Remember James Carville's famous words, "It's all about the economy, stupid." Well Ronald Reagan proved that saving the economy from assorted America-haters, socialists, Marxists and ignorant fools (like Jimmy Carter and Barack Obama) deserves a new jingle.
It’s all about the taxes, stupid.
Or are you forgetting that Reagan completely reversed the worst economy since the Great Depression in only two years and created the greatest economic expansion in world history with just one simple magic bullet- he cut taxes from 70% to 28%. It's that simple.
Liberals and the mainstream media (I know, I repeat myself) have spent the past 30 years trying to make you forget that simple magic formula. And even conservative Reagan fans have a foggy memory of the facts. Conservatives remember Reagan’s smile…his jokes…his positive attitude. They think that was the key to Reagan’s success. But the actual facts of the amazing Reagan economic revolution have become blurred.
It's time to revisit the facts of what Reagan produced. Lower taxes reward the work ethic.Lower taxes encourage the people that matter (business owners and job creators) to want to risk and invest our money, achieve, produce, and contribute. That’s what made America great and will “Make America Great Again.”
By keeping taxes low Reagan fought for capitalism…for small business…for taxpayers…for working Americans. The result was SPECTACULAR SUCCESS. Reagan turned the misery, malaise, decline, depression and disaster of the Carter years into the greatest and longest economic expansion ever. Reagan’s low taxes produced an era of prosperity unlike anything in history.
Reagan exploded the economy. $30 trillion in goods and services was created. Net assets like stocks and real estate went up by $5 trillion- an increase of 50%.
Reagan’s low tax policies created nearly 20 million jobs in a short span, increasing US employment by a remarkable 20%. In one year alone the GDP increased by 6.8%- the largest increase in 50 years. In only 7 years the economy grew by a staggering one third. The economic boom lasted 92 consecutive months-the longest peacetime boom in world history. It shattered the previous record of 58 months by almost 60%.
These aren't good stats. These aren't even great stats. These are remarkable stats. These are miracles. And all Reagan did to achieve them is cut taxes dramatically and therefore leave more money in the hands of the taxpayers, instead of the people who take, take, take and give nothing back in return.
Reagan was a believer in the famous "80/20 Rule of Business." You make all your money in business from your best customers- the 20% at the top. You waste your time worrying about the others- the bottom 80%. It works with employees too- Jack Welch of GE, perhaps the greatest CEO ever, achieved his success by giving raises to his best managers and firing the bottom 10% each year. Success is always about paying attention, rewarding and celebrating the best.
But today our nation is the hands of the worst- Barack Obama. And Obama has destroyed the economy by lavishing attention, rewards and celebrating the worst- the people who want welfare checks but give nothing back. Obama has proven (just like Jimmy Carter before him) that redistribution of wealth from the rich and middle class to the poor produces economic disaster. Giving money to the poor not only bankrupts a country, and creates mountains of debt, but no one wants to work anymore. That could be why there are over 94 million working- age Americans no longer interested in working. Good luck with that.
Now the media hates Donald Trump. But Trump just put forth a tax plan that replicates Ronald Reagan. Since our economy is now performing exactly as it did under Jimmy Carter, Trump's plan is exactly what the doctor ordered.
Trump’s new tax plan is Reagan-esque. It’s a blast from the past. Like Reagan, Trump is relentlessly on the side of the makers, not the takers. Trump’s plan is great for the people who want to work and pay taxes. Trump will produce a new era of Reagan prosperity by rewarding the financial risk creators and job creators.
Finally- someone is relentless on our side.
Reagan’s tax plan was simple, lower, fairer, flatter with rates of 15% and 28%. That did the trick. That unleashed an economic tsunami. That’s all Reagan did.
Trump’s plan is just like Reagan’s: simple, lower, fairer and flatter. The four rates are 0, 15%. 20%, and 25%... almost identical to Reagan’s…except the top rate is even LOWER! Brilliant.
But Trump has gone one step further. He’s cut the tax rate to zero for couples earning $50,000 or less. If your tax rate is zero and you get to keep everything you earn under Trump, millions of Americans will choose to work, get off the government dole and become productive members of society. Brilliant.
Trump eliminates the marriage penalty, rewarding marriage and family. Bravo. His plan also eliminates the dreaded ATM (Alternative Minimum Tax) that has ripped off middle class American taxpayers.
And, Trump’s tax plan eliminates the estate tax- so anyone who has worked their whole life to build something and already paid their fair share of taxes on it, can leave it to their children and grandchildren without the greedy government stealing it.
Trump also listens. In all my books, commentaries and personal correspondence with Trump, I've stressed the importance of a flat tax combined with keeping tax deductions for mortgage and charity. Nothing is more important to America, your family or your neighborhood stability than your home and your church. Trump kept those deductions 100% intact. Bravo.
But here’s where Trump “trumps” Reagan. Trump cuts corporate tax rates to a flat 15% and incentivizes US companies to bring their $2 trillion parked offshore back to America with a 10% rate. Suddenly America will go from the worst corporate tax rate in the world to the best. Trump’s plan will create REVERSE INVERSIONS. Every company in the world will want to relocate here in America! This is how you create millions of jobs.
Is Trump’s plan perfect? No. But it’s damn good. It’s close to perfect. If I could have my way, I’d replicate the exact tax system of Hong Kong, the most prosperous place on earth, where individual taxpayers get the same 15% tax rate as corporations.
And instead of eliminating the estate tax, I’d have chosen to dramatically cut capital gains taxes. Hong Kong’s capital gains tax is zero. Guess what the capital gains tax rate is in China (our #1 economic competitor)? Zero.
Why is this important? Because the average American doesn’t pay estate taxes, so they don’t care. But everyone will sell a home…sell a stock…or sell a small business in their lifetime. Cutting those taxes is the greatest thing you can do for anyone who ever risks a dime on any business or investment. So that’s how I’d tweak Trump’s plan.
But never let the “perfect” get in the way of the good. Trump’s plan is damn good. It is damn Reagan-esque. Trump's plan is RELENTLESS- but this time it's relentless for the people that work, achieve, produce and contribute.Trump’s plan will truly make America great again! Bravo Donald.
Because "It's all about the taxes, stupid!"