Copying some self-styled national conservatives, Donald Trump this week endorsed major tax increases on lower-income and middle-class Americans.
But he embraced huge tax increases in an indirect fashion.
- He did not say “let’s adopt money-siphoning value-added taxes” like they have in Europe.
- Nor did he say “let’s impose very high income tax rates on ordinary people” like they do in Europe.
- And he didn’t say “let’s have much higher payroll tax rates” like they have in Europe.
Instead, Trump embraced huge tax increases by default. He told congressional Republicans to ignore America’s slow-motion crisis of entitlement spending.
For all intents and purposes, that is the same as embracing huge tax increases.
To be more specific, if you endorse European-style government spending, you are necessarily and unavoidably endorsing European-style tax policy.
And that’s what Trump did. Here are some excerpts from a report in the Hill by Brett Samuels.
Former President Trump on Friday urged Republicans in Congress not to cut “a single penny” from Medicare or Social Security…
“Under no circumstances should Republicans vote to cut a single penny from Medicare or Social Security…,” Trump said in a recorded video statement posted to Truth Social. …The former president’s message about protecting Social Security and Medicare is consistent with his previous comments on the issue as a candidate in 2016.
For what it’s worth, I’m not surprised at what Trump said.
He favored big government as a candidate in 2016 and he expanded the burden of spending when he was President.
But some of us don’t want to surrender and doom the United States to European-style economic stagnation.
Which is why I’ve decided to take a sentence I wrote last month and turn it into the 15th Theorem of Government.
Here’s the bottom line: Genuine patriots recognize America has a problem and they have the courage to advocate reforms that will actually solve the problem.
It will be interesting to see how many Republicans fit that definition.
P.S. I’m not a never-Trumper or anti-Trumper. For instance, I praised his tax policy and said nice things about his record on regulation. But I’m loyal to ideas, not to people, so I don’t hesitate to criticize any politician who pushes ideas that are bad for America.
P.P.S. Here are the other 14 Theorems of Government.
- The “First Theorem” explains how Washington really operates.
- The “Second Theorem” explains why it is so important to block the creation of new programs.
- The “Third Theorem” explains why centralized programs inevitably waste money.
- The “Fourth Theorem” explains that good policy can be good politics.
- The “Fifth Theorem” explains how good ideas on paper become bad ideas in reality.
- The “Sixth Theorem” explains an under-appreciated benefit of a flat tax.
- The “Seventh Theorem” explains how bigger governments are less competent.
- The “Eighth Theorem” explains the motives of those who focus on inequality.
- The “Ninth Theorem” explains how politics often trumps principles.
- The “Tenth Theorem” explains how politicians manufacture/exploit crises.
- The “Eleventh Theorem” explains why big business is often anti-free market.
- The “Twelfth Theorem” explains you can’t have European-sized government without pillaging the middle class.
- The “Thirteenth Theorem” explains that people are unwilling to pay for bloated government.
- The “Fourteenth Theorem” explains how poor people are hurt by big government.
[…] is one additional reality, which is that we have irresponsible politicians (both Democrats and Republicans) who lie to […]
[…] Moreover, since there are not nearly enough rich people to finance big government, this means Biden and Trump favor massive tax increases on lower-income and middle-class households. […]
[…] Moreover, since there are not nearly enough rich people to finance big government, this means Biden and Trump favor massive tax increases on lower-income and middle-class households. […]
[…] My Fifteenth Theorem of Government points out there is an “unavoidable choice” between entitlement reform and tax policy. […]
[…] emphasize this point, I unveiled my Fifteenth Theorem of Government, which drives home the point that you can’t have big government without pillaging ordinary […]
[…] My Fifteenth Theorem of Government points out there is an “unavoidable choice” between entitlement reform and tax policy. […]
[…] Fifteenth Theorem of Government points out there is an “unavoidable choice” between entitlement reform and tax […]
[…] wrote a two-part series (here and here) about Donald Trump supporting massive middle-class tax […]
[…] wrote a two-part series (here and here) about Donald Trump supporting massive middle-class tax […]
[…] wrote a two-part series (here and here) about Donald Trump supporting massive middle-class tax […]
[…] Regarding those two choices, Donald Trump supports massive tax increases. […]
I do agree with you but living the debt ceiling battle by trying to win the entitlements war means losing both.
Trump and Cortes are both saying win the debt ceiling battle so you have a better strategic position.
I apologize for being a bit undiplomatic. This was pretty nice compared two years ago.
Bluecat, I thought we held similar views, that’s why I responded. If your complaint is about political maneuvering or timing, OK, fine. I plead ignorant. My point is that SS and Medicare finances need to be fixed, and the longer we wait to fix it, the more painful the solutions become. In my simplistic world, denying factual reality is a bad thing, even for politicians.
I hold few politicians in high regard. My definition of politics is poli = many + tics = bloodsucking parasites. However, fixing SS and Medicare is literally a job politicians should be doing. Even if it’s politically unpopular. Who knows, maybe voters will reward the party that treats them like adults and tells them the truth about SS and Medicare. But again, I don’t know if telling the truth should take place now, 6 months from now, or in 2025. But it cannot wait forever. Absent some other fix, the fix will be that in ten years SS recipients will have their benefits cut by 23% or so.
Trump embraced huge tax increases by default. He told congressional Republicans to ignore America’s slow-motion crisis of entitlement spending.
That’s what I am responding to in my comment.
The rest of the article is the same old pie in the sky distraction..
I’ve been to the capitalist Free to Choose side of economics since 1980, even earlier.
Trying to fix entitlements now is a waste of resources.
And trying to do so is a sure loss for Republicans.
You miss the tree for the forest.
What is being said is NOT
Don’t ever try to fix entitlements.
Trump’s and many others are saying.
Focus on the debt limit and make the Democrats own their excessive earmarks and discretionare spending.
Like you and your “principles”, voters can only focus on ONE thing at a time.
Fix the excessive spending on discretionary so we can stop inflation and expanding government.
ONLY THEN do we try to save capitalism.
Stop the bleeding then fix the other problems.
[…] Donald Trump Supports Massive Tax Increases on Middle-Class Americans […]
Dan’s post is about the funding shortfalls of Medicare and Social Security. Assuming that’s the “mess” you’re talking about, it’s a multi-decade issue and not only a problem for Dems and Biden. Something needs to change. A) Benefits need cut, or B) taxes need raised, or C) the age of eligibility needs extended. Realistically, probably all of those. If Republicans aren’t the party of fiscal responsibility, then we don’t have one.
Yes. Same as what Cortes said on War Room. The Dems and Biden own this mess. The Republicans don’t have to give them anything.
Bluecat,
You say Trump is offering a negotiating tip. To who, congressional Republicans? And what is the goal?
I was just going to call Mr Mitchell an idiot. Your reply was politer.
Trump is merely offering a negotiating tip.
You start with NO! and work from there.
Hi Dan,
Your 15th Theorem of Government is almost correct. Allow me to correct it for you below:
15th Theorem of Government
Anybody who opposes entitlement reform is unavoidably in favor of big tax increases on lower-income and middle-class Americans, or in favor of monetizing the national debt, which will result in high inflation, or is in favor of defaulting on the national debt.
Chuck Wright
Mr. Mitchell,
I find the headline in this article to be disingenuous.
Yes, entitlements are a significant issue. However, leftists consistently holler that conservatives are gonna cut Social Security and Medicare, which is patently false. Something that needs pointing out (hammered home?), is leftists were the ones that voted to eliminate the firewall (which ensured solvency) between the Social Security monies and the general fund,.
Both programs, on the whole, are useful. There are (as you have stated before) many other federal agencies that only exist to exist, meaning they do not fulfill their core mandate. Department of Energy jumps immediately to mind.
NO politician is ideal, but had Trump survived the Democrat ballot insurrection of 2020, today’s situation would be much, much different.
Best regards,
Kevin Susquehanna County, PA
Sent from my Behemoth Dell 690