Hillary Clinton plans to “tax and spend” you into prosperity. Somehow, I don’t think that will work. She intones in that voice that sounds like finger nails on a chalkboard: “Wall Street, corporations, and the super-rich are going to start paying their fair share of taxes.” Why? “Not because we resent success. Because.. that’s where the money is.” Willy Sutton is rolling over in his grave!
[Source: The Hillary Recession, by Larry Kudlow]
We are heading toward a recession. Second-quarter real-GDP report was mere 1.2 percent. Business investment: falling. Building and factory construction: dropping, and it’s dropping sharply. Productivity: flat. Profits: not so good. With the “unemployment rate” being low, the Fed will need to increase interest rates: ouch.
[From the Kudlow article] Let me get this right. In order to spur growth, Hillary intends to raise taxes on individuals, businesses, capital gains, stock trading, and firms that move overseas (which they do because the U.S. has the most uncompetitive tax system in the corporate world). In addition, Hillary’s door is open for a carbon tax, higher payroll taxes, and a 25 percent gun tax.
She also argued in Philadelphia that the economy is not working the way it should because our democracy isn’t working the way it should.
Hillary argues that “big money in government” is the source of our weak recovery. All will be well when Citizen’s United is overturned – another promise. Forget that our national debt is well over $19 trillion. When President Obama signed the two-year budget deal last November, his action brought into sharper relief the “legacy” he seeks. He is the $20 trillion man, the amount that the national debt will be when he leaves office. When Mr. Obama took over in January 2009, the total national debt stood at $10.6 trillion. That means the debt will have very nearly doubled during his eight years in office. It took other 43 other presidents 233 years to accomplish what he has done in only eight years. What a guy!
[From the Kudlow article] And according to new studies by Aparna Mathur of AEI, raising top marginal tax rates reduces growth incentives and yields very few revenues. Yet in addition to higher tax rates, Hillary wants $1 trillion in new spending programs.
Obama’s seven-year recovery averaged 2.1 percent real growth at an annualized rate. For historical comparison, after seven years, JFK’s economy increased by 5.4 percent yearly and Reagan’s by 4.5 percent.
Did JFK and Reagan beget long booms by raising taxes? No. They cut tax rates across the board.
I agree that Donald Trump says outlandish things on the campaign trail, but he also says: “America is one of the highest-taxed nations in the world. Reducing taxes will cause new companies and new jobs to come roaring back into our country. Then we are going to deal with the issue of regulation, one of the greatest job-killers overall. . . . We are going to lift restrictions on the production of American energy. . . . With these new economic policies, trillions of dollars will start flowing into our country.”
In my previous 1650 plus posts, I hope I have made a compelling case that higher tax rates do not necessarily generate more revenue. That freedom of speech (the Supreme Court’s reason for upholding Citizens United) must be our one unassailable right: that “capitalism” is the only moral philosophy.
Hillary is wrong about ever so many things. Her notions on “fixing the economy” are anathema to growth.