Tag Archives: Tax Cuts

Under “racist” Trump, black unemployment plunges to record low

In the 2016 presidential election, about 90% of black voters voted for higher taxes, more government spending, more regulations, and more government. President Trump slashed the individual and corporate tax rates, and greatly reduced regulations on job creators. Fortunately for black voters, they didn’t get the bad economic policies they voted for.

The Daily Caller explains:

Friday’s economic numbers were very good for America.

The numbers reveal that the U.S. economy is booming and many key indicators of economic health are trending in the right direction. According to the Labor Department, the unemployment rate is 3.8 percent, the lowest in nearly two decades.

223,000 jobs were created and the May increase in payroll was bullish, surprising economists, according to NPR.  However, the most historic data points seem to be centered around black unemployment. The unemployment rate for African-Americans plunged to 5.9 percent in May. That is a record low. Interestingly, the gap between white ad black unemployment has shrunk to the smallest since these numbers have been recorded. The white unemployment (3.5%) and black unemployment (5.9%) is the smallest gap since the release of these numbers, beginning in the early 1970s.

If you looked at who black voters tend to vote for, you would think that they favored gay rights, gay marriage, abortion through all 9 months of pregnancy, the destruction of the traditional family, and eradicating Christianity from the public square. Although there are a handful of black conservatives who connect their voting with their values, most black voters don’t.

It doesn’t make any difference if blacks identify as Christians. When the chips are down, most of them vote for abortion, gay rights and gay marriage:

Which Religions Voted for Obama in 2008?
Which Religions Voted for Obama in 2008?

If you include black voters who don’t identify as Protestants, the number voting for Democrats is even higher, if you can believe that. Black “Protestants” vote for Democrats at about the same rates as atheists. As a non-white Evangelical Christian, I am apparently in the minority because I vote pro-life and pro-marriage.

Should we expect black voters to know that Democrat policies do not work? Well, we should certainly expect the ones living in the largest American cities to know.

Do blacks do well when they get what they vote for?

The big cities like Detroit, Milwaukee, Philadelphia, Baltimore, etc. that are so awful for law-abiding blacks to live in have been run by Democrats for decades.

Investors Business Daily explains:

America is awash with troubled, dysfunctional cities that have been electing Democratic mayors for decades.

  • Detroit last elected a Republican mayor in 1957. It is now the model of urban failure — it’s recognized more for its poverty, crime, rot and bankruptcy than the great cars that it turned out into the early 1970s. It is the poorest big city in the nation, with almost 40% of the population living below the poverty line. The website Law Street actually ranks Detroit ahead of Flint as the country’s most dangerous city. Either way, it’s clear that both cities have institutionalized crime problems.

Detroit is also a pit of political corruption. Just in recent years, one mayor, Kwame Kilpatrick, was convicted of corruption and sent to federal prison for 28 years, while building inspectors have been indicted on federal felony bribery charges and a former city council member was investigated in a bribery and kickback scandal.

  • Chicago’s last GOP mayor was elected in 1927. The nation’s third-largest city is home to some of the worst inner-city violence imaginable. More than 2,300 people were shot there last year, and nearly 400 lost their lives to homicides.

Its finances are just as grim. “Chicago is so broke,” IBD contributor Stephen Moore explained months ago, “that its bonds are junk status, and Mayor Rahm Emanuel had to go hat in hand last week to the state capital, Springfield, for bailout money to pay the bills.” Things have been rotten enough, Moore said, to send “a record number of people … fleeing Cook County, home to Chicago.” Only a little more than half of the city’s pension liabilities are funded.

  • St. Louis has been electing Democratic mayors since 1949. The Gateway to the West has become the gateway for crime. Law Street says that it’s the fourth most dangerous city in the country, Forbes says it’s the second. It had the sixth-highest poverty rate among big cities in 2014.
  • The last GOP mayor of Philadelphia left office in 1952. A few years ago, Moore identified it as a favorite to follow Detroit into bankruptcy.
  • Both Baltimore and Oakland had Republican mayors as late as the 1960s. In the era of Democratic rule, both are now more well known for their crime and poverty problems than for their charm and character.
  • Newark, N.J., hasn’t had a GOP mayor in more than a century. It was ranked as the fifth-worst city to live in in 2015. Detroit, of course, was first.

When Democrats are in control, cities tend to go soft on crime, reward cronies with public funds, establish hostile business environments, heavily tax the most productive citizens and set up fat pensions for their union friends. Simply put, theirs is a Blue State blueprint for disaster.

If you want to blame someone for the failure of the black community to get ahead, blame Democrats. They are the ones who are running things in the cities where we see all this rioting. Their policies are the cause of the poverty. You don’t get job creation when you punish the job creators with high taxes and onerous regulations. You don’t get fathers in the homes when you reward single motherhood by choice with welfare checks.

Democrats vote against tax cut for parents of homeschooled and disabled children

Ted and Heidi Cruz have a plan to simplify the tax code
Ted and Heidi Cruz have a plan to cut taxes for parents

I blogged recently about an amendment to the tax bill that Ted Cruz had put in to help parents with the costs of educating their children. It was a good amendment, and the Democrats even let some of it remain in the final version of the bill. But they voted against the tax cuts for parents who homeschool their children, or who have children with disabilities.

Here’s an article from Town Hall to explain what happened.

Excerpt:

Senator Ted Cruz (R-Texas), one of the Senate’s most outspoken advocates for school choice, introduced an addition to the tax bill called the Student Opportunity Amendment. The amendment would expand 529 college savings plans to also include K-12 education, allowing parents and grandparents to use these tax-advantaged plans to save up to $10,000 per child per year for private schools, religious schools, or even homeschooling.

This represented a significant change in policy that would benefit more than 50 million children. The Senate voted in favor of the amendment, 50-50, with the Vice President breaking the tie.

However, Democrats weren’t about to let a beneficial piece of legislation pass without a fight. Party leaders ran to the Senate Parliamentarian to complain that the entire amendment ran afoul of the Byrd rule — another one of those arcane Senate rules that no one understands. But while the Parliamentarian disagreed with the Democrats’ argument about the majority of the provisions in the amendment, she unfortunately found their argument compelling when applied to homeschooling and struck the language from the bill.

In response, Senator Cruz rushed to the floor and pushed a Motion to Waive the Parliamentarian’s changes, which solely affected the homeschooling provision. This motion would require a 60-vote majority to succeed.

As Senator Cruz explained in a passionate speech on the Senate floor, one of the provisions that was to be eliminated from the amendment was particularly important — it would allow parents with a child with disabilities to use a 529 plan to pay for educational therapy, which can often be prohibitively expensive.

How could the Democrats vote against that?

“We’ve got right now a motion to waive this mean-spirited, vindictive point of order that discriminates against homeschoolers and carves out kids with disabilities,” Cruz charged. He argued that the vote “ought to be 100 to nothing.”

Nevertheless, not a single Democrat voted for Senator Cruz’s motion. Not one. The Democrats knowingly and proudly discriminated against homeschooled kids and kids with disabilities, in many cases destroying their access to quality education. Even by the Democrats’ woefully low standards, it was a shameful display.

I found the video of the 13-minute speech – the part about the schools starts at 6 minutes in:

The whole thing is worth watching, just to understand what a tax cut really is, and to accept that Democrats don’t want you to have the money you earn. They want the money you earn – they want to spend it. They want to spend it buying the votes of people who don’t agree with your values, and who don’t respect how hard you worked in order to earn that money.

Let me tell you what this means to me. When I was young, I realized that getting married and having kids would require me to work an extra twenty years. Instead of retiring at 45, I would have to work until I was 65. I thought and thought about this, and I realized that the only reason to do this extra work would be if I could have several children  and raise them to be effective and influential Christians. So, I went to work getting multiple degrees in computer science and then working to earn and save money for this plan.

And this is what I learned while learning about politics along the way. There is one political party, the party of Ted Cruz, that wants me to keep my own money, and to educate my children as I see fit. They want me to marry, and they want me to have children, and they want me to lead my family the way that I see fit. After all, these conservatives say, he is the own earning the money. He should keep what he earns, and he should spend it how he needs to to achieve his goals. He shouldn’t be forced to pay into any education system that works against his values and against his worldview. That’s what Ted Cruz was trying to help me with with his amendment.

But there is another political party which believes in big government. They want to confiscate what I earn to create a system of government-run schools. And in those government-run schools, the children will not be taught anything useful for getting a job, getting married, having children, etc. They will be taught how to have premarital sex, how to stop global warming with socialism, how to have an atheistic worldview, how to blame capitalism for the failure of socialist policies, and how to embrace gay rights and radical feminism. If I tell those Democrats that I don’t want to send my schools there, they tell me that I have to pay for those schools, and there will be no tax cuts for me to homeschool my kids. Democrats are fascists – they want the government to be everything, and the family to be nothing.

I don’t know if the Democrats really realize the message they are sending to the last good men. The men who don’t drink, don’t take drugs, who are chaste, and who do want to marry and have children. But I am watching what happens in the world of politics, and I am getting the message. They don’t want me to pass on my values to my kids, they want their public school allies to pass progressive values on to my kids. And when Ted Cruz tries to do something to stop them, they shut him down. I hope more people realize how the government sees my priorities. They want to take what I earn, but they don’t let me have the freedom to lead a family. This is why men are not interested in marriage and children like they used to be. We don’t like the idea of being robbed by the government tax collectors and then being replaced by government educators.

Fifth Third Bank gives employees raises and bonuses ahead of Trump’s tax cut bill

Why does the United States have the highest corporate tax rate in the world?
Why does the United States have the highest corporate tax rate in the world?

What happens when you cut the corporate tax? Well, government gets less of what businesses earn, which means less money for sugar subsidies and AMTRAK and settle Congressional sexual-harassment lawsuits. And what do businesses do with that extra money they get to keep? Well, they could create new products, make existing products cheaper, improve existing products, improve their existing products… lots of good things. In a competitive free market, business have to use their capital to develop better and cheaper products that customers will want to freely buy.

CNBC reports on one of my favorite corporations – Fifth Third Bank – reacting to news of an impending cut in the corporate tax rate.

Excerpt:

Fifth Third Bancorp will pay more than 13,500 employees a bonus and raise the minimum wage of its workforce to $15 an hour after the passage of the Republican tax plan that will cut the bank’s corporate tax rate.

[…]Cincinnati-based Fifth Third, the fifteenth largest U.S. bank by asset size, said the tax cut allowed it to re-evaluate its employee pay and pass along some of the windfall. Nearly 3,000 workers will see hourly wages rise to $15. The $1,000 one-time bonus is expected to be paid by the end of this year, the bank said, assuming President Donald Trump signs the bill into law by Christmas.

Senior managers and top executives are excluded from the special payments. “It is good for our communities, employees and Fifth Third Bank,” said CEO Greg Carmichael in a statement.

But, Fifth Third wasn’t the only company making decisions that favored their employees.

Fox Business reported on some others – and notice how the bonuses are going to non-management and non-executive workers:

AT&T

The telecom giant said Wednesday that more than 200,000 of its employees, including union-represented and non-management workers, will be eligible for a $1,000 bonus. The checks will be in the mail in time for the holidays if Trump finalizes the tax bill with his signature before Christmas. AT&T (T) also said it will invest $1 billion more than expected in the U.S. in 2018, once the cuts are final.

“Congress, working closely with the President, took a monumental step to bring taxes paid by U.S. businesses in line with the rest of the industrialized world,” AT&T Chairman and CEO Randall Stephenson said in a statement. “This tax reform will drive economic growth and create good-paying jobs.”

Boeing

The aerospace and defense company immediately announced $300 million in investments after the bill passed, with $100 million toward corporate giving including employee gift-match programs, $100 million toward workforce development, training and education and $100 million toward enhancing Boeing’s workplaces.

“On behalf of all of our stakeholders, we applaud and thank Congress and the administration for their leadership in seizing this opportunity to unleash economic energy in the United States,” Boeing (BA) President and CEO Dennis Muilenburg said in a statement. “It’s the single-most important thing we can do to drive innovation, support quality jobs and accelerate capital investment in our country.”

Comcast

The Philadelphia-based telecom corporation said it would award $1,000 bonuses to more than 100,000 non-executive employees. In addition, Comcast (CMCSA) NBC Universal Chairman and CEO Brian L. Roberts said the company plans to spend more than $50 billion in the next five years on infrastructure investments that are expected to create “thousands of new direct and indirect jobs.”

In a press release, Comcast said the initiatives were “based on the passage of tax reform and the FCC’s action on broadband.”

The way that economics works is that when you give tax cuts to the people who create products and services, they use that money to try to develop better products and services. We all benefit from having innovative products that make us more efficient and productive. Laptops, smartphones, wireless routers, GPS all give us the potential to be more productive. But the only way to develop and sell these products is to hire people who are focused on pleasing customers.

But when you give government money, they turn to the most dependent segments of the population (e.g. – non-English-speaking refugees from countries dominated by Islamic terrorism), and they offer to buy their votes by giving them free stuff. Free drug-injection clinics. Free contraceptives. Free abortions. Free sex changes. Free welfare for refugees and illegal immigrants. We need to let private sector job creators keep their own money because they pay workers who have to get up and go to work.

Ted Cruz in CNN debate: taxing the rich 100% isn’t enough to pay for socialism

Ted and Heidi Cruz have a plan to simplify the tax code

On CNN, you get anti-conservative propaganda 24 hours a day. The only exception are the policy debates they sometimes air, in which intelligent conservatives get to speak. Past debates have featured Senator Ted Cruz of Texas, who is the most intelligent conservative debater in the USA. On Tuesday night, Cruz was joined by Senator Tim Scott of South Carolina, another able conservative. They debated two radical leftists – Bernie Sanders and Maria Cantwell.

The Washington Examiner had an excellent summary.

Excerpt:

Sen. Ted Cruz sniped at Sen. Bernie Sanders’ often-used complaint about “millionaires and billionaires” not paying enough in taxes during the CNN town hall debate on Tuesday, and quipped there aren’t enough of them to “pay for all the socialism that Bernie and the Democrats want to give away.”

The comment came as Cruz, R-Texas, took aim at the line of attack favored by Sanders, I-Vt., and the Democrats against the GOP tax reform about how it’s a tax cut for “the rich,” but Cruz said that really means it is a tax cut for “taxpayers.”

“Democrats have one talking point on taxes: It’s a tax cut for the rich,” Cruz began. “And they say it over and over and over again in response to everything. The most important thing for you to know when you’re at home is when they say rich, they mean taxpayer. Every time they say ‘rich’ they mean taxpayers.”

“Why is it? Because the very rich — there aren’t enough of them,” Cruz continued. “Bernie ran for president, he rolled out a tax plan. His tax plan was a massive tax increase. If you took every single person in America making over a million dollars, and you taxed them 100 percent of their income, you took every penny they earned — you came in in jackboots and confiscate it — it would pay 8 percent of the cost of Bernie’s tax plan. You know where they get their money? They get it from you, they get it from the the middle class.”

Cruz went on to cite a quote from his and Bernie’s prior CNN debate in which Sanders, while describing his preferred tax plan, said “everybody will pay some more.”

“You’re a single mom, you’re working, he says you’re going to pay some more,”‘ Cruz said afterwards. “You’re a small business owner, he says you’re going to pay some more. And the reason is, there aren’t not enough millionaires and billionaires to pay for all the socialism that Bernie and the Democrats want to give away.”

[…]”You said we’re going to tax the middle class but then you said, ‘we the Democrats are going to give it back to you. We’re going to give you free stuff, free healthcare, free education,'” Cruz said. “But you know what, it’s going to be Bernie and Maria deciding what you get. Tim and I have a simpler view. You keep your money, you get to decide if you want to invest in your decision.”

Is Ted Cruz correct about this point? Yes.

In 2012, John Stossel wrote this in Forbes:

If the IRS grabbed 100 percent of income over $1 million, the take would be just $616 billion.

In 2011, the Tax Foundation explained that even if you taxed ALL THE INCOME from all the people who make $200,000 or more, you would only raise $1.53 trillion dollars:

So taking half of the yearly income from every person making between one and ten million dollars would only decrease the nation’s debt by 1%. Even taking every last penny from every individual making more than $10 million per year would only reduce the nation’s deficit by 12 percent and the debt by 2 percent. There’s simply not enough wealth in the community of the rich to erase this country’s problems by waving some magic tax wand.

Finally, to put everything in perspective, think about what would need to be done to erase the federal deficit this year: After everyone making more than $200,000/year has paid taxes, the IRS would need to take every single penny of disposable income they have left. Such an act would raise approximately $1.53 trillion. It may be economically ruinous, but at least this proposal would actually solve the problem.

That’s much less than the $10 trillion that Obama added to the debt in his 8 years in office. And much much less than the current national debt which is over $20 trillion. Taxing the rich isn’t enough to pay for our current spending – we have to cut spending. 

Tax cuts are designed to spur economic growth by putting money into the hands of job-creating entrepreneurs. It’s the entrepreneurs who make inventions like smartphones and online marketplaces and streaming online media which make us all more productive. Competition between entrepreneurs drives quality up, and prices down. That’s why we give tax cuts to entrepreneurs – people and businesses who create economic growth by innovating. Giving taxpayer money to the Department of Motor Vehicles generates ZERO economic growth. Giving money to innovators and job creators is what gets us the new inventions and services that grow the economy. 

As Ted Cruz noted in the debate, we do indeed see increased economic growth and higher tax revenues when we have cut taxes in the past, e.g. – under Ronald Reagan. Not the mention the millions of jobs that are created by putting money back in the hands of entrepreneurs.
According to the radically-leftist communist NPR, Bernie Sanders’ most recent tax proposals would add $18 trillion to the debt over 10 years. That’s $1.8 trillion PER YEAR – much more than the $1.53 trillion you get from taxing the rich. So again, even if we take every penny made by those who earn $200,000 or more per year, we aren’t going to be able to pay for socialism. And those people aren’t going to just keep working if you take everything they earn anyway. They’d either stop working or just leave the country – just like the rich left France when they impose a top tax rate of 75%. This is how the world really works, OK. People don’t work for nothing. They probably wouldn’t even work if the government took half of what they earned. I certainly would not.

Back to the debate…

Here is a clip of Ted Cruz explaining how there isn’t enough money to pay for the Democrat spending platform even if you take every penny earned by the top earners:

Here is my favorite clip of Tim Scottt:

I like this clip of CNN cutting off Ted Cruz when he is presenting evidence, too:

The full video of the CNN debate is here:

And here is the full transcript.

Ted Cruz will debate Bernie Sanders on CNN tonight at 9 PM Eastern time

Ted and Heidi Cruz have a plan to simplify the tax code
Ted and Heidi Cruz have a plan to simplify the tax code

The Resurgent reports:

Sen. Ted Cruz (R-Texas) and Sen. Bernie Sanders (I-Vt.) will participate in a CNN town hall on October 18th to discuss President Trump’s new tax proposals.

CNN’s Jake Tapper and Dana Bash will moderate the debate in Washington at 9 p.m. ET.

Cruz and Sanders will debate the best way to approach the issue, with Cruz supporting tax cuts for all, while Sanders supports tax hikes on the wealthy. The Senators will also take questions from the audience.

Currently, President Trump wants to reduce the personal income tax brackets from seven to three, double the standard deduction for married and single filers, and slash the corporate tax rate while finally eliminating the estate tax.

Senator Cruz argues that the current tax plan is far too complex, and supports a more simplified version that will ease the burdens on middle class families and businesses.

“We spend about nine billion hours a year wasting time with the IRS,” he said. “The world would be much, much simpler if you and I and everyone else just filled out a postcard.”

Dana Bash is a radical-leftist, and Jake Tapper is just a regular leftist. They’ll both agree with Sanders and will probably try to help him out, if he falls asleep.

Here is the full video from the first debate on health care policy:

It’s 90 minutes long. No commercials. This was basically a debate of similar substance to William Lane Craig debates, where actual economic evidence was continuously produced in order to show who was telling the truth, and who was just trying to be popular by saying what people who are uneducated at economics want to hear. In short: there was a clear winner and loser in this debate, and it was clear all the way through, and was reinforced over and over every time evidence was produced. The person producing the evidence would turn his back on the camera, and return to his podium to get the evidence. That person won the debate by being grounded in reality.

Also, the questions were excellent, especially from the small business owners who were impacted by Obamacare. The moderators were biased towards Sanders, but not excessively.

For those who cannot watch, there is an article at the Daily Signal.

Full text:

In a prime-time debate on CNN this week, Sens. Bernie Sanders, I-Vt., and Ted Cruz, R-Texas, discussed “The Future of Obamacare” in America. Cruz, a leading critic of the law, used the moment to outline the law’s failures.

Here are four things Cruz said about Obamacare:

1) “Now, nobody thinks we’re done once Obamacare is repealed. Once Obamacare is repealed, we need commonsense reform that increases competition, that empowers patients, that gives you more choices, that puts you in charge of your health care, rather than empowering government bureaucrats to get in the way. And these have been commonsense ideas.”

2) “Indeed, I don’t know if the cameras can see this, but in 70 percent of the counties in America, on Obamacare exchanges, you have a choice of one or two health insurance plans, that’s it … It’s interesting. You look at this map, this also very much looks like the electoral map that elected Donald Trump. It’s really quite striking that the communities that have been hammered by this disaster of a law said enough already.”

During one of the more powerful moments in the debate, Cruz held up aHeritage Foundation chart showing viewers how many counties in the U.S. have access to only one or two insurers under Obamacare. Additionally, only 11 percent of counties have access to four or more insurance providers.

3) “Whenever you put government in charge of health care, what it means is they ration. They decide you get care and you don’t. I don’t think the government has any business telling you you’re not entitled to receive health care.”

The U.S. should not envy other health care systems, especially Canada and the United Kingdom, Cruz said. He referred to a governor from Canada who came to the U.S. specifically to have heart surgery.

4) “That’s why I think the answer is not more of Obamacare, more government control, more of what got us in this mess. Rather, the answer is empower you. Give you choices. Lower prices. Lower premiums. Lower deductibles. Empower you and put you back in charge of your health care.”

Obamacare is burdening Americans. The average deductible for a family on a bronze plan is $12,393, according to a HealthPocket analysis. According to aneHealth report, the average nationwide premium increase for individuals is 99 percent and 140 percent for families from 2013-2017.

I really recommend you watch tonight’s debate, because it these things were done on a weekly or monthly basis, then people would be able to think critically about what they are presented with from the mainstream media, Hollywood elites and progressive academics.