Over the past few months I have heard the arguments between Republicans and Democrats over whether the Trump tax cuts are good for the American people. Its not a new argument, its one that has been around for a long time. To me it’s an easy answer; is it better for people to have more money in their pocket? Duh. Of course, it is. The democrats are saying if they win the House and the Senate in November that they will repeal the Trump tax cuts. I don’t understand the logic in this.
Here are the facts; Lowering taxes for businesses does the following:
- Creates more spendable income for companies
- Allows them to hire more people
- Allows them to pay more money
- Creates income for employee bonuses
The above is not conjecture it is fact which is evidenced by what has happened since President Trump lowered the corporate tax rate. Not only has the above happened but it has even brought back companies that had left the U.S.
Currently our economy is booming, unemployment is the lowest its been in years. According to the United States Department of Commerce the Gross Domestic Product (GDP) increased at an annual rate of 4.1% in the second quarter this year. What more evidence do you need?
I fail to see the argument that tax cuts don’t work. They do work and are working. Why would anyone want to change this in an economy that is doing so well?