Ok, so maybe I am not an accomplished economist, but I do know a bit about math and common sense, so here is the reality of the Donald Trump Economic Plan:
Democrats scream to the high hills that lowering taxes are going to raise the debt $5 Trillion over the next 10 years. Of course they are static numbers and do not take growth into account. First off if it raised the debt by that amount that would actually be a serious cut from both the Obama and Bush administrations who combined have raised the debt $15 Trillion over the last 16 years. But by not taking growth into account that $5 Trillion is a false number.
Let’s start with the basics. Our current business tax is between 35-39.7% which is the highest in the G-20. You have had millions of jobs go overseas due to bad trade deals and much lower taxes overseas. Dropping the tax rate to 15% to cover businesses of all sizes are going to do three things.
- It is going to open up more capitol for businesses still in the US to expand and grow, because that would be an additional 20% of income no longer going to taxes that could go to employees. That leads to more jobs and higher pay.
- It is going to bring companies in from overseas to do business here because the tax rates will go to almost the lowest in the G-20, which makes America more attractive to bring your business.
- It is going to give people incentive to start businesses because that is that much less money new companies will have to pay out in their first few years of business. It also gives you the incentive to start your own business because you can do it as a sole proprietor and get that 15% tax rate.
Now Mr Trump is projecting this would cause an increase of 25 Million jobs over the next 10 years. I actually think that is a low projection. Now if you have people getting jobs, and starting businesses these things happen.
- People starting businesses tend to hire employees, which increases the amount of people working
- Current companies and those coming from overseas hiring increases the amount of people working
Yeah I know common sense, but you know what this blog is all about, but here is where it gets interesting. Might even give you that ah-ha moment.
This plan will give ALL Americans the opportunity to succeed. That hand up that people in all economic positions desire. We are all Americans, we all bleed red, some just have better tans than others. You should not be condemned for success as we currently are. The American Dream is all about getting to where you want in life if you put in the work. This is certainly an America First plan, as it should be. We are not the United States For Europe, or United States for Globalism, we are the United States of America and it is our job to take care of OUR country first. Because in reality if we aren’t strong as we can be, how can we even think of helping others?
If more people are working you are doing two things. First you are creating much more tax revenue for the government to cover current spending, but you are also taking people off of Welfare, Food Stamps, Housing Assistance etc and guess what that will naturally do? Yes, it will cut the amount of money the government needs to spend. So if you can cut spending while increasing the amount of money coming into the government that will start to pay down the debt. Do I believe we can pay down the $20T in debt in 8 years, of course not. But if we can start making it go down and not up that would be progress.
Also cutting out spending money on illegal aliens will save the US approximately $100B a year. So that would save us $1T of that $5T they talked about in their estimate. If you cut out the fraud of those on food stamps, welfare and other assistance programs you can probably save $100s of Billions as well. Plus if you can cut spending just 1% across the board that too will save $100s of Billions per year.
Now here is where it will get tricky, or can. The government has to be put in check. They can not spend money like a teenager going to the mall with their Daddy’s credit card. I would hope in the first 100 days that President Trump would send a Balanced Budget Amendment to the Congress to get passed and get started in the process to be ratified. I would also like to see President Trump send a bill to the Congress that any lobbyist money spent in DC should go straight to the debt, and not allowed for campaign donations, slush fund, etc. I will be greedy for a moment, I would also like to see it sent to Congress for Congressional Term limits, but that was a different blog post you can look up on my page here.
Another question people have is that Donald Trump has in his plan to rebuilt the military, they say that spending would damage the budget, and I have to take a minute to totally disagree with that statement and tell you why. Since we started the second run at Iraq in 2003, we have spent approximately $5-7 Trillion on that war. Hard to know the actual number because the government has been pretty good about both hiding, and losing money. Had we spent even 1/3 of that on the actual equipment for the military, new ships, new planes, new armament, etc, we likely would not have had to spend much of the rest. One thing no one can argue is that the military build up by Ronald Reagan ended the Cold War. We built our military to the point that the USSR knew that there would be no way possible to beat it. With the current state of our military, and it is nothing against those serving it is who is in charge, we have become the laughing stock of the world. Iran mocks us, takes our money and harasses our ships, takes our sailors and shows the middle east that they are strong and we are weak. Putin laughs at us and uses his fighters to buzz our ships and planes because he knows we will do nothing. North Korea is advancing their nuclear program while thumbing their nose at us. China is creating islands for a military base in the China Sea and we do nothing about it. The only thing we have been successful at in the last 13 years is open up a bunch of land for ISIS in now 28 countries. Yes I know the Seals got Bin Laden, thanks to waterboarding, but again, that is another blog for another day. So it comes back to why we need to spend the money on the military. This gets us back as the strongest and best equipped military in the world and with a real leader we will have the respect back from the world.
A little off subject, but something to remember. In 1980 the press talked about how Ronald Reagan was a hot head with bad temperament. The Democrats said he was dangerous. Now let’s remember who actually believed them. Iran sent the hostages home and Gorbachev tore down the wall and ended the Cold War. Gadaffi in Libya tested him once and got a missile in his front door as a reminder that America is not the country to mess with. Not bad for a 70+ year old man who loved America as much as he loved his life. Sound familiar?
So don’t let the economists scare you, Trump is using the same plan as Reagan and JFK for the economy: lower taxes, less regulations and let the people strive to succeed.
Here is the fact to remember about all this, including the fight on poverty. You can never cure poverty. If you try to redistribute wealth then the rich become the poor and the poor even more desperate. There will always be lazy people who want to live off the system and honestly I believe their crutches should be taken away so they at least have to try.
To summarize really quick. Don’t fear the skeptics, if you take a minute and just use a little common sense, his plan makes perfect sense on how it will boost the economy and give a lot of people the opportunity to strive for a better life. Which is all we can ever ask.
Comments always welcome