When Congress passed some of what President Donald Trump asked for it was a slam dunk for the economy. However, it's a tax cut, not tax reform. In other words - it's a start.
Still, there are some (maybe you) who deny the cuts will work even though they already are in most people's lives. Sure, there will be a few exceptions, but most will see more money in their check.
My son, Jordan, sat in my home today and with a wide grin announced $31 more per paycheck because of the cuts. "Hey dad, that's an extra $62 a month...that's meat money for a month for me. Not breadcrumbs, meat!"
The last line was a shot at Democrats and illilberals who are out of touch. Funny how they claim to be the party of the people, but nothing could be further from the truth. Extra money - whether in bonuses, more in the paycheck, or both - has and will touch tens of millions of people.
Let's move to the business sector where even Apple is repatriating billions to create more jobs in the good ol' USA. It's far from alone...trillions of dollars are coming back home and for one reason...Trump proposed, and demanded, tax cuts. Business tax cuts, too. It is working. Today, ExxonMobil made a huge announcement.
To claim this is due to anything Barrack Obama did is specious at best. During his eight years promised health care premium reductions skyrocketed up; record numbers of citizens relied on food stamps; the gap between the haves and the hoped-to-have grew ever wider; taxes were raised; regulation exploded as did the national debt. These are not claims; these are facts. Undeniable...think gravity.
Lastly, is a forever etched in stone dubious distinction - The Obamanation never, not once, hit the magical 3% growth mark with the economy. Not a single president in U.S. history ever went through one term let alone two without at least one three month window of 3% growth.
The Trump economy snapped the streak in its second and third quarters (of year ONE) and is poised for an entire year of 3% plus in 2018.
Now, let me give a simple brief lesson in trickle down economics (TDE) based on two calls today on the show.
- A business owner shared how his employees would benefit with more money in their checks due to the Trump Tax Cuts and how his business would make nearly $900K more due to tax savings. He went on to explain how people who had projects on hold have now authorized them because they have extra money due to the Trump Tax Cuts.
- A listener called to explain her $1,000 bonus would provide the rest of the money needed to build her back porch.
So, a business saves money off their tax bill, enjoys more business due to customer spending (that is TDE right there, but we'll proceed), or perhaps that same business can now hire more people which means more with money in their pockets.
- Illiberal interruption - "But, Preston, some businesses are saving money and cutting workers. What about that?"
- Their costs have been pushed up by Obamacare as well as the push for higher wages and then is the record pages of regulation the big B.O. authored with his team. Those things cause a ripple effect. Another example of TDE. When a business has to absorb certain costs someone must bear those costs - workers, customers, or both. When government raises the cost of doing business a price must be paid. A business has to maintain certain profit margins to stay in business or NO ONE HAS A JOB!
I digress - We now have more people buying goods and services which, in turn, provide salaries and hourly wages for workers who, in turn, take those funds (and bonuses) and spend them on various goods and services which, in turn, help pay the salaries and hourly wages of the workers in those businesses and so it goes.
The money, ours to begin with, is spend which allows other to be paid which allows them to spend. The money "trickles down."
Thus endeth the lesson.