In what he calls, “Chairman Rand Paul’s Festivus Report” he picks out some of the worst examples of “pork” totaling nearly $115 million. Though some might consider this to be minor in cost and scope relative to the entire federal budget, few listed here are things our national government should have any involvement with. (Keep in mind that the average taxpayer pays a little over $8,000 annually in federal taxes, so this sum represents the hard earn income taxes paid of about 14,000 households.)
John Stossel and Reason Magazine have produced a short lesson by Gloria Alvarez that should be viewed in every school in America. And oh yes, in the U.S. Congress as well.
The core principles of Trumponomics: low tax rates, rollback of (productivity-destroying) regulations and fair international trade has again made the United States the world’s strongest economic engine.
Even in the face of some of these trade skirmishes (not yet wars) and rapidly rising interest rates by the Federal Reserve, this week we had proof — surging real income, soaring productivity, high job creation and record low unemployment.
Over the last 12 months, wages and salaries (not including benefits) increased by 3.1%, considerably above the 2.3% growth in inflation (Consumer Price Index), illustrating that we have real income gains.
Jobs increased by 250,000 in October well above the 190,000 that were forecasted. Such recent growth in jobs has reduced the unemployment rate to just 3.7%, the lowest rate since 1969 or nearly 50 years.
Senator Bernie Sanders (Ind. – Vt.) wants to tax corporations (more than 500 employees) 100% for each employee who works at the company but receives any low-income government benefit: section 8 housing, food stamps, Medicaid, children in school lunch program, etc.
At first this seems entirely reasonable. Sanders says that because the company is not paying the employee a high enough wage, taxpayers have to supplement this low wage to allow the person (or household) to stay above the poverty level.
But because most socialists are economic illiterates or poisoned by their own ideological beliefs, they can’t grasp how such proposals work in real life with real human behavior.
First of all most Americans would agree that (1) self-sufficiency is a good thing and (2) that the path to self-sufficiency is to have a job. But to get a job, the person must provide the employer with greater value than what the employer will have to pay in compensation. Any company that adds a job and hurts itself financially won’t be around very long.
This means that the most impoverished person, the individual who is receiving the greatest number of low-income programs would now, under the Sanders’ plan, be the most expensive person for the employer to hire. His or her cost to the employer would not only be the compensation paid, but would include 100% of every government benefit that person continues to receive.
Socialist Senator Bernie Sanders says that because wages went up 2.7% in the last 12 months and inflation was up 2.9%, workers fell behind. Without others considerations he would be correct.
According to Andy Pudzer, former CEO and author of “The Capitalist Comeback: The Trump Boom and the Left’s Plot to Stop It,” there are other ways they’ve benefited to the extent that they’re now enjoying take-home pay increases not seen in years.
New Jersey is in very bad financial shape, mostly due to stunning mismanagement of its public pension system. Though it has promised the moon, it has chosen never to pay more than $1.9 billion in the plan in any year. Now it needs about three times that to keep the pension system solvent.
Governor Murphy knows he can raise the state income tax rate to levels where his state’s wealthiest residents would likely take their capital elsewhere. But they, like any other home or property owner in the state, cannot move their NJ real estate holdings. Private real property stays and that’s what will eventually get taxed heavily enough to likely reduce home values in the Garden State significantly.
Read the entire article from Steven Malanga of the Manhattan Institute here.