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Nationalist Pundit

America First, Last and Always!

GOP Tax Cut Bill Passes

Both the House and the Senate passed the GOP tax cut bill yesterday. The votes were along party lines with no Democrats supporting the bill. In the House, only 12 Republicans voted no while in the Senate, every Republican senator voted yes. All except John McCain, who is in Arizona recovering from his cancer treatment. Vice President Mike Pence presided over the Senate just in case his vote was needed. President Donald Trump praised the passage of the tax cut and reform bill. He will sign it later today after the House votes again due to some minor issues in the Senate version.

 

 

 

While the tax cut bill did not fulfill all of President Trump′s list of items which he wanted, he got most of them. The Obamacare mandate has been rescinded, crippling the Obama legacy. The corporate tax rate was slashed from 35% to 21%, making it very competitive with global markets. Both the individual deductions and child credits were doubled. Five of the seven tax brackets had their rates reduced. About 85% of all working Americans should begin to see more money in their paychecks in February, once the new rates go into effect. Other features benefit small businesses and the estate or ′Death Tax′ was slashed.

 

The tax cut bill should help keep the economy moving forward. Money and assets held overseas may now be repatriated with only a 15% tax on cash and 7% tax on assets. This could move some $4 Trillion dollars back into our economy. Future GDP growth could go far past the expected 4% annual rate for this fiscal year, about double that of the average during the 8 years of Barack Obama. Job growth should be energized and 401K plans should see higher gains than the incredible 25% increase of this year.

 

Some critics point to issues like how the individual tax cuts will sunset after 10 years unless Congress votes to make them permanent. Needless to say, should the GOP still be in power in Washington 10 years from now, this will happen. Others point to how the National Debt may increase some $1.5 Trillion dollars over 10 years due to the cuts. However, we should keep in mind that if GDP growth increases at a rate of 4% or more annually during the next 10 years, even the expected ′normal′ increase of some $9 Trillion dollars will be radically smaller. The cost of the tax cut bill would be balanced out in just 2 or 3 years of good GDP growth.

 

The hysteria by Democrats and their allies in The Media has cast a dark shadow on the tax cut bill with many polls showing high disapproval. But, once the cuts kick in and more Americans get to keep more of their own money, that should change. The only Americans who may still experience tax increases are those who live in Democratic Party controlled states like New York and California, were state and local taxes are very high. The new bill caps deductions on such taxes on the federal level to $10,000 per year, including property taxes. If those people want their taxes cut, they will have to vote out the Democrats running their communities.

 

For more REAL NEWS and views, follow Andrew Zarowny on Facebook and on Twitter @mrcapitalist.

 

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