If you read the Washington Post you would necessarily conclude that Donald Trump is “moronic,” “insane,” and “evil to his very core.” How did someone like this manage to amass one of the great fortunes in our nation? How did he manage to overcome the morass of building codes and overseers (and corruption) to build skyscrapers in New York City? (Have you ever been to Trump Tower? I mean – WOW!) Why aren’t his wife, sons and daughters planning his murder?
The answer is simple enough, he is none of those things. What he is a man with some very straightforward plans to improve the lives of Americans – and not rich Americans like himself. If you are an “altruist” then be aware that just one of his plans is estimated to increase the wages of the average family by an estimated $4,000 a year within the next four years.
How is the “average family” doing under Barack Hussein Obama? Did their health insurance costs drop by $2500/year as promised under Obamacare? (Do you really want me to answer that question?) In fact, low-wage workers have actually seen a 5 percent decline in wages! And we call Obama an “altruist” and Trump a “leach.”
So what is Trump’s plan, ask you? It is simplicity itself, answer I. (And, by the by, the Democrat Party hasn’t offered a “simple plan” in like FOREVER!) Is it his position on immigration? No! Is it foreign trade? No! Trump actually has policy statements that are not “moronic” or “insane.” Indeed they are sufficiently detailed to be labeled “arcane.” Trump has a proposal to replace our complicated, convoluted corporate income tax with a simple, 15 percent “flat tax” on corporate profits. And according to the best economic analysis, that one change will have a huge impact on the American economy.
[Source: Which Candidate Will Raise your Wage? (Hint: It’s not Hillary), by John C. Goodman]
[From the Goodman article] Boston University economist Laurence Kotlikoff, in a study for the Goodman Institute for Public Policy Research, has analyzed the Trump proposal and reports three findings.
First, the lowering of the corporate tax rate will lead to an enormous flow of capital into the United States, amounting to trillions of dollars. This inflow will substantially boost worker productivity and that will lead to a substantial increase in employee wages.
Second, the proposal doesn’t cost anything in terms of lost government revenue. The loss of revenue from the lower tax rate is made up by the broadening of the tax base (no more loopholes) and by the additional taxes collected due to a larger economy. More capital means more output which means more income and more taxes paid. In contrast to the frequently heard Trump criticism on the left, this is not a tax cut for the rich. It’s not a tax cut at all.
Third, the real beneficiaries of corporate tax reform are not shareholders. Almost all the gains are realized by workers. The rich don’t gain much at all. Or, to reverse the analysis, the burden of today’s inefficient corporate income tax is not falling on capitalists – whose after tax rate of return tends to be determined in the international capital market. The burden of the tax falls almost exclusively on workers…
Trump actually has many economic proposals. His reform of the tax code would be welcome. Now, I can hear the Democrats brave enough to read this post saying that Professor Kotlikoff is in Donald Trump’s pocket so how can we possibly believe his research? Although the Kotlikoff study is very favorable to Trump’s proposal, Kotlikoff is not planning on voting for Trump. To the contrary, he is running against Trump as a write-in candidate.