In the article below Peter Brimelow argues that our high tax rates on the middle class are fine because inflation is low. Actually inflation is a cooked number. Real inflation is over 10%. which is rough when there has been ZERO middle class wage increases for 17 years. Add the H-1B genocide of the american engineer and other communist anti-white flak and the middle class is dying. Yes Immigration is a huge issue, but I ask this, if we can find TWENTY TRILLION For rich bankers, why can’t we find a few trillion for tax cuts for the middle class. Oh yah, that’s right, someone has to pay for the Illegal alien invasion. It’s all vicious.
In the end, we MUST STOP THE AMERICAN WAR MACHINE, and the TRILLIONS for NSA Spy Supercenters. The real budget we have for such things is about 60 billion and we spend 1,500 billion. In short way out of wack. It’s time to leave nato, close our bases, put troops around our border, close muslim immigration, shoot to kill on the southern border, and start getting our fiscal house in order.
Instead, Trump spends and spends. Did we think he would do anything different? His budget needed to cut ONE TRILLION and instead he is cutting NOTHING. Simply cutting a few billion from some programs and then adding that to defense. Nothing to cut for the middle class tax cut. Here are some suggestions:
- A 10% import “security” tax on EVERYTHING coming in
- A additional 20% “bad actor” tax for those nations with no copyright respect and slave labor practices – CHINA
- a 0.3% tax on EVERY FINANCIAL TRANSACTION. Maybe even more.
- ALL INCOME BELOW 100K is EXCLUDED FROM TAXES. Hows that for a middle class cut ?
- ALL INCOME ABOVE 100K has a 15% Alternative Minimum Tax, which means, you can never pay less than that.
- All COMPANIES with SALES above 10,000,000 will have a 5% Alternative Minimum tax. Apple alone would start having to pay in billions each year. No more companies cheating out of ALL tax payments. Only when they are new, smaller startups, or small business. Then pay nothing.
Sadly, wont happen. Because our government is a bunch of slimey douchebags. Lets see if Trump has any balls I think he doesnt.
Taxes Won’t Work For Trump. Trade And Immigration Will.
President Trump apparently intends to follow his foray into the health care morass with a lunge into the tax policy quagmire. Prediction: it will be another fiasco. Sure, Trump has been right before and all the pundits wrong-repeatedly. But there’s a simple chart that shows why tax cuts are just not the magic bullet they were for Ronald Reagan in his 1980 upset victory. Trump should go back to the issues that elected him: trade and, above all, immigration.
The chart tracks the marginal federal income tax rate faced by the median (half above, half below) income earner. The marginal tax rate is the rate you pay on the next dollar you earn-i.e. it’s on “the margin” of your current income. Arguably, it’s what motivates you to work that extra hour, rather than opening a beer and watching the game. For average Americans, the tax rate is currently 22.65 cents on that next dollar. And it has been at about that level for an amazing thirty years.
Why? Not because Big Government liberals were increasing taxes directly — although they were very happy to benefit from the results indirectly. Instead, it was the result of that era’s inflation, which was driving taxpayers into higher tax brackets even though their actual purchasing power was falling — a nasty effect that was called “bracket creep.”
The American middle class was being pushed into a buzz saw. And it reacted violently.
But that is simply not happening today. Inflation is low. And one of Reagan’s tax reforms was that tax brackets were indexed to inflation, ending bracket creep.
Needless to say, this does not mean that the current federal tax system is perfect. For example, it’s quite probable that the overall federal tax burden of Americans has been cunningly increased through flat-rate taxes, like fees or Social Security taxes, that do not impact the marginal income tax rate.
And indeed federal tax receipts as a share of the economy (known to economists as Gross Domestic Product or GDP) have recently shot up, to 18.3% in 2015. But that’s partly because receipts always do shoot up after a recession, during which more people are out of work and not paying income tax. And federal tax receipts are still lower than they were at several points in the last 60 years.
Which does not mean that the Obama Administran was a model of financial restraint. Federal governments borrow money, rather than raising it through taxation. And, if necessary, they can risk inflation and print it.
So why is Trump lunging into the tax policy quagmire? Perhaps surprisingly, and as with health care, he seems to be trying to appease the GOP Establishment. Since Reagan, an entire industry of think-tank wonks has grown up inside the Beltway that spends its time tinkering with the tax code. Speaker Paul Ryan emerged from it. Some of their ideas may actually be good. And, of course, tax code revision offers opportunities to benefit donors.
Note, however, that this Republican tax fixation wasn’t always the case. Well into the 1970s (I was there!), the GOP was actually afraid to talk about tax cuts because it had been so comprehensively routed by the New Deal formula attributed to Roosevelt aide Harry Hopkins: “Tax and tax-spend and spend-elect and elect!”
Today, the buzz saw that Americans are being pushed into is not tax rates but globalization — trade and immigration. If wonks like Ryan are mouthing about this issue in 40 years’ time, we will be lucky.
But that was emphatically not the case in the run-up to Reagan’s victory. Marginal tax rates were soaring even for average Americans, from 19% in 1970 to a high of 31.7% in 1982 before Reagan’s tax cuts took effect.