Tags: Trump Administration | Trump Tax Reform | wealth | trump | tax | cuts

Spreading the Wealth Trump Style: Get Ready for More Tax Cuts

Spreading the Wealth Trump Style: Get Ready for More Tax Cuts
(Dollar Photo Club)

By    |   Friday, 29 December 2017 09:31 AM

President Donald Trump has just accomplished what some naysayers thought impossible. He managed to turn his sweeping tax-reform quest into the law of the land.

The liberals,/progressives/and collectivists are already in mourning. They’ve been promising the public that any tax cut is the economic equivalent of Armageddon.

Everyone in their heart of hearts knows this is untrue. The worst that can happen is that the cuts will have a benign affect on the economy. The best is that the cuts unleash the entrepreneurial spirit of the American public and we see growth rates unknown since President Ronald Reagan.

It’s more likely to be the latter, not the former. This is a pro-entrepreneur bill. By lowering the pass-through and corporate tax rates it will encourage many Americans to start businesses and also promote job growth among smaller businesses seeking to expand.

But the real story is that this is just the beginning.

Assuming that the economy strengthens substantially ahead of the 2018 midterm elections (and that Republicans not only retain their majorities in both houses, but also increase them), get ready for the next round of tax cuts. Congress lives to fight one battle at a time.

Trump always has the bigger picture in mind. While this tax bill is less than perfect, upon its success, it set the stage for more tax cuts during Trump’s 7 remaining years.

Yes, if the economy is growing at a 4 percent to 6 percent rate come 2020, you’re looking at 4 more years of a Trump administration.

Trump has cracked the Rosetta Stone of getting things through Congress.

To get a bill passed through Congress is often likened to making sausage: You put the ingredients through the grinder, stuff it in the casing and you have the finished product. It might taste great although you'd rather not see, or know the details of, the actual "how it is made" process. 

But really, it’s more like taking the extended family out to eat for Christmas dinner on your dime. No one will be able to agree on what restaurant to go to. You know that if you go to a good restaurant, the in-laws will be ordering lobster. Therefore, you take them to the buffet and let them have at it.

At the end of the day, they’re happy and you still paid just $9.95. Lisa Murkowski got ANWAR opened, Corker got his real estate tax breaks and every Republican got something.

So far the tax cuts have been a major public-relations win for Trump and the Republicans.

AT&T, Bank of America, Wells Fargo, Comcast and others are rushing to get attention for sharing the wealth with their employees. $1,000 bonuses on top of several thousand to be realized from the individual cuts.

The Democrats, on the other hand, are like homeless kids in Oliver Twist looking at dinner through fogged restaurant windows. They did it to themselves.

So on to the next tax cut, which be assured will pass much easier, and have many more benefits.

Kerry Lutz has been a student of Austrian Economics since 1977. While attending Pace University, he stumbled upon an extensive cache of Austrian Economic Literature in a dark, musty, abandoned section of the school’s library. After graduating from The New York Law School, he became an attorney and life long serial entrepreneur. His diverse career has included: running a legal printing company, practicing commercial law and litigation and founding a successful distressed asset investment company.

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This is a pro-entrepreneur bill. By lowering the pass-through and corporate tax rates it will encourage many Americans to start businesses and also promote job growth among smaller businesses seeking to expand.
wealth, trump, tax, cuts
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2017-31-29
Friday, 29 December 2017 09:31 AM
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