Spreading the Wealth Trump Style: Get Ready for More Tax Cuts

by Kerry Lutz
Financial Survival Network

The congressional tax cut saga has just concluded. Trump won yet again. The liberal/progressives/collectivists are already in morning. They’ve been promising the public that any tax cut is the economic equivalent of Armageddon. Everyone in their heart of hearts knows this is untrue. The worst that can happen is that they will have a benign affect on the economy. The best is that they unleash the entrepreneurial spirit of the American public and we see growth rates unknown since Reagan.

It’s more likely to be the latter, not the former. This is a pro-entrepreneur bill. By lowering the pass-through and corporate tax rates it will encourage many Americans to start businesses and also promote job growth among smaller businesses seeking to expand.

But the real story is that this is just the beginning. Assuming that the economy strengthens substantially ahead of the 2018 mid term elections, and that Republicans not only retain their majorities in both houses, but also enlarge them, get ready for the next round of tax cuts. Congress lives to fight one battle at a time. Trump always has the larger picture in mind. While this tax bill is less than perfect, upon its success, it sets the stage for more tax cuts during Trump’s 7 remaining years. Yes if the economy is growing at a 4-6 percent rate come 2020, you’re looking at 4 more years.

Trump has cracked the Rosetta Stone of getting things through Congress. To get a bill passed is often likened to making sausage, you put it through the grinder and stuff it in the casing and presto, it’s passed. But really it’s more like taking the extended family out to eat for Christmas Dinner on your dime. No one will be able to agree on what restaurant to go to. You know that if you go to a good restaurant the in-laws will be ordering lobster. Therefore, you take them to the buffet and let them eat have at it. At the end of the day, they’re happy and you still paid just $9.95. Lisa Murkowski got ANWAR opened, Corker got his real estate tax breaks and every Republican got something.

So far the tax cuts have been a major PR win for Trump and the Republicans. AT&T, Bank of America, Wells Fargo, Comcast and others are rushing to get attention for sharing the wealth with their employees. $1000 bonuses on top of several thousand to be realized from the individual cuts. The Democrats on the other hand are like homeless kids in Oliver Twist looking at dinner through fogged restaurant windows. They did it to themselves.

So on to the next tax cut, which be assured will pass much easier, and have many more benefits.


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