Tag Archives: Tax cuts

The “Free World” isn’t looking so free these days, by Jordan Schachtel

The West moves relentlessly towards totalitarianism. From Jordan Schachtel at dossier.substack.com:

The Anglosphere is completely captured by globalist interests.

The world’s English-speaking nations that share historical and ideological ties — commonly referred to as the Anglosphere — were once understood as the world’s most powerful beacons for the tenets of freedom. Through our elected politicians in 2022, however, this social contract has vanished, and its ideas are completely absent within the halls of political power. In today’s Anglosphere, it’s difficult to find a politician or policymaker, on either side of the dominant political factions of government, who genuinely defends the enlightenment principles that sparked the incredible and unprecedented human flourishing of past decades and centuries.

This morning, British Prime Minister Liz Truss announced her resignation after only 6 weeks in office.

Much of the legacy media cited a “Tory revolt,” leading the Free World normies to believe that perhaps some kind of freedom rebellion has occurred.

In fact, just the opposite is true. Truss, they say, stepped out of line by proposing a “risky plan” to cut taxes.

Continue reading→

The Demise Of Bubble Finance And The Folly Of Trump-O-Nomics, by David Stockman

Central banks are pulling the rug out from other bubble finance and other Wall Street fun and games. From David Stockman at davidstockmanscontracorner.com via zerohedge.com:

We are at a decisive pivot point and its far more consequential than the mid-term elections. Even then, we cannot but marvel at the utter complacency which still prevails in the casino.

We even heard one bubblevision talking head today suggesting that on the off-chance that the GOP retains the US House of Representatives (the Senate is virtually guaranteed to stay Republican), it will be mighty bullish for stocks. That’s because it would mean more fiscal stimulus, presumably another tax cut of the 10%/$200 billion cost variety that the Donald has been plugging out on the hustings.

Continue reading

Tax Cuts Work, by Daniel Lacalle

Tax cuts in our overtaxed world often result in increased government revenues. Expanding deficits are often the result of spending increases greater than the increased revenue. From Daniel Lacalle at theepochtimes.com:

It happened again. Tax receipts soared in the United States after the recent tax cuts.

Although it will take a while for the full effect of the 2017 tax reform to kick in, U.S. state and local government tax revenue climbed to $350.2 billion in the first quarter of 2018, a rise of 5.8 percent compared with the same time period in 2017. Individual income tax collections had big gains for a second-straight quarter with a 12.8 percent increase to $107.4 billion in 2018’s first quarter.

But the evidence of the positive impact on growth, jobs, and wages of lower corporate taxes has been published in many studies over time. The example of more than 200 cases in 21 countries shows that tax cuts and expenditure reductions are much more effective in boosting growth and prosperity than increasing government spending.

Multiple studies conclude that in more than 170 cases, the impact of tax cuts has been much more positive for growth.

In Denial

However, some commentators continue to deny the positive impact of tax cuts using the argument that deficits rise.

The fallacy that “deficits rise” has nothing to do with tax cuts, but with increases in government spending on top of the tax cuts.

The deficit excuse is very simple. It says taxes should not be cut because governments will spend all revenues, even if these increase, and more. But this excuse is wrong.

The mistake of pointing at deficits as proof that tax cuts don’t work is debunked by looking at the proposals of the same economists that argue against tax cuts. Economist Paul Krugman is one example. He argued against tax cuts in his New York Times article “Time to Borrow” after the Obama administration increased debt by $10 trillion. These demand-side economists defend deficit spending, yet consider tax cuts as negative … because deficits may increase. Only Keynesian economists manage to pull off such mindbending logic.

Deficits need not rise or exist at all if governments spend in line with revenue growth. And the evidence points to rising revenues from lower taxes and higher growth.

To continue reading: Tax Cuts Work