Wednesday, May 30, 2018 by Jayson Veley
While the majority of liberal democrats claim to know how to create jobs and bolster the middle class, the reality is that they are nothing but economic illiterates. Why? Because anyone who believes that tax increases lead to more prosperity can’t possibly understand economics.
One of these economic illiterates on the left is none other than the former mayor of New York City, Michael Bloomberg. While on stage recently with Christine Lagarde of the International Monetary Fund, Bloomberg actually admitted that tax hikes on the poor is a good thing. This is the kind of demented thinking that cripples America’s economy each and every time the democrats gain control of the country. The liberals just don’t learn.
“Some people say, well, taxes are regressive,” Bloomberg said. “But in this case, yes they are. That’s the good thing about them because the problem is in people that don’t have a lot of money. And so, higher taxes should have a bigger impact on their behavior and how they deal with themselves. So, I listen to people saying, ‘oh, we don’t want to tax the poor.’ Well, we want the poor to live longer so that they can get an education and enjoy life. And that’s why you do want to do exactly what a lot of people say you don’t want to do.” (Related: Democrats are now promising to raise taxes if they are elected this November.)
So, in other words, Michael Bloomberg is arguing that tax increases should be viewed as a good thing because they provide poor people with certain medical services, education and, by extension, more enjoyable lives. This, of course, is a preposterous argument. It implies that the only possible way people can become successful and flourish is if the government comes in and separates them from their hard-earned money. The reality, though, is that the exact opposite is true – that is, when individuals across all economic classes are allowed to profit from the fruits of their labor, widespread prosperity is achieved.
Furthermore, somebody needs to explain to Michael Bloomberg that when taxes are lowered – not raised across the board, as he seems to be in support of – businesses are able to expand, create jobs, and provide opportunities to millions of Americans that otherwise might not have had them.
Not long after President Donald Trump fulfilled his promise of dropping the top corporate tax rate from 35 percent to 21 percent, many businesses were inspired to invest, increase wages for their workers, and even give out bonuses. Apple, for instance, is planning on using the money saved from the tax cuts to invest $350 billion over the next five years, which they expect will create 20,000 new jobs. Visa is going to be increasing their matchmaking contributions to their employees 401k plans from 6 percent to 10 percent. Verizon will provide all of their employees (not including those that are in top management) with 50 shares, which has a total value of over $2,600. That means that Verizon will be giving out a total of $411 million worth of shares to 155,000 workers. (Related: Trump’s tax cuts are boosting economic growth and are mostly paying for themselves.)
Other companies who have announced plans to give out bonuses to their employees as a result of Trump’s tax decrease include Comcast, AT&T, Home Depot, Bank of America, and many more.
If Michael Bloomberg wants to believe that tax increases lead to better lives for everyone, then that is his right. From an economic standpoint, however, his assessment couldn’t be more incorrect. The facts don’t lie – when the tax rate is lowered for everybody, America flourishes.