The Biggest Tax Cut in History: It looks like we’ll have a nice, “green” Christmas–and we deserve it!

I am excessively proud of everyone who stayed late on Friday night and passed the largest tax cuts in American history sending the bill into reconciliation next week.  That keeps the tax cuts on course for President Trump to sign the legislation into law likely on Christmas Eve in quite dramatic fashion.  In this day and age something like this is excessively rare, and not to take anything away from those in the Senate who did and would always support this president, but for those who have been actively working against him, this was a significant thing for them to do at a critical time. The forces against this tax cut were monumental—as all day long during the debate period news against Trump was released attempting to derail the entire process—including the plea deal with General Flynn.  But the Flynn case is going nowhere; of course he was directed to talk to Russians—and many other countries AFTER winning the election—not before.  That would have been his job—so that is the end of that story.  Yet the way the Senate stayed on the road and avoided distractions to do something that essentially is one of the biggest days in American history is to be commended.

One thing that was exposed during this whole ordeal was just how ignorant many people these days are about the basic nature of economics.  I often point around the world to show how poorly places we typically think of as great countries struggle in comparison to the United States.  How much time have I spent on the radio, television, and writing literally hundreds of articles on the topic of economics trying to teach people why they should support something like what happened on December 2, 2017 at 2 am in the morning?  If I added it all up it would come out to years of my life dedicated to the cause of just educating people on basic economic principles.  Yet so many people are taught incorrectly about how money works and what the value of capitalism is, that they just don’t understand why this tax cut was so significant.

It was stunning leading up to the big vote that the Dow Jones stayed over 24,000.  That is trillions more added to the United States economy in just the few weeks that we thought it was a miracle to see the record high of 23,000.  How high can this thing go?  30,000, is that even possible?  I think it is. Once you add deregulation with reduced corporate rates we are talking about a recipe for success unlike anything that has been seen in America—or anywhere—in human history.  If Trump retired today from the White House he would go down in history as the greatest of all our presidents—essentially because of his work at putting our economy back on track.  With these tax cuts and the tremendous amount of money pouring into the stock market coming essentially from investors who have been sitting on their money for years, I predict we will see economic growth in the United States of over 6%.  I actually think it will be much higher than that, but declaring such a thing at this point is pretty astronomical—so for credibility reasons, I’ll have to stick to the parameters of history. How do you pay down the horrendous national debt that we’ve had that is up to over $20 trillion dollars—you have 6-10% growth for a few years and the flow of money back into the United States takes care of all that and touches literally the lives of every single person.

I remember what it was like the last time America experienced that type of economic growth.  I was a young guy just entering the world of adulthood and I was making a lot of money.  I was making more than my dad was after years at the top of management at the company he worked at for decades, and I was doing it right out of high school.  For a person like me willing to work, there were boundless opportunities.  I was doing so well I was looking for a condo separate from my primary residence just as a bachelor pad so I didn’t have a bunch of girls fighting each other at my front door.  That all changed of course when I found the perfect girl for me and we married on the backs of that very strong Reagan economy.  The world seemed like it had endless possibilities to us and I always felt I could support my family by working whatever jobs I needed to so everyone had what they needed.  Then the 90s came with the global tampering of George Bush, then with Bill Clinton—and America entered a dark period of decline due to high taxes and over regulation.

By the time Obama was in the White House the global plot for America was obvious.  The capitalism of our great nation was fully under attack and a major wealth redistribution scheme was well underway, just as Ross Perot had warned during the 1992 election.  Yet it was even worse than Perot had said.  As a last-ditch reaction, the Tea Party movement emerged and over the next five to six years a major shift in philosophy toward economic and moral matters exploded on the scene which resulted eventually in the election of Donald J. Trump—the mastermind behind the popular television show, The Apprentice, and now the rest is literally history.

Trump is the whole package; he made himself into a celebrity combining entertainment with excessive fiscal knowledge making his billions the hard way.  That has poised him for just these kinds of battles and now in a spectacular fashion he was able to pull people together with masterful negotiating skills and open up our economy on the eve of Christmas 2017.  It was the Christmas of 2010 that the Obamanites in congress unleashed their Obamacare bill which took over a fifth of our economy.  But late last night, and likely to survive the reconciliation process is the heart of Obamacare, the individual mandate.  Without that individual mandate the socialization of our health care industry has no teeth, and this puts competitive dollars back at work to bring all costs down for the first time over that nearly decade long process.  It was one of the saddest Christmases that I can remember reading the newspapers on Christmas morning 2010 as congress took advantage of everyone’s Holiday distractions to essentially inject socialism into our American economy in a purposely crippling way.  At Christmas dinner that year my family contemplated the unthinkable—violence to take back our government—or a miracle of a politician in the White House.

With this kind of positive news 2018 will be a noticeably different year.  When it comes to economies, it’s your industry that makes GDP.  You have to have jobs in order for wages to increase.  And you can’t create jobs that pay well off the backs of tax payers, the way it has been for some time now.  Corporations, as much as socialists like to yak about Wall Street and faceless boards of directors and the profits generated—are what give individuals wealth.  Giving individuals a few hundred bucks in tax cuts won’t do much for your economy, but giving job creators tax cuts unleashes a tremendous amount of potential, and for Trump and the Republicans to stay focused on that says a lot about their fiscal understandings.  It is too early to know if we will all have a white Christmas—but one thing we can all be sure about assuming that congress continues on their path of approval, is that this year we’ll certainly have a “green” Christmas—and it will go down in history as one of the most significant we’ve ever had, or ever will.  This tax decrease is a historic game changer!

Rich Hoffman
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