So, we are in February, which means that everybody that’s working is getting a little bit larger paycheck thanks to the tax cut that Congress passed, and President Trump signed just before Christmas. And it seems that amid all the crying and caterwauling that the Democrats did over how it was “crumbs”, and how the rich got richer and the poor and the middle class got screwed (again), apparently they lost this round as well.
The US Government not only cut taxes for the 47% of the people that actually pay taxes in this country, and over 1,200 businesses actually gave out bonuses and raises to their employees; apparently the US Government ran a surplus in January!
That’s right. For the first month after the tax bill was signed, the government ran a surplus of over $49 billion! It was a record tax collection month (there is a quarterly payment due in mid-January for those that pay quarterly’s), and gives the government a much needed shot in the arm.
What else this shows is that Ronald Reagan’s theory that if you charge less in taxes, businesses will invest more, and will actually hire more people, and pay more in taxes is correct. That has once again been proven with Trump’s tax cut. Democrats are scratching their heads trying to figure out how you can charge less in taxes and get more money. They’ve been arguing there’s no way for that to happen for decades…and in a zero-sum game, they’re right. Unfortunately, economics isn’t a zero-sum game. It’s a supply and demand game. When you give people the chance to demand more (because they have more money), supply goes down, businesses can produce more, and even charge more because people are actually making more money. The result is you sell more goods and services, charge more in total taxes, and the government reaps the windfall. It’s something folks on the left just can’t fathom. Poor Chuck Schumer is really lost on this one.
Moving forward, what this tells us is quite simple. IF what Donald Trump says is true, and you give the 47% of the people that fund the government the chance to have more of their own money, then they will spend more. They’ll visit McDonalds more…they’ll visit Burger King more. They’ll spend more on Amazon.com, and at their local shoe store where the clerks work for minimum wage. This allows the owners of the stores to yes, pocket more money for themselves, but also give more money to the employees and pay them higher than minimum wage salaries. Again, something the left knows very little about. They feel that the only way to manage what those workers get paid is to actually mandate what a “minimum living wage” should be. So, they go out and artificially set a number (like the fast food workers demanding a $15 an hour wage), and try to get it done through enacting a law. What happens is, the guy that owns the fast food place then has to pay the people he was paying $10 an hour to a 33% increase. So the cost of his food increases by 33% to make up for it. And who eats at fast food places the most (and pays for the increase)? Typically, people making minimum wage. So they end up spending more of their newly found income on the increased prices.
Oh, what fun when liberals try to run things!
Carry on world…you’re dismissed!