President Trump’s Tax Cuts Will Drive Jobs and Growth
The long-term growth path for the US economy from Y’s 1950 to 2000 was 3.3%.
Almost every year he was in office, former US President Barack Hussein Obama forecast that he would achieve more than 3% growth, he never got there in 8 years.
To drive growth in the US we have to start with the tax Treasury Secretary Steven Mnuchin and Key economists put together for Donald Trump during his campaign.
That plan cuts US business taxes from 35 to 15%. This will lure more jobs and businesses back to the United States.
Apple (NASDAQ:AAPL) CEO Tim Cook says the Trump Tax Plan could bring $250-B of Apple profits back to the US, where it can be reinvested in Michigan, Ohio, California and so on rather than Ireland, China or Europe.
The plan also simplifies the tax system and cuts the taxes of 26-M small businesses, which create about 70% of the new jobs in America. Without healthy, prosperous employers, you cannot have healthy, well-paying jobs.
This alone can boost economic growth by as much as 1% per year and will generate about $3-T more tax revenue over the next decade.
One reason many economists believe that 2% growth will be the new normal is demographic changes. Baby boomers are retiring, and there presumably are not enough younger workers to lift growth higher.
That is wrong.
The US has at least 5-7-M Americans of working age who are not working and could and should be on the job.
The Big : How to get Americans to start working again?
The Big A: Tax cuts, a tax cut raises take-home pay and makes work more rewarding.
It happened in the 1980’s after Ronald Reagan’s tax cuts, there were huge gains in people entering the workforce.
In the 1990’s, we as a nation discovered the best way to lift the poor out of poverty and to get adults on the road to economic success was to make work a requirement to be on welfare. With some 42-M Americans on food stamps and even more on Medicaid, workfare can add dramatically to the number of Americans working and thus speed up growth.
President Trump has history on his side when he says we could achieve 3, 4 and even 5% growth for a sustained time.
In Y 1983, the economic growth rate during the 1st months of the Reagan tax cuts was 8%+, and economists and politicians started yelping that the economy was churning so fast it was “overheating.” That rapid return to prosperity helped “The Gipper” win a 49-state landslide the next year.
We are being told on the front page of the WS-J that America cannot grow at even a mediocre 3% If liberals do not believe that President Trump can succeed where Hussein Obama failed, there is a sure way to find out, get out of the way and let him have at it.
Tuesday, the major US market stock indexes finished at: DJIA +43.08 at 20937.91, NAS Comp +5.09 at 6138.69, S&P 500 +4.40 at 2398.42
Volume: Trade on the NYSE came in at 908-M/shares exchanged.
Today, the upbeat sentiment resulted in a dip in both the CBOE Volatility Index (VIX) 10.79, -0.14, -1.3%, which continues to trade at historic lows.
- NAS Comp +13.9% YTD
- S&P 500 +6.9% YTD
- DJIA +5.7% YTD
- Russell 2000 1.5% YTD
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