By Deemerwha studio @Adobe Stock
Kamala’s “Joy,” Ideologically Incompetent
Donald Trump’s Tax Policies worked as planned, lauds James Freeman in the WSJ. That Vice-President Harris now is willfully ignoring Trump’s recent history and proposes higher tax rates on a struggling economy should be a warning to workers nationwide. No one is going to enjoy “joy” in a depressed economy. Kamala’s joy ride is ideologically incompetent.
Kamala Harris promises tax policies that will be even worse than the ones she helped Joe Biden enact. Believe her, urges James Freeman in the WSJ, as he provides his thoughts on the economy. For example, here’s a taste of economic buffoonery since Biden/Harris took office in January 2021.
- The economy has been growing at about half as fast.
- The annual inflation rate is about twice as high.
Who is to blame for this economic fiasco? Well, alerts Mr. Freeman, Kamala Harris deserves more than her share of the blame.
Prohibit a Growing Economy: Kamala Harris deserve this disgraceful honor?
Don’t forget, Kamala Harris provided the crucial tie-breaking Senate votes for the spending schemes that fueled inflation and malinvestment. Never once did she reward the public by trying to contain Joe Biden’s spending binge.
A Stagnant Economy Produces No Joy
Paul Kiernan (WSJ) reports from Jackson Hole, WY
Federal Reserve Chair Jerome Powell gave his strongest signal yet that interest-rate cuts are coming soon, saying the central bank intends to act to stave off a further weakening of the U.S. labor market.
“We do not seek or welcome further cooling in labor market conditions,” Powell said in a speech at the central bank’s annual gathering in the Grand Teton National Park on Friday. “The time has come for policy to adjust.”
Of much concern to the Fed is an economy that has been producing fewer jobs than previously reported by the government.
From Sam Goldfarb (WSJ):
The job market from early 2023 through early this year wasn’t as hot as it seemed at the time, new government data suggested Wednesday.
Compared with the still-official numbers, employers might have added 818,000 fewer jobs in the 12 months through March, the Labor Department said. That means the economy could have added around 178,000 jobs a month over that period, as opposed to the current estimate of 246,000 jobs a month.
Seriously? Won’t Tax Hikes Be Destructive and Expensive?
Now Veep Kamala Harris is promising to impose destructive new tax hikes on our slow-growth economy. Fed Reserve officials are worried about the economy: it is growing so slowly that soon it won’t be growing at all. Inflation slowing too much could motivate the Fed to abandon its fight against inflation. There aren’t many who think that massive tax hikes are “the right answer for fiscal policy.”
Even the New York Times recognizes that a Harris administration would not come cheap to American taxpayers.
From Andrew Duehren (NYT):
In a campaign otherwise light on policy specifics, Vice President Kamala Harris this week quietly rolled out her most detailed, far-ranging proposal yet: nearly $5 trillion in tax increases over a decade..
That’s how much more revenue the federal government would raise if it adopted a number of tax increases that President Biden proposed in the spring. Ms. Harris’s campaign said this week that she supported those tax hikes, which were thoroughly laid out in the most recent federal budget plan prepared by the Biden administration… Congress has previously rejected many of these tax ideas, even when Democrats controlled both chambers.
How about Escalating the Corporate Tax to 28%?
President Joe Biden’s tax changes look like a political trick to systemically bundle and unfortunately attack the incentives to work, to save, to invest across the economy?
Biden’s tax changes – surging the federal corporate income tax rate to 28% from the current 21% – are among the most destructive, argues Mr. Freeman,
Last week’s WSJ editorial noted:
Ms. Harris pitches her 28% rate as merely punishing big companies, but economists of all stripes agree that U.S. workers pay for higher corporate taxes in lower wages…
The current U.S. corporate rate is above 25% when state corporate taxes are included, and the Harris increase would again make the U.S. a world outlier at above 30%. The OECD statutory average is a little north of 23%, and the European Union’s is lower at roughly 21%, according to the Tax Foundation. The average in Asia? About 19%…
Yes, Donald Trump is … well, yes, controversial. His suggestions, however, about lowering the corporate rate to 15% was a successful effort to “give the United States a competitive corporate income tax rate that really did encourage investment in the U.S., which in turn fuels higher wages for U.S. workers.”
Kamala Harris Heedless
Harris is fiercely committed to ignoring the experience of recent years, complains Mr. Freeman.
Making America Stronger
Kudos to Donald Trump for his successful effort to give the United States a competitive corporate income tax rate that really did encourage investment in the U.S., which in turn fueled higher wages for U.S. workers.
We’re not just talking about a failure to acknowledge Harris’s own mistakes, but also a refusal to credit a successful Trump policy even in the face of evidence that it worked exactly as intended.
Even in the political precincts most unfriendly to Mr. Trump, the former president is receiving credit where credit is due.
Economists from Harvard, Princeton, the University of Chicago and the U.S. Treasury reported in a National Bureau of Economic Research paper on “the investment and firm valuation effects of the Tax Cuts and Jobs Act (TCJA) of 2017, the largest corporate tax reduction in the history of the United States.” The authors shared a number of findings:
I’m no expert, but didn’t Trump’s reforms energize more business investment, more growth, more wages for workers? Mr. Freeman, what’s the going on here?
The fact that Vice President Harris now willfully ignores this recent history and proposes higher tax rates on a struggling economy should be a warning to workers nationwide. Joy will be very hard to come by in a depressed economy.
Kamala Harris is now promising tax policies that will be even worse than the ones she helped Joe Biden enact.
“Believe her,” warns James Freeman.
If you’re willing to fight for Main Street America, click here to sign up for the Richardcyoung.com free weekly email.
