the Air Vent

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Archive for January, 2019

Ignorance Gone Wild

Posted by Jeff Id on January 6, 2019

We are told again and again that cutting taxes increases the deficit.  It’s so bad that people have invented stupid programs like the penny plan (which Hannity really promotes) and paygo which used to be Republican and now is being pushed by the Democrats.  I’ve long maintained that these are terrible ideas – because we are on the down slope of the Laffer curve. Taxation is so high, that less taxation results in more economy and more revenue for the government.  Smart liberals know this but they are authoritarians by nature and realize that more tax is inversely proportional to freedom (less freedom) and proportional to dependence on the federal government for services.  So Paygo by its nature completely ignores this situation as do the rules of the ‘non partisan’ CBO.

From Bloomberg.

In total, CBO projects that the cumulative increase in the deficit through 2028 due to the tax cuts will be approximately $1.9 trillion.

Paul Krugman – Literally the fakest economist I’ve read who also happens to be a prime government authoritarian darling wrote this

Later that day the joint committee delivered its predictable verdict: Like all other reasonable studies, its review found that the Senate bill would do little for U.S. economic growth, while directly hurting tens of millions of middle-class Americans, blowing up the deficit, lavishing benefits on the wealthy and opening up new frontiers for tax avoidance

and this:

Just about every G.O.P. member of Congress, including the sainted John McCain, is willing to put partisan loyalty above principle, voting for what they have to know is terrible and irresponsible legislation.

and this:

It was remarkable, for example, to see a group of Republican-leaning economists with serious professional credentials put out an open letter clearly intended to lend aid and comfort to Mnuchinesque promises of miraculous growth.

Pelosi said this:

simply theft—monumental, brazen theft—from the American middle-class and from every person who aspires to reach it.

The genius Schumer said –

cynical one-two gut punch to the middle class—raise their taxes to pay for corporate tax cuts & then decimate their earned benefits as a kicker.

Of course they were just lying like they so often do.  Lying is a word used inaccurately far to often in the political spectrum, when I use it I mean telling a non-truth that is known at the time to be a non-truth.   They knew damned good and well that the tax changes were significant cuts. And even though America figured out that the cuts worked, these central government authoritarians have repeatedly stated that they still want to undo the cuts as soon as they get power.

So we went against Krugmans authoritarian government-knows-best vision and lowered taxes in 2018 – and  the economy boomed and federal government got more revenue including significantly more from income taxes.

 

Increased revenue from INCOME TAX due to a cut in income tax rate!!

Increased overall revenue

Highest wage growth in years.

Lowest unemployment in numerous categories

Massive economic growth

Huge holiday spending

Big job creation

Manufacturing growth – this is very critical to a successful country!

#1 energy producer in the world

Looks like business owners actually know economics.  Huh…..who would a thunk it.

I’ve generally been forced to move on from blogging.   It is a lot of work running a now-large company and we used the cuts to invest massively in new injection molding equipment right here in the US, which we can now write off and will add numerous highly skilled people for decades to come.  I’ve written before that our effective tax rate was over 80% because nothing is considered an expense.  It isn’t that much better now but it was enough to allow the investment into American business and treat a massive expense as an actual expense – which it is!  State taxes and inventory are still not considered expenses despite the massive check writing but equipment at least is.   In addition to the advantages from tax cuts, we are forced into paying people more and having to compete harder to keep good workers.  The effect is non-trivial and has showed up in jobs growth numbers, wage numbers and even spending numbers. Investment is high, growth is high, imagine where we will be if this were to continue on Trump’s very positive path for another 6 years.  He gets 100% of the credit for this at this point. So much resistance from the authoritarian swamp including his own party.   It’s huge folks, it’s real, and if you are finding yourself in disagreement, you need to do some serious reading or perhaps not vote, because you are flat effing wrong! 

Like climate change, the evidence is directly in front of you, it is up to you to be smart enough to read it.

Unfortunately, the pro-government authoritarian left has taken over education at all levels and are pushing socialism in its most evil forms.  The federalist papers and the constitution have nothing to do with socialism.  In fact, there is no room in the American constitution for socialism under any interpretation and the judicial branch should strike much of it down as unconstitutional.  The result however, has been extra-constitutional departments and regulations which have no true foundation in law, approved by socialist activist judges who at best are fake and in far too many cases literally operate above the law with no effective method of censure.  In the US,  one of the three branches of government is more equal than others.

I see no end to it though, in recent news, we watch the authoritarian left promote more anti-constitutional socialism at every turn, and it drives a great fear into my heart to see such stupidity taking over the now completely socialist Democrat party.  Democrats used to at least have the appearance of rational thought, or consideration of the constitution, although many of us could see them clearly through the fog of politics just fine. Now the inability of voters to comprehend what will come of their authoritarian government-first policies is absolutely terrifying.  I’m afraid for my regularly indoctrinated children, because this socialist ignorance is preached to them in school as though it is unquestioned knowledge on a daily basis.  My wife and I can probably save their minds, but other parents are helpless in the face of the onslaught. As a contemporary example, 29 year old Cortez literally doesn’t know anything about economics and she supposedly has a degree in it.  Her life experience in economics is limited to keeping her tips off the books and out of her co-workers hands but as an un-spanked millennial, she will not even listen to counter-arguments on the matter.  She already knows all, and that is the big Democrat socialist visionary who is going to lead the country to 70% federal taxation (of business too) and no fossil fuel.  Given the power to enact these plans, she would close us down overnight and some at least equally ignorant voters gave her a lot of power!!

She’s just a truly dumb person and her equally dumb self-confidence in the face of her ignorance cannot be cured.

According to the demonstrably fake socialist economic models, the way for the federal government to pay for something is HIGHER taxes, but we’ve just seen the opposite, lower taxes gave MORE revenue.  So if paygo were in effect, when we enact a new big unconstitutional program like the Department of Education, we must then fund it with increased taxes. So in our current over-regulated and over-taxed situation, when you raise taxes, you have less money in your personal pocket (less freedom), the government has less money in their pocket from you (bigger deficit), and then you will need more money printed by the government to save the people who fall off the bottom end, which will require more taxes to pay for it!!!  Pure genius orchestrated and voted for by an ignorant population and their authoritarian masters who are very happy with the most ignorant and financially needy constituents possible. I’ve heard rumors that the masters will even import the least educated of them en-masse and hand them free money — can’t be true though right?

We need to return to the constitution of this country in order to save America.  I don’t see it happening any time soon, so while my crystal ball doesn’t work any better than Krugman’s, the kids will likely starve in the socialist truly anti-American future.  In the meantime, lets enjoy the success of a tiny bit of sanity introduced by our orange leader Donald Trump who has turned out to be a much better president than I had ever imagined he would. To his so-scientific detractors, we all need to change our ideas in the face of data, and the data shows he was right (and BTW so was I so many times on this exact blog), tax cuts and regulation reduction did lead to success at every level, and the Krugman ilk’s twisted-socialist and completely fake economic models were wrong.

 

 

 

 

 

 

 

 

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