Hillary Clinton dismissed Donald Trump's economic plans yesterday as being designed just to help "the rich". To put Hillary's comments in the best light, one could say that Trump wants to cut taxes while Hillary wants to raise taxes. Since the richest 20% of Americans pay slightly less than 90% of all income taxes, they are the ones who get the initial benefit if taxes are cut. That is the only way that one could say that Hillary is being honest with her comments. Anyone who would cut taxes must be helping the rich.
Let's take it to the next level, however. To a rational observer, Trump's plan is not aimed at the rich, but rather at invigorating the entire economy of this country. Trump wants to cut corporate taxes while Hillary want to raise those taxes. She calls it reorganizing corporate taxation, but that reorganization is supposed to raise hundreds of billions of additional revenue, so corporate taxes overall would be higher. There is not one honest economist in this country who will tell you that raising taxes on business will help economic growth or create jobs for anyone other than tax collectors. Hillary's plan for corporate taxes will hurt those people who are looking for jobs since there will be fewer jobs created. Hillary's plan will hurt those with stock in their retirement accounts since the companies will be less profitable and stock prices lower. Hillary's plan will hurt those who work for a living since there will be more people looking for fewer jobs and that will keep wages lower. In fact, Hillary's plan will hurt nearly everyone in the country. Trump's plan to cut corporate taxes will help bring new jobs to this country; a company trying to decide where to put a new plant will be more likely to choose the USA if the taxes are made much lower. That will help those looking for work, not the rich. That will also help those who work for a living since it will raise wages due to higher demand for labor.
It's not just business taxes, however. Trump's plan on taxes makes the tax code much simpler. Hillary's adds all sorts of new tax wrinkles and makes the code even more complicated. Hillary's plan will make it that much harder for people and companies to file their returns. That means more time and money spent on accountants and tax lawyers. While I have nothing against accountants or lawyers, money spent on them is economic waste; they don't produce anything. It's just another thing that siphons off money out of the economy.
Then there's the personal income taxes as well, the heart of Hillary's attack. Since any lowering of income taxes in Hillary's parlance "helps the rich", she leaves us with the idea that taxes can never be lowered because it is just designed to give assistance to those who don't need it. But she's wrong. Lowering taxes results in higher economic growth, more jobs and better incomes for nearly everyone. Hillary in essence says she can't accept helping the American people because it might help the wealthy. President Kennedy cut taxes in the 1960s. It boosted the economy big time. President Reagan cut taxes in the 1980s; it boosted the economy for the next 20 plus years. They weren't acting to help the rich, no matter what Hillary Clinton thinks.
The reality is that Hillary's attack on Trump's plan to cut taxes is just the latest lie to come from Mrs. Clinton. She knows the truth, but she goes with the lie instead.
Let's take it to the next level, however. To a rational observer, Trump's plan is not aimed at the rich, but rather at invigorating the entire economy of this country. Trump wants to cut corporate taxes while Hillary want to raise those taxes. She calls it reorganizing corporate taxation, but that reorganization is supposed to raise hundreds of billions of additional revenue, so corporate taxes overall would be higher. There is not one honest economist in this country who will tell you that raising taxes on business will help economic growth or create jobs for anyone other than tax collectors. Hillary's plan for corporate taxes will hurt those people who are looking for jobs since there will be fewer jobs created. Hillary's plan will hurt those with stock in their retirement accounts since the companies will be less profitable and stock prices lower. Hillary's plan will hurt those who work for a living since there will be more people looking for fewer jobs and that will keep wages lower. In fact, Hillary's plan will hurt nearly everyone in the country. Trump's plan to cut corporate taxes will help bring new jobs to this country; a company trying to decide where to put a new plant will be more likely to choose the USA if the taxes are made much lower. That will help those looking for work, not the rich. That will also help those who work for a living since it will raise wages due to higher demand for labor.
It's not just business taxes, however. Trump's plan on taxes makes the tax code much simpler. Hillary's adds all sorts of new tax wrinkles and makes the code even more complicated. Hillary's plan will make it that much harder for people and companies to file their returns. That means more time and money spent on accountants and tax lawyers. While I have nothing against accountants or lawyers, money spent on them is economic waste; they don't produce anything. It's just another thing that siphons off money out of the economy.
Then there's the personal income taxes as well, the heart of Hillary's attack. Since any lowering of income taxes in Hillary's parlance "helps the rich", she leaves us with the idea that taxes can never be lowered because it is just designed to give assistance to those who don't need it. But she's wrong. Lowering taxes results in higher economic growth, more jobs and better incomes for nearly everyone. Hillary in essence says she can't accept helping the American people because it might help the wealthy. President Kennedy cut taxes in the 1960s. It boosted the economy big time. President Reagan cut taxes in the 1980s; it boosted the economy for the next 20 plus years. They weren't acting to help the rich, no matter what Hillary Clinton thinks.
The reality is that Hillary's attack on Trump's plan to cut taxes is just the latest lie to come from Mrs. Clinton. She knows the truth, but she goes with the lie instead.
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