Ep. 244 Trump Tax Cuts To Starve The Beast
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Summary: President Trump actually delivered on his promise of the largest tax cut in American history, and he delivered it on time. Trump may have presented a plan with built-in bargaining positions, or he might even intend to pass a tax bill that will "starve the beast". The interesting thing is that the President is applying this 15% tax rate to pass-through entities, such as LLC's, which will encourage most businesses to shift into a different business model to take advantage of the low tax rate. In other words, people currently at a 43.4% rate will pay 15%. This is going to cause two things to happen that will hurt the economy and a lot of people in the middle class: a big increase in consumer prices and inflation. Will Republicans vote against the biggest tax cut ever based on the fact that it adds to the debt? Ultimately, a resulting fiscal crisis might force Republicans to vote to cut spending.

Donald Trump was right. He actually lived up to expectations, in fact, he might have exceeded them
When it comes to the magnitude of the tax cut that he proposed - on schedule
On Wednesday, today, Donald Trump unveiled his idea for what could well be the biggest tax cut in American history
Ordinarily, I would be all in favor of the biggest tax cut in American history, if it were accompanied by the biggest spending cuts in American history
Government costs what it spends - you have to pay for government, one way or another
So if you're going to have big government and you're going to spend all kinds of money, the most efficient way to raise the money is through taxation
And of course the most efficient form of taxation would be a consumption tax, sales tax, tariffs
Not an income tax
An income tax is the worst way to raise revenue
An even worse way to raise revenue is by going into debt
Borrowing money and then printing money will cause prices to rise, eventually interest rates to rise
And ultimately will result in enormous tax hikes
To repay all the money that you borrowed
What Donald Trump is doing, is he is offering an enormous tax cut, but no spending cuts
And what they are saying is that the tax cuts will pay for themselves because there will be so much extra growth
That the government will make up for the difference based on more people working and more people having higher incomes and even though the tax rates are lower, the net payments will be higher
None of this is true
These tax cuts are so enormous that there is no way that the economic growth can make up the difference
Even if we get the higher economic growth
One of the bigger issues that people are not talking about is the impact of higher interest rates
Which will certainly be a result of much larger deficits and even faster economic growth

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