CONSERVATIVES WARN TRUMP RINO RYAN TAX REFORM AIN’T HAPPENING
TRUMP AND RYAN are sharing second prize, a set of Trump steak knives. RYAN has called Obamacare the Law of the Land; the loser. He should be fired just for saying that. Was he feeling sorry for himself? Third prize is you’re fired! As long as TRUMP retains RYAN, there will be warfare with the BASE and TRUMP will lose. Trump’s notion is that Obamacare Repeal is over so he will work on Tax Reform. Tax Reform is for CLOSERS not steak knife winners. CONSERVATIVES WARN TRUMP RINO RYAN TAX REFORM AIN’T HAPPENING.
Sad Sack Trump:
Playing sad sack is just another form of Trump negotiation strategy and its a loser of a strategy. It is a passive aggressive technique but Trump won’t win. First off the Base wants RYAN GONE. No ifs and or buts RYAN is finished. His incredibly awful Trumpcare RINOCARE Bill which Trump blindly supported and called “Wonderful” was far worse than Obamacare. This means that Trump’s judgment and his thinking is flawed. Trump could have gotten better advice from Ben Carson. Instead Trump left it all in the hands of Paul Ryan.
Trump simply can’t be trusted to display good judgment. Anybody who listens to Ryan listens to an idiot.
RYAN must go or Trump will be shut down entirely. This is the moment of truth. It is the steak knife reality prize moment of truth. You throw a sucker’s deal at the Republican Base and you expect them to take the bait. Think it will cost them their seats Trump? That’s quite a statement from a guy that just won a set of steak knives.
Lets’s Talk about Tax Reform:
Trump wants to spend like a drunken sailor and also wants Tax Cuts. Trump is calling it Tax Reform. Believe me, the Tax Code will not change under Trump. It won’t be simplified. It will be just another day in the life of the Bush Third Term.
Remember that Bush Commissioned a Tax Reform Study. Even with both houses and the oval office BUSH DID NOTHING other than give a few chump change tax cuts. That is all you can expect from Trump.
Kenny Merchant, a Bush RINO from Texas said that Tax Reform would have to wait until August of 2018. That means Trump will be doing nothing for a long long time.
So what’s the tax plan called? It is called a “Better Way” and it was written by none other than RINO Paul Ryan!
What Paul Ryan did for TRUMPCARE he will do for TAX REFORM!
Here is a chart prepared by the Center on Budget and Policy Priorities showing how Paul Ryan’s tax reform would affect various incomes:
As you can plainly see the Middle Class gets chump change from Ryan. The upper middle class gets punished and those that make over $500K a year get a modest 3% tax relief and those that make over $1 million a year get 11.2% tax relief.
I don’t have a beef with giving the wealthy some tax relief. The top 15% of taxpayers pay for 90% of all tax collected so they are certainly paying more than their fair share. But the reason none of this works is because the Tax Base doesn’t expand. There are 98 million Americans not working.
Look at this chart “Closer!” Tell me what you see!
I see an eroding Tax base. Reagan stimulated millions of jobs and Obama destroyed those jobs. I can’t blame Obama entirely, George Bush certainly played a hand. Regardless, this chart is REALITY!
So what did Bush and Obama do to make up for the shrinking Tax base?
THEY BORROWED AND SPENT the country into the ground! $20 Trillion of Borrow and Spend!
Liberals claim the reason for Obama’s bad luck with this chart is that American’s are aging. Obama’s idea is to open the floodgates of immigration and take in more younger Mexicans to enlarge the tax base. As you can see that didn’t work. It didn’t work because the Obama premise was WRONG!.
During the time when Reagan left office manufacturing was 40% of the US GDP. Under Obama that number eroded to just 16% of the GDP. That’s NAFTA for you. Obama hit US industries with Obamacare the largest tax in US history. The entire Semiconductor business left the USA because of Obamacare. They moved to China and took R&D with them. Welfare rolls expanded. Food Stamps expanded because Obama immigration brought in a bunch of young bums.
52% of all babies born in the USA are now born out of wedlock and put on welfare until the age of 19. More entitlement spending and a smaller tax base. That is a formula for unsustainability.
Trump is now feeling sorry for himself because he blew the Obamacare repeal. Oh excuse me he’s feeling indigent! TRUMPCARE would have been worse. It was just another entitlement. Lean some math, Steak Knife!
TAX REFORM CAN’T WORK WHEN THE TAX BASE IS SHRINKING PERIOD!
This is Trump’s Tax plan that he ran on.
Doesn’t mean much. He also ran on Repealing Obamacare and allowing insurance companies to compete across state lines and he was going to bring back cheap major medical. He did the opposite and he won the Steak Knives.
As you can see once again. The benefits to the middle class are lesser than to the upper middle class and the wealthy. The Rich guy will pay roughly $360K less in tax and the 40-50K taxpayer will pay about $500 less income tax. His Obamacare premiums will suck the middle class tax cut up fast enough. Ryan’s plan is less generous. Both plans have no dough to pay for them.
So where does Trump and RINO intend to get the money to pay for these tax cuts?
Since Obamacare was part of the RINO Reconciliation, its repeal would have removed $500 billion from the deficit. But thanks to Ryan and Trump playing RINOCARE games, that didn’t happen. So Trump is already in the hole for half a trillion dollars.
Then their’s BAT!
This comes to you from Paul Ryan’s “A Better Way.” And it may as well be stated upfront that the Freedom Caucus opposes it just as they opposed RINOCARE. The essence here is that a tax of 20% would be applied across the board to all imports. So your car tires would jump another $100 to $200. Your Iphones would cost more. Your Big screen tvs would cost more. Food would cost more.
A US manufacturer could export and sell domestically and incur no BAT Tax. Trouble is that the dollar would be expected to Rise by 25% making all US manufactured good noncompetitive as exports. Exports would drop to zero. Further retaliation would take place and US manufacturing would shrink. How much more can you shrink it. It is down to 16% of the economy down from 40% under Reagan.
Trump was planning on getting a $1 Trillion dollar windfall off this BAT tax which he would offset with a drop in corporation taxes to 20%. It is a very bad idea. It is merely a burden shifting tax pushing it onto the consumer. That’s not tax relief. That is just more taxation. Its just another RINO game.
Corporation Tax only accounts for 11% of total US Taxes collected:
No multinational manufacturer is going to set up in the USA for a temporary 15% reduction in the Corporate Tax Rate. Other taxes including payroll tax and entitlement taxes offset any benefit.
Further Raw materials in the USA cost 25% more than Mexico and 50% more than China. Labor in the USA is 10x that of mexico and 30x that of China. It won’t happen. You can’t even cut a freaking tree off your property these days without asking permission from the local government. You think businesses from overseas will flock to the USA to be brutalized by Federal, State, and Local governments? Think again!
On top of that you have the US Government Agencies such as the EPA and IRS hounding foreign businesses. Why would any business expose itself to that unless it had no choice? Manufacturers have a choice, service industries have no choice.
The US Government already wrecked the Corporation:
Prior to the 16th Amendment in 1916 all corporations were flow through tax entities just like present day partnerships. All profits went to the shareholders along with all depreciation. The shareholders were taxed not corporations.
After the 16th Amendment was installed, corporations were given personhood and could be taxed for income. They were taxed at 35% in effect being nationalized by the US Government that became a 35% partner but owned no stock! That is akin to a Fifth Amendment Taking.
This converted corporations into the mess we have today in which management pays dividends optionally and gives themselves lavish salaries which are tax deductions. This began the era of CEO salary abuse and political clout. Corporations morphed into social welfare organization often in Government established monopolies. This is not capitalism. This is socialism. Corporations now seek deductions they have no incentive to make profits or generate real wealth. Trump should know all this, he went to Wharton. But he doesn’t know any of it. He doesn’t even know if a high dollar or low dollar are good for the economy. Remember he asked Gen. Mike Flynn that very question at 3AM! Steak knives.
Bottom line, Trump is not going to get the BAT tax and there goes another $1 Trillion in play money to fund Trump’s pretend tax cuts.
With Paul Ryan and the RINOs the game is always the same, they merely shift tax burdens and lay the costs on the Taxpayers. So they give a chump change tax cut to the middle class but their car tires and Iphones costs skyrocket. It is a RINO game. TAX CUTS IN NAME ONLY!
Pay attention! There is no such thing as Tax reform without reducing government spending.
Real Tax reform would be as Milton Friedman has suggested. Let the Gov collect tax of no more than 15% of the GDP and that’s all they can spend. And Friedman says, who cares how they spend it. Doesn’t matter. That would contain government growth and prevent deficits. It would limit the damage politicians could cause.
At present Trump has $10 Trillion in automatic deficits for his term even if Government doesn’t spend a dime more this year than last. Thank Rinos like George Bush. Thank Obama the big spenders who together contributed to more than 18 of the 20 trillion dollar deficit we have presently. Trump will automatically add 10 trillion to that by the time his term is done in 2020.
If Trump spends like a drunken Obama, or Bush then he could add $25 trillion more to the present $20 Trillion deficit. That would be $45 Trillion in current debt! Conservatives will turn the lights out on that party too.
If Trump can’t lead; he will be neutered.
Meanwhile, Trump better find a way to kill Obamacare or he won’t have any money for even a steak knife chump change tax cut.