I met and talked with my favorite economist Dr. Arthur Laffer at an economic policy forum conducted by the Committee to Unleash Prosperity in Milwaukee during the Republican National Convention.
Stephen Moore, economic advisor to President Trump, led a fascinating discussion with an impressive panel including Oklahoma’s own Harold Hamm, about fixing the American economy and reducing the national debt.
Dr. Laffer reminded everyone that you “cannot tax an economy into prosperity.” Trump wants to renew the personal income tax cuts set to expire next year and to keep the corporate tax rate at 21%, after he lowered it from 35%. Biden has said he wants to increase the rate to 28%.
Trump wants to keep the capital gains tax rate for investors at 23.8% while Biden wants to increase the investment profit tax to 39.6%. As Laffer extols with passion, amazing zest and enthusiasm for an 83-year-old professor, creating disincentives for investments means people will invest less, which is terrible for economic growth.
Dr. Laffer was the key advisor to Ronald Reagan when the personal income tax rate was reduced from the job-stifling 70% to the pro-growth rate of only 28%. The American economy roared after that.
Now, Americans get to see the results of two different economic policies from two different presidents to compare. The Bureau of Labor Statistics reports data that illustrates that real annual earnings increased by $4,200 under Trump but declined by $2,132 under Biden. Under Trump, the inflation adjusted return for the S&P 500 was a positive 54.7%. For Biden, the gain is a meager 15.7%.
For the sake of American workers and investors, I’m pulling for the Trump Plan.
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