We need to get behind President Trump’s tax plan, even though some people will pay a little bit more in taxes. It’s likely that the rich are going to pay more in taxes, because they live in mismanaged states and have expensive houses.
We’ve written before about our desire to see the corporate tax rate reduced to 20 percent and for companies to immediately give their employees 5 percent raises after the new rate goes into effect. (This would actually cost companies only 1.5 percent, since most companies have less than 30 percent labor costs.) This would do so much to make companies look good because they could promote this idea themselves by insisting that it’s the right thing to do – not because politicians or the unions and organized labor made them do it. If companies are going to reap a windfall in lowered corporate taxes, then they should pass a little on. It will help the economy grow because employees will have more disposable income to spend, raising the demand for all products and services, and ultimately increasing the value of products and increasing U.S. imports and exports.
We also need to work on the anti-Trump attitude that some people have. He’s making you guys look good, whether you want to admit it or not. You’re afraid to admit it because you don’t like some of the things he does or how he does it. He does some things that I don’t like, either. But I’m a Democrat.
I’ll tell you what: This tax plan is really needed for the economy. I want to help the poor and the middle income, and they will be helped.
We worry about corporate profits and Wall Street more than we worry about our employees. That’s the problem. It’s true that if you increase wages, labor costs will increase and companies are going to be a little less profitable. But look at what you’re going to do, instead: the right thing– which isn’t trying to chase profits only on Wall Street, but instead become a stronger, more stable company.
I believe in free markets, but I also believe that employees will have a great attitude and will produce more if you increase their wages, more than making up for the 5 percent raise. You’ll see more teamwork, too, with their leaders.
I do believe that this is something that companies should do. I think the government’s accounting of what the tax plan will do to the national debt is totally wrong. Use a 4 percent GDP growth, and we will be paying down the national debt in a few years.
And we will all be too busy to talk about unimportant speculation.