U.S. tax cuts succeeded

The U.S. Senate passed tax cuts last weekend. The passing of this bill is undoubtedly Trump's major victory. The final version of the tax relief act needs to be confirmed by consultation between the House of Representatives and the Senate, but the tax reform will allow voters more support for Trump. Trump faces the media also boasts, the re-election has been unable to see if he will still be president of America.

Since Trump assumed office, the U.S. economic indicators have been all-round reddening. In the past year, the INDU rose from 19,000 to 24,000 while the Nasdaq Composite Index rose almost 3% to 6,800 points. Its GDP growth rate was 3.3%, the highest level in nearly three years, while the 4.1% The overall jobless rate has even set a record for a record 16 years. For the general public, evaluating the performance of politicians is nothing more sensational and more direct than these economic data. Understanding of human nature, Trump knows that as long as the voter's purse is satisfied, not only the media's comments ignore them, but opposition within the party will be forced to bow his head.

Take this tax reform as an example. According to a survey made by the U.S. Gallup polity this year, more than two-thirds of the people in the entire United States support the tax reform and less than one-third of the people oppose it. In other words, when Trump proposed a tax reform plan and emphasized that the reform in the personal income tax section should allow the middle class to get a tax cut, it exactly matches the mainstream public opinion. The idea that everyone can get tax cuts provides a good basis for Republicans to represent voters. In contrast, Democrats appear to be wary of Trump's tax reform. In the face of voters, they can only emphasize that the rich have more provinces than the general population, basically, the rich get richer and the poor get poorer.

According to the bill, whether adopting the House proposal, the corporate income tax will be reduced from 35% to 15% or the 20% quoted by the Senate as a standard. After the law comes into force, the enterprise will save a huge amount of tax expenditures. The Democrats who oppose Trump's tax reform stress that tax cuts will lead to a drastic reduction in U.S. taxes and a bigger budget deficit in the U.S. government. And the future treasury bonds will surely be even more alarming. However, Trump and Republicans argue that a low tax rate would allow international companies to invest more in the U.S. soil, so even if the tax rate is low, the tax revenue will increase as the total amount increases.

Not only has Trump proposed a tax cut to please voters, but Taiwan, on the other side of the Pacific, passed a tax concession this year, deciding to lower the overall income tax rate so that all people can enjoy the extra money in his pocket. This kind of policy that will make voters feel that they naturally have a role to play for the incumbent of the ruling party.

As Economist Keynes said, "in the long run we are all dead." It is precisely because the future is full of variables that voters often only want to see results quickly. Therefore, they often measure their own economic interests in the most realistic terms. Tax relief is undoubtedly the most popular in Taiwan and the United States in comparison with other policies A sense of reform. With the economic performance since Trump assumed office and the tax cuts, he has satisfied the voters' basic expectation. To be more explicit, most voters care about how to make money, not to worry that the rich earn more.