Trump tax cuts reveal just how badly Democrats have stifled the US economy
Not that they needed one, but progressive wing nuts and their fellow travelers are getting another reason to hate President Trump. He’s proving that capitalism works.At heart, Democrats are control freaks. That is why they over-regulate and over-tax. They also want to keep voters dependent on them and are frightened when prosperity is the result of freedom. The stock market is about what investors see as the future and its clear investors think Trump's policies will grow the economy. The bonuses and new investment by companies as a result of the tax cuts is the opposite of what they predicted and that is why they are trying to denigrate them.
The president’s policies of cutting high taxes and excessive regulations are sparking a stock market surge and soaring economic confidence.
Each day brings announcements from companies ranging from Apple to Walmart that they are giving bonuses and pay hikes, adding new jobs and increasing their investments in America.
Millions of workers will get the bonuses, most of which are for $1,000, and untold others will get new or higher-paying jobs.
Most of those workers also will see their take-home pay increase because they will get personal income tax cuts and a doubling of the standard deduction. Those changes will become apparent in a week or so when the new lower rates are applied to payrolls.
The cash-in-the-pocket benefits are great news to many families, but the boom is doing something else too: It’s giving the millennials a firsthand lesson in economics.
Following eight slow-growth years under President Barack Obama and an election where their favorite candidate, Bernie Sanders, railed against the wealthy and promised free stuff for everybody else, many young Americans were taught that socialism is their friend and capitalism their enemy.
Now they are getting proof that the opposite is true. They are eyewitnesses as capitalism provides more opportunities and financial security to more people than any other system.
If they still have doubts, they need only ask their parents about their swelling 401(k) and IRA accounts as a result of the Dow Jones’ 45 percent climb since Trump’s election.
All Democrats voted against the tax cuts and some refuse to celebrate the good results. House Minority Leader Nancy Pelosi called the bonuses “crumbs” and likened them to cheese on a mouse trap. Former party boss Debbie Wasserman Schultz told a crowd that “I’m not sure that $1,000 goes very far for almost anyone.”
It’s hard not to conclude that Pelosi and her elitist ilk believe ever-higher taxes and redistribution are superior to growth fueled by the private sector. And that handouts are better than jobs. As Friedrich Hayek explained, central planners are always paving “The Road to Serfdom.”