Tag Archives: tax cuts

Jerry Bowyer: It’s Time to Pivot Back to Pro-Growth Economic Policies

We’ve seen warning signs over the past few months that economic growth is slowing down. Now it’s official: The latest GDP report shows growth in the last quarter at about 2 percent—well below historic averages.

President Trump’s tax cuts kicked in at the beginning of last year. By last summer the economy was booming.

But now the boom’s worn off. The president blames Fed tightening; most economists blame the trade war.

And, it’s hard to ignore the volatility in our policy environment which gives business what it dreads most: huge levels of uncertainty.

There’s a real danger now that the president could enter reelection with a sluggish economy. He should make a hard pivot back to pro-growth policies, leaning on advisors like Larry Kudlow who helped him deliver the boom of 2018.

A growing economy could be the key to delivering a reelection boom for 2020.

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Lanhee Chen: The Leftward Lurch Continues

The leftward lurch of the Democratic contenders for the presidency continues. The latest idea? California Senator Kamala Harris has called for repeal of the Trump tax cuts. Not some of them. Or just the “tax cuts for the rich.” But all of them.

Millions of middle-income families have benefited from these tax cuts. And our economy is zooming, while unemployment is low and wages are rising. Repealing the Trump tax cuts would imperil the economic progress that we’ve made over the last several years, slowing job creation and threatening to put us back into economic malaise.

Democrats want to raise taxes to pay for their costly social spending plans, like free college tuition and government-run health care. But the tax hikes they are proposing won’t pay for even a fraction of their plans. And their policy proposals look a lot less attractive when you dig beneath the surface.

It’s up to all of us, the voters, to hold them accountable.

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Lanhee Chen: After Mueller: A Look at the 2020 Election

President Trump faces a much clearer pathway to reelection in 2020 now that Special Counsel Robert Mueller’s found no evidence that the President or the Trump campaign colluded with Russian efforts to influence the 2016 presidential election.

President Trump’s task ahead is to focus his reelection effort on the reasons why voters should give him a second term in office.  And while Democrats continue to obsess over Trump and his alleged misdeeds, it’s up to the President and his team to focus instead on the ways in which they’ve improved the livelihoods of the American people with tangible policy accomplishments.

The President spearheaded tax cuts that have helped many Americans keep more of their hard-earned money; his Administration has cut regulatory burdens and red tape to spur economic growth; and he has appointed judges to federal courts who respect the rule of law and the Constitution.

If President Trump can keep his rhetoric—and his focus—on touting these accomplishments, he’ll go a long way toward winning four more years in the Oval Office.

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Jerry Bowyer: What to Do for a Slowing Economy

The Trump tax cuts have done great things for our economy, but—as I’ve warned—the economy is slowing down somewhat. The new GDP report shows the growth rate last quarter dropped from an above average 3.4 to a below average 2.6 percent. Overall, 2018 was a good year for the economy, but at the end it lost some steam, but we can get it back.

First, get out of the trade war. It’s made trade deficits higher and hitting farmers particularly hard. We’ve already created the conditions for American economic preeminence with the tax cuts, let them do their thing and let’s not seize defeat out of the jaws of victory.

Second, stabilize the dollar. America became the envy of the world when the dollar was stable in terms of gold and the currencies of other trading partners.

With just a few changes, we can unleash the American economy.

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Jerry Bowyer: Economic Growth and American Greatness


It appears that the economy is slowing down and that markets are signaling even further weakening. I’ve been an economic optimist since the Trump election—especially when he made broad-based tax cuts a priority. But I did warn that the effects of the tax cuts would be short-term unless he continued to push in a pro-growth direction.

But after the cuts, the president instead pivoted towards increasing taxes on international trade. Make no mistake: tariffs are taxes. And as such, they choke growth.

And that’s exactly what has been happening.

Economic growth has gone from a sizzling summer of over 4 percent to an average fall at under 3 1/2 percent and the winter looks like it might be cooling down to under 3 percent.

If—in the president’s language—we want to make America great again—and we really want to beat China, growth is the way to do it.

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Jerry Bowyer: What Should We Expect From the Recent Tax Cuts

Shooting Florida

What should we expect from the recent tax cuts? In a word, “growth.” At Townhall Finance, we recently reviewed the historical data around the Kennedy, Reagan and Bush tax cuts.

 

What we found is that the economy slowed while waiting for the tax cuts to kick in, and then boomed afterwards. So far—true to form—we’ve seen the economy slow down a bit at the end of 2017 and then show real signs of strong growth this year. The Atlanta Fed, hardly Trump’s home team is forecasting greater than 5 percent growth this year. What would that mean for us? About 400 billion dollars of new wealth this year alone.

 

Let’s say you take your typical tax cut and invest it. Over 30 years it could result in $53k dollar in additional income for your family. We’re talking about real money—the kind of money which can help the Republicans in Congress do much better in the elections than the talking heads are predicting.

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Michael Medved: Trump Wins as a Mainstream Conservative

Opioid

Donald Trump’s first year in office delivered an array of important achievements: confirmation of conservative judges, including Neil Gorsuch; more support for oil pipelines and oil drilling; dramatic progress against ISIS; deregulation and enhanced border security; the end of meddlesome net neutrality; the recognition of Jerusalem as Israel’s capital; and, most importantly, sweeping tax cuts and a new pro-business approach. What’s striking about these accomplishments isn’t how extraordinary they are but how normal: how consistent with well-established Republican goals and values. It’s easy to imagine that much the same policies might have been pursued by President Trump’s primary rivals—or by Mitt Romney, the last GOP nominee.

 

The two initiatives that caused most substantial disagreement with many conventional conservatives—canceling the Trans Pacific Partnership and unilaterally leaving the Paris accords—hardly defined ​Trump’s presidency or brought about the calamitous results his critics feared.

 

At year’s end, President Trump found historic success not as a radical outsider but as a sensible, determined, mainstream Republican.

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