurs all benefit, not just the globalists. The globalists have been on easy street way too long.
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