President Trump won a massive political victory in the early hours of Saturday, December 2 with the Senate passage of a tax reform and tax cut plan whose scope and scale have not been seen since the Reagan presidency.
Time after time Democrats and their media friends have proclaimed that president Trump is a hobbled leader yet this bill is one of the most significant legislative victories imaginable for any president, particularly in these partisan times.
This tax bill even includes a major body-blow to Obamacare – the repeal of the ‘individual mandate’ that Americans must buy Obamacare insurance or pay a penalty.
The bill passed the Senate with 51 votes. The House has already passed their own version and the two bodies will hold a conference committee to settle their differences.
The bill is expected to be signed by president Trump before Christmas.
Under this bill individuals and families are going to see a tax reduction rather than the usual tax increase every year. For instance the child tax credit is doubled from $1,000 to $2,000 and the standard deduction is increased significantly.
Other major tax burdens like the Alternative Minimum Tax and the ‘death tax’ are eliminated for many earners.
Significantly the bill reduces the corporate tax rate from the highest in the world at 35% to a vastly more competitive 20%.
This is going to produce significant economic growth for America by keeping companies here who already were fleeing the high rate, and attracting companies that now will see America as a good place to do business. This is a blueprint for prosperity.
This corporate tax cut also is great news for the national debt and for middle class. It will actually increase revenues to the Treasury through increased business activity. And when business costs are reduced through lower taxes those businesses have more capital for higher wages, benefits and pensions and for investment in new equipment, factories and technologies, i.e., new jobs.
The only shortcoming of the bill is that it allowed the rate on top earners to remain at 39.6%. It should have been cut to 30%.
Critics say that you cannot cut rates on wealthy people without losing tax revenue to the government. Yet Ronald Reagan cut top tax rates by 60% and revenues to the federal treasury increased by 91%.
Let us hope that the House and Senate lower this top tax rate sometime over the next year in separate legislation.
Politically this bill is fantastic news for Trump. On Friday, December 1 news came out that a former Trump national security adviser Michael Flynn, who served only briefly before being fired for lying to vice president Pence, has pled guilty to lying to the FBI.
Liberals said that Flynn was going to “turn on” Trump and bring him down in the Russia investigation. But Nikitas3.com debunked that narrative in this commentary.
So just when everything was being made to look dire for president Trump he got a major, major political victory. This has been a pattern so far in the Trump presidency.
This can only be very dispiriting to the Democrats and the skunks in the anti-Trump media who have been trying to destroy this good man since he announced his candidacy in June 2015.
The tax bill is going to go a long way to helping the economy that already was perking along like we haven’t seen in a decade. This is going to contribute to Trump’s re-election in 2020, as Nikitas3.com has repeatedly predicted already.
After all the big issue in the 2016 election was that Americans believed that the country was heading in the wrong direction, including the economy. And president Trump is addressing every aspect of that grievance, which will lead to his re-election.
The passage of this tax bill is going to somewhat mitigate strong anger from Republicans and conservatives nationwide at Establishment Republicans in Congress for doing nothing to support the Trump agenda.
Meanwhile Democrats only complained about tax reform and tax reduction but did nothing to help it along. This was a major mistake that will come back to haunt them in 2018 and 2020.
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