Democrats Know That Tax Cuts Increase Revenue, So Why Do They Lie About the Facts?
RUSH: The amount of money coming into Washington is not a factor when the Democrats start spending it. Witness Obama. National debt doubled in eight years. It didn’t matter what the tax revenue was. Didn’t matter. He was gonna spend the money anyway.
The Democrats are about punishing achievement and punishing success and saying it’s unjustified, it’s unfair, and it may involve cheating and scandal. They stigmatize success because their voters are people who cannot achieve those things. The Democrats have made sure they don’t even want to try.
RUSH: Folks, it works the other way too. If you start raising taxes, you’re gonna slow down economic activity, and you’re gonna create fewer taxpayers. All I have to do to prove this is turn your attention Obamacare. What happened with Obamacare? Well, the mandates of this massive new spending, meaning you have to buy a policy, became law. Look at it as a tax. If you don’t pay it, you get a fine, and you have to pay that. You have to pay something. Then there were new tax increases as part of Obamacare that businesses had to pay.
What happened to our economy in the last eight years? It went in the tank. But tax revenue soared because Obama was mandating people buy things that the government was getting the revenue for, and there were tax increases, business and personal, regarding Obamacare. But the economy was in the tank and more and more people were out of work and we had close to, what was it, 94, 95 million Americans not even in the workforce. There’s no way you can grow an economy with that, with that many people not working and not paying taxes, you can have any kind of government solvency, you can’t have any kind of growing economy, which is exactly what the Democrats want, by the way.
Puts more people in more need. And when they don’t care what government spends and you you need this handout or that handout, food stamps or 99 weeks of unemployment, why, the Democrats, they would just as soon pay you to not work for 99 weeks as soon as you get a job. Much better for the Democrats that you don’t work. The more you work, the less dependent on them you are. If this sounds hideous, I’m sorry, it’s true.
If it’s hard to understand lowering tax rates and increasing revenue, let me ask you this. Have you ever seen a store put things on sale? Obviously you have. Why do they do it? Why do they lower the cost of certain things to entice you to come in and buy them? Well, because they’ll sell more of it. The lower the price of an item, the more likely people are to buy it, and the more people that buy it, the more are sold, by lowering the price. When airlines are feeling the heat of competition, what do they do? They lower fares. If one airline lowers ’em, they all have to on the same routes. Or they’ll throw you off, right, or kill your rabbit, but don’t confuse me here.
On a government-run transportation system, what happens? When the Port Authority of New York and New Jersey is in a crunch and it’s not collecting enough money, what do they do? They stupidly raise fares. They do not try to get more people riding; they rip off the people who still are by charging them more. Does it ever work? Why don’t they reduce fares? Why don’t they lower the price of going across a bridge or getting on the subway? They never do. Well, I can’t say never. But you know as well as I do that mostly those costs increase. When a business raises the price of an item that you’re used to paying X for, are you more likely to go out and buy it again, or less likely, maybe look for someplace else to get something like it, something close to it?
Look, this is simple math. It’s not even arguable. The Democrats have so corrupted our understanding of economics and productivity that lowering tax rates is now considered to be some kind of sop to the rich. I mean, it’s just profound to me, the damage inflicted on this country by the Democrats in their pursuit of perpetual power.
RUSH: Hey, by the way, it was just pointed out to me that the left does understand how raising taxes reduces economic activity. How about their desire for increasing cigarette taxes, soda taxes? What are they trying to do? Get you to buy less. They know. They know that higher taxes reduce activity. It’s real simple: If you want more of an activity, lower taxes on it. If you want less of an activity, raise taxes. So if you want more jobs? (chuckles) It’s very simple. You lower payroll taxes. If you don’t want as many jobs, then you raise corporate taxes. It’s that simple, folks. The left is gonna spend the next whatever — six months, however long this takes — lying through their teeth every day about Trump’s tax cuts.
RUSH: John in Charleston, South Carolina. Welcome to the EIB Network. How are you doing?
CALLER: I’m doing great, Rush. Just did the math. I’m a 26-year listener.
RUSH: Thank you, sir! I appreciate that.
CALLER: I think we need to change the narrative on this “building” and “paying” for a wall. We have to “invest” in the wall. And, of course, the irony is the greatest beneficiary of the “investment” will be sanctuary cities. So we take the federal funds from the sanctuary cities and build the wall — and then to show our benevolence, we send them all a participation trophy.
RUSH: You know, this raises an interesting question. You said that the greatest beneficiaries of an investment in the wall would be sanctuary cities. Seriously, do you mean because there will be fewer people living in these cities, and then fewer demands on the services in them? Is that what you meant?
CALLER: Exactly. The social service cost should plummet.
RUSH: Right. Would you be stunned to learn that sanctuary cities are not interested in that? Just like the Democrat Party’s not interested in tax rate reductions that result in you keeping more of what you earn. Now, there’s a caveat here. The Democrats are never gonna object to you keeping more of what you earn. They’re not that stupid. What they’ll say is, “You’re getting ripped off ’cause the tax cuts are for the rich only, and the Republicans only care about the rich, and Trump only cares about the rich. Trump only cares about corporations like him!”
But the fact is the Democrat Party is threatened… Folks, please don’t doubt me on this. I know it sounds odd, but it’s true. They are threatened by self-reliant people, self-sufficient people. They’re threatened by you being independently self-sufficient. Sanctuary cities? You might think that these people would love to offload some of the burden on their social services. You’d be dead wrong. This is how they define their worth. This is how they define their compassion, by forcing the taxpaying, working citizens of their communities to pay for all of this. That’s how they get to run around and tell people how great they are.
“We’re good people! We care for the disadvantaged!”
That’s why they’re opposed to any measure whatsoever that would reduce the sanctuary population. They’re opposed to it. Why? There are reasons, and they are political and ideological. They’re not economic. Being a sanctuary city, for the people of organize and run it, is a great source of pride. ‘Social justice! Fairness, equality, diversity!” All the things that make liberals great people and make you a schlub. The more pressures and demands on their social services, the better people they are.
RUSH: Ladies and gentlemen, the Reagan tax cuts turned the deepest recession since the Great Depression into the largest 20-year economic boom in American history. The Reagan tax cuts of 1981 and ’86. And the same thing can happen here again. Democrats just cannot let it.