|Unleash Prosperity Hotline |
|1) Mr. President, Repeat After Us: Lower Tax Rates, More Revenue|
As we somberly noted in this weekend’s Hotline, under the latest version of the Biden Govzilla bill, tax rates on those who are “rich” will rise to above 50% when counting all the surcharges the Democrats keep conjuring up. Will they ever learn?
Longtime readers of the Hotline have seen the below chart before, which shows that the lesson of history is that lower tax rates, not higher tax rates, create more prosperity and thus more tax revenue.
*That was true with the Coolidge tax cuts in the 1920s, with rates falling from 70% to 25%.
*That was true after the Kennedy tax cuts in the 1960s which slashed rates from 91% to 70%.
*That was true after the Reagan tax cuts in the 1980s which slashed rates from 70% to 28%
*That was true after the Trump tax cuts three years ago when rates fell from 42% to 37%.
|2) Biden Negotiates an OPEC-Style Tax Cartel with Europe|
And while we are on the subject of economic stupidity coming out of the Biden administration, Treasury Sec. Janet Yellen got a handshake deal with the G20 leaders in Europe to enact a global minimum tax on corporations. Biden says this prevents a “race to the bottom” on taxes, but when countries compete for jobs and capital – just like when businesses compete on price – you and I win.
Our friends at the New York Sun nailed it with their editorial: “If the politicians in the Group of 20 meetings were leaders of corporations, they’d be brought up on charges under the Sherman Antitrust Act. That’s the law that begins with the famous sentence: “Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, is hereby declared to be illegal.”
We noted over the weekend that the Biden tax plan will raise American tax rates to near the highest in the world. Sounds like WE’RE the country racing to the bottom.
As the Sun points out: “Maybe General Motors, Ford, Toyota, Volkswagen, etc. will take a page out of the international tax-rigging playbook and agree to a new, universal, sky-high basic sticker price.”
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