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Nihilism`s impact on the culture and values of the 20th century has been pervasive

President Donald Trump had a very long and strong speech earlier this week. It was his first state of the Union address, and what a massive success. Let`s be clear; President Donald Trump is a brilliant Cheerleader. No doubt.

Its not a secret that the American people has not been proud of its own country for at least fifteen years or so. Here is where Mr Trump comes in. He wants to «Make America Great Again.» And he is on the way.

 

(Metaphysical collapse often ends in total negation and victory of nihilism, characterized by profound hatred, pathological destruction, and incalculable violence and death)

 

Mr Trump`s Union of the State speech was about 80 minutes long and according to CBS News poll, 75% of the American people said that the speech was good. 80% said that the president was trying to unite the country, rather than divide it.

91% favored what they heard on infrastructure. 75% favored what they heard about national security. 72% favored what they heard on immigration. This is a massive success for the President of the United States.

A new optimism is on the way. Mr Trump said; «The State of our Union is strong, because our people are strong, and together we are building a safe, strong and proud America.»

Furthermore, he said; «Since the election, we have created 2,4 million new jobs, including 200,000 new jobs in manufacturing alone. After years and years of wage stagnation, we are finally rising wages.»

«Unemployment claims have hit a 45 year low, and something I`m very proud of; African-American unemployment stands at the lowest rate ever recorded, and Hispanic-American unemployment has also reached the lowest levels in history.»

«Small business confidence is at an all-time high. The stock market has smashed one record after another, gaining 8 thrillion dollars and more in value in just this short period of time.»

«The great news for Americans, 401k retirement, pension and college savings accounts have gone through the roof and just as I promised the American people from this podium 11 months ago, we enacted the biggest tax cuts and reforms in American history.»

We saw massive positive response, but it was ridiculous to see Democrats just sitting there. Nearly all of them with a stone face. Not smiling. Just like an anti-Trump-party. Even if they agree with something, they boycott anyway.

Like many other speeches from Mr Trump, this speech was brilliant, and people liked it. But Mainstream Media didn`t like it at all. They thought it was dark. How is that possible?

It can be Nihilism, which is often associated with extreme pessimism and radical scepticism that condemns existence. A true nihilist would belive in nothing, have no loyalties, and no purpose other than, perhaps, an impulse to destroy.

 

 

 

Fredrich Nietzsche said that nihilism`s corrosive effects would eventually destroy all moral, religious, and metaphysical convictions and precipitate the greatest crisis in human history. (Editor: the text about nihilism is written by author Alan Pratt – Nihilism).

In the 20th century, nihilistic themes, epistemological failure, value destruction, and cosmic purposelessness, have preoccupied artists, social critics, and philosophers.

It has been over a century now since Nietzsche explored nihilism and its implications for civilization. As he predicted, nihilism`s impact on the culture and values of the 20th century has been pervasive, its apocalyptic tenor spawning a mood of gloom and a good deal of anxiety, anger, and terror.

It`s helpful to note that Nietzsche believed we could, at a terrible price, eventually work through nihilism. If we survived the process of destroying all interpretations of the world, we could then perhaps discover the correct course for humanity.

Nihilism comes from the Latin nihil, or nothing, which means not anything, that which does not exist. It appears in the verb «annihilate,» meaning to bring to nothing, to destroy completely.

Anarchist leader Mikhael Bakunin (1814-1876) composed the notorious entreaty still identified with nihilism:

«Let us put our trust in the eternal spirit which destroys and annihilates only because it is the unsearchable and eternally creative source of all life, the passion for destruction is also a creative passion!» (Reaction in Germany, 1842).

The movement advocated a social arrangement based on rationalism and materialism as the sole source of knowledge and individual freedom as the highest goal. By rejecting man`s spiritual essence in favor of a solely materialistic one, nihilists denounced God and religious authority as antithetical to freedom.

The movement eventually deteriorated into an ethos of subversion, destruction, and anarchy, and by the late 1870`s, a nihilist was anyone associated with clandestine political groups advocating terrorism and assassination.

Political nihilism is associated with the belief that the destruction of all existing political, social, and religious order is a prerequisite for any future improvement. Ethical nihilism or moral nihilism rejects the possibility of absolute moral or ethical values.

Instead, good and evil are nebulous, and values addressing such are the product of nothing more than social and emotive pressures.

Existential nihilism is the notion that life has no intrinsic meaning or value, and it is, no doubt, the most commonly used and understood sense of the word today. Max Stirner (1806-1856) argues that existence is an endless «war of each against all» (The Ego and its own, trans 1907).

 

(It has been over a century now since Nietzsche explored nihilism and its implications for civilization. As he predicted, nihilism`s impact on the culture and values of the 20th century has been pervasive, its apocalyptic tenor spawning a mood of gloom and a good deal of anxiety, anger, and terror)

 

Nietzsche said nihilism will expose all cherished beliefs and sacrosanct truths as symptoms of a defective western mythos. This collapse of meaning, relevance, and purpose will be the most destructive force in history, constituting a total assault on reality and nothing less than the greatest crisis of humanity:

What I relate is the history of the next two centuries. I describe what is coming, what can no longer come differently; the advent of nihilism….. For some time now our whole European culture has been moving as toward a catastrophe, with a tortured tension that is growing from decade to decade: restlessly, violently, headlong, like a river that wants to reach the end……(Will to power)

Nietzsche`s analysis was accurate, for example, Oswald Spengler in The Decline of the West (1926) studied several cultures to confirm that patterns of nihilism were indeed a conspicuous feature of collapsing civilizations. Spengler said that Western civilization is already in the advance stages of decaly with all three forms of nihilism working to undermine epistemological authority and ontological grounding.

Helmut Thielicke wrote that «Nihilism literally has only one truth to declare, namely, that ultimately Nothingness prevails and the world is meaningless.» (Nihilism: Its Origin and Nature, with a Christian Answer, 1969).

From the nihilists perspective, one can conclude that life is completely amoral, a conclusion, Thielicke believes, that motivates such monstrosities as the Nazi reign of terror. Gloomy predictions of nihilisms impact are also charted in Eugene Rose`s Nihilism: The Root of the Revolution of the Modern Age (1994).

If nihilism proves victorious, and it`s well on its way, he argues, our world will become «a cold, inhuman world» where «nothingness, incoherence, and absurdity» will triumph.

In the dark side: Thoughts on the Futility of Life (1994), Alan Pratt demonstrates that existential nihilism, in one form or another, has been a part of the Western intellectual tradition from the beginning.

In antiquity, such pessimism may have reached its apex with Hegesias of Cyrene. Because miseries vastly outnumber pleasures, happiness is impossible, the philosopher argues, and subsequently advocates suicide.

Centuries later during the Renaissance, William Shakespeare eloquently summarized the existential nihilist`s perspective when, in this famous passage near the end of Macbeth, he has Macbeth pour out his disgust for life:

Out, out, brief candle!

Life`s but a walking shadow, a poor player

That struts and frets his hour upon the stage

And then is heard no more; it is a tale

Told by an idiot, full of sound and fury,

Signifying nothing.

In the twentieth century, its the atheistic existentialist movement, populated in France in the 1940s and 50s, that is responsible for the currency of existential nihilism in the popular consciousness. Jean-Paul Sartres (1905-1980) defining preposition the movement, «existence precedes essence,» rules out any ground or foundation of establishing an essential self or a human nature.

Camus, like the other existentialists, was convinced that nihilism was the most vexing problem of the twentieth century. The Plague (1947) shows the futility of doing one`s best in an absurd world. And in his last novel, the short and sardonic, The Fall (1956), Camus posits that everyone has bloody hands because we are all responsible for making a sorry state worse by our insane action and inaction alike.

In these works and other works by the existentialist, one is often left with the impression that living authentically with the meaninglessness of life is impossible. Camus was fully aware of the pitfalls of defining existence without meaning, and in his philosophical essay The Rebel (1951) he faces the problem of nihilism head-on.

In it, he describes at length how metaphysical collapse often ends in total negation and victory of nihilism, characterized by profound hatred, pathological destruction, and incalculable violence and death.

It has been over a century now since Nietzsche explored nihilism and its implications for civilization. As he predicted, nihilism`s impact on the culture and values of the 20th century has been pervasive, its apocalyptic tenor spawning a mood of gloom and a good deal of anxiety, anger, and terror.

Interestingly, Nietzsche himself, a radical skeptic preoccupied with language, knowledge, and truth, anticipated many of the themes of postmodernity. It`s helpful to note, then, that he believed we could, at a terrible price, eventually work through nihilism.

If we survived the process of destroying all interpretations of the world, we could then perhaps discover the correct course for humankind:

I praise, I do not reproach, (nihilism`s) arrival. I belive it is one of the greatest crisis, a moment of the deepest self-reflection of humanity. Whether man recovers from it, whether he becomes master of this crisis, is a question of his strength. It is possible……. (complete works vol. 13).

One thing is for sure: This world isn`t built by pessimists. This world is built by positive thinkers. Trump is a brilliant Cheerleader and has the right mindset: Make America Great Again!

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Elite CEO`s scrambled to take selfie with Trump in Davos and there was overwhelming universial support for the “rockstar”

President Donald Trump were treated like a rock star when he came to Davos, Switzerland last friday. It was like Michael Jackson, Elvis Presley and Beatles combined. It was chaos. Everybody wanted to be where Trump was. Everybody wanted to be around him.

Elite CEOs scrambled to take selfies with him. Theyre elbowing each other out-of-the-way, and there was overwhelming support for Mr Trump. Not only that; The Dow Jones Industrial Average went straight up, over 200 points on the news of Mr Trump`s reception in Davos. Wow!

President Trump was surrounded by a bunch of globalists. A bunch of one-world government globalists types. CEOs and other leaders around the world. What we saw in Davos was a universal support. Except one thing: Mainstream Media. They didnt like it at all.

Right after Mr Trumps inauguration, Mainstream Media were laughing at President Trumps tax cut plan. Some of them said; Trump belive he can cut the taxes. How in the world can he afford to do that? Ha ha ha.

Now, a year later, Trumps $1,5 trillion tax cut and the «resulting boom» has been applauded in Davos. The Prime Minister in Netherland said in an interview that he support some of Trumps politics and that the world need more leaders like him.

I do agree. I support some of his politics, but disagree with other things. So was it with Obama, Bush and Clinton. I belive people around the world should support the U.S president no matter who it is. It`s about respect. He is the boss. A powerful world leader.

President Donald Trump is a leader for the history books, and he is a great president that kids in the future shall study and learn about. People in America should be proud of him. He is not only a representative for the U.S, but also a great mentor on the world stage.

President Donald Trump is one of the world`s greatest leaders, and those who would say otherwise are in a dark place.

Donald Trump is in arguably one of the most interesting and popular personalities in the world right now. This is an incredible and most important marker in earths history. As weve seen the ceremonies of transition of power from president to the next, this one will be remembered for generations to come.

This is a power shift that is not inclusive to America but a power shift that affected the whole world. The inauguration of President Trump signaled the end to the power that has been in control of the human race for thousands of years.

What we see now is a total shift of the control of the earth.

Some people claim that the Luciferian rain is fading out and it`s the end of the world as they know it. Lucifer has lost power and control of the earth in all of his mechanisms of deception and manipulation will be exposed completely.

Donald Trump in his inauguration speech said; «Together we will determine the course of America and the world for many, many years to come (The righteous are now in control of America and the world).

Your voice, your hopes and your dreams will define our American destiny. (The righteous have taken control of the future).

And your courage and goodness and love will forever guide us along the way. We stand at the birth of a new millennium ready to unlock the mysteries of space (The truth about space will be exposed) to free the earth from the miseries of disease (The pharmaceutical industry to be exposed) and to harness the energies industries and technologies of tomorrow (free energy).

Today`s ceremony however has very special meaning. Because today, we are not merely transferring power from one administration to another, or from one party to another, but we are transferring power from Washington DC and giving it back to you, the people

January 20th 2017 will be remembered as the day the people became the rulers of this nation again (On January 20th 2017, the course was broken).

And most importantly, Trump said, We will be protected by God (The Luciferian is crying).

Its being said that this is a transition of power from the Luciferian rulers of the earth to the righteous people of the earth. President Trump with the help of Americas allies including Russia will put an end to this Luciferian World Order agenda.

President Trump went to Davos to represent the interest of the American people to affirm America`s friendship and partnership in building a better world like all nations representing at this great forum. America hopes for a future in which everyone can prosper and every child can grow up free from violence, poverty and fear.

He also said in the speech that the world`s largest company Apple announced it plans to bring $245 billion in overseas profits home to America. Their total investment into the United States economy will be more than $350 billion over the next five years.

Now is the time to bring your business, your jobs and your investments to the United States. This is especially true because we have undertaken the most extensive regulatory reduction ever conceived . Regulation is stealth taxation.

The U.S, like many other countries, unelected bureaucrats, (and we have them all over the place), and they`ve imposed crushing an anti business and anti worker regulations on our citizens with no vote, no legislative debate and no real accountability. In America, those days are over.

I pledged to eliminate two unnecessary regulations for every one new regulation. We have succeeded beyond our highest expectations. Instead of two for one, we have cut 22 burdensome regulations for every one new rule. We are freeing our businesses and workers so they can thrive and flourish as never before.

We are creating an environment that attracts capital, invites investment and rewards production. America is the place to do business. So, come to America where you can innovate, create and build. I belive in America.

As President of the United States, I will always put «America first,» just like the leaders of other countries should put their country first. But America first does not mean America alone. When the United States grow, so does the world.

American prosperity has created countless jobs all around the globe and the drive for excellence, creativity and innovation in the U.S has led to important discoveries that help people everywhere. Live more prosperous and far healthier lives as the United States pursues domestic reforms to unleash jobs and growth. We are also working to reform the international trading system so that it promotes broadly shared prosperity and rewards to those who play by the rules.

We cannot have free and open trade if some countries exploit the system at the expense of others. We support free trade but it need to be fair, and it needs to be recipical. Because in the end, unfair trade undermines us all. The United States will no longer turn a blind eye to unfair economic practices, including massive intellectual property theft, industrial subsidies and pervasive state-led economic planning.

These and other predatory behaviors are distorting the global markets and harming businesses and workers. Not just in the United States but around the globe. Just like we expect the leaders of other countries to protect their interests. As President of the United States I will always protect the interest of our country, companies and our workers.

We will enforce our trade laws and restore integrity to our trading system. Only by insisting on fair and reciprocal trade can we create a system that works not just for the U.S but for all nations.

As I have said, the United States is prepared to negotiate mutual beneficial bilateral trade agreements with all countries. This will include the countries in TPP which are very important. We have agreements with several of them already. We would consider negotiating with the rest either individually or perhaps as a group if it is in the interest of all.

At the end of the speech he said; We must invest in our people. When people are forgotten, the world becomes fractured. Only by hearing and responding to the voices of the forgotten can we create a bright future that is truly shared by all. The nations greatness is more than the sum of its production. The nations greatness is the sum of its citizens. The values, pride, love, devotion and character of the people who call that nation home.

President Trump have dedicated his life to the American people. To the world. I want to remind you that he is doing all this for only $1 dollar. What a man!

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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World Economic Forum`s motto is “Committed to improving the state of the world,” and President Trump will attend

Every year at the end of January, it is time for World Economic Forum (WEF) in Davos. The forum was founded in 1971 by Klaus Schwab. A German-born business professor at the University of Geneva. First named the “European Management Forum”, and then it changed its name to the World Economic Forum in 1987.

Its mission is cited as “committed to improve the state of the world by engaging business, political, academic, and other leaders of society to shape global, regional, and industry agendas”. President Trump is a business man and he will join the elite at the forum in Davos this time.

The meeting at Davos is synonymous with wealth and elite prestige and Presidents have therefore been concerned to participate because it would send wrong signals. Mr Trump will be the fist sitting President since Bill Clinton in 2000 to attend. Mr Trump is a business man and have an agenda. A message.

That being said; don`t forget the forums motto: “Committed to improving the state of the world.”

Mr Trump is finish with his first year as a President at the White House, and so far he has done a lot of good things, not only for the USA, but also for the rest of the world. But this is only the beginning.

The meeting in Davos brings together some 2,500 top business leaders, international political leaders, economists, and journalists for up to four days to discuss the most pressing issues facing the world.

But Trump`s agenda is not to make the world great again, but the USA. He will also try to sell his «America first» agenda to the world leaders. It is not difficult to understand that he also want to promote his policies to strengthen American businesses, their industry and their workers.

What Trump is doing in the U.S will also affect the rest of the world. For instance, a corporate tax cut in the U.S will also affect other countries. For all I know, maybe other countries will follow his strategy and cut the taxes as well.

Trump is also a great negotiator and he told Stoltenberg at NATO to pay the bills to the U.S Navy, and you know what; they did. This is brilliant. He is making USA more safe, but also NATO members and the European Union more safe.

I think Mr Trump will try to sell his economic growth agenda on the world stage and speak with the World Bank and the IMF, and I really look forward to his speech. It can be full of surprises. His administration said that Trump`s delegation to Davos will be large.

Mr Trump recognized Jerusalem as Israels capital. That can also be an issue if you think of the forums motto: “Committed to improving the state of the world.” We have seen this before.

At the 1994 annual meeting, Israeli Foreign Minister Shimon Peres and PLO chairman Yasser Arafat reached a draft agreement on Gaza and Jerico. Two years earlier, South African President F.W de Klerk met with Nelson Mandela and Chief Mangosuthu Buthelezi, which was the first joint appearance outside South Africa.

North Korea was invited to Davos in 2016, “in view of positive signs coming out of the country,” the WEF noted. North Korea has not been attending the WEF since 1998. The invitation was accepted but after their nuclear test on January 6, 2016 (only days before the meeting), the invitation was revoked.

North Korea`s delegation was made subject to “existing and possible forthcoming sanctions.”

The country protested and called the decision by the WEF managing board a “sudden and irresponsible” move, but the WEF committee maintained the exclusion because under these circumstances there would be no opportunity for international dialogue.

Last year, a head of state from the People`s Republic of China was invited to the alpine resort. With the backdrop of Brexit, an incoming protectionist US administration and significant pressure on free trade zones and trade agreements, President Xi Jinping defended the global economic scheme, and portrayed China as a responsible nation and a leader for environmental causes.

President Xi Jinping rebuked the current populist movements that would introduce tariffs and hinder global commerce, warning that such protectionism could foster isolation and reduced economic opportunity. This is still a hot potato.

Two year ago, the forum announced the opening of its new Center for the Fourth Industrial Revolution in San Francisco. They said the center will “serve as a platform for interaction, insight and impact on the scientific and technological changes that are changing the way we live, work and relate to one another.” Great news at that time.

What about the crypto currency revolution? The cryptobank boom? All this decentralized coins and banking industry with tokens and their «smart contracts» that is flooding the market. Will the world leaders talk about it, and will the central banks answer with a centralized version in the future?

 

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Tax revenues increased from $94 billion in 1961 to $153 billion in 1968 with lower taxes

The Gross Domestic Product in the United States expanded 2,30 percent in the third quarter of 2017 over the same quarter of the previous year, and President Donald Trump is not satisfied with that. His next action to fix that is to cut the taxes.

John F Kennedy was also dissatisfied with economic growth in the early 60s with a growth rate at «only» 2 percent. What he wanted is 4 or five 5 percent growth. Exactly what Mr Trump want, but what happened to Kennedys taxes and is it something to learn?

In a speech John F Kennedy said: “We have to secure 25,000 new jobs a week for the next 10 years in order to provide jobs for all of the people coming into the labor market. That is a terribly difficult task at a time when automation and new machinery has taken the jobs of men. And at the present rate of economic growth or productivity increase, we are not going to have those jobs for people.”

So, automation and new machinery made it difficult in the 60`s? Wow.

The labor force in the U.S in 1960 was 70 million. Now, it is more than twice (160,381 million as of October 2017). The unemployment rate under President Trump is 4,1 percent as the number of unemployed persons decreased by 281,000 to 6,5 million in October 2017.

The unemployment was 5,2 percent in 1964, but it sooner declined to 3,8 percent later on the same year. It continued to fall to 3, percent in 1969. In other words: JFK`s tax cuts were working, and economic growth creates jobs.

Kennedy`s tax cuts were not passed by Congress until his death on February 26, 1964, in the Revenue Act of 1964. Kennedy had the right mindset. Their tax rates was too high and their tax revenues too low.

In 1964, the bill reduced the top marginal rate from over 90 percent to 70 percent. Tax revenues increased from $94 billion in 1961 to $153 billion in 1968. Cutting taxes at that time was not to incur a budget deficit, but to achieve the more prosperous, expanding economy which could bring a budget surplus. And it did.

After the tax bill, made by President Lyndon B Johnson, real GDP grew at 5,8 percent in 1965, and 6,6 percent in 1966. Lower taxes generated more revenue for Uncle Sam.

The concept is very simple but difficult for many to understand. When people have more money, they spend it which means additional tax receipts. Not only that.

Lower taxes will reduce risk-taking which is good for the U.S entrepreneurship. You can imagine what entrepreneurs like Steve Jobs, Mark Zuckerberg, Jeff Bezos, Sergei Brin and Elon Musk have added to the growth of the economy using their ideas to create new firms and jobs?

What would have happen if they all had taken a new job as an ordinary employee with IBM? The answer is very simple: a slower tech industry.

John F Kennedys tax cut model were the model for Reagans. Now, it is time for Mr Trump and it remain to see his model.

 

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Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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Lower tax rate should stimulate economic activity and generate more revenue to the government than higher tax rate

The U.S Senate was positive to President Donald Trump`s tax reform and passed the tax reform bill in the early hours of Saturday morning. The U.S tax cuts are a move to a simpler tax system. Mr Trump said the Americans will love the new system.

It is the largest tax cut in the U.S in history, and it is the biggest package in terms of tax cuts ever. Mr Trump said something beautiful will come out of that picture. The tax cuts will be tremendous and that`s what this country need, he said.

(Picture: United States Debt to GDP)

 

This is a bold decision for Mr Trump. He is trying to do what no other president in the U.S has done since Ronald Reagan in the 80`s; rewriting the tax code. The congress agreed on a tax reform package 31 years ago, and now they are doing the same.

Senate Republicans passed a bill overhauling the federal tax code, and 51 senators voted for the «Tax cuts and jobs act,» with just 1 Republican voting against.

No Democrats supported the legislation.

A significant individual tax cut was proposed by President John F. Kennedy and signed into law by President Lyndon B. Johnson with the belief that cutting tax rates would stimulate investment and spending, with overall beneficial effects (including replenishment of some lost tax revenues).

President Ronald Reagan signed tax cuts into law, which some belive stimulated a doubling in total tax revenues (from 500 Billion to 1 Trillion dollars) during the period from 1980 to 1990.

On the other side; the deficit and national debt more than tripled (from $908 Billion in 1980 to $ 2 Trillion in 1990) because government spending rose even faster than increases in tax revenue.

As a result, income tax receipts as a percent of GDP fell from 11,3% to 9,3% in 1984 and did not to revert to original levels until the late 1990`s, even though overall revenue skyrocketed in terms of real dollars.

(Picture: United States Government debt)

 

President George W. Bush signed two major tax cuts into law: one in 2001 and one in 2003. These are often collectively referred to as the «Bush Tax Cuts». Some people claimed the Bush tax cuts have led to the rich shouldering more of the income tax burden and the poor shouldering less.

Washington Times credit the Reagan tax cuts with the eventual surplus of the late 1990`s. Others doubt this claim however, and instead belive the surpluses were a result of a combination of a decrease in government spending, the passing of the Omnibus Budget Reconciliation Act of 1993 (which dictated several tax increases), and the use of the PAYGO system.

Others claims the Bush tax cuts have conferred the «largest benefits, by far on the highest income households. At the state level, former Democratic Governor Bill Richardson in recent years has supported tax cuts to spur economic growth.

A tax cut is a reduction in the rate of tax charged by the U.S government. The immediate effects of a tax cut are a decrease in the real income of the government and an increase in the real income of those tax rates have been lowered.

Due to the perceived benefit in growing real incomes among tax payers, politicians have sought to claim their proposed tax credits as tax cuts.

In the longer terms, however, the macroeconomic effects of a tax cut are generally not predictable because they depend on how the taxpayers use their additional income and how the government adjusts to its reduced income.

Depending on the original tax rate, tax cuts may provide individuals and corporations with an incentive investments which stimulate economic activity. Some politically conservative opinion-makers, such as Art Laffer (better known for the Laffer curve), have theorized that this could generate so much additional taxable income that a lower tax can generate more revenue than was collected at the higher rate.

(Picture: Laffer Curve: t* represents the rate of taxation at which maximal revenue is generated. The grey curve is as drown by Laffer, however, the curve might not have only a single peak, nor must it peak symmetrically at 50%)

 

However, basic math states that cutting tax rates in half would require an economy twice the size to generate the same amount of tax revenue.

High tax rates doesn`t necessarily mean large revenue to the government. Lower tax rates can increase the government’s revenue. It seems difficult for some people to understand that.

100% tax rate means theoretically zero revenue because taxpayers lose their incentive to work. The economic effect of a 100% tax rate is to decrease the tax base to zero. If this is the case then somewhere between 0% and 100% lies a tax rate that will maximize revenue.

The tax cut shouldn`t be a bearish sign for the investors. Lower tax for the corporations means reduced unemployment and an incentive for investors to invest in new stocks and that will create more new jobs.

A corporate tax cut from 35% to 20% will boost the stock market, and the Senates $1,4 trillion tax bill will also boost the corporate earnings and thats positive for the stocks and the stock market.

The economy is a complicated system. Inflation, political uncertainty and the Fed`s monetary policy can add volatility. It remains to see.

I have said so many times and need to say it once again; this is the most unloved bull market in history.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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