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Editor’s note: Our political columnists are sharing what they think are the best things Trump accomplished this year for our money, and next week they’ll share the worst. For once, they agree.
Instead of watching the stockings by the fire this Christmas, I’ll be watching the stocks from my Kindle. There’s a special gift coming for you and me courtesy of the big man in the White House. It’s that tax cut I’ve been harping on here and here.
I wouldn’t feel compelled to keep writing about it, if I thought the average American was well-informed on how it affected them. But, sadly this tax cut has gotten the marketing campaign of the plague in the Dark Ages. Check social media, it’s the #TAXSCAM. Go to the mainstream media — there is barely any mention of what you — the average person gets.
In this second-to-last Trumpenomics article of the year, I wanted to focus on the best thing Trump has done this year: his long awaited tax cut. The House and Senate versions have negotiated into one. Now, I eagerly await its delivery down my chimney, into my wallet.
On January 1st when you ask me: What’s the best thing that Donald Trump did for finance in 2017? I can say: He gave me the gift that gives back every pay check.
Briefly, what do I get again?
All right, I’ll assume you didn’t read before — but if you did, this a quick gloss-over. Here are the bullet point you aren’t getting from cable news.
Everybody wins (albeit some more than others): Lower middle class filers stand to save $840. This is done through a combination of lowering every tax bracket a few percentage points and doubling — DOUBLE! — the standard deduction. (I figured repetition and capital letters will help you here.)
It will boost the economy: In case you haven’t heard, corporate tax rates in America are the highest in the developed world. This is a critical time in our economic history. We are coming out of a huge recession. Until this year, the economy grew at a snail’s pace. This year the markets started to soar and could be pushed further by lowering the corporate tax from 35 percent to 21 percent.
It’s a risky venture, but it gives businesses incentives to bring capital back home. On either side you can find an economist who believes this will do nothing for the economy or one who believes this will be rocket fuel for the economy. Yes, even economics is political. Still, many models predict this alone could yearly raise the GDP between 1 percent and 4 percent.
Simply put: GDP goes up, jobs go up and wages rise. That’s worth the gamble to me. There are other tax cuts and exemptions. However, those are the ones you should focus on. They have the potential to create another economic wave that we could all use.
Why is this the best thing Trump has done this year?
How often do you check your retirement accounts? How often do you look at the stock market? For me, it has become an obsession. I still have the experience of day trader on a beer budget, but this year has been phenomenal.
To share a family secret, I diversified my 401(k) in 2016 by moving the contributions to three different funds. One funds tracks the S&P 500, one tracks mid-cap stocks, and one tracks international stocks.
Guess what? In one year my piddly 401(k) doubled. Now, I can’t retire. Heck, I can’t even buy a house. But the proof is there. Right or wrong, the market loves Trump. Every time another politician signed on to the tax bill, it jumped a little more. (Heck, my chip stocks were in free-fall then the Senate passed its bill and they rebounded.)
The point is this. I don’t care what Gallup poll says about how many Americans support this bill. Most don’t even know what is in it. You know who does? Wall Street. Do you know where the economic engine of America is housed? For better or worse it is in the stock exchange.
It’s not an absolute. But, if the brokers and investors trade positively on news that the bill will be law, that is good enough for me. That is trickle down in its own way.
Consider this article from Newsweek. The biggest negative takeaway is that this tax bill has the “potential to increase” wealth disparity. Potential! When did we become so obsessed with our neighbor’s garden? When did we become so petty that we won’t accept $840 because someone who pays more taxes will get more back?
That doesn’t sound like us. C’mon America. Don’t be that nation that says, ‘if we can’t have as much as the rich, we want nothing!”
All I want for Christmas this year is to finally get something back. Washington D.C., I gave you 25 percent of my income, my health care premiums rose through the roof, and my wages are stagnant.
I don’t know about you, but I baked the best chocolate chip cookies and poured the tallest glass of milk. I’m sleeping under the tree, hoping that Trump Claus soon will be there.
Article last modified on July 12, 2018. Published by Debt.com, LLC . Mobile users may also access the AMP Version: Just In Time for Christmas: Trump Claus Delivers the Best Gift Yet - AMP.
Article last modified on July 12, 2018. Published by Debt.com, LLC .