In interviews with The Wall Street Journal and other media outlets President Trump has been insinuating that he is changing his views on personal tax policy. He is apparently looking at “cutting taxes on the middle class” and “raising taxes on the rich”. Is that Barack Obama, Chuck Schumer, or Bernie Sanders talking? Nope, it is Donald Trump (“Republican”). Apparently his Chief Political Strategist Steve Bannon: former head honcho at Breitbart News seems to have similar ideas. They call this “economic nationalism”, I don’t agree with it and I think it is a joke. This is nothing but wealth redistribution under a Republican umbrella and it sounds horrible. It looks as if they want to raise the top tax rate to around 44% from the current 39.6% so that they can cut taxes for the “middle class”. You, me, or Donald Trump do not have the right to confiscate someone else’s money to satisfy constituents or compensate those who have not financially succeeded in life. A fantastic quote comes to mind “I have never understood why it is greed to want to keep the money you have earned but not greed to want to take somebody else’s money. – Thomas Sowell” The financially successful people such as Bill Gates, Warren Buffett, Ray Dalio, Walton Family, etc. are not greedy so much as they are successful financially. You do not have the right to take their money because you are a loser. Lets say you are “middle class” and are earning $150k and have a decent house a nice little nest egg. That is a lot of money for someone making $25k and living paycheck to paycheck, why don’t they vote for a policy that confiscates the majority of your income and takes away your accumulated wealth and everything you have built? Don’t like that idea much do you? That is not equality at play, that is theft. Taxation is another word for theft. But the hard truth is some form of government revenues are necessary to fund a strong military, emergency services, and enforce the rule of law and contracts. If Carl Icahn grew up as a poor boy in Queens and made it to the top with a net worth of $17B, you do not have a right to steal his income and redistribute to those who are too lazy or do not have the will to support themselves.
This tax policy is immoral as is the majority of all current policy and President Trump will hurt the nation economically if he continues on this path of politically popular trash. He should reform the tax code and cut taxes across the board for everyone. I am in favor of eliminating all income taxes and transitioning to a system of pure consumption taxes so the system is pretty much as equitable as it can be. But that is not likely to happen any time soon so the next best option is a flat income tax with no deductions and is a page or two long to fill out for taxpayers. All taxes are repealed on a federal, state, and local level. We would have something like a flat 17% income tax and it would be as simple as that. There are many studies that show this idea would work quite well and would be very pro economic growth.
Some further reading to check out:
This is Saint Reagan signing off.