Less tax revenue in the hands of government; more money in the hands of business

If you have been in doubt whether PDT is a political genius, doubt no more: Sweeping tax reform PASSES the Senate: GOP scores major victory in 11th-hour vote for $1.5 TRILLION bill after Democrats said they had no time to read the 500-page, ‘scribbled’ small print.

Here’s the big print version: less tax revenue in the hands of government; more money remaining in the hands of business with which to invest and employ. The rest is detail. Here are the subheads on the article:

  • The Senate approved a sweeping tax overhaul in the early hours of Saturday
  • Vote passed by 51-49 as Democrats voted in bloc and one Republican opposed
  • Vice President Mike Pence announced passage at 1.51am to a round of applause
  • Final alterations to the bill were still being made late in the evening on Friday 
  • Democrats claimed they didn’t have time to read bill and tried to adjourn vote
  • Victory moves Donald Trump one step closer to slashing taxes for businesses
  • Democrats say tax overhaul will add $1.5 trillion to national debt over 10 years
  • Republicans insisted changes will be revenue-neutral as tax cuts spur growth

To listen to Democrats complain about the addition to national debt is particularly irritating since that has perennially been the last thing on their minds when adding to America’s massive debt. So let me just say for the record why this will lead to a massive improvement in the American economy.

  • There will be less public spending which invariably slows growth.
  • There will be more spending by private sector firms which adds to growth.
  • Public revenues will rise, all other things being equal, as tax rates fall.
  • Whether Congress will then use the additional revenue to increase spending or to lower taxes is the question, with the likelihood (alas) towards more spending, but at least further spending cuts will become possible.

Meanwhile PDT has his first major legislative win with others sure to follow, once Roy Moore is elected and the Republicans begin to think about the rage within their own constituencies if the Republicans fail to deliver what they had been promised.

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