Fake News + Progressive Lie: Tax Cuts Are for the Rich and Hurt the Poor [Video]

Craig Huey Economics, Taxation 2 Comments

The media, politicians and big-government advocates are lying about the power of tax cuts.

Here is a proven truth you’re not hearing — cut taxes and:

  • The economy grows
  • Jobs are created
  • Wages rise
  • New innovations blossom
  • Entrepreneurial ventures appear

However, raise taxes, and the opposite happens.

As a small business owner for over 30 years I not only see this … I experience it.

Now the media and progressive-socialists are lying about the Reagan tax cuts and history to stop Trump’s massive tax reform program.

Here is a truth that you won’t hear:

  1. The Reagan Tax Cut Created Economic boom.

Double-dip recessions that covered most of the period from January 1980 through November 1982 primarily resulted from the Federal Reserve’s decision to sharply raise interest rates, thereby choking off the economy-crushing inflation of the late 1970s. It laid the foundation for the economy to boom, jobs created, wages rose, new innovations, and new entrepreneurs to succeed – including myself.

  1. The 1976-1980 unemployment soared to 8%, inflation hit 15% and mortgage interest rates skyrocketed to 16%.

Reagan’s economic revolution was built upon the failure of big government spending spinning out of control. In 1982, thanks to tax cuts and Fed action, there was a seven-year economic boom that saw the economy expand by 36 percent and inflation-adjusted median family income rise by 12%.

There was also the creation of 19 million net jobs (the equivalent of 25 million jobs in today’s larger working-age population).

By comparison, in the seven years following the 2007-09 recession, the economy expanded by just 16%, median income rose by less than 3% (over six reported years), and only 11.6 million net jobs were created.

The economic policies of high taxation and excessive regulations of President Obama and the progressive politicians failed miserably.

Had this recent “recovery” matched the Reagan recovery, the current GDP would be $3 trillion larger – more jobs, higher wages, newer innovations and entrepreneurial ventures.

President Reagan gradually cut the longstanding 70% top tax bracket to 28% — and individual income-tax revenues and tax money coming to the U.S. Treasury still came in higher in the 1980s (8.2% of GDP) than in the high-tax 1970s (7.9%).

Why? Because the tax cuts created an economic book bringing in more tax revenue at a lower tax rate.

Total revenues from all federal taxes averaged 17.8% of GDP in the 1980s, compared to 17.4% in the 1970s.

Unfortunately, federal spending increased largely because of defense spending.

It creates deficits.

Runaway government spending is the problem, not tax cuts.

Tax cuts if implemented now will create a boon. Historic slashing of taxes will create a historic:

  • Economic growth boon
  • Wage boon
  • New innovations and entrepreneurial ventures boon

Don’t be misled by the media and progressive-socialist distortions of fact.

Art Laffer, economic adviser to Reagan is a strong proponent for tax cuts.

Watch this insightful 4-minute video as he makes a case for tax cuts = economic growth.

What do you think? Email me at craig@craighuey.com

 

Comments 2

  1. I agree. The Reagan years were the best years. I was working at TRW and saw the increase in jobs created and in raises. Wasn’t the same under Bush the first. He tried but just wasn’t man enough to keep Congress in line. Under Reagan we actually had a zero debt which unfortunately didn’t last long.

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