Tag Archives: Tax cut

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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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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$125.00

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High quality Polo shirt with Shinybull logo. This version is made from breathable 100% cotton. Short sleeves and ribbed armbands.

$125.00

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