Believing Donald Trump might be higher for the financial system than Vice President Kamala Harris is like considering you’re a dinner visitor if you’re really the primary course.
There’s a purpose three billionaires — together with Elon Musk — poured $220 million into Trump’s reelection bid this summer season, and it’s not as a result of they felt the pinch when the worth of a gallon of milk went up a number of years in the past. It’s as a result of the previous president has a confirmed file of serving to the ultra-rich get richer on the expense of common Individuals.
Trump’s 2017 tax cuts have been crafted to principally profit the wealthiest 20%. These on the very high actually cashed in. America’s 748 billionaires reaped $2.2 trillion after the cuts went into impact.
When Trump slashed the company tax price, his Council of Financial Advisers promised American employees would see a minimum of $4,000 added to their backside line — the outdated “trickle-down economics” gross sales pitch once more.
It didn’t work beneath Ronald Reagan, and it clearly didn’t occur beneath Trump.
In 2018 alone, one evaluation of S&P 500 firms discovered greater than 80% of the cash companies acquired in tax breaks was paid out to house owners of the businesses, and solely 20% was reinvested into the enterprise. Shock — the tax financial savings didn’t trickle right down to employees or encourage financial progress.
And within the first yr of the pandemic, when tens of thousands and thousands of Individuals have been shedding their jobs? That’s when a whole bunch of American billionaires obtained $1.2 trillion richer.
Taxes are a giant a part of this story.
Reportedly Musk, ranked because the world’s richest individual, paid roughly 3% in taxes from 2014-18. The typical American pays extra like 15%.
In case you suppose Trump could be good for the financial system, you simply could be a billionaire.
Not that Trump’s billionaire followers are fixated solely on American taxes. The ultra-rich around the globe are thriving since Trump’s wealth switch started, with the richest 1% grabbing two-thirds of the brand new wealth that was created between 2020 and 2023. They’ve helped Trump past simply marketing campaign donations.
Based on the Wall Road Journal, Musk has been commonly chatting with Russian President Vladimir Putin since 2022, simply as Trump is reported to have had many non-public cellphone calls with the dictator since leaving the White Home. Operatives for Putin — whose hidden property have been estimated to rival Musk’s fortune — used faux social media accounts to assist elect Trump in 2016. (The Justice Division mentioned final month that Russia is at it once more, by the best way.)
We don’t get many glimpses into the key dealings of billionaires, however there was a knowledge leak in 2016 that mirrored poorly on them. The Panama Papers uncovered a community of shell firms utilized by the world’s ultra-rich to keep away from paying taxes of their nations. Though the U.S. sentenced one taxpayer to jail in 2020 for associated fraud, cash laundering and different crimes, 28 folks charged in Panama have been acquitted simply this summer season.
The fallout from this and different information leaks is probably not over but. The Panama Papers implicated some world leaders, together with the prime minister of Iceland, who resigned. Putin and a few of Russia’s oligarchs are talked about. The Paradise Papers, the same information leak made public in 2017, implicated Trump Cupboard members, advisors and main donors. Maybe the previous president’s pending trials and his 34 felony convictions are likely to eclipse these monetary troubles in Individuals’ minds.
I’m undecided why poor Individuals would consider Trump’s financial insurance policies would assist them in any method.
Possibly some Individuals consider rising incomes and credit score Trump for these. However the improve in wages that employees at the moment take pleasure in largely took place due to work stoppages led by unions and a supportive Biden White Home. Trump and Musk don’t want union employees. They discuss brazenly about their disdain for paying additional time. In reality, Venture 2025 — the blueprint for the way a second Trump administration would reshape the federal government round him — would make it simpler for firms to keep away from paying employees further for longer days.
Possibly some Individuals recall direct help from the federal authorities early within the pandemic and picture Trump was behind these checks. He wasn’t. The three rounds of stimulus aid — together with the notorious verify that has Trump’s title on it — took place as a result of Democrats in Congress pushed to assist struggling Individuals, not due to Republican compassion. When the American Rescue Plan handed the Senate 50-49 in March 2021, each single Republican voted in opposition to it.
The U.S. financial system endured the pandemic regardless of Trump’s mishandling, not as a result of he steered the ship properly. American employees are lastly seeing some good points, and inflation has slowed again to regular ranges. That’s solely as a result of Biden and Harris have been capable of undo a number of the harm the earlier administration did.
Trump campaigns as if he’s an Everyman, however when he was in workplace he confirmed who he actually seems out for — and it isn’t the American employee.
