Democrats Threaten the Security of America

Democrats Threaten the Security of America

Democrats Threaten the Security of America

$BA, $BAC, $CMCSA, $T, $WFC

Every American should be keenly aware that the success of The Trump Tax Cuts will not be decided by Democrat-leaning polls or highly flawed econometric models that threaten the security of the Republic. The Democrats are now left with the worn out class-warfare mantra about tax cuts for the rich.

Friday, US President Trump’s signed the big tax-cut bill, as the GOP snatched “victory from the jaws of defeat”.

And now, the political and economic landscapes in America have changed, as Republican party “turned the tables” on the Democrats.

President Trump and the GOP are on the side of the growth with the passage of this massive tax-cut legislation that boost business investment, wages, and take-home family pay.

The Democrats are now left with the worn out class-warfare mantra about tax cuts for the rich.

Notably, government unions, with their pension plans heavily invested in equity shares, will benefit hugely from the tax-cut-led stock market’s continuing Trump Rally. These unions decry the GOP tax bill while they should be cheering it and President Trump.

  • NAS Comp: +29.3% YTD
  • DJIA: +25.3% YTD
  • S&P 500: +19.9% YTD
  • S&P 400: +14.6% YTD
  • Russell 2000: +13.7% YTD

There is a lot of that kind of irony ringing around the Republic.

Today’s progressive left Hussein Obamaite Democrats are against economic growth, the stock market, and a powerful prosperity at home that lends strength abroad.

The Big Q: Is this a good place for Democrats to stand?

The Big A:  President Trump and the Republican lawmakers, with the stroke of a pen for tax reform have enhanced their outlook for the midterm elections.

People now know that large American companies showed immediate support for President Trump’s policies.

Bank of America (NYSE:BAC) announced $1,000 bonuses tied to the tax-cut bill, affecting 145,000 employees.

AT&T (NYSE:T), and Comcast (NaSDAQ:CMCSA) announced $1,000 bonuses for more than 300,000 people combined, along with substantial new investments in the United States.

So dis Boeing (NYSE:BA).

The more banks have jumped on the Trump Band Wagon; Wells Fargo, PNC, BB&T, and Fifth Third are raising their minimum wages to $15/hour.

This is all tied to a massive corporate-tax-rate deduction from 35 to 21%, and is the most powerful growth measure in The Trump Tax Plan.

In a Tweet President Trump called it “tax love” .

At the 35% rate, our companies took home $0.65 cents on the extra Buck. At the new 21% rate, they take home $0.79. This is an enormous 21% incentive rewards new risk-taking, investment, a recycling of overseas profits to the US, and additional after-tax profitability.

Combined with 100% immediate cash write-offs for new investment, and the 1-time repatriation of foreign-held earnings, this is the largest supply-side stimulus since RR’s Y 1986.

The result: a business boom, where new capital formation and productivity increases the economy’s potential to grow.

Further, this action is counter-inflationary, and we can say Goodbye to 1 to 2% secular stagnation and Hello to 3 to 4% long-run prosperity.

Toss in lower marginal tax rates for individuals and the 2X’ing of the standard deduction, the US now has more potential for growth.

From The Tax Foundation: “…the biggest tax-liability reductions come to the middle class. A single, $52,000 earner claims a 36% reduction in tax liabilities. A married, filing-jointly family making $85,000 gets a 20% tax-revenue reduction.

And get this: a married, filing-jointly family earning $2-M only gets a 3% reduction in tax liabilities. So much for the tax-cuts-for-the-rich argument.

Let us not forget this: inside the plan, there is drilling access to ANWR and repeal of the Barack Obamacare individual mandate. And The Trump Administration’s massive shreddings of burdensome anti-business regulations.

Every American should be keenly aware that the success of The Trump Tax Cuts will not be decided by Democrat-leaning polls or highly flawed econometric models.

The will be in money in the pockets of all American citizens and businesses big and small.

This is the supply-side model:

  1. lower marginal tax-rate
  2. incentives to work
  3. incentives to save
  4. incentives to invest
  5. less need for tax avoidance and sheltering

All focused on the US economy move back to its normal, steady state pattern of 3 to 4% growth, significantly ahead of the 1.9% Hussein Obama era economic stagnation.

In the past 2 Quarters we saw a bump in business-equipment investment, producing better than 3% growth. And we expect that Q-4 to remain above 3%. The results of lower withholding rates, accompanied by higher income-bracket thresholds, will show up in February 2018.

For all American’s more take-home pay is always a Winner

No matter what you here in the mainstream media and on MSNBC and CNN, the middle class will benefit. And, yes, everyone will profit from the 1st American business boom in over 20 years.

Economist Larry Kudlow wrote Saturday, “… JFK, Ronald Reagan, Jack Kemp, Art Laffer, and the rest of the supply-side clan, which now includes Donald Trump believes that a rising tide lifts all boats. So, which is better: 1 to 2% stagnation or 3 to 4% prosperity? Let the voters decide next year. But I am taking the high ground.”

Me too!

Have a Happy Christmas Holiday Weekend.

The following two tabs change content below.

Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

You must be logged in to post comments :  
CONNECT WITH