The historic Tax Cuts and Jobs Act passed by the GOP and Trump Administration ushered in an unprecedented economic resurgence. Democrats want to roll those positives back.
With critical gains improving the lives of Americans of all walks of life, President Donald Trump and Republican leaders are pushing to lower taxes for middle-class and low-income families. The thinking is that in the midst of vast business opportunity and wage growth, this is the time to turn the boom into a golden age of American prosperity. Democrats, by contrast, wish to squander the moment by tearing at the corporations that employ millions of people and reducing quality of life by heaping hefty taxes on working families. The current political landscape is one of two major parties heading in opposite directions.
To underscore the point that allowing Americans to keep more of their earnings and unshackling big companies leads to prosperity, one only need look at the current unemployment rates and the stock market. The country is currently considered at full employment as there are more available jobs than people to fill them. The Trump Administration has been working diligently on retraining in an effort to reduce the 50-year low unemployment rate further and get everyone back to work. African-Americans and Latino-Americans are enjoying the lowest unemployment rates in recorded history, and wages are still rising. That’s real prosperity that puts food on the table and clothes on your children’s back.
Another way of looking at the economic boom is the record-breaking gains that key measures such as the Dow Jones Industrial and S&P 500 have made since President Trump implemented the America First agenda.
On Monday, Dec. 16, the Dow Jones posted its 10,000th point since Trump was elected as it reached 28,332.74. Founded in 1884, the Dow Jones tracks the 30 largest American companies, and that peak means that the Trump economy is now responsible for more than one-third of the Dow Jones in roughly three years. That’s an astonishing amount of growth, considering the Dow has been in existence for more than 130 years.
The S&P, which tracks the nation’s largest 500 corporations, has repeatedly broken its own peak records since Trump was elected, and industry insiders report a 46-percent gain. Many Americans have their 401(k)s, college funds, and other retirement packages invested into these measures. With Republicans eyeing another round of tax cuts, the country could experience never seen before wealth from top to bottom.
“This thing will not be completed for many months and it will be released as a strategic pro growth document for the campaign. We want to see middle-income taxpayers get the lowest possible rates,” director of the National Economic Council Larry Kudlow said. “Whether we get to 15 percent on a middle-class tax rate — I don’t know. Sounds like a pretty good idea to me.”
Although tax burdens went down by an average of $1,300 from 2018 to 2019, middle-class earners are expected to pay between 22 and 32 percent in 2020. The Trump administration and GOP want working people to keep more of their money going forward.
White House acting chief of staff Mick Mulvaney recently announced that the president is far from satisfied with the country’s substantial growth. The Tax Cuts act of 2017 lowered the corporate rate from 35 to 21 percent, which only makes it competitive with other countries. President Trump wants increased U.S. investment from global operations by making it lower than rival nations. The president has also gone on the record stating that he wants a targeted tax cut that more directly lowers burdens on middle-class and low-income families.
“The president would love to see further refinements to tax policy. He was always disappointed we couldn’t get that corporate tax rate down just a little bit more,” Mulvaney said.
By contrast, Democrat presidential primary frontrunner Joe Biden indicated that he would push the corporate tax rate up to at least 28 percent, which would undo American tax competitiveness. He would also re-institute a wealth tax of 39 percent on top earners. The 2017 tax law significantly reduced both of these rates and sparked a flood of wealth brought in from offshore holdings. Such changes are foundations of the current improved wage growth of approximately 3.1 percent. Wage growth ranks among the most positive gains enjoyed by non-college educated workers.
Other Democrats leading their party’s presidential primary field, such as Sen. Elizabeth “Fauxcahontas” Warren and Sen. Bernie Sanders, are running only “free stuff” platforms. Free college tuition, and Medicare for All that would drastically increase taxes across the board. It’s obvious the two major parties are heading in precisely opposite directions.