Hi All,
I promised Stormin and Maggie a write up on why Trump's
tax plan will work and lowering taxes will also work.
And Oren, here is your class room lesson your requested.
On 01/05/2016 05:17 AM, Stormin Mormon wrote:
> On 1/5/2016 6:56 AM, trader_4 wrote:
>>>
>>>
https://www.donaldjtrump.com/positions
>>>
>>> Is there anything you disagree with? Seriously.
>>>
>>
>> His tax plan doesn't add up. You can't reduce the rate to 20%
>> on earned income, 15% on capital gains, for people making $100K
>> to $300K and not significantly widen the deficit. Every non-
>> partisan tax organization that has looked at it has said the
>> plan doesn't add up, increases the deficit.
>>
>
> Not going to dig out the specifics. But when taxes
> are too high, the economy slows down. Reducing tax
> rates can raise overall revenue, as the economy
> starts moving again. So the reduced rate might well
> have increased revenues.
Both Maggie and Stromin is correct here. What The RINO and
Dem are missing is that the economy taxes are a dynamic
equation not a static equation. The Dems and RINO are
basing all their "partisan tax organization" analysis on
a static equation. And also why Stormin' assertion
that these analysis are worse than weather forecasts
are correct.
In short, if I tell you I am going to punch you in the
nose, you will move.
To quote Ibn Khaldûn (1332-1406) that when taxes go up:
The result is that the interest of the subjects
in cultural enterprises disappears, since when
they compare expenditures and taxes with their
income and gain and see the little profit they make,
they lose all hope.
The Dems and RINO think "cultural enterprises" (13th
century words for "Business") won't notice.
Here is Trump's tax plan:
https://www.donaldjtrump.com/positions/tax-reform
It scares the unholy crap out of the Dems and RINOs.
And why it is endorsed by Arthur Laffer.
Trumps wants to bring "cultural enterprises" back to
American Soil by reducing the penalty they now
pay for doing business here. Tax revenue will
go up and we all will benefit from the increase
in "cultural enterprises".
This has been tried by Harry Truman (cut the fed by 15%
across the board), Kennedy, and Reagan and has always
worked. The Dems and RINOs yelled bloody murder too.
When you come right down to it, what Trump wants to
do is reduce the power of the Fed to control our lives
though the tax program. This is the real reason
why the Dems and their RINO collaborators are screaming.
Dems and RINO collaborator, Obama Care and Romney Care,
a difference without a distinction. No wonder we
lost the last presidential election. Why get a watered
down democrat when you can get a real one. And the base
stayed home.
The choice is limited government or tyranny. When government
grow, liberty always suffers. Dems and RINOs don't
get this. Or just don't care. Power is more important to them.
Other (real) Republicans have interesting plans too.
-T
Below is a lesson in Economics that should be mandatory reading
for every American.
Taken from:
http://www.friesian.com/sayslaw.htm#note-0
The great Arab historian Ibn Khaldûn (1332-1406) clearly anticipated the
Laffer Curve. While most of his political enemies regarded Ronald Reagan
as an ignorant fool, Reagan actually majored in economics in college and
long remembered Ibn Khaldûn's wisdom. Supply Side economics was nothing
new to him.
It is thus of some interest to quote the full explanation than Ibn
Khaldûn gives for his assertion:
It should be known that at the beginning of a dynasty, taxation
yields a large revenue from small assessments. At the end of the
dynasty, taxation yields a small revenue from large assessments.
The reason for this is that when the dynasty follows the ways of
Islam, it imposes only such taxes as are stipulated by the religious
law, such as charity taxes, the land tax, and the poll tax. These have
fixed limits that cannot be exceeded.
When the dynasty follows the ways of group feeling and (political)
superiority, it necessarily has at first a desert attitude, as has been
mentioned before. The desert attitude requires kindness, reverence,
humility, respect for the property of other people, and disinclination
to appropriate it, except in rare instances. Therefore, the individual
imposts and assessments, which together constitute the tax revenue, are
low. When tax assessments and imposts upon the subjects are low, the
latter have the energy and desire to do things. Cultural enterprises
grow and increase, because the low taxes bring satisfaction. When
cultural enterprises grow, the number of individual imposts and
assessments mounts. In consequence, the tax revenue, which is the sum
total of (the individual assessments), increases.
When the dynasty continues in power and their rulers follow each
other in succession, they become sophisticated. The Bedouin attitude and
simplicity lose their significance, and the Bedouin qualities of
moderation and restraint disappear. Royal authority with its tyranny and
sedentary culture that stimulates sophistication, make their appearance.
The people of the dynasty then acquire qualities of character related to
cleverness. Their customs and needs become more varied because of the
prosperity and luxury in which they are immersed. As a result, the
individual imposts and assessments upon the subjects, agricultural
labourers, farmers, and all the other taxpayers, increase. Every
individual impost and assessment is greatly increased, in order to
obtain a higher tax revenue. Customs duties are placed upon articles of
commerce and (levied) at the city gates. Then, gradual increases in the
amounts of the assessments succeed each other regularly, in
correspondence with the gradual increase in the luxury customs and many
needs of the dynasty and the spending required in connection with them.
Eventually, the taxes will weigh heavily upon the subjects and
overburden them. Heavy taxes become an obligation and tradition, because
the increases took place gradually, and no one knows specifically who
increases them or levied them. They lie upon the subjects like an
obligation and tradition.
The assessments increase beyond the limits of equity. The result is
that the interest of the subjects in cultural enterprises disappears,
since when they compare expenditures and taxes with their income and
gain and see the little profit they make, they lose all hope. Therefore,
many of them refrain from all cultural activity. The result is that the
total tax revenue goes down, as individual assessments go down. Often,
when the decrease is noticed, the amounts of individual imposts are
increased. This is considered a means of compensating for the decrease.
Finally, individual imposts and assessments reach their limit. It would
be no avail to increase them further. The costs of all cultural
enterprise are now too high, the taxes are too heavy, and the profits
anticipated fail to materialize. Finally, civilization is destroyed,
because the incentive for cultural activity is gone. It is the dynasty
that suffers from the situation, because it profits from cultural activity.
If one understands this, he will realize that the strongest
incentive for cultural activity is to lower as much as possible the
amounts of individual imposts levied upon persons capable of undertaking
cultural enterprises. In this manner, such persons will be
psychologically disposed to undertake them, because they can be
confident of making a profit from them.
['Abd-ar-Rah.mân Abû Zayd ibn Khaldûn, The Muqaddimah, An Introduction
to History, Franz Rosenthal translation, abridged and edited by N.J.
Dawood, Bollingen Series, Princeton University Press, 1967, pp.230-231]