Tax Policy

VIDEO: Factory workers talk about how much those Trump ‘crumbs’ have meant to them

By —— Bio and Archives--August 17, 2018

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VIDEO: Factory workers talk about how much those Trump ‘crumbs’ have meant to them
According to Nancy Pelosi and other Democrats, the benefits the average worker received from last year’s tax cut have amounted to mere “crumbs.” They’re so small they’re hardly even worth getting. They’re worse than useless because they’re so insulting!

So say the people who would prefer to hike taxes through the roof on everything.


But if you ask the people who have actually benefited from the tax cuts, you’ll hear a very different story. The good folks at Heritage’s Daily Signal did just that recently at a Hagerstown, Maryland company called Jamison Doors. These are hourly factory workers who wanted to tell their stories about what the tax cut has meant to them.

Someone will need to get the smelling salts for Nancy Pelosi after this:

Here’s what almost all politicians and most journalists miss about tax policy: They think that if your own personal tax liability was cut by $5, that means the government “gave you $5.” And if someone else’s tax liability was cut by $50, then you got screwed because all you got was $5.

Real economics doesn’t work that way at all, and this video proves it.

Democrats and the media screeched that “more of the benefits” were going to corporations because the corporate tax rate got cut from 35 percent to 21 percent, while individual income tax rates were cut by much smaller percentages. But when tax rates change, economic behavior changes because more capital is freed up for use in the private sector.

The employees didn’t only benefit from their own personal rate cuts. They also benefited because some of the things the company decided to do with its new found capital would benefit the as well. And it’s that way with every company. If you have more capital, you can use it for raises or bonuses, or for plant expansions or new product rollouts, or to pay down debt that will reduce your debt service and consequently your overhead.

Conservatives tended to get excited in the weeks after the tax cut passed whenever an employer announced employee bonuses because it rebutted the Democrat claim that workers wouldn’t benefit. That’s fine, but it’s not the only way employees benefit. Anything the company does with the extra capital that strengthens its profit picture, its cash flow or its market position will benefit employees but improving the fiscal environment in which they seek to maximize their income and their job security.

No insight offered here is better than the comment from the employee who is not surprised politicians think the benefits are crumbs, since most of them have no idea what day-to-day things cost and don’t appreciate what a difference even a small amount of extra money can make for a lot of people.

I’ve heard from several financial advisers that the average family wouldn’t be able to handle an unexpected expense of $400. That’s stunning, but if it’s true, then you can see why this kind of money is very meaningful to people like this. And they are grateful for it, in defiance of Democrats and the media who don’t want them to be.


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Dan Calabrese -- Bio and Archives | Comments

Dan Calabrese’s column is distributed by HermanCain.com, which can be found at HermanCain

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