Sunday, October 22, 2017

When Corporate Taxes Go Down,Wages Go Up!

That's an economic principle that the loony left liberals don't seem to understand or grasp. Anytime tax cuts are proposed and enacted, the economy prospers and along with it the wages of employees increase exponentially. When corporations (and individuals) are able to keep more of their income (money), they will spend it for more goods and services and expanding their business, not hoard it away “in the mattress”.

The argument against tax cuts is that it will increase our total deficit by cutting down on the revenue that the government collects and needs in order to run the government. But, if history is any precedent, when tax rates are reduced to fair levels, the revenue to the government actually goes up. When presidents JFK, Ronald Reagan, Bill Clinton, and George W. Bush lowered taxes the revenue to the government went up. Sound crazy, that by lowering taxes the revenue goes up, well, let's try to make some sense of this dichotomy.

Let's take a company, for example. If a company could keep more of its profits (income), it then could expand its business and as a result, hire more workers. The more profits the company makes the more taxes it pays. The more workers employed the more taxes are paid by the workers to the government, even at the lower rates for individuals. It's something like when a company lowers the prices of its goods and services, the more goods and services are then sold because the prices were cut, then the increased volume, by lowering prices, made up the difference of lower tax rates by increasing the revenue to the company, the worker, and to the government in the form of taxes.

The Trump plan, which lowers the corporate rate from 35% to 20%, is geared to make the United States more competitive around the world. The plan also allows companies to immediately deduct 100% of plant and equipment costs - this change will encourage companies to buy more computers and trucks and hire more office workers and drivers. It is, therefore, a well known fact that when you lower corporate taxes, employee wages will go up because the company has more revenue to spend on expansion and in being able to hire more workers, contrary to what what the Democrats have been telling us in their hysterical opposition to the Trump tax plan.

Let's take a look at our economic history. Back in 1962, under President John Kennedy, when he slashed investment taxes, we experienced 8 years of roaring growth - 5% a year. In the 1980's, President Ronald Reagan slashed the rates again, giving the nation nearly a decade of robust 3.8% growth. In 1996 president Bill Clinton lowered the capital gains rates and the government revenue went up. In 2003, President George W. Bush again made tax cuts and again boosted the economy, which produced 4% growth for 6 straight quarters. Then we hit the “mortgage melt down” crisis, in 2008, and the start of a prolonged recession at the start of President Obama's presidency, and the beginning of his less than successful economic policies in trying to get us out of the recession.

Compare the economies of the presidents preceding President Obama with that of the 8 years of the Obama presidency, with high taxes and over regulations, which discouraged companies from investing and encouraged them in keeping much of their money overseas (to avoid our high taxes). In Obama's 8 years, we never had more than a 2% GDP (it averaged about 1.5% over the 8years). So, from learning from our past economic history, if you roll back regulations and cut taxes, the economy will surge, not stagnate like in Obama's two terms.

The Democrats claim that the Trump plan will blow a hole in the deficit, but don't be fooled, the real problem isn't that taxes are too low, it's that government spending is too high. The Republicans want to cut spending and the Democrats want to increase spending.

So, as you can see, from past history and from what we have shown in this editorial, when you you cut corporate taxes, therefore stimulating the economy, employee wages will go up as a result of the tax cut stimulus. That is an Economics 101 fact.

You can expect more demagoguery from the Democrats in trying to shoot down Trump's tax plan, because deep down the Democrats realize that if Trump's plan gets enacted, the economy will boom and it will ensure that the Republicans will remain in control of the government for years to come.

Conservative commentary by Chuck Lehmann

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Thursday, October 19, 2017

Hollysodom and Gomorrahwood

I grew up during the Golden Age of Hollywood in the 30's and through World War ll, when

the studios controlled the moral image of their stable, and before liberalmania took over

the industry by disgusting individuals and controlling alternative gender zealots, trying to

legitimatize their life style on the silver screen.

The leakage out of the immoral character by many individuals employed in this industry

has prompted me to refer to this swamp as, Hollysodom and Gomorrahwood. Among

them and dominating the news is Harvey Weinstein who has been as destructive to the

image of Hollywood as Hurricane Harvey was to Houston, Texas.

Houston will be repaired by its citizens; Hollysodom and Gomorrahwood will not,

because it is inhabited with self absorbed elitists suffering from the Faust syndrome,

selling their soul to the Devil to get ahead, where performance on the couch means more

than a screen test, being hypocritical willing victims to get the part.

Perpetrators like Weinstein have been exempt from scrutiny, because their campaign

contributions cleansed their disgusting behavior, and in one case, echoed the behavior

of an impeached president whose victims were unwilling.

Liberalmania is getting out of hand, muddying everything that has been held sacred to

most Americans.

Conservative column from George Giftos

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Sunday, October 15, 2017

“IF It Sounds Too Good To Be True, It Probably Is”!

“Greed is good”, as Gordon Gekko exclaimed in the 1987 movie “Wall Street”. It looks like quite a few people agreed with that statement as the revelations about the “Ponzi” scheme run by Bernard Madoff had been unfolding a few years ago, and it caught quite a few South Floridians and others in it’s web of deceit.

A “Ponzi” scheme is a swindle in which a quick return on an initial investment is paid out of funds from new investors, which lures the victim or victims into bigger risks, and eventually results in a financial bust and the loss of most all the money invested. Eventually, the scheme runs out of new investors and the scheme goes bust.

As despicable as Bernard Madoff was in his operation of his financial “Ponzi” scheme, the people who got caught up in his web of deceit, couldn’t control the greed “ gene”, that is residing in all of us, and it came about to bite these people in the butt, big time.

The “victims” of this scam were not illiterate school dropouts, who were taken advantage of by a smooth talking charlatan (which he was), but were some of the wealthiest “machers” here and around the country, and in foreign countries as well. Fred Wilpon, owner of the N.Y. Mets, Steven Spielberg, famed Hollywood producer, Mort Zuckerman, owner of the N.Y. Daily News and U.S. News and World report, and the late Sen. Frank Lautenberg (D-N.J.), were some of the famous people taken for a ride on the Madoff scam machine. It is estimated that up to $50 billion had been lost by these and other investors. The final total will probably never be known. Bernie Madoff will be spending the rest of his life in prison for his crime.

Some people were looking for that proverbial, “pot of gold” at the end of the rainbow, and believed that Bernie Madoff was some sort of a “financial genius” who could produce financial profits more than double the prevailing rate of what banks and other financial institutions were giving their depositors and clients. Greed blinded these people when they should have known that this guy was just another “snake oil” salesman selling a bogus product.

Mahatma Gandhi once said, “There is enough for everyone’s need, but not enough for even one person’s greed”. Getting annual returns of between 12% and 15% was not normal in the realm of today’s business and financial investing – it should have raised a “red flag” if anyone wanted to know how this “ financial guru” knew something nobody else knew? In other words, “If it sounds too good to be true, it probably is”, should have been the catchword, heeded by all the dupes who entrusted this guy with their life savings and their philanthropic trusts.

I don’t wish hardships on anyone, as “ there, but for the grace of God, go I”, but when the greed “ gene” takes over one's mind, it’s very difficult to act rationally when the dollar signs cover your eyes and warp your good judgment. This won’t be the last time somebody will attempt to “screw” his friends and friends of friends in order to live the “good life” on the backs of his naïve victims, but it should be a wake up call, to all investors, to be vigilant in the future for the enticing deals that sounds “too good to be true”, because as we’ve seen in this case, “they probably are”.

Conservative commentary by Chuck Lehmann

The "Anti-Hate" Group That Is a Hate Group!

The Southern Poverty Law Center bills itself as an “anti-hate” group. But in reality, this group’s sweet-sounding name disguises a nefarious purpose that threatens free thought and speech. In this week’s video, American journalist and researcher Karl Zinsmeister from PragerU explains. He reveals how the masterminds behind the Southern Poverty Law Center, contrary to their stated goal of reducing hate, are actually fueling it.
Did you know PragerU is a 501(c)3 non-profit?

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Thursday, October 12, 2017

MORT’s meanderings

What part of GONE FOREVER don’t you understand?
Let me ask those of you who take a knee when our National Anthem is being played . . . those of you who hate President Trump for being a different kind of President, one who keeps his promises; one who puts this nation first; one who has in a just a few short months, effectively become the leader of the Free World by demonstrating his extraordinary skills at dealing head-on with even the most long-standing, complex, vexing problems and obstinate people, both foreign and domestic.  

While other recent Presidents have made much noise about inheriting difficult situations, President Donald Trump assumed the Presidency that immediately followed the most disastrous eight years of Obama, who did his best to destroy all that has made the USA the exceptional nation it is.  If anyone can legitimately claim to have inherited the greatest possible mess, it is President Trump.  And, he faces the most unAmerican media, the most demonic Democrat leadership in the Congress and an entire generation of Millenials who are bent on destruction of the status quo for no intelligent reason except, they are so totally clueless that they think Bernie Sanders makes sense.

If the absolute, worst-case should occur, meaning that the moronic masses should overwhelm the Trump Presidency and Administration - -
          what part of GONE FOREVER don’t you understand?

                                                                        MORT KUFF     © 9-21-2017

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Sunday, October 8, 2017

Is Raising the Minimum Wage Good or Bad for the Economy?

There has been an organized effort on the part of unions and the liberals (a/k/a Democrats and Progressives), to raise the minimum wage nationally to $15.00 per hour. Is that proposal good economic policy or is it a disaster for the working poor who are now working for the minimum wage?

The intentions of raising the pay for workers is admirable, but the negative economic consequences of instituting a $15.00 minimum wage, by government mandate, is apparent for anyone who has any kind of rational economic sense.

Instead of boosting the supposed working poor (e.g. teens, immigrants, the unskilled and seniors working to supplement their retirement), the boost has actually eliminated jobs and has locked many of the unskilled workers out of the job market. Basic economics predicts that by increasing the minimum wage to $15.00 per hour, it will never work, and it actually hurts the unskilled workers for which the increase was intended to improve their economic condition.

Arbitrarily mandating pay levels in excess of the value of the work performed, actually locks out many in the work force and denies them the opportunity to gain on-the-job experience that they need to qualify for more skilled, higher paying jobs. It has been determined, in the real world, that a person doesn't get paid for the time he/she works, they get paid for the value they bring to the time they work.

Well, what has happened in some of the cities where the minimum wage was arbitrarily raised (or will be raised to $15.00 incrementally). The cities of Seattle and San Francisco have raised their minimum wage, so what has been their experience? In the City of San Francisco, the minimum wage increase has led to a rash of restaurant closings due to the increased labor costs mandated upon the owners of these restaurants by the city. It seems that many of the legislators in California are blinded to the facts by their liberal ideology by not recognizing the negative “benefits” of raising the minimum wage. In fact, House Democrat Minority Leader, Nancy Pelosi, from the San Francisco area, has stated that if the Democrats retake the House of Representatives in 2018, they will raise the federal minimum wage rate to $15.00 per hour in the first 100 days.

In Seattle, it's the same story. A study by the University of Washington has shown that increasing the minimum wage has hurt low wage Seattle workers. Workers are taking home $125.00 less per month due to cutbacks in hours totaling up to 3.5 million hours per calendar quarter, and in addition, many small businesses have shut their doors and have gone out of business leaving many workers unemployed.

How will employers try to meet the increased costs of payroll on their businesses? Adding “unproductive” costs on them forces them to look at other options in order to survive and remain financially efficient. Those options have included, raising prices (a real negative in many cases), closing their doors and going out of business (another negative), using robots, installing self-service kiosks, cutting back employee hours, or actually laying off workers. Most of those options are not good for the working poor or for our economy in general.

In conclusion, the proverb, “The Road to Hell is Paved With Good Intentions”, seems to apply to the advocates and proponents of raising the minimum wage to $15.00 per hour. The “workers” who are protesting various businesses to have that business pay the $15.00, in most cases, are protesting for their own unemployment. Remember, to these protesters, isn't it better to be employed, at say $8.00 per hour, than be unemployed at $15.00 per hour? For that is the consequences of this liberal “feel good” proposal to raise the minimum wage. It's time to cut our losses and realize that the only effective way to raise wages and create upward mobility, instead of government mandates, is through increased demand, by a vibrant, growing economy. The Pres. Trump tax plan is one way of achieving that positive result.

Conservative commentary by Chuck Lehmann

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