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Trump Right, Hillary Wrong on Taxes

Trump Right, Hillary Wrong on Taxes

(Getty Images/Joe Raedle/Justin Sullivan)

By    |   Monday, 19 September 2016 08:43 AM


It is utterly preposterous to think that Hillary Clinton knows anything at all about business. She’s a politician.


On the other hand, Donald Trump makes no claim to being a politician but is a recognized worldwide as a businessman.
 

So, based on this alone, which one of them do you think has some idea how the economy works?
 

I would venture that a hot-dog vendor on the streets in front of a ballpark knows more about business economics than Mrs. Clinton.
 

Let’s agree on three basic propositions.
 

First, that an economy grows only when the private sector has an increase in productivity.
 

Second, that government taxing and spending generates no economic productivity.
 

Third, that without capital, there is no capitalism.
 

If you are a person who disagrees with these fundamental truths about economics, then stop reading this blog immediately. Find a safe space where such words will not you place in fear; and continue to live out your fantasies being supported by your mommy and/or daddy, student loans, government grants, or a welfare check.


I expect that Mr. Trump’s supporters will go on reading but Mrs. Clinton’s supporters will fall into the fetal position, shaking in fear, and cry into their blankies.
 

There are various economists, like Martin Feldstein, a professor at Harvard University, who question Mr. Trump’s proposal to cut tax rates. He seems to feel that when you cut tax rates you also cut tax revenues. Thereby, Mr. Fedlstein reasons that the budget deficit will grow.
 

This is typical thinking of most economists who lack the experience of a hot-dog vendor on how taxes affect private business growth.
 

When the government takes less money from taxpayers that leaves more money in the pocket of the taxpayer that can be used for investing or consuming.
 

For example, a hot-dog vendor can buy a second cart, more hotdogs, and employ someone to run it.
 

Economic productivity comes about when capital mixes with labor, resources, and entrepreneurial ability. This combination leads to an increase in value to some product or service which somebody thinks is worth buying.


And that is the moment when economic productivity is realized. (To the contrary is that virtually everything done by government subtracts value and never adds value. Government is an overhead cost.)
 

The political policy question is only one of figuring out how much money should be heisted from the private sector at a minimum to pay for what is agreed to be necessary governmental endeavors.
 

The policy of our political leaders in Congress right now is figuring out the maximum amount of private capital that can be looted from the taxpayers before they get voted out of office.
 

The tax system and budget system is so utterly corrupt that it can only be changed by electing someone as President who is not a politician and is an actual private sector taxpayer.
 

I propose another economic truism—that is, that a country cannot borrow itself out of debt. Debt can only be reduced and paid off by an increase of revenues over costs.
 

The only way the economy of the United States can possibly grow is by more capital being invested in the private sector and less money poured into the abyss of government spending on welfare and special interest cronyism.
 

Mrs. Clinton wants to raise tax rates to fund vast new governmental programs which if they are successful will generate little except waste, fraud, and taxpayer abuse.
 

Mr. Trump wants to cut tax rates which will leave the taxpayers in the private sector more money to make capital investments or consume private goods and services.
 

Who has the better concept of the future tax policy for the United States?
 

To me, it is not even a close call.
 

Mr. Trump is right and Mrs. Clinton is wrong.

 

Denis Kleinfeld is known as a strategic tax and wealth protection lawyer, widely published author and creative teacher. To read more of his articles, CLICK HERE NOW.

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Who has the better concept of the future tax policy for the United States? To me, it is not even a close call. Mr. Trump is right and Mrs. Clinton is wrong.
hillary clinton, donald trump, taxes, economy
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2016-43-19
Monday, 19 September 2016 08:43 AM
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