What's really news about the tax proposal Donald Trump laid out in Detroit yesterday is that it's basically the same thing Republican House leaders are proposing: Three rates of 12, 25 and 33 percent rather than the seven we have today. He also proposed a special rate of 10 percent for repatriated profits brought home from overseas by companies operating abroad. This has long been one of Herman's big issues, since we're talking about hundreds of billions in capital that remain overseas because the companies would have to pay a 35 percent tax on them if they brought them home.
About corporate taxes, Trump proposes to reduce the 35 percent rate that's the world's highest to 15 percent. You'll hear a lot about how "the math doesn't add up," which is translated to mean the federal government might have to do with less money. But the math always adds up. It's just that an awful lot of the capital might end up in the hands of the private sector where it can be more productive. This is a horrifying possibility for the political class and their media servants, but it's good news for people who value prosperity.
Here's the full speech:
One thing you can't help but note when watching the speech is how often the audience starts booing at odd and random times. Trump mostly has fun with it, at one point telling the booers, "Thank you. Very well planned out."
The media keep telling us that Trump is crazy. Here you see Trump giving a pretty straightforward economic speech, and conducting himself in a completely sane manner, while the audience acts crazy. I didn't go to the speech so I don't know, but my guess would be that the booers were organized by the United Auto Workers, who act as if anyone who wants to move away from their agenda is the personification of evil.
(I was busy being detained on suspicion of bank robbery. More on that later in the day.)
Unfortunately, the Detroit auto industry is very protectionist in nature, since they've relied for years on Democrat politicians like Carl Levin and John Dingell to protect them with trade barriers from foreign competition. Not that this has worked, but the protectionist mindset is regrettably strong in Detroit, and that made it a natural for Trump to emphasize what I believe is his worst policy aspect - the assault on free trade agreements.
But overall he did an excellent job putting some further definition to his economic proposals, contrasting them from the policies of Obama and Clinton, and explaining how much Obama's policies have hurt people like those who live in and around Detroit.
Much of the political media, as is their wont, obsessed over a moment in the speech when Trump's enunciation of the word "cities" sounded like "titties." Our media are a disgrace, but you knew that. Trump is obviously far from a perfect candidate, but contained within this speech is all the reason you need to vote for him over Hillary, even before you get to the Supreme Court and her personal corruption and dishonesty. Do yourself a favor and watch the whole speech rather than relying on the media's coverage of it (or mine, for that matter). It's the only way to know what really happened in Detroit yesterday.
What's really news about the tax proposal Donald Trump laid out in Detroit yesterday is that it's basically the same thing Republican House leaders are proposing: Three rates of 12, 25 and 33 percent rather than the seven we have today. He also proposed a special rate of 10 percent for repatriated profits brought home from overseas by companies operating abroad. This has long been one of Herman's big issues, since we're talking about hundreds of billions in capital that remain overseas because the companies would have to pay a 35 percent tax on them if they brought them home.
About corporate taxes, Trump proposes to reduce the 35 percent rate that's the world's highest to 15 percent. You'll hear a lot about how "the math doesn't add up," which is translated to mean the federal government might have to do with less money. But the math always adds up. It's just that an awful lot of the capital might end up in the hands of the private sector where it can be more productive. This is a horrifying possibility for the political class and their media servants, but it's good news for people who value prosperity.
Here's the full speech:
