Tag Archives: middle class families

Another Bad Idea From A Socialist

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On Friday, Investor’s Business Daily posted an editorial about Senator Bernie Sanders’ latest great idea–he wants to put all sorts of restrictions on Walmart until they start paying all of their employees $15 an hour.

The editorial states:

With typical Sanders subtlety, his new legislative proposal is called the “Stop WALMART act.”

Under it, big employers like Walmart would be banned from buying back shares in their own company unless they paid all their workers at least $15 an hour. They’d also have to cap CEO pay at 150 times the median employee pay, and provide seven days of paid sick leave. (Why Sanders doesn’t also include free lunches and bus tokens in his list of demands isn’t clear.)

Sanders says he’s building on the success of his Stop BEZOS act, which would have dictated that large companies “pay back” the cost of any government benefits received by any of their workers.

The editorial reminds us:

This is a company that employs 1.5 million people across the country. Some may not make what Sanders deems appropriate. But it’s good enough for many unskilled workers, who if they had a better offer would have taken it.

What’s more, Walmart’s relentless pursuit of lower prices not only helps middle class families stretch their hard-earned dollars further, but has helped hold down inflation economywide, according to economists who’ve studied the “Walmart effect.” That benefits everyone.

…If Sanders really wants to help Walmart workers, two proven things work. Cut taxes and deregulate the economy.

In the wake of the Trump tax cuts — which Sanders vehemently opposed — Walmart boosted its starting wage to $11 an hour, up from $9. It also handed out bonuses that started at $250 and climbed to $1,000 depending on years of service.

Meanwhile, the economic boom under Trump’s economic policies has cut the unemployment rate to 50-year lows. It’s also drawn millions back into the workforce, and sparked the fastest wage growth in a decade.

No mandates. No threats or browbeating. No central planning needed.

Walmart is probably not the ideal career for everyone. However, I personally know someone who was able to support himself at college by working there part time. They hired a young kid out of high school and helped him get an education. He didn’t make it a career, but it helped move him toward the career he wanted.

Since when does the American government have the right to target a specific company and tell them what they must pay their employees?

Who Benefited From The Tax Cuts?

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On Friday, Investor’s Business Daily posted an article about the Trump Tax Cuts.

The article reports:

The numbers are now in. According to Congress’ nonpartisan Joint Committee on Taxation (JCT), the rich are now paying a higher share of federal taxes after enactment of the Republican tax reform plan than before.

For 2017, before tax reform, the JCT estimates those earning $1 million or more a year paid 19.5% of all federal taxes, counting income taxes, payroll taxes, and excise taxes. But for 2018, after tax reform, the committee estimates that these same millionaire taxpayers will pay 20.4% of all federal taxes.

The biggest relative tax cuts resulting from the tax reform are for those making less than $50,000 a year. Their share of federal taxes fell from 4.4% to 3.8%, a tax cut of 14%.

Indeed, the committee estimates that the federal tax burden went up for all taxpayers now making over $200,000 a year, from 49.8% before tax reform, to 51.3% this year after tax reform. You have to go down to those making between $100,000 and $200,000 a year to find taxpayers paying a lower share of federal taxes, from 29% of the federal tax burden last year to 28.8% this year.

But how could that be? The fundamental reason is the economic growth effects of tax reform.

Higher economic growth means increased wages, jobs, employment and income. As the economy grows, the share of taxes paid, especially by those earning higher incomes who still pay much higher tax rates under our so-called “progressive” tax code, goes up as well.

This is the Democrats’ biggest nightmare. That is the reason they opposed the tax cuts and tried to use the media to turn the American people against the idea of tax cuts. I believe that in the 2018 mid-term elections, we will see the Democrats attempt to campaign on the idea that the tax cuts were ‘tax cuts for the rich,’ but if American voters choose to be informed, they will recognize the lie in that statement.

The article reports more bad news for Democrats campaigning in 2018:

Those same economic effects of the tax reform amount to economic liberation for the poor, working people and the middle class. After 8 years of economic stagnation under the neo-socialist policies of Obamanomics, the rising wages, jobs, employment and income under the long overdue Trump Republican economic recovery are making America great again for those with low and moderate incomes.

Top economists estimate wages for average middle-class families are increasing by $4,000 a year due to tax reform. That’s in addition to direct tax cuts of $2,000 a year for middle class families.

These economic effects are why we now see the lowest unemployment rates among blacks in American history. And despite the lies of the Democrat fake news media, the lowest unemployment rates among Hispanics in history as well.

And these economic effects are why Trump/Republican economics is now resonating among blacks and Hispanics culturally as well, from young black Millennials like Candace Owens to hip-hop stars like Kanye West.

As John F. Kennedy stated, “A rising tide lifts all the boats.'” We have watched the tax cuts (and the ending of some over regulation) do just that. John Kennedy would probably not be welcome in today’s Democrat party. That is a shame. In spite of his questionable activities regarding women, I believe he would have been a reasonable President had he lived.

It’s All Done With Smoke And Mirrors

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I will have further comments on the President’s State of the Union Speech tomorrow, but I do have one observation on some of what has been released to the public ahead of time.

This afternoon The Washington Examiner posted a story about President Obama’s proposed tax cut for middle class families. The President has proposed a $500 tax credit for two-earner families.

The article reports:

The provision is included in his effort “to help middle class families get ahead.” Like who? Administration officials said families earning up to $210,000 would get a piece of the tax credit. That is four-times the earning of the “typical” middle class income of $51,939 calculated by the Obama-supporting Center for American Progress.

It’s to pay for the added commuter and child care costs of two-earner families, but it wouldn’t cover much.

Take child day care. The just-out Child Care Aware of America’s 2014 report said the child care price for an infant can reach $14,508 a year or $279 a week.

The article also points out that the cost of dinner on New Year’s Day for the president and the first lady was $295 per person, not including wine. President Obama’s middle class tax break would not have even paid for his New Year’s Day dinner.