In last week's Liberty Update, we highlighted the Heritage Foundation's 2022 Index of Economic Freedom…
CFIF on Twitter CFIF on YouTube
Image of the Day: More Economic Freedom = Higher Standard of Living

In last week's Liberty Update, we highlighted the Heritage Foundation's 2022 Index of Economic Freedom, which shows that Joe Biden has dragged the U.S. down to 22nd, our lowest rank ever (we placed 4th in the first Index in 1995, and climbed back up from 18th to 12th under President Trump).  As we noted, among the Index's invaluable metrics is how it demonstrates the objective correlation between more economic freedom and higher citizen standards of living, which this graphic illustrates:

 …[more]

May 19, 2022 • 12:53 PM

Liberty Update

CFIFs latest news, commentary and alerts delivered to your inbox.
What's in Your Wallet? Print
By Betsy McCaughey
Wednesday, September 21 2016
JFK slashed business taxes, and after his assassination, Congress enacted the rest of his tax program, igniting 5 percent annual growth for the next eight years.

The choice for voters is clear: a tax cut from Donald Trump or a pay cut courtesy of Hillary Clinton. Trump is promising to slash income taxes to zero for millions of people currently paying them, and to reduce the tax bite on everyone.

Clinton isn't cutting income tax rates for anyone. Instead, she's campaigning to hike business taxes, despite warnings it will cause wages to plummet and the economy to tank.

No wonder Trump is moving up in the polls. Most Americans are still making less than they did in 2007. The mainstream media want to double down on the "birther" controversy and other fabricated issues. Voters aren't fooled. They'll vote their wallets.

Trump proposes a zero income tax rate for singles making $25,000 and couples making twice that. Instead of paying the government money, they'll file a one-page tax form that says, "I win."

Moving up the ladder, singles earning $35,000 will save about a thousand dollars, according to tax experts at CNN Money. And singles earning $64,000 will get a $2,700 break, on average. Anyone earning $112,000 will save more than $5,300. Sweet.

And that's before applying Trump's proposed deductions for child care, which will average $12,000 per child regardless of whether parents actually incur child care expenses. A boon for stay-at-home parents. Bottom line: Working couples with two kids will pay no federal income tax on their first $60,000 to $70,000 in household income.

Clinton promises credits  but only to families that actually spend.

Disregard Clinton's bogus claims that Trump wants "to give trillions in tax breaks to people like himself." Nonsense. Trump caps deductions at $100,000 for singles and double that for couples, so some high rollers will end up paying more.

As for the misery of tax preparation, Trump simplifies it: only three brackets, all lower. He jokes about putting H&R Block out of business. Clinton's plan adds complexity: more brackets and additional rules.

Keeping more of what you earn is good. Earning more is even better. To give everyone a shot at a brighter economic future, the next president and Congress need to jumpstart the economy by slashing business taxes. Right now, the economy is limping along at 1.2 percent  a third of the normal growth rate over the last century. Partly to blame for the stagnation are corporate taxes  the highest in the developed world. They are driving companies to leave the U.S. and putting those that stay at a global disadvantage.

Trump proposes cutting taxes by over half for large and small businesses to encourage them to stay, expand and hire.

Meanwhile, Clinton preaches class warfare, vilifying businesses for not "paying their fair share" and pledging tax hikes. Recession, here we come. A Federal Reserve report warns that "increases in corporate tax rates lead to significant reductions in employment and income."

Typically, Democrats bash business tax cuts as "trickle down economics" to benefit rich Republicans. But the inspiration for Donald Trump's tax reform came from a Democrat  John F. Kennedy  who faced a stagnant economy when he became president in 1961.

Kennedy understood tax cuts would cause businesses to invest, boosting worker productivity. More productive workers lead to higher wages as well as more goods and services to go around. A more abundant nation.

Kennedy startled the nation by insisting that tax cuts would ultimately produce more tax revenue  not less  thereby reducing deficits. He was right, as Larry Kudlow explains in his new book, "JFK and the Reagan Revolution."

JFK slashed business taxes, and after his assassination, Congress enacted the rest of his tax program, igniting 5 percent annual growth for the next eight years.

Ronald Reagan repeated the formula in the 1980s, launching 20 years of 4 percent plus growth.

It can happen again. Hillary Clinton has given up on growth. Voters can't afford to.

----------------------------------------------------------------------------------------------------------------------------------------

Betsy McCaughey is a former lieutenant governor of New York state and a senior fellow at the London Center for Policy Research and author of "Government by Choice: Inventing the United States Constitution."
COPYRIGHT © 2016 CREATORS.COM

 

Quiz Question   
How many days does it take the average U.S. household to consume as much electrical power as one single bitcoin transaction?
More Questions
Notable Quote   
 
"The trial of former Clinton campaign attorney Michael Sussmann crossed a critical threshold Friday when a key witness uttered the name 'Hillary Clinton' in conjunction with a plan to spread the false Alfa Bank Russian collusion claim before the 2016 presidential election.For Democrats and many in the media, Hillary Clinton has long held a Voldemort-like status as 'She who must not be named' in scandals…[more]
 
 
—Jonathan Turley, Shapiro Professor of Public Interest Law at George Washington University
— Jonathan Turley, Shapiro Professor of Public Interest Law at George Washington University
 
Liberty Poll   

Should any U.S. government agency have a function called the "Disinformation Governance Board" (See Homeland Security, Department of)?