QUESTION: Mr. Armstrong, thanks for the WEC. Many individuals really feel this was your greatest. Your resolution to save lots of our nation was spectacular, and also you deserved the standing ovation. My query is that you just mentioned that Trump and RFK wouldn’t hearken to you regardless of the whole lot you’ve executed. You didn’t clarify why. Could I ask why?
FP
ANSWER: As I mentioned, Trump’s plan to remove and exchange the earnings tax with tariffs will fail. I perceive those that proposed the thought, citing that the nation was funded by tariffs earlier than the earnings tax, and a return to that funding system could look good in bullet factors, however the financial system is way extra complicated, and the socialistic targets won’t be able to easily be lower with out resistance. I had additionally warned Maggie Thatcher about imposing a ballot tax. She thought the individuals would take the supervisory function as a test on the federal government if that they had pores and skin within the recreation. However I knew from historical past it could not unfold as she had hoped.
The whole problem is NOT that firms moved offshore for cheaper labor. That’s the Marxist excuse. They moved due to the taxation. After I restricted main multinational firms around the globe, we needed to think about (1) nation threat, (2) stability in taxation, and (3) taxation on the workforce.
I testified earlier than the Home Methods & Means Committee. Trump can name up my testimony, however these round him is not going to permit that to happen. They’ve their resolution in play and can by no means permit competitors, regardless of how unsuitable they’re. Welcome to politics. I used to be then requested why no American firm had gotten a contract in China to construct the Yellow River Dam. I defined that People are taxed on worldwide earnings, however Germany just isn’t. Thus, an American company is already 30-35% costlier than a German firm bidding on the identical venture.
Trump is married to the concept that tariffs will carry again American jobs—firms left BECAUSE of the taxes. Get rid of the Earnings Tax, finish the borrowing, and do what I mentioned with Social Safety, and the businesses will return, bringing overseas firms with them. You’ll create probably the most important financial increase in historical past whereas the remainder of the world completes the financial decline outlined by the Financial Confidence Mannequin into 2028.
Trump is offered on the Tariff concept. He’ll NOT hearken to me. So, sadly, the anticipated financial increase individuals could have with Trump can be tempered and never a actuality. Until we take a look at the complete world collectively, we will by no means combat the worldwide pattern. Tariffs will improve inflation and contribute to the financial decline the world will expertise into 2028.
