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Monday, December 9, 2019

ANALYSIS/OPINION:

New wealth taxes, new carbon dioxide (energy) taxes, higher income taxes (rates as high as 70 perent), higher payroll taxes, higher death taxes, higher corporate income taxes, Democratic leaders — especially those seeking the presidential nomination — have been out-bidding one another on repealing federal tax reform and creating new taxes and increasing tax rates.

But higher taxes are recessionary even under liberal Keynesian economics, let alone under President Reagan’s conservative supply-side economics. Any one of the major tax increases proposed by leading Democratic presidential candidates would throw the economy back into recession.


And away would go the nearly 7 million jobs tax reform has created under President Donald Trump. Mr. Trump’s Blue Collar Boom, created by his tax reform and deregulation, has produced the lowest unemployment in 50 years, since 1969 during President Kennedy’s booming 1960s recovery, also created by tax cuts. 

Mr. Trump’s boom has also produced the lowest unemployment in American history for blacks, Hispanics, Asians, teenagers and lower-income workers. That means Mr. Trump has been leading the most inclusive recovery in American history.  

Mr. Trump’s blue-collar economic boom has also produced record increases in wages and in middle-class incomes. Median family income has reached more than $65,000 for the first time in American history, with lowest taxes since Reagan in the 1980s.

In addition to higher incomes for average families, tax reform has produced numerous amazing results for all Americans (not just for Wall Street, large corporations and the rich as The New York Times and The Washington Post would have you believe):

• The lowest poverty rate in half a century.

• Tax cuts doubling the personal exemption and increasing child tax credits.

• More jobs than people to fill them (“Help Wanted” signs are everywhere).

• More people coming back into the workforce than we have seen in decades.

• More jobs and capital investments returning home after the end of double taxation and reduced corporate rates.

• Huge new investment in buildings and equipment (job creation) because of current year expensing of capital expenditures.

• Mr. Trump’s energy deregulation has also produced energy independence, as America is now the world’s number one producer of both oil and natural gas. 

Under President Obama, by sharp contrast, America suffered the longest period of unemployment over 8 percent since the Great Depression, 43 months, from February, 2009 until August, 2012. And the longest period of unemployment over 9 percent since the Great Depression, 30 months, from April 2009 until September 2011. With median family incomes declining, and poverty and inequality soaring

The recovery from Mr. Obama’s debacle did not begin until Election Day 2016. Then investors realized that America was finally free of Mr. Obama’s consistently anti-growth policies. The stock market took off on its Trump boom on that day, creating ultimately $12 trillion in American wealth — over half of America’s annual GDP.

Hillary and the Democrats were oblivious to the notion that America was seething under Mr. Obama’s slowest recovery since the Great Depression. And they don’t understand it to this day. That is because America’s so-called “mainstream media” won’t report the facts or accept the reality of Mr. Trump’s free-market conservative success.

The national press never reported that growth of the American economy under Mr. Obama averaged 1.2 percent because government at all levels — and government regulations — were way too large and onerous. Obama apologists said that was the “new normal,” not more than 2 percent economic growth, while Mr. Trump has already achieved higher numbers. If Mr. Trump can get America’s growth rate to the Reagan level of 4 percent per year, our economy — and everyone in it — will enjoy an economy that doubles in 18 years.

Democratic leaders apparently have no idea that blue collar workers, the original backbone of the Democratic Party, are realigning to Republican, which has been going on for decades. And no idea that next year, black voters will begin realigning back to their former home in the Republican Party. And Hispanic, Asian and Jewish voters will begin realigning as well, joining evangelical Republican voters.

This is how “woke” Democrats, with their impeachment insanity and socialist delusions, are reuniting America after all. They still have no idea what is coming.  

• Lewis K. Uhler is founder and chairman of the National Tax Limitation Committee and Foundation. Peter J. Ferrara is a senior policy adviser for the Foundation and teaches economics at Kings College in New York.


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