When I first joined Facebook in 2009, there were countless posts on economic policy, in which millions refused allow their lack of knowledge deter them from making public comments. Many online epitomize the quote from the famed economist, Thomas Sowell, of “enjoying a sense of moral superiority in their ignorance!”
Before writing one word on Facebook, I considered of how to present myself on social media.
I decided that I would be wholly certain of what I was writing, or, would check things out with a 5 second Google. Being accurate gives one credibility, and, also minimizes responses of profanity! I thought when people were proven wrong online, they would say, “thanks for letting me know.” Are you still laughing?
With the great likelihood of tax cuts being passed next month, data from the Bureaus of Labor Statistics, Economic Analysis, Census, and Treasury follow in assessing the results of tax cuts from Reagan, Trump, and JFK. That way, you can know the facts, and hopefully have a 100% win rate on social media. However, remember the famed paraprosdokian, “Don’t argue with an idiot, as he will take you down to his level and beat you with experience!”
The most relevant question involves of what followed from the 2017 tax cuts, while noting that deregulation was a key component of the following results.
Trump’s tax cuts led to the lowest unemployment rates of the previous 50 years, the lowest poverty rates in history, and the highest real wages in history. Additionally, Trump was the first president to have unemployment average less than 4% for his first three years.
Many note that Trump had the highest unemployment rates since the Great Depression, with nearly 22 million jobs lost in two months. This, without mentioning the unprecedented economic shut down from the great pandemic of 2020. That rather material fact is often fraudulently omitted.
On the positive, it is hardly ever reported that 12.2 million jobs were created in the last 8 months of 2020, which also had the highest quarterly GDP growth rate in history, of 35.2%. The DOW went up by 60% in 10 months, and unemployment dropped from 14.8% in April, 2020, to 6.9% by October, and was down to 4.7% by November, 2021. That was the fastest economic recovery ever!
Then, there was and is massive wrongful reporting that Trump’s tax cuts had an estimated cost of $1.5 trillion over 10 years. The Congressional Budget Office, (CBO) stupidly refuses to allow for increased tax revenues generated from lower tax rates, which stimulate investment and job creation.
In the five years following Trump’s tax cuts, total income tax revenue increased from $3.3 trillion to $4.9 trillion, up almost 50%, with total tax revenues up by $2.8 trillion in five years, and not costing us $1.5 trillion per the CBO.
With reference to the “Big Beautiful Bill,” the CBO stated tax cuts will cost $4.3 trillion over 10 years, basing that on 1.8% GDP growth. However, the Atlanta Fed projects 3.8% GDP growth in the second quarter of 2025, which is without $10 trillion of investment commitments. Former Director of the National Economic Council, Larry Kudlow, projected Trump’s tax cuts would have a deficit reduction of $8.5 trillion, as opposed to costing $4.3 trillion per the CBO.
Reagan’s tax cuts produced similar results to Trump’s, as tax revenues increased in 6 years by 51%. When Reagan took office, many were proclaiming of the death of capitalism, with a job killing prime rate of 20%, inflation at 11.8%, unemployment soon peaking at 10.8%. Yet, with respect to our current population, in 6 years Reagan created about 24 million jobs, pulled 4 million out of poverty, and had GDP growth rates average 4.5%. Also, inflation was reduced from 11.8% to 3.8% in five years, with the prime rate cut in half, and unemployment lowered from 10.8% to 5.3%.
Whomever claims supply side economics was a failure, never looked at the data cited from the tax cuts of Reagan and Trump. In fact, Kennedy’s tax cuts led to GDP growth rates averaging 6.3% for 3 years, while delivering the lowest unemployment rates of the last 71 years.
This data from Reagan, Trump, and JFK will have you victorious online. With lower taxes forthcoming and an unprecedented $10 trillion of capital commitments for the US, I believe our financial markets will experience amazing growth. In caveman speak “Tax Cuts Good!”
Top Gaining Stocks
Top Losing Stocks