By William R. Hawkins l March 7, 2018
The campaign to win public support for the Tax Cuts and Jobs Act (TCJA) rested heavily on the first element of the bill’s name: tax cuts; and then for the middle and working classes. By making small changes to rates while doubling the standard exemption, plus extending a few other benefits such as doubling the child tax credit, the bill gives the typical family of four earning the median income of $73,000 a tax cut of $2,059.
While this is not the “mere crumbs” Democrat House leader Nancy Pelosi (D-CA) asserted, to general derision, it is not sufficient to generate the kind of economic stimulus the Trump Administration needs to “make America great again.” Tax rates today are not what they were when President Ronald Reagan made his major tax reforms over thirty years ago. Now, legislation can only make minor adjustments in the across-the-board rates, if they intend to keep any eye at all on revenue and the budget deficit.
The real teeth in the Tax Cuts and Jobs Act also involved tax cuts, but they were targeted at business firms with an eye to creating domestic jobs. There is far more “bang for the buck” from this approach.............To Read More..
My Take - My grandfather was a brilliant economist. He said if you spend more than you make you go broke, and he was a coal miner and a farmer. This isn't brain surgery folks!
Tax cuts will normally generate more money for the government, but while that may be a plus, it doesn't change the fact no matter how much money the federal government takes in they will continue deficit spending as far as the eye can see. If this spending insanity isn't stopped and turned around bankruptcy will happen.
Furthermore, entitlement spending is about to become the elephant in the room that is absolutely going to have to be addressed because by 2020 Social Security will no longer be self funding and by 2025 the entire revenue taken in for that budget year will only pay for the interest on the national debt and entitlements. Everything or anything else the government spends money on - including national defense - will be borrowed money.
We have tax cuts today, but we need spending cuts as soon as possible. Without that - bankruptcy.