Why is the WSJ downplaying Trump's tax cuts?
In the weekend edition of the WSJ, dated Jan. 4 and 5, there's a long article by Richard Rubin and Theo Francis titled "Taking Stock of the Tax Overhaul's Impact" with a sub-heading: "The cuts helped the economy but not dramatically."
My immediate thoughts were, either these journalists have little analytical ability concerning economics or they don't care because they are pushing an agenda.
Here is a sample of information that shows that the tax cuts obviously dramatically helped the overall economy and especially those in the bottom and middle classes, whom most journalists and other Democrats only pretend to care about:
In 2017, the bureau of labor statistics projected that the number of jobs created in 2017 would be 600,000, in 2018, 600,000 and in 2019 600,000.
The actual numbers were 2017, 2.2 million; 2018 2.7 million; and 2019, 2.1 million.
Of course, Paul Krugman and Mark Zandi, whom the media continue to use to trash Trump policies, predicted a deep recession and millions of jobs lost. Why are people who are so wrong treated as "experts"?
Besides seven million new jobs, there have been a record over seven million jobs open for many months, over twenty percent higher than when Obama left office.
Part-time jobs are also down 1.5 million since Trump took office, which makes the statistics even better.
Even though there are over twice as many people working as in 1969, unemployment claims are at a fifty-year low of a little over 200,000.
Women's unemployment at 3.2% is lower than it has been in at least 60 years.
Black, Hispanic, Asian, those with only a high school degree, and those without a high school degree unemployment rates have hit all-time lows since tax cuts were passed. Contrary to Democrat talking points, the tax cuts have lifted all boats, not just yachts of the rich. Trickle down, supply-side economics works.
Wage growth also has sped up, especially for those at the bottom and middle classes. Middle-class families have thousands more in their pockets because of more jobs, more full-time jobs, higher wages, and lower taxes.
We are continually told the lie that Trump's trade policies have harmed exports, consumers, and businesses, but statistics do not show that. In 2016, exports were $1.45 trillion, but by 2018, they were up to $1.67 trillion, or over 15%. (In 2019, the exports are like 2018.) There is also very low inflation.
For the past few years, the WSJ has been continually bashing Trump's policies. The people there have been saying how harmful to the economy, consumers, and businesses they have been. But today, the WSJ has a story of how little harm they have done, describing how the tariffs have been mostly absorbed by businesses, helped by the lower tax rates. So Trump has been telling the truth, and the media have just been making things up.
We are told the lie in this article and elsewhere that these tax cuts haven't paid for themselves. The WSJ clearly knows that federal revenues are up, not down. They are up because the economy is growing faster than expected, jobs are growing faster than expected, wages are growing faster than expected, stock prices are much higher than expected, and dividends and capital gains are much higher than expected. People are driving and flying more than ever because of the faster economic growth and more jobs, which yields higher excise taxes. State income, sales, and capital gains taxes are also higher than expected. Food stamp usage, disability claims, and unemployment claims have also gone down. Clearly, Trump's tax cuts are paying for themselves.
The journalists at the WSJ and others also know that after Reagan's and Bush's across-the-board tax cuts, the economy and federal revenues took off. So why do the CBO, journalists, and other Democrats continue to perpetuate the lie that the tax cuts aren't paying for themselves?
Federal revenue is at record highs, and the CBO projects federal revenue for fiscal year 2020 to grow $200 billion to $3.64 trillion, so why do we continue to hear that the tax cuts are costing the government money?
The tax law also had the beneficial effect of stabilizing health care costs by getting rid of the penalty for not having health insurance after years of high increases caused by Obamacare's strict regulations. This is a great benefit to the middle class.
The public should also be told that high stock prices, high corporate earnings, and high dividends help 100% of us, not just the rich. It helps the poor and middle class tremendously because the higher returns states and local governments get on their underfunded pensions, the less they need to divert from other needs or wants and the less need to raise taxes including many regressive taxes.
Another lie that is perpetuated, including in this article, is that the good economy today is a continuation of Obama's policies. The article mentions that: "Employment, wages and other key indicators have improved, and the 2020 economy looks stronger than projected at the start of the Trump presidency but many of those metrics were already on the rise before the tax law was signed." That is pure bull. If the metrics were in place, why did the CBO project only 2.4 million jobs by now.
The truth is the economy in the U.S. was slowing, just like in Europe. It is not a coincidence or bad luck that Obama's high tax, massive regulations, big government policies gave the U.S the slowest economic recovery. It is also not a coincidence that Trump's low tax, fewer regulations gave us much better results.
The purpose of this article is to send the message that high taxes and big government do not harm the economy. Why are people moving from Illinois, New York, New Jersey, California and other high-tax states to places like Florida and Texas? Which states have better economies and more opportunities for the poor and middle class?
Another myth that is being perpetuated by the WSJ and other media outlets is that there are moderates running as Democrats for president. There are none.
They are all for higher taxes and bigger government.
They are all for a higher national universal minimum wage which will greatly harm small and medium sized towns and small companies. It will especially harm the poor, the less educated, the young and the elderly who will lose opportunities to get a job.
They are all for eliminating fossil fuels which will destroy tens of millions of jobs and devastate the entire economy. It will especially harm the poor and middle class. The entire economy would collapse, and we would be completely vulnerable to Russia, China, North Korea and Iran who will never give up fossil fuels.
The Democrats all pretend they care about income inequality but every policy they advocate involves transferring more power and money from the rest of us to the very wealthy D.C. area.
It is no wonder that so many young people are supporters of Democrats and their parties which move towards socialism when even the WSJ is willing to perpetuate so many myths.
The Founding Fathers were for We the People and the government working for us. It is a shame that most journalists and other Democrats are for we the government and the people working for them.