With President Donald Trump’s signing of the big tax-cut bill, the GOP snatched victory from the jaws of defeat. Suddenly, the political and economic landscapes have changed. The Republican party has turned the tables on the Democrats.
Trump and the GOP are on the side of the growth angels with the passage of powerful tax-cut legislation to boost business investment, wages, and take-home family pay. The Democrats, meanwhile, are left with stale class-warfare slogans about tax cuts for the rich.
Ironically, government unions, with their pension plans heavily invested in equity shares, will benefit hugely from the tax-cut-led stock market boom. They boo the GOP bill while they should be cheering.
But there’s a lot of irony to go around. Unlike the pro-growth, tax-cut party of JFK, today’s left-lurching Democrats root against economic growth, the stock market, and a powerful prosperity at home that lends strength abroad.
This is not a good place for Democrats to be.
If the supply-side business tax cuts perform as well as I believe they will, Trump and the GOP, with the stroke of a pen, will have greatly enhanced their outlook for the midterm elections.