Tag: Tax bill

If You’re Going to Attack the New Tax Plan, Use Some Sense

By Mason Mohon | USA

While recently reading up on the late GOP tax reform legislation, which has more than a few changes on United States tax policy, I came across a particular article from CNN. It was titled 7 reasons why Republicans may have made a bad bet on the tax bill. The article then goes on to list seven reasons, and they are rough. The article, written by CNN Politics Reporter and Editor-at-Large Chris Cillizza is full of logical fallacies, mental jumps, and stretches that make my arm ache just to look at. The left’s attacks on Trump and Republicanism leave me astounded, for nobody in their right mind should or would take this seriously.

The first reason for the tax bill being bad is that “opposition is high… and growing”. CNN’s polls showed that the majority of the people oppose the tax bill, along with another poll that shows that non-Republicans think it goes against the middle class in favor of the wealthy. This is not a reason why the tax bill is bad for a few reasons. First, CNN polls a majority leftist audience, with studies reporting that the average CNN viewer profile “is a college-educated woman between the ages of 25 and 54, who tends to lean to the political left.” CNN has been polling leftists and progressive liberals, so why would their polls ever be in favor of a GOP proposal. At the same time, just because the majority opposes it, that does not mean that it is bad. This is a classic case of the appeal to the majority fallacy. It may be permissible if the author had a real impact on majority opposition, but he rounds off his reasoning with the two-word statement “That’s bad!”

The author had the option to make the argument that a significant amount of GOP voters are unhappy with the tax plan, which would harm the GOP in the next election and put many Congressmen in a dangerous position when it comes to re-election, but Cillizza did not, and his argument is still bad. This also would not have gotten around the issue of probably biased polling so he would have had to use a non-biased poll for this too.

The next reason is much shorter but just as bad. The CNN author claims that “People think the plan won’t help them.” Yes, people think the plan won’t help them. There are no statistics that say it will not, and there is no proof that the 37% of the population that believes this is grounded in fact. This reason does not matter at all.

Reason three seems to have a bit of well-sourced grounding. Donald Trump has claimed this tax bill is not here to serve his interests, yet they do source to a New York Times article that does provide well-sourced reasoning as to why the bill will not cause harm to Trump. Trump should not be lying, but make that your point. The president bending the truth is not a reason in itself as to why the plan won’t work.

Reason four faces the same issues as reason one: CNN polled left-wing people, and these left-wing people didn’t like it. Cillizza argues that people see this as a tax cut for the rich, with no backing as to whether or not it actually is. It doesn’t matter what the majority believes if there is no proof that they are well founded in their beliefs.

Reason five and six argue that Trump is not popular, citing his recent record low approval rating of 35% as a reason why the tax cut is bad. It is no secret that the approval rating is low, but why does this mean that it was a “bad bet” for the Republicans. The president has nearly nothing to lose. Six says that people do not trust the president on taxation, but that does not matter either. The author still does not make an argument for any impact of this on Trump or the GOP.

The last reason brought back memories of the 2016 election campaign season. Seven states that people want to see the president’s tax returns, which is the same complaint we heard leading up to November last year. Whether or not Trump has skeletons in his taxation closet has nothing to do with the plan’s impact on America, though, either.

The mainstream media, and CNN in particular, has shown themselves to be serious jokes. They do not seem to care about accountability to actual factual argumentation anymore. They obsess over appealing to a young leftist audience that will click on anything that even sort of depicts Trump in a negative light. As a libertarian and former (reluctant) Johnson supporter, it sucks to have to defend the current president from these senseless attacks. A lack of journalistic integrity makes the targeted side look good. It makes it look like CNN is in an echo chamber that will just feed the left-wing mob, rather than attack with strong arguments and facts. I see media companies left and right dipping into this pitiful type of journalism, and it saddens me to see that this is what the exchange of ideas has come to. CNN, along with the mainstream media, is day-by-day becoming more and more of a joke, and all I can do is cringe.

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Trump’s Tax Bill: The Successes and the Issues – Greg Stephen

Greg Stephen | USA

The GOP’s new tax bill is -quite arguably- a massive success so far, but what exactly IS this attempt at tax reform anyways, what is its end goal, and what is it doing wrong? Is it just one big malicious attempt by corrupt and crony Republicans at allowing the evil capitalist CEO overlords to exploit the masses?

Quickly put, the answer to that last question is one big fat no. The tax bill isn’t meant to just help the rich and wealthy, even though at first glance it may seem like it. The theory is called trickle-down economics, or Reaganomics (after President Ronald Reagan who was president during the first time this theory was implemented in American economics), and you may have been hearing these terms quite frequently over the past few weeks. You also may have been hearing that this theory has never worked for the people before (which history most vehemently disagrees with, see the Reagan era), or simply cannot work in modern times due to a different economic “landscape”, as you could put it. What this theory truly is is that through tax cuts for wealthy CEOs, these heads of corporations would have more money to spend on their businesses, and in turn increase wages and boost the economy.

After this bill passing through the Legislative Branch, Democrats alongside fiscal liberals of all kinds are completely losing it. Fiscal leftists have the idea that these CEOs will use the money, of which they are now not being forced to pay to the government with the threat of being locked in a cell if they don’t comply, to simply buy things for themselves. This, however, would be very counterintuitive considering that they could make even more money if they pooled their newly found savings into growing their business and then making even more money. A few questions for those who believe this: if these CEOs are so greedy and money-hungry, why would they pass up a chance at growing their businesses and making more money? Also, why wouldn’t these CEOs give their workers higher wages and better working conditions if other companies are doing this, which they in fact now are, thus minimizing the risk of losing their workforce to competitors?

So far, just like during the Reagan era, everything is going according to plan. Dozens of large companies, for instance, AT&T and Comcast among many others, have been increasing wages and making working conditions better for their workforce, thus giving these workers more buying power while spending on other businesses themselves and in essence stimulating the economy by, and to say the absolute very least, a lot. However, is this really as far as we can go?

Sure, this is a great leap in the right direction as well as surefire, objective proof that reducing taxes on the wealthy is a good idea in not only theory but in practice, but what else could we do? One looming threat that, even in success, this tax cut poses is that it can and will increase our national debt. What one option that’s most certainly on the table (and mind you, one that can and will increase liberty) is to cut spending. You know, that thing that House and Senate Republicans always say they’re going to do, but never really do it? The survival of the new GOP tax reform bill may be just enough incentive for the Republican Party to truly follow through on all of their economic promises. If the Trump administration, alongside GOP representatives and senators, really do want to secure their seats and positions of power in the coming elections in 2018 and 2020, then they need to truly live up to their titles as fiscal conservatives and cut reckless and needless spending across the board. If they do this, then we could possibly see even more economically beneficial tax cuts down the line during the Trump presidency.

For instance, why just cut taxes on the wealthy? Why not cut income taxes for not only CEOs, but lower and middle-class workers, alongside cutting needless and reckless spending on unnecessary programs? The benefits here would be countless, most importantly increasing average citizen’s buying power, thus stimulating the economy even more so.

So, in conclusion, Trump’s newly passed trickle-down tax reform bill is, again, quite arguably one big success so far, but has two major issues; first of which being that without cutting spending the bill won’t last very long, second of which being that it’s a step in the right direction, but doesn’t maximize the full potential prosperity of a supply-side economic policy. For now, all we can really do is wait and hope that Republican senators and representatives will make the right decisions to maximise the capitalist potential of what this bill could start. Here’s to the GOP not screwing this huge chance at a true capitalist society up, and here’s to capitalism and the prosperity it can, and will, most indefinitely bring.

The Senate Tax Bill is Lowering Tax Rates. That’s a Great Thing.

By Ashton Barwick | USA

The United States Senate recently passed a tax reduction bill by a narrow margin of 51 to 49. The bill lowers the top corporate tax bracket from 39.1% to 20%, and the top income tax bracket will be lowered from 39.6% to 38.5%. This will allow individuals to keep more money they earn which will grow the economy, but what will become of the deficit?

 

The Secretary of Treasury, Steve Mnuchin, has repeatedly said that the tax reduction will pay for itself with the additional wealth created. This cliche sentiment has become ubiquitous among those that fantasize over tax breaks. Although I am personally fond of economic liberty, I also realize that government cannot take in less than it spends. These tax breaks will allow for more private sector investment to grow our economy, but allowing debt to accumulate will only result in economic stagnation from inflation.

Unemployment is expected to shrink due to the new legislation. When the government reduces its influence in the market, competition then begins to lower prices and allow more people to find work. Regulation often doesn’t work as expected either. Once inflation forces people into higher tax brackets they then reduce their taxable income. They accomplish this with a myriad of different methods such as moving trade to the black market, working less, spending more money on accountants, and most famous of all: offshoring.

The United States currently has one of the highest corporate tax rates in the world. This forces many potential companies to relocate in order to avoid the high regulatory burden. A common misconception associated with offshoring is that businesses move offshore in order to exploit workers in the third world. However, this conceited notion cannot stand up to rational scrutiny. Offshoring leaves some with a bitter taste because it is often associated with sweatshops in poor southeast Asian countries. While this is sometimes the case, workers in the third world are often close to busting down the door in order to fill out an application. Corporations such as Nike pay their workers in Vietnam double the average annual income. While conditions still leave much to be desired from our standpoint they see it as the opportunity of a lifetime. These opportunities are only available to these people because of the low amount of red tape. As Ludwig Von Mises once said, “Capitalism breathes through loopholes.”

Another great benefit of lower tax rates is more American jobs. President Trump promised Americans that jobs will return. Lower taxes and regulations will move the supply curve to the right. Thus, incentivizing more people to enter the market. With our exorbitant taxes, it is no surprise we have lost jobs. If the marginal cost to employ someone exceeds the benefit then that person will most likely remain unemployed. Moreover, these burdens upon businesses are shifted upon the consumer with higher prices. Corporations actually pay more money complying with regulation than they make in profits. Lowering the tax burden will incentivize businesses to put more money into production and employ more domestic workers.


Rappeport, Alan. “Ahead of Vote, Promised Treasury Analysis of Tax Bill Proves Elusive” The New York Times. Nov. 30, 2017.

Goldman, Henry. “Mnuchin, Ivanka Trump Pitch Tax Plan’s Benefits for New Jersey.” Bloomberg Politics. Nov. 13, 2017.

Crews, C.W. “Ten Thousand Commandments: An Annual Snapshot of the Federal Regulatory State. Competitive Enterprise.

Nivola S, Pietro. “Inside Outsourcing: More Bad News from Business Regulation?” Brookings Institute. Nov. 1, 1996.