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Thursday, December 21, 2017

Analysis on Trump's Tax Cut Passage.. A Big Ehh..

Now that Trump's tax bill was passed yesterday and he will sign it into a law in the next few days, what is our assessment of it?

Well we didn't like it a month or two ago and so why would we like it now?

As everyone knows by now, overall we like and support Trump but we never at any time since he was a candidate, embraced his belief in whopping amounts of trickle-down economics as the means to fix the economy

We resented that the corporate tax rate was to be cut by half without any promises on the part of businesses big and small to actually use that savings to hire more Americans
Because there's no strings attached, the money can be used to buy more of a company's stock to further artificially inflate its valuation and exaggerate its strength or in the case of AT&T, the money used to give its 200,000 employees Christmas bonuses of $1,000 each

What should have happened is corporate taxes Increase but with the caveat that every company that can show they hired a certain percentage increase of new American employees based on its size, would see that new corporate tax rate lowered pre-2017 levels and stay very low as long as they didn't later on fire employees en masse as part of restructuring or downsizing
Also most Americans who are not super wealthy will really not get any meaningful benefit

What should have happened to stimulate the economy was trickle-up policies such as every adult American and working person who is under 18, get a government stimulus check for $1,000 which would be circulated into the various state and local economies where its badly needed

What's done is done and not like any chance these ideas would have gained traction even if a Democrat was President because liberals continually show themselves to be despicable liars and hypocrites
They want to pretend they care about the working man and woman yet which colored President allowed the Bush tax cuts (originally implemented in 2001) to become permanent in 2009?

The Democrats are complaining about how these Trillions in tax cuts will cause the national debt to soar even more (which is true) and yet which colored President increased the national debt by $9 Trillion dollars in just 8 years in office?

The same who was extremely corporate and banking sector friendly while his sycophant supporters believed he was about 'Change'
And let's be very honest and adult about this..  

There's a certain point when the debt load is so high and it is obvious it will never get repaid that what's the difference if its $20 Trillion or $200 Trillion?

As long as those who hold the debt never call it in, then what does it matter how big it is, and every country we owe money to needs a fully-functioning US economy to trade with and stabilize the reserve currency to keep those lender nations from devolving into financial chaos
And if our debt payments get too big, we'll just restructure or come up with some trick or scheme to keep the plates spinning just like the Fed did with QE

Speaking of the Fed, they hold more US debt than all the foreign nations we owe combined and they will Never call it in because to kill the United States economically is to kill themselves

This whole tax cut plan is predicated on the belief that saving corporations and the wealthy tons of money, that they will somehow turn altruistic and put the money back into the country and this will boost employment numbers which increases production and spending and shopping and on and on..
So will it?

In the short term maybe...  Long term we doubt it

We read an article earlier today that Wal-Mart will soon be experimenting with its first non-cashier store

So basically you go in, some device is able to scan your phone with credit card info already loaded through ApplePay or such, and then you just leave with your cart and it knows exactly what you bought and what to charge you
Now we admit from a standpoint of not having to wait in lines, it sounds great

But we also care about everyday working people and instantly the thought became if retail corporations like Wal Mart are getting their tax rates halved and then getting rid of a large percentage of their high-school educated workforce, many being minorities, then how are everyday people benefiting?!

It's funny and pathetic when you think about it..  

It is so politically correct for everyone, particularly corporate America to patronize and mollycoddle blacks, Hispanics and other stereotypical poor and uneducated ethnic groups - to have them constantly represented in print and visual ads and push exceptionalism and use hyphenated terms... 
And Yet...  Who are the people that are going to be most affected if this new technology becomes the norm?  Who are going to be ones who find themselves struggling even more to get by especially without a college degree?

Yep.. the same minorities that corporate America pretends to care about

And speaking of disingenuous phonies, so many liberals in Hollywood will complain about the tax cuts, especially the wealthy who will directly benefit, which makes their bitching about it feel so hypocritical
Same with Democrat politicians..  We read House Minority leader Nanci Pelosi railed against the bill.. 

When you have a net worth of $29.35 million like she does, don't pretend you empathize and care about people who struggle and would have to work and save 20 lifetimes to reach that figure

And we've yet to ever hear of someone in liberal-land ever volunteering to pay the old tax rate after a tax cut is passed

They just complain and pretend they're one of the commonfolk, and then use the tax savings to buy bigger houses and gaudier jewelry
So back to this tax cut bill...

Will it benefit everyday Americans who aren't part of the 1%?   

Maybe some but those taxes have a shelf life of a couple years; the corporate tax cuts are permanent
Will this help Trump in 2018 midterms and ultimately the 2020 election?

If the economy really picks up and we see GDP consistently over 5% then probably so..

If things stay at 3% quarterly growth or less and people realize next year they're only saving a couple hundred dollars while their local and state taxes go up the same amounts to cover the shortfall, then we'd say it will have little to no positive sentiment in many people's minds.
So the President and the GOP see it as a victory..

It may be for them but as much as we support Trump overall, we just do not see this as a victory for the American people unless corporate America begins to grow a conscience, stops outsourcing and expanding its business ventures overseas and is sincere to expand hiring particularly in middle America and the rust belt..

We're just not holding our breath on it..