This article is a good start to the needed debate on issues facing Americans. While the ballot has people running for office, they are running based on public policy positions. If the people vote on policy, not personality or Party, we will get one result. If folks do not care about the invasion, the crime, the corruption, then we get the government we deserve.
As a note, the debate over tariffs vs. income taxes has nothing to do with Medicare or Social Security. Those are separate taxes. Yes, the military is financed by taxation on corporations and individuals.
THE COLLAPSE
By Richard Colman, Exclusive to the California Political News and Views, 6/19/24 www.capoliticalnewsandviews.com
Economic collapse of the United States will be the result if either Donald Trump or Joe Biden is re-elected president in 2024.
Both Trump and Biden will increase the American national debt, eventually bringing about a loss of jobs, inflation, and an economic depression (like the one in the 1930’s — or worse).
Let’s start with Trump’s economic plan. Trump has proposed replacing the income tax with a 10% tariff on all imports. A tariff is simply a tax.
If tariffs raise the price of goods coming into America, customers are likely to buy fewer imported goods. Jobs in America and elsewhere will be lost.
According to the Internal Revenue Service, from 1868 to 1913, 90% of all federal revenue came from taxes on liquor, wine, beer, and tobacco. When those taxes did not provide enough funds, the U.S. enacted the federal income tax.
In the United States, the fiscal year begins on October 1 and ends on September 30.
During the fiscal year that ended on September 30, 2023, the U.S. spent $6.1 trillion and received $4.4 trillion in income. This imbalance left a deficit of $1.7 trillion. These figures come from the United States government.
For the fiscal year that ended on September 30, 2023, tariffs brought in $0.08 trillion (or $80 billion). Thus, from tariffs alone, America collected about 2% of its total revenue of $4.4 trillion.
From the personal income tax, the U.S. receives 49% of its income or $2.18 trillion. Social Security and Medicare take up 36% of income or $1.61 trillion. The corporate income tax supplies 9% of income or $0.42 trillion.
How will tariffs replace the federal income tax?
If the U.S. relied on tariffs to replace its income tax, massive cuts would have to be made in Social Security, Medicare, and national defense. Congress is not likely to support such massive cuts or even any cuts.
Tariffs on imported goods will invite retaliation from other nations.
This kind of retaliation is reminiscent of the Smoot-Hawley tariffs of the early 1930’s. President Herbert Hoover, in 1930, signed the Smoot-Hawley tariff legislation. Hoover was a Republican. The tariffs only made the Great Depression worse. Many people lost their jobs, their homes, and their life savings. In October 1929, the stock market -– while Hoover was president — crashed.
During the Depression, between 25% and 70% of all Americans were unemployed or underemployed. The size of the American economy shrank. The Depression ran from 1929 to 1939.
In 1932, Americans rejected Hoover’s bid for a second term and elected Franklin D. Roosevelt, a Democrat, as president. (Roosevelt’s 1932 election was the first of four presidential elections that Roosevelt won.)
Trump’s plan to replace the income tax with tariffs is a total sham. The American people will not tolerate what Trump is proposing. Americans will rebel at sharp cuts in Social Security, Medicare, and defense.
On June 15, 2024, The Wall Street Journal (print edition) published a news article on Trump’s tax plan. The article stated, “Trump’s tariffs –- or any tariffs -– are almost certainly too small to replace the entire income tax.” The article also said, “ . . . it would take tariff rates of 70% or higher to fill the void left by repealing income taxes.”
What can we say about Biden?
Biden is spending money recklessly as three of his predecessors -– George W. Bush, Barack Obama, and Donald Trump -– did.
In 1981, the national debt of the United States was $1 trillion. Today, that debt is $34 trillion.
The national debt can only be sustained if people (Americans and foreigners) lend America the needed funds to cover the debt. If lenders stop providing funds, America will have to cut spending, raise taxes, or do both.
Some economists argue that the national debt is not a problem. The debt, they say, is about the same percentage of the total U.S. economy as it was in 1946, just after World War II ended. After the war, Americans enjoyed prosperity.
But now, that prosperity is in jeopardy. America is like a person who puts a huge amount of money on a credit card. Until the bill arrives, there is prosperity. Once the bill arrives, the customer must pay or file for bankruptcy.
Trump and Biden are both protectionists. Protectionism brings about a loss of jobs, inflation, and a lower standard of living.
The policies of Trump and Biden will wreck the American economy.
One can argue that the federal government is too large. But having the federal make drastic or even small cuts to existing programs will lead to great unhappiness among the American people. Think of what will happen if veterans’ benefit are cut.
Trump is 78 years old. Biden is 81. Both individuals are too old to be president.
If it were possible, both men should drop out of politics immediately and let someone with financial acumen be elected president in 2024.
All good information but Colman is preaching to the choir. Most voters just want to know, “what’s in it for me?” They just follow the practices of politicians and big corporations.
Who is Richard Coleman? And this will try to show there are internal errors in his attack on tariffs.
1) “If tariffs raise the price of goods coming into America, customers are likely to buy fewer imported goods. Jobs in America and elsewhere will be lost.” That is not necessarily true. Because when foreign products become more expensive, Americans may begin making those products themselves, and sell them in the giant USA market, and thus be employed, keep money in the US and cut down on shipping costs associated with imports.
2) “Tariffs on imported goods will invite retaliation from other nations.” Yes well China is already hostile to any American products, and in a larger view, China is pointing nukes at America so it is a viable question why do we even trade with them at all?
3) “Trump and Biden are both protectionists. Protectionism brings about a loss of jobs, inflation, and a lower standard of living.” What are we in here? The 1930’s. Protection of American jobs, and American industries including industries vital to our military are all good things to protect. Throwing around the phrase “Protectionists” as a pejorative belies the intent to keep wide open trade in America despite the massive destruction of our peoples way of life, loss of jobs and businesses gone from our shores because of a lack of protection. And it seems this view of open, unrestricted trade is solely to benefit the money power, the NYC banking class who’s free wheeling control, printing and spending of our national money from the FED, on factories in China and elsewhere has caused great harm to America.
4) “If it were possible, both men should drop out of politics immediately and let someone with financial acumen be elected president in 2024.” Well, certainly Biden has great foreign money experience with the Ukraine kickbacks. But President Trump is clearly not a financial fool, and MBA, billions in loans paid back, 6,000 employees worldwide. I would certainly choose Trump over Biden on this account alone. And the idea that a Ben Bernanke or a Janet Yellen would some how have American peoples interest at heart seems laughable as they are clearly in the tank for the NYC elites and their cousins the globalist banker class. Even truly competent money managers like Alan Greenspan or Paul Volcker are best suited and best utilized to advise presidents – not lead nations.
So in this toss up I would surely choose Trump and pray for spending restraints in Congress, and to stop the gratuitous wars and instead concentrate on America, our borders, our people.