President Donald Trump and his majority Republican Congress passed a significant tax cut in 2017, helping to propel the American economy to new heights. While many of those gains have been demolished by the coronavirus and the accompanying lockdowns, there is substantial hope that things will bounce back enormously once the threat has passed. The American people entrusted Trump with the economy due to his wild success as a private businessman, and the bet paid off in dividends.
Of course, Joe Biden and the Democrats have a different plan for the economy. According to the Wall Street Journal, the Biden campaign and its supporters want to come into office with a full-scale tax-raising scheme that will result in “significant income redistribution” as early as next year. Democrats are looking to pump up taxes on the rich and American corporations and use it to pay off the government bailouts that have been necessary in the wake of the pandemic.
“It’s all the more important to protect the retirement and security of working [people] and make sure the wealthy pay their fair share,” Sen. Ron Wyden (D-OH) told the Journal. “We’ll be ready to go in January of 2021.”
President Trump didn’t initiate the economic recovery, of course, but he took what he inherited and made pure gold out of it. The Obama recovery was slow, sketchy, and filled with doubt. It was there, we cannot deny that, but it was taking far too long. And the reason for that slow recovery is easy to pinpoint: Punishing tax rates (among other policies) kept businesses large and small from reaching their full potential. Trump and the Republicans turned that around, slashing corporate taxes, which in turn created a boom period of investment and growth.
That growth has contracted thanks to the coronavirus, but there’s no reason to think we can’t come back stronger than ever.
Well, we take that back – there’s one reason to think that, and his name is Joe Biden. The former vice president wants to take us right back to the Obama era, where corporations were paying 28% on their revenues.
“Joe will come in with a more progressive economic policy than we have seen from a Democrat in a long time,” Rep. Don Beyer (D-VA) promised. “This is the chance to build an economy that’s much more equitable.”
Democrats always disguise their most dangerous ideas with words like “equitable.” They are going to come into Washington like a wrecking ball, and it is not going to be pretty – especially on the heels of a recession. Let’s hope we don’t have to find out just how ugly it could get.