The Trump Tax Plan

I specialize in debunking complex theories and explanations in a minute or less with just a sentence or two. First let me say that any change to the tax code benefits those with the balance of political power and hurts everyone else. Since most of the political power is possessed by a small fraction of citizens, any change in the tax code will harm all but a few citizens. Tax reductions that are not preceded by spending cuts are always a net loss to the country as a whole and desensitize citizens to the spending increase that always follows.

Has there been a reduction in spending? No, Trump is promising increases in spending. With that said, the whole plan is bunk and just another gift to the rich.

What attribute must any good system of taxation possess? A good system of taxation always keeps citizens aware of what government costs. Taxes should go up when government spends more and go down when it spends less. Does Trump’s plan do this? No it does just the opposite. It is a bad plan and a license  to spend without bounds.

If citizens are unaware of or confused about what government costs there is no way for citizens to rein in government for spending too much. That is actually the goal of the type of tax changes Trump is recommending.

Why am I against a 15% corporate income tax? Corporations are unique in that they can levy taxes on citizens just as government can. Citizens cannot force others to do things like buy gas with ethanol in it. Corporations have enough political power to dictate monetary policy to the Federal Reserve, keeping their profit margins high while lowering real wages. Ordinary citizens do not have these kinds of privileges. Take away the ability of corporations to use government as a tool and 0% is a reasonable tax for them to pay given that shareholders are already taxed on corporate profits as they are distributed. Given the enormous power corporations have over government policy, they are paying way too little as it is.

(Visited 13 times, 1 visits today)

About Fantasy Free Economics

James Quillian independent scholar,free market economist,and teacher of natural law. Who is James Quillian? Certainly I am nobody special, Just a tireless academic and deep thinker. Besides that, I have broken the code with respect to economics and political science. Credentials? Nothing you would be impressed with. I am not a household name. It is hard to become famous writing that virtually no one in the country is genuinely not in touch with reality. But, if I did not do that, there would be no point in my broking the broken the code. If you read the blog, it is easy to see that there are just a few charts, no math and no quantitative analysis. That is not by accident. Given what I know, those items are completely useless. I do turn out to be highly adept at applying natural law. Natural law has predominance over any principles the social science comes up. By virtue of understanding natural law, I can debunk, in just a few sentences , any theory that calls for intervention by a government. My taking the time to understand the ins and outs of Keynes General Theory is about like expecting a chemistry student to completely grasp all that the alchemists of the middle ages thought they understood in efforts to turn base metals into goal. Keynesian theory clearly calls for complete objectivity. Government can only make political decisions. Keynesian techniques call for economic decisions. So, why go any further with that? Fantasy Free Economics is in a sense a lot like technical analysis. Technical analysis began with the premise that it was impossible to gain enough information studying fundamentals to gain a trading advantage. Study the behavior of investors instead. Unlike technical analysis, I don't use technical charts. What I understand are the incentives of different people and entities active in the economics arena. For example, there is no such thing as an incentive to serve with life in the aggregate. In the aggregate, only self interest applies. It is routinely assumed otherwise. That is highly unappealing. But, I am sorry. That is the way it is. I can accept that because I am genuinely in touch with reality. Step one in using Fantasy Free Economics is for me to understand just how little I really know. A highly credentialed economist may know 100 times what I do based on the standard dogma. Compare the knowledge each of us has compared to all there is to know and we both look like we know nothing at all. There is always more than we don't know than what we do know. I am humble enough to present myself on that basis. Why? That is the way it is. I am not bad at math. I have taught math. What I understand is when to use it and when to rely on something else. Math is useless in natural law so I don't use it. While others look at numbers, I am busy understanding the forces in nature that makes their numbers what they are. That gives me a clear advantage.
This entry was posted in Daily Comments. Bookmark the permalink.