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Trump has now proposed increasing taxes for those making over $2.5 million, while eliminating taxes on tips, social security, and other income under $150,000. Given these proposals, it’s going to be fun to watch the media spin their “Trump is only for the rich” talking points. Meanwhile, as Democrats all vote against these changes, they will use every kind of twisting BS they can invent to maintain the myth that Democrats are the party of the working class. My guess is that Trump threw in the tax increase specifically to troll the Left, forcing the usual reflexive opposition, digging themselves into another hole.

Like the Trump tariffs, most of this talk is just thrown out there to help negotiate a deal. His hands are somewhat tied due to the 4+ stolen Senate seats and dozens of RINOs in both houses. I’m against all taxes, including those on the rich, because we know the government will only piss it away, while rich taxpayers can spend it on capital investment and salaries. Plus, raising tax rates on the rich never seems to bring in the expected revenue. Taxpayers will always change their behavior. In addition to less work and investment, rich Americans can simply renounce their citizenship and move offshore. In today’s tech-connected world, it’s not as big of a sacrifice as it used to be. Even if tax rates were 100 percent, 100% * $0 = $0. The Laffer Curve is a law of economics:

There can be honest debate on the steepness & peak of the curve, but the fundamental concept is indisputable. Finding the peak will always be a challenge for government leeches. The peak and slopes will always shift year to year with changes in the economy, technology, and taxpayer behavior. Who knows what kind of effect on revenues all the Trump changes will make? To avoid ballooning the deficit, it makes the most sense just to gut government spending across the board.

BTW, if you want to see a great illustration of the Laffer Curve, take a look at historical tax brackets when Reagan took office in 1981:

With social security, medicare, and state taxes added, a married couple making over $215,400 was paying 80-90 percent of their marginal income to the government. I know, how did they get the public to go along with such high rates?!!! Well, most of it was the emergency of World War 2. But as usual, the blood suckers kept the rates in place. It only affected “the rich,” so no biggee. Do you remember what the economy was like in 1981? Inflation and unemployment were well over 10 percent. Mortgage rates were 15-20 percent. Reagan brought the top bracket down from 70 percent to 28 percent. The effect? Not only did it solve the unemployment and inflation problems, it nearly doubled annual revenues by the end of his term. Economic growth exploded.

So, you see, no matter how the propaganada media portrays things, the results aren’t so straightforward. When in doubt, it’s always best to fall back on basic human behavior — reward and punishment. What incentives and disincentives are you creating?

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