Politico is out today with an article about how the booming economy is not due to the GOP tax cut. It's a typical attempt by the media to deal with a major problem that they and the Democrats have this year: the Republicans have been in power for a year and a quarter and during that time economic growth has been quite strong. Indeed, after hearing from Obama, the Democrats and that media how 2% growth was the maximum to expect, the economy has beaten that level and averaged about 3% growth since the start of the Trump presidency. As a result, the new talking point in the media and from Democrats is that while the economy is doing well (that's hard to deny), it is not due to anything that the GOP and President Trump have done. And, like many of the media/Democrat talking points, it is just total BS.
Let me give you an example. Here is what the Politico piece says of the bonuses that followed the passage of the new tax law:
The billions in bonuses being handed out are tiny compared to the trillions of dollars in overall wages that Americans workers earn – and with the tight labor market, they might have been handed out anyway.
It is just rewriting history to say this. We know that the day the tax cut was signed into law, AT&T announced that it was giving tens of thousands of employees a $1000 bonus due to the tax cut. In the two weeks that followed, a large number of other businesses also announced that they were giving similar bonuses to employees due to the new tax law. There were no bonuses prior to the law's passage. Then it passes and the companies say that due to the law, they are giving bonuses to workers. But to the media, oh, these bonuses would have been given out anyway. It's just not true.
Without a doubt, the full impact of the tax cuts has not yet been felt. We should see an accelerating impact through this year and into next as new plants and other investments drive the economy towards higher growth rates. It is ridiculous, however, to argue that benefits like the billions of dollars in workers' bonuses are not due to the tax cuts.
Let me give you an example. Here is what the Politico piece says of the bonuses that followed the passage of the new tax law:
The billions in bonuses being handed out are tiny compared to the trillions of dollars in overall wages that Americans workers earn – and with the tight labor market, they might have been handed out anyway.
It is just rewriting history to say this. We know that the day the tax cut was signed into law, AT&T announced that it was giving tens of thousands of employees a $1000 bonus due to the tax cut. In the two weeks that followed, a large number of other businesses also announced that they were giving similar bonuses to employees due to the new tax law. There were no bonuses prior to the law's passage. Then it passes and the companies say that due to the law, they are giving bonuses to workers. But to the media, oh, these bonuses would have been given out anyway. It's just not true.
Without a doubt, the full impact of the tax cuts has not yet been felt. We should see an accelerating impact through this year and into next as new plants and other investments drive the economy towards higher growth rates. It is ridiculous, however, to argue that benefits like the billions of dollars in workers' bonuses are not due to the tax cuts.
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