First Things First – Take Home Pay

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Taxes matter. High U.S. corporate income taxes have spawned a recent wave of tax inversion deals.

Tomorrow’s Non-Farm Payroll report has had its decade in the sun. It has been all the Central Banks, pundits and media could focus on. Now it’s time to focus on something far more important and meaningful to the U.S. Consumer. It is “take-home pay”. The government seems so concerned about rising wages – I call it “alligator tears” – and what that means to the “middle class”. Really? I am not buying it. If Congress is so concerned about the middle classes’ income they would not just cut taxes but slash taxes. Tax cuts would immediately increase “take home pay”, increasing the well-being of congress’s constituents – a true bipartisan issue. Taxes were responsible for the Boston Tea Party in 1773 led by Samuel Adams, beginning the Revolutionary War. Every relatively recent president that took the ax to taxes created an economic boom that raised the standard of living for all. These included Presidents Kennedy, Reagan, Clinton and hopefully Trump. Yes, close the loopholes, rid the markets of Central Bank interference, make it simpler, fairer and more reasonable. Did you know that the top 50% of AGI taxpayers pay 97.5% of all taxes or that the top 10% pay 70% of all taxes? Here is an idea – make it pro-business – unleash capitalism. There is indication that even the discussion of tax cuts and a meaningful reduction in wasteful regulation is spurring the economy. So ignore tomorrow’s employment report – which is near full employment – but we can always use more and focus on wages and tax cuts. Please see page 73 of the Global Perspectives™ Book to find that the USA has the highest tax rates in the world.

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