10 Years of 10% Tax Cuts Fuel Jobs and Economic Growth

( ) President Donald Trump frequently criticizes the Federal Reserve, led by Jerome Powell, for not reducing interest rates to support what is known as, “a cheap money economy.” If Mr. Trump advocates for reduced interest rates, he is essentially seeking inexpensive financing. It goes without saying that changes in interest rates by the Federal Reserve impact borrowing conditions.

Since presidents understand that people utilize credit for buying both big and minor things, such as homes, vehicles, and apparel, and sometimes even food supplies, Lower borrowing costs or inexpensive credit is something all presidents aim for, irrespective of which government is in power. Low-cost financing can boost the economy, along with sound economic strategies. However, without strong economic policies, low-cost financing can serve as an effective alternative and consistently delivers results.

Nevertheless, this time things are different. The country could be encountering a risk of increasing inflation. Due to Trump's tariff strategies, as the president has acknowledged, price increases "may occur temporarily." Furthermore, inflation metrics are trending upward rather than downward. When costs go up without any corresponding enhancement in the product or service—such as improved quality or better performance—that is referred to as inflation. (increases in prices) However, there are additional factors at play here, and we are aware of them, namely the trade war.

President Trump has led the country into a trade conflict. When referring to the term "war," it implies that the result remains uncertain. Conflicts, by their inherent character, often involve unexpected developments. However, you can alleviate the suffering from losing this conflict through a low-cost monetary system, and naturally, Mr. Trump understands this. Here's the key point. As mentioned earlier, just like how a loose monetary policy always functions, increasing interest rates—essentially making borrowing more expensive to curb inflation—is equally effective each time. Raising interest rates to combat inflation proves successful in lowering inflation, although it may occasionally result in an economic downturn.

Therefore, if inflation increases as a result of his trade restrictions, President Trump can't rely on inexpensive financing. To rescue his administration from financial difficulties. This is the key challenge confronting the Trump administration. Additionally, the Congressional Budget Office (CBO), created under the Congressional Budget Act of 1974 to deliver impartial, unbiased data to assist the congressional budgeting process and aid Congress in crafting sound fiscal and economic policies, has indicated that Trump's tax and expenditure legislation could increase the U.S. deficit by up to $3.8 trillion.

In summary, President Trump has initiated a trade conflict with significant consequences, potentially resulting in increased inflation. The Federal Reserve is cautious about reducing interest rates, as they fear the country might face rising price levels because of the imposed tariffs. Fed Chair Jerome Powell addressed Congress, stating, "Increased tariffs are expected to raise prices..." although these effects may only last temporarily based on the duration and scope of the tariffs.

What is the answer to the challenge posed by potentially rising interest rates, sluggish economic expansion, and a president at odds with the Federal Reserve, pushing for reduced rates while testing trade barriers? The answer lies in shifting towards an established and reliable system for driving economic expansion and generating employment opportunities. Consumer expenditure, also known as consumer spending, makes up between 68 and 70 percent of the U.S. gross domestic product (GDP), as reported by the Bureau of Economic Analysis (BEA). The 68% number by itself is evidence, it is Consumer Spending that is at the heart of growth and Job creation .

Raising consumer spending leads to higher economic expansion and more employment opportunities. When consumers spend money, the economy expands; however, if they reduce their spending, the U.S. economy begins to slow down. Therefore, how can we boost consumer spending? One way is by implementing a tax reduction. Moreover, a key advantage of a 10-year, 10% consumer tax cut economic model is generating additional revenue. Click on TheFixThisTime.com for more information.

The essence or concept of growth involves expansion and prosperity; this is precisely what a Consumer Tax Reduction economic model would achieve, generating employment and boosting the economy. Therefore," if the Trump administration delays in receiving the tax cuts, ” approved as a result of the 2025 Tax Reform and Tax Cut and Jobs Act, and endorse and adopt The initial 10-year 10% consumer tax reduction Billionaires, wealthy individuals, and companies can utilize their tax reductions from excess funds, instead of coming from anticipated budget shortfalls, as outlined by the CBO.

The reasoning behind providing consumers with a 10% tax reduction to boost economic expansion and generate employment is both logically and statistically valid. During our post-Covid-19 recovery, we witnessed this approach working effectively in real-time. The $2,000 stimulus payment did not count toward the taxable income of those who received it. As a result, no income taxes were owed on this amount (it was provided without taxation). (a tax cut) So we could go out and use it, generating demand, which resulted in the creation of jobs within our economy.

Throughout the country's recovery following the COVID-19 pandemic, financial assistance through stimulus checks, tax credits, and reductions included in the CARES Act—the most significant relief package ever passed by the nation at the moment it was signed on March 27, 2020, with a total value of $2.3 trillion—led to approximately 75%-80% of the funds being used to boost consumer spending, whether directly or indirectly. As this form of economic support took effect, the unemployment level decreased from 14.7% in May 2020 to 6.7% by November, demonstrating a clear link between increased consumer expenditure and job growth.

Some initiatives included the $484 billion Payroll Protection Program, along with $367 billion in loan disbursements and grant schemes aimed at businesses, individuals, and large companies. The legislation allocated $454 billion to assist the Federal Reserve’s lending activities. These financial injections mainly maintained employment levels and consumer spending, supporting job growth. Nevertheless, one significant tax reduction initiative, presented as a tax credit measure, was particularly notable and highlighted an important lesson. it’s Consumer Spending which lies at the core of our country's expansion and employment opportunities.

The tax relief for families with children was recognized as highly impactful. It spurred significant economic expansion and job opportunities. According to Democratic data, approximately $15 billion per month in tax cuts began flowing out with 170 days remaining in 2021, as the family-focused tax cut initiative launched in July and concluded on December 31. ^st It generated an average of $529 million per day distributed to and spent by consumers daily. The federal government provided funds upfront to families with children, determined by the number of kids as indicated in IRS records, and issued them a payment via check.

1.091 million jobs were added in July, followed by 483,000 positions in August, despite the beginning of the Delta variant, and 379,000 more jobs in September when the variant was at its highest level. However, the tax reduction for families with children does not provide the Treasury with the necessary flexibility to address the economic issues this time. Payments have to be provided to parents on a monthly basis, determined by a strict and fixed amount depending on how many kids they have. Therefore, the capacity and adaptability to raise or lower consumer spending or demand by advancing payments ahead of time is limited. a soft-landing It is not feasible for the economy to implement the tax cut for families with children.

Baby Boomers, considered as a single group, are retiring at a pace of 10,000 per day and will likely be the most suitable recipients of the upcoming direct consumer tax reduction. Allocation of The Tax Cut for the Baby Boomers Baby Boomer Consumers' Tax Reduction Tax Relief for Baby Boomer Shoppers Benefits for Baby Boomer Buyers Through Tax Cuts Tax Breaks Targeting Baby Boomer Customers by strategically advancing the distribution of the $25K tax reduction as necessary, will grant the Secretary of the Treasury, Scott Bessent, the flexibility mentioned earlier, regarding the creation of demand.

Finish story here ; "A Decade-Long 10 Percent Reduction in Consumer Taxes" Promotes Employment Expansion and Economic Development.