One of the most significant tax reforms in this country was signed into law by President Trump in late December. It provides tax relief for both individuals and corporations. But listening to the Democrat’s talking points both before and after you would think this heralded the onset of the Great Depression. They’re like a Debbie Downer-type of the Borg collective (“Tax cuts are futile. You will service us”).
Front and center is Pelosi of Borg:
“This GOP tax scam is simply theft, monumental, brazen theft from the American middle class and from every person who aspires to reach it. The GOP tax scam is not a vote for an investment in growth or jobs. It is a vote to install a permanent plutocracy in our nation. It does violence to the vision of our Founders. It disrespects the sacrifice of our men and women in uniform, who are a large part of our middle class and to whom we owe a future worthy of their sacrifice. And it betrays the future and betrays the aspirations of our children. It demands, it morally demands a no vote from every member of this house of the people.”
Someone please tell Pelosi (and her snowflake supporters) that there were NO taxes when this country was founded because, oh I don’t know, we had just fought a war to stop taxation without representation. The first federal tax wasn’t enacted until the 1860’s. Isn’t it also amazing how the left always views you getting more of your hard-earned money back as “theft”?
“And for those of us blessed to serve in this Congress, we must remember our special responsibility to govern fairly, to meet the needs of all of God’s children.”
Unless that child happens to be in the womb of course.
Vermont socialist Bernie Sanders had this to say: “Republicans are celebrating raising taxes on working families to give tax breaks to billionaires, corporations, private jet owners and themselves. Remember that.”
This from the man who is apparently rich enough to own 3 homes. Remember THAT!
Kamala Harris: “The tax plan approved by Republicans in the House and Senate today is a gift to corporations and the top 1% at the expense of middle-class families. Americans deserve better.”
Yawn. Same tired old cliches.
Bill de Blaiso: “The @GOP decided to put wealthy corporations ahead of working families, the 1% ahead of seniors, and the will of their donors ahead of the needs of the American people. We the people will remember this betrayal.”
Yippee! Bill decided to go for the EXTENDED version of the tired old cliches.
And btw, the tax cut will benefit 80% of Americans, not 1%. But facts don’t matter when you need to keep the low information voter on board.
Then there’s pollster Nate Silver: The notion that the GOP tax bill will become way more popular once people see they’re getting a tax cut seems naive to me”.
Says the man who was giving Hillary a 90%+ chance of winning heading into the 2016 election. And Nate Silver doesn’t think you’ll like getting more of your own money back. Talk about being out of touch. (See below for the evaporating Democrat advantage in the generic ballot).
So, we have all these statements and predictions from politicians and celebrities. But almost immediately after passage of this tax reform, a different reality became clear, proving the left’s arguments against it were extremely wrong:
The stock market is booming and has hit record highs many times since the tax reform was signed into law (8 since January 1 and 70 record highs for all of 2017!).
Many companies have already announced bonuses and wage increases for their employees (over 100 so far). Here are but a few examples:
AT&T: “…said in a press release Wednesday that it would give more than 200,000 of its U.S. workers who are union members a special bonus of $1,000. The company also increased its capital expenditures budget by $1 billion in the U.S.”
Comcast: “…announced it would give special $1,000 bonuses “[b]ased on the passage of tax reform and the FCC’s action on broadband.” Those bonuses would apply to more than 100,000 employees that are eligible and not in executive roles. The company also made a big spending commitment to bolster its broadband plants, television and film production, and theme parks, pledging an outlay of at least $50 billion over the next five years.”
From CBN News: “With the recent Walmart announcement of an increase in their starting wage and then Fiat Chrysler opening a new plant with 2,500 jobs in Michigan, there are now more than 100 companies that have offered bonuses and benefit hikes to their workers due to the tax cut. An estimated one million workers have benefited. This after less than one month. Liberals disparage all of this as a “publicity stunt.” To hundreds of thousands of families, this is a wonderful stunt and let’s hope see a lot more examples of it in the weeks and months ahead.
Apple has announced new investments and job creation in this country. The investments will amount to $55 billion this year alone, $350 billion over the next five years. And it will create of 20,000 jobs over the next five years. Says Tim Cook:
“Apple is a success story that could only have happened in America, and we are proud to build on our long history of support for the US economy,” said Tim Cook, Apple’s CEO. “We believe deeply in the power of American ingenuity, and we are focusing our investments in areas where we can have a direct impact on job creation and job preparedness. We have a deep sense of responsibility to give back to our country and the people who help make our success possible.”
Voters outlook on the country are on the upswing. Last June when asked if America’s best days were ahead of us the margin was -16 (36%-52%). It has now swung to + 7 (43%-36%). This will only continue as the effects of the tax reform ripple through the economy.
The generic margin for Democrats is shrinking as the American citizens realize the media lied about the content of the reform and that they will have more money in their pockets.
And finally, there is a GLOBAL move to invest in America thanks to the tax cuts, reports Maria Bartiromo who is on the ground in Davos:
“I was speaking with some businesspeople in Europe the other day, and they told me that they had a whole strategy to invest in Europe, and after the tax plan in the U.S., they’ve completely shifted their strategy, and now they’re shifting that money away from Europe and into the U.S. So this tax legislation that the president signed into law earlier this year (sic), this is shifting plans across the world. It’s not just benefiting America. It’s also changing direction for some money that was earmarked elsewhere. So it’s very powerful”
And all these things are occurring BEFORE the real effect of the tax reform is felt by the average American. Come February individual taxpayers will start seeing more money in their paychecks (about an average of $2000 annually). Now this may not seem a lot to Pelosi of Borg but to the average worker it is.
There were some other items in the tax reform bill not directly related to tax cuts that are significant as well:
A cap on deductions for state and local taxes. This will have the effect of exposing the higher state tax rates run by Democratic Governors/State Houses that had been remained somewhat invisible since there was no limit on deductions. No longer. Some governors are looking for away around that (and their own demise):
Some blue state governors and mayors are examining whether they can convert their income taxes into payroll taxes (which could be deductible from federal taxes as a business expense for employers) as a way to preserve federal deductibility. Some are even threatening to sue the federal government – as if this tax deduction were a constitutional right.
California and New York officials are investigating whether their states can convert income tax payments into tax deductible charitable contributions to the state government. Good luck with that.
Mortgage Interest Deduction capped at 750,000 on interest paid (was a million). This even had Diane Feinstein defending the rich: “The Republican tax bill caps the mortgage interest deduction at $750,000 for new mortgages. In California, seven counties have average home prices that are more than 750,000.”
It eliminates the Obamacare mandate in 2019. Another leg knocked out from Obamacare.
Opens ANWR for exploration (through lease sales). This is monumental as it lifts a ridiculous 40 year ban. Over time this will lower the costs of oil and lessen our dependence on foreign countries. A huge win.
All the items highlighted are part of a common sense approach to tax and economic reform that has been sorely needed for a long time. It looks like we are on the verge of a major economic expansion that we haven’t seen for decades. Who would have figured that giving people some of their money back would have such a positive effect? Trump, that’s who! It is his leadership that made this happen.
Anybody getting tired of winning yet?