Despite the Naysaying, States Benefit from Trump Tax Cuts

from IBD:

States Get A Windfall From GOP Tax Cuts, But Will They Return The Money To Taxpayers?

When Republicans were putting together their tax reform plan last year, a chorus of critics warned that it would devastate state budgets. Like so many other claims, this turned out to be false.

The New York Times reported in November, for example, that “state and local officials in high-tax states like New York, New Jersey and California are warning the tax plan will strain state budgets.”

A “news analysis” in the Washington Post said the tax law would make “it harder for states and cities to pay their bills.” read more

Donald J “Smoot-Hawley” Trump – It’s Déjà Vu All Over Again

by: Brent Smith at the Common Constitutionalist

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Here we are again – our government doing what they do best – picking winners and losers. President Trump has done a lot of good things for this nation thus far, but protectionist tariffs aren’t one of them.

The first protectionist tariff, the “Dallas” tariff, was enacted in 1816. It happened again in 1824, in 1828, the infamous “Tariff of Abominations,” in 1832 to fix the problem in 1828 (which it didn’t), and in 1842, the “Black” tariff.

All these were passed to benefit the Northern States at the expense of the South, and all were major contributing factors in the run-up to the Civil War. No, the Civil War was not just about slavery.

And then there was the infamous “Smoot-Hawley” tariff of 1930. It was named after its authors, Utah Senator Reed Smoot and Oregon Congressman Willis Hawley. The purpose was to support U.S. farmers who had been ravaged by the Dust Bowl.

By the time 1930 rolled around, practically every legislator had added protections to Smoot-Hawley for their states’ industries. The bill ended up with proposed tariffs on 20,000 individual imported goods. Does this sound eerily familiar to anyone? It’s why bills are thousands of pages long – to attempt to hide such things.

This time, instead of agriculture, our government has chosen the American Aluminum and Steel industries to be the temporary winners. Yay! read more

Dems May Regret not Voting for Tax Cuts

from IBD:

GOP Tax Cuts Are Turning Out To Be A Disaster … For Democrats

Not long ago, Democrats expected that the GOP tax cuts would be a political disaster for Republicans, just like ObamaCare was for Democrats in 2010. How’s that prediction working out?

Writing in the Atlantic in December, longtime political reporter Ron Brownstein argued that “President Trump and congressional Republicans have just taken the same leap of faith that Democrats did when they passed the Affordable Care Act.”

He went on to note that after Democrats passed ObamaCare in early 2010 — despite strong public opposition — the backlash from voters “helped propel Republicans to the biggest midterm gain in the House for either party since 1938 and gave them a majority in the chamber they still haven’t relinquished.” read more

Administration to Cut More Regulations

from the Washington Free Beacon:

Feds to Repeal 298 Tax Regulations

Steve Mnuchin

Treasury seeking to eliminate outdated regs dating back to 1941

The Treasury Department plans to eliminate nearly 300 outdated tax regulations, getting tax rules off the books that in some cases have not applied since the 1940s.

The department announced its proposal to eliminate unnecessary tax regulations this week, in compliance with two executive orders signed by President Donald Trump last year to reduce regulatory burdens and simplify the tax code. read more

Tax and Spend GOP

from Conservative Review:

Pain at the pump! GOP considers gas tax increase

On Monday morning, President Trump took to Twitter to announce a “big week for Infrastructure” (again) as the administration is set to roll out a $1.5 trillion plan to invest in American infrastructure. The administration claims that by relying on state and local governments, and with reductions in the federal budget, the cost to the federal government will be just $200 billion. read more

Foxconn’s Olympic Venue

by: Brent Smith at the Common Constitutionalist

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On the surface, it’s great to hear that companies are repatriating themselves. Not just money coming back in, but companies either moving back or expanding facilities in the United States rather than over seas.

The problem is that many States are so desperate for the potential of an additional tax base that state governments tend to offer extraordinary perks and tax breaks to entice the multi-national corporations to set up shop in their State. So much so that the companies end up receiving ridiculous amounts of relief and “incentives” from the State for the privilege of effectively underwriting the new facility.

Exhibit A: In July, 2017, Foxconn, the Taiwanese manufacturer that makes electronics for Apple and other tech companies, announced that it will build a manufacturing facility in Wisconsin. Governor Scott Walker eagerly proclaimed that, “The project will create 13,000 new jobs and should be completed by 2020.”

Foxconn’s projections were a tad more subdued. “In a statement, the company said the project will create 3,000 jobs with the ‘potential’ to generate up to 13,000 new jobs.” read more

WND Exclusive – Reality Will Trump Perception as Paychecks Grow

On Nov. 29, the prognosticator website FiveThirtyEight announced that, “The GOP Tax Cuts Are Even

 More Unpopular Than Past Tax Hikes.”

“Poll after poll shows that more voters than not are opposed to their efforts,” wrote the website. They claimed that only about a third of voters support the tax cut plan, and that, “the GOP bill is one of the least popular tax plans since Ronald Reagan’s day.”

Well, at least Trump and the Republicans are in good company. You may (or may not) recall the left’s visceral hatred of Reagan. His tax cut and economic plan was also to be the end of the world, but actually gave us the longest period of sustained growth during peacetime and the second-longest period of sustained growth in U.S. history.

Maybe FiveThirtyEight should instead do a little research on how often the Democrats are wrong about pretty much everything. read more

Video Podcast – Let’s Talk Taxes

by: Brent Smith at the Common Constitutionalist

The Senate has now passed their version of Tax Cuts and Jobs Act. The House has already passed their version. Now it’s on to joint committee to iron out the differences and vote. Then it’s off to the President’s desk for his signature.

Is the Senate version any good? That depends on you ask. But it’s an improvement over our current mess.

The only republican to vote against it was Bob Corker of Tennessee.

I’ll discuss the bill, what a phony Senator Corker is and my thoughts on the bill. I’ll also give my sales pitch for a different type of tax. read more

Video Podcast – How to Pay for Infrastructure

by: Brent Smith at the Common Constitutionalist

Today I discuss the nation’s infrastructure that is apparently in need of a serious upgrade – at least according to the current administration.

The question is how we pay for the new massive public works program. Well, some have floated the idea of increasing the gas tax by seven cents a gallon.

I explain why this is a bad idea, as is the reasoning behind it and whether we even should. read more

Tax Cuts and Discounts are Really the Same Thing

by: Brent Smith at the Common Constitutionalist

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As the tax debate in Washington heats up, we’re hearing the same tired old refrain of, “The rich don’t deserve nor do they need a tax cut.” It’s an absurdly populist statement. However, this time it’s coming from both the dems and republicans.

In defense of tax cuts for all, the rich included, let me first quote some boring facts and figures. Then I will attempt to inject some business sense into an otherwise senseless argument.

Tax cuts will in fact grow the economy, yet I heard the leftist billionaire Tom Steyer say that since the 1980’s, the top tax rate has been cut from 70% to under 40%. He adds that during that time wages for workers have stagnated. I won’t argue that point here.

I heard him say he got rich on Wall Street, so he knows all about the economy. If this is so, and we’ll assume it is – it would mean he’s lying by omission and knows he is. But he knows most aren’t schooled enough to catch him in the lie.

In fact the economy did grow massively after Reagan’s huge tax cuts. But wages are just a portion of economic growth. And wages, like almost everything else, do not occur in a bubble. Other things affect wages – not just growth, or lack of it.

First, would you rather have a job at slightly lower wages, or no job at all, which occurred during the Carter years? And of course wages often don’t tell the whole story. read more