Seems like every time the Establishment Boyzzz think they have The Donald on the ropes, he comes up with a plan which out-flanks them. (See both illegal immigration and taxation.) And for good measure throw in a pinch of patriotic nationalism, which the Chamber of Commerce thought they'd killed a dozen years ago. That's why the Teamsters are sniffing around The Donald's camp. (You remember the Teamsters, of course--it was their endorsement which boosted Ronald Reagan into the Presidency. The Chamber of Commerce would like you to dis-remember that, too.)
Anyhow.
There is this matter of Drunken Sailor Spending which is endemic to both parties.
...Despite U.S. tax receipts only rising by 28 percent from $1.4 trillion to $1.8 trillion from 2008 to 2014, record US deficit spending was financed by a 93 percent expansion of the US national debt from $10 trillion to $19.3 trillion since 2008....
Mercatus published a short essay on the topic. The graphs in that essay show that we have a serious problem. But just as problematic will be the upcoming "debt limit" votes. That will be a fine time for The Donald to toss another bomb into the Establishment camp--and make the case that what cannot continue WILL not continue.
is this a Donald endorsement? What about Cruz?
ReplyDeleteDespite U.S. tax receipts only rising by 28 percent from $1.4 trillion to $1.8 trillion from 2008 to 2014,...
ReplyDeleteA few points of order here:
- "Only" 28% over 6 years? That's an annual increase of 4.2%, way above inflation (1.42% annualized between September 2008 and September 2014, using the not-seasonally-adjusted measure of CPI-U).
- That $1.4T/$1.8T appears to be only individual/corporate income tax (and bad rounding, at that, but that's to be expected from BannonBart).
- Total receipts were $2.524T in 2008 and a record-shattering $3.021T in 2014, a 19.69% overall increase and 3.04% annualized.
- Even if one used the pre-Obama record of $2.568T in 2007, that's still a 17.64% overall increase and 2.35% annualized, still above the annualized 1.91% inflation rate.
It's the spending, and Trump's all-in "honesty" on the multi-decade bipartisan Party-In-Government scheme to shift the entire tax burden to the minority isn't going to change that for the better. Case in point - Trump's effort to rebrand PlaceboCare.
Yes, "only" 28% is a large increase. But the point was that it is pathetically short of the SPENDING increase.
ReplyDeleteYes--I've said it with you loudly--it's the SPENDING, stupid!!
I'm holding no brief for The Donald here--other than that he's able and willing to raise issues which more domesticated (R) types have not. That's why I'm interested in his spending plan. He's indicated that he'll schmeiss EPA and Education, but I don't think he's put out a more detailed paper.
Noted and agreed: this is a populist tax plan, although the 'carried interest' part is long overdue.