Those self-important liberal experts have been so wrong about so much:
They claimed that Clinton would win the 2016 presidential election with 80-plus percent probability, that Trump would not last his first year, that an independent investigator would find that Trump colluded/conspired with Russians to affect the 2016 election, that the economy would implode within the first year of Trump, that tariffs would increase prices for products and increase inflation by at least 5 percent, that Walmart would have to increase almost all of its product prices because of tariffs on goods from China, that Brett Kavanaugh would not be confirmed because of misconduct accusations, that the Trump travel ban would be found to be unconstitutional, that Trump could not stop federal payments to organizations that preform abortions, that crosses would have to be removed from federal land, that stock prices decreased in the summer of 2018 because of Trump tariffs, that other countries would not renegotiate NAFTA, NATO, the Iran deal, etc., that the United States could not achieve energy/oil independence, that Trump violated the emoluments clause, and on and on. All wrong. All fake news.
The most recent fake news from liberal pundits include these whoopers:
- The 2017 tax reforms only helped the rich, with nothing for average working Americans.
- European workers are doing so much better than American workers, because of socialism.
- American wages are stagnant.
- Tariffs increased product prices more than any benefits from the tax reforms.
- The Trump tax reforms reduced tax revenues.
Well, after more than a year since the tax reforms went into effect, what do the data say?
Fortune Magazine, July 2019, states: “A big tax cut sets America apart.” Fortune points out that Organization for Economic Cooperation and Development countries tax workers (income and payroll) at about 36 percent. Prior to the tax reforms of Trump, American workers paid income and payroll taxes of about 31.8 percent (4.2 points less than the OECD average). After the tax reforms, average American workers now pay about 29.6 percent (2.2 point reduction and 6.4 less than the OECD average).
What did we get for that tax reduction? Wages for average American workers increased 3.2 percent year over year as the U.S. economy grew even more, much more than the economies of Europe and Asia, much more than inflation at 1.9 percent. Wages increased more than inflation for the first time in more than a decade. Obama never did that.
And tax revenues increased as a result of those wage increases and GDP increases – more than enough increase to cover any loss to tax revenues from the reforms. Economic elasticity.
The increase in wages and reduction to taxes means that average working Americans increased disposable income 5.4 percent (3.2 + 2.2). Wow! So, 5.4 percent of a $50,000 salary means $2,700 more disposable income. But to listen to the liberal pundits and politicians, and you’d think average working Americans lost income. Fake news!
The Federal Reserve calculated that tariffs only increased overall product prices by 0.2 percent – 5.4 vs. 0.2. Tariffs were a great strategy to increase American GDP and jobs and wages. Tariffs increased competitive product substitution by U.S. companies vs. China, Germany, Mexico and Canada. Tariffs/sanctions are beating Iran with the most powerful American weapon – our economy.
What about taxes on the rich? They increased even though the marginal tax rates decreased as deductions were capped at lower levels for state and local taxes and for personal deductions like on mortgage interest.
And how does that compare to those European (OECD) countries? According to Fortune, those same payroll and income taxes for Germany, Italy, France, Sweden, Finland, etc. range between 42 and 50 percent. And all of those countries are suffering from poor economies. All of them are trying to figure out how to cut taxes on workers in order to spark their economies like the U.S. without cutting social programs. Economies that are built on exports rather than internal consumption are dependent on their customers – customers like the USA. So what do they do when the USA puts tariffs on their products until they eliminate their tariffs/barriers on products from America? They need to make lots more changes other than just reducing taxes.
The data are clear. Tariffs worked. Tax reforms worked. Economic incentives worked. Manufacturing jobs increased in the U.S. by 700,000, after Obama said that manufacturing would never increase again. And average working Americans benefited from all of it. As the pool of available workers decreases, wages increase. Price is a function of supply vs. demand. Trump is making America great for average working Americans, and that includes blacks and Hispanics who now benefit from the lowest unemployment rates for them in the history of the nation.
America first. Americans first. Go Trump!