American Elephants


Cutting the Corporate Tax Will Create Growth. That’s A Good Thing! by The Elephant's Child

To quote John Steele Gordon this morning “Only the brain dead could see Trump’s tax plan as a negative for the economy.Newsweek: “Trump’s Proposed Tax Plan Could Cost the Government $6 Trillion.” Why am I not surprised? Democrats simply do not understand economics. Allowing the people to keep more of their own money is simply incomprehensible to your standard run-of-the-mill Lefty.

Under the new rules, an individual making $35,000 each year would be able to remove $15,000 from their taxable income through the deduction, leaving just $20,000 for the government to tax.

On top of these tax cuts, Trump is expected to outline his proposal to lower the corporate tax rate from 35 percent to 15 percent. And he will seek to reclassify small, individually-owned businesses that currently file their taxes under the individual code so they are under the corporate tax code instead.

Democrats can only think of the 20% of corporate income that would not be taxed and how can the government possibly get along without that corporate money? Leftist hatred for rich corporations is always a mystifying thing. Everything they wear, eat, use and work with is a product of a large corporation, if they are not government bureaucrats they probably work for a large corporation and they indignantly badmouth corporations and seethe at the exorbitant salaries of American CEOs.

For a business, taxes are just a cost of doing business. Those costs are figured into the price of whatever the business produces, and are paid by the taxpayers who buy the products. If taxes go up, so does the cost of the product. If taxes go down, the business has some extra to expand, to innovate, to create, and the economy grows.

It is very simple, but Democrats do not think in those terms. They want a bigger pile of tax money so they can buy more votes to win elections so they can be in charge. Being in charge means giving nice things to the people, to get their votes, and spreading the wealth around, again so they can be in charge. Being in charge is the goal because they can get rid of all the annoying interference in their goal of a more perfect socialist world where everyone lives in peace and harmony in a world saved from the horrors of global warming and capitalism and guns. Or something like that.

They thought they had glimmers of a real move towards the glorious future with Hillary, and this obnoxious blowhard buffoon smashed it all up and they can’t wait to destroy him or impeach him or put him in prison. They still remain sure that if they can just turn over the right rock, they will find the Russian involvement — in something or other. Good Lord, they are predictable.

From The American Thinker by Thomas Lifson: “Trump tax plan goes for growth”

After President Obama’s two terms of anemic economic growth and huge federal deficits, there is a lot of room for growth in the American economy.  Targeting “seed corn taxes” that obstruct investment is the smart way to spike growth rates, which will bring jobs, increase taxes (in the long run), and swing political approval toward the GOP president and Congress.  It worked for Reagan, and it will work for Trump, if a version of the tax plan becomes law.

The White House briefing and one-page description of President Trump’s plan for tax reform issued yesterday contain the bones of an ambitious plan that could indeed jump-start the economy by lowering corporate income and capital gains tax rates, and by repatriating corporate money held overseas to avoid the punitive 35% levy on overseas profits when they are brought home to the USA.

From Economics21: “No, New York Times: Bush’s Tax Cuts Did Not Disappoint”

Basic economics tells us that if you tax something, you’ll get less of it. True, not all tax cuts are created equal. Successful tax reductions are immediate, permanent, broad-based, and (unlike tax rebates) rely on tax rate reductions to encourage working, saving, and investing. Such well-designed tax policies have a clear record of success.

Nobel Laureate Edward Prescott has shown that much of America’s widening economic advantage over other major economies between the 1970s and 1990s can be traced to America’s decision to lower tax rates while other countries raised them.

Harvard economist Martin Feldstein estimates that a dollar increase in taxes costs the economy 76 cents of growth.

Aside from the constant, furious Democrat insistence of being outraged at anything done by President Trump, they are predictable, predictable predictable. And possibly scared to death that he’ll get his tax plan passed.

Thanks to Obama, America’s corporate tax rate is the highest in the world. Growth has been anemic for 8 long years. A significant cut in the corporate tax rate could raise growth to 3% which is getting closer to the long-term norm —which would create jobs and put those folks who have essentially given up at the idea of working back in business. Hope and growth will do a lot for the country, and the American people.

ADDENDUM: Another contrast in media headlines — Wall Street JournalTrump Unveils Broad Tax-Cut Plan.” The New York Times Tax Overhaul Would Aid Wealthiest.” Like I said Predictable!



Just How Do You Measure “Better Off” Anyway? by The Elephant's Child



The Least Diverse Place in America by The Elephant's Child

You have probably noticed, there have been enough riots and demonstrations to prevent the possibility of hearing someone with a differing opinion. They claim to champion diversity, but that’s a lie. They want everyone to hold the same leftist beliefs, and frankly be unaware that there are other ideas. They used to call it “brainwashing.”Does it only matter if it is your college student?



The Problem is Having to Live With The Choices We Made by The Elephant's Child

Former President Barack Obama has returned from his South Seas vacation, ready to resume trying to tear down the administration of his successor. Valerie Jarrett has reportedly been directing the resistance in his absence. Obama, meanwhile, has snagged a $400,000 fee for an hour long speech for a Wall Street firm, and a very large advance for books from Michelle and himself, so funds are not a worry.

It’s a sharp contrast with his own predecessor. George W. Bush gracefully left the limelight to avoid causing problems for his successor, and has refrained from comments on the Obama administration, appearing in public only with his programs of bike trips with recovering vets, and to talk about his new hobby of  painting, apparently inspired by Winston Churchill’s book Painting as a Pastime. President Bush has painted the world leaders with whom he engaged, and more recently, the heroes of the wars who fought under his responsibility in Portraits of Courage: A Commander in Chief’s Tribute to America’s Warriors.

President Bush recognized that history would judge what he had accomplished and where he had failed, and left it in the hands of the historians. Who will argue endlessly.

An ex-president hanging around and trying to run the opposition is something new and not very attractive. Americans are inclined to do some summing-up at the end of an administration, and it’s not often the admiration and attention that one hopes for. By the time a president leaves office, the public is usually thoroughly tired of them and hopeful that the new president can do a better job. Granted, that this year the Democrats, out of office and out of appealing candidates, out of ideas were insanely furious that their expected continuum with Hillary didn’t happen, because they don’t like Trump and cannot understand why Hillary didn’t win.

President Donald Trump has done quite well. His first 100 days have been celebrated by his supporters who are far more pleased than the media wants to acknowledge. His cabinet appointments have been outstanding, are in a position to offer excellent advice, and have hit the ground running. Neil Gorsuch’s appointment to the Supreme Court is a triumph. Nikki Haley has quickly taken charge at the U.N. and is proving to be a star. Syria has been put on notice, and the president is determined to reduce the corporate tax to 15% which will give the economy a boost. The ignorant leftist media is already gasping that the government won’t have any money.

Never fear. Corporations don’t really pay taxes. We do. When a corporation’s taxes are raised, they raise prices for their goods and we pay for it. When they don’t have to raise prices or do more of their business overseas to pay the taxes, their funds go for expanding and innovating and the economy improves. We currently have the highest corporate tax rate in the world, and it has been a drag on the economy. Between 1974 and 2001 average growth in the economy was 3.3%. A return to 3% from the dismal performance of the stagnant Obama economy would mean the economy could expand to $38.3 trillion by 2040.

The weeks of Obama’s vacation have been filled with the scandals of the Obama administration exposed, and they are not pretty. I understand that they want Sasha to finish high school at Sidwell Friends, but trying to occupy the media’s attention may not be wise.



What the Heck is “Hate Speech” Anyway? by The Elephant's Child

I do worry rather a lot about language, perhaps because I was an English major. More correctly, because the Left attempts to control the dialogue by changing the meaning of words. Immigration or immigrant is one example, by conflating the term with illegal immigrant, illegal alien, (both perfectly acceptable and accurate terms) refugees (and how that word is defined). But I have posed this question before.

The more problematic case of language is much more difficult.  The words are “hate speech.” Exactly what is hate speech? From the current dialogue, it is apparently any speech that you don’t agree with. Clearly that is an impossible definition, yet that is the basic problem in college campuses all across the country.

Students have been taught that they do not have to listen to speech that offends their delicate sensibilities by not agreeing with their preconceived ideas. Enough professors have spoken out in the media to indicate their despair that the students they are expected to teach—simply don’t know anything. They are unfamiliar with the most basic history, geography, civics and science. Not the hard stuff. They don’t know who won the Civil War. They don’t know who we fought in the Revolution. I could go on at length, but just those two missing facts summarize the situation fairly well.

Headlines from the battle: “Student activists demand college ‘take action’ against conservative journalists.” American Thinker.  “Students claim Objective ‘Truth’ is a ‘White Supremacist Myth,”Breitbart. “Why Colleges Have a Right to Reject Hateful Speakers Like Ann Coulter” New Republic.  “It’s Time to Crush Campus Censorship” National Review, “Those ‘Snowflakes’ Have Chilling Effects Even Beyond the Campus” WSJ, “On Political Correctness” The American Scholar  “Report: Women’s and gender studies courses have increased 300% since 1990” The College Fix  “College makes it easier to graduate by requiring students to learn less: The College Fix.  Those are just a few of dozens.

Middlebury has become famous for rioting to refuse to listen to Dr. Charles Murray, a noted social scientist.  Claremont students refused to hear Heather MacDonald. It was very clear that the students had no idea whatsoever what the speakers represented, or what they might say. In the case of Dr. Murray, the Southern Poverty Law Center (a far-left fringe group made false claims about Dr. Murray). In the case of Heather MacDonald, it was “Black Lives Matter” giving a completely false impression of what she might say. Sad. The kids in both cases would have profited from and learned something valuable from the speeches.

The students are wrapped up in the idea that they should not have to listen to anyone with whom they might disagree, and completely ignorant of the facts. The fault lies with faculty and administration who should have packed up the offenders the following morning and sent them home to perhaps be admitted the following semester — if they had learned anything. That’s what happened to friends of mine for significantly lesser offenses, but that was a long time ago.

You see how the words “hate speech” have corrupted the situation. There is no such thing as hate speech. There are inflammatory words, there is incitement to riot,  there’s shouting ‘fire’ in a crowded theater, but I submit there is no such thing as hate speech. We are watching daily, people thrown in prison, sentenced to hard labor for 15 or 20 years, as the fat junior Kim just did to two Americans, as happens throughout the Middle East — and some people can’t get it through their heads that the Freedom of Speech guaranteed to us by the Constitution matters. There aren’t all that many places in the world where you can’t be jailed for speaking your mind. In a moment in time when the language out there (do you read the comments?) has been vile, insulting, vulgar, and just plain offensive. Well, we do live in interesting times.

ADDENDUM: Over at the Federalist, John Daniel Davidson also wrote about Hate Speech, and wrote even more thoroughly about what it is and isn’t, and it’s very well done. The photo at the top of his post is not of college students, but of older folks with pre-printed signs from the “antiwar committee” urging viewers to “Stop the War on Muslims at Home and Abroad,” “Unite Against Islamophobia,” “End Racism,” and “Stop Racism, Islamophobia and War!” It should be observed that there is no war on Muslims, no such thing as Islamophobia, our problems with radical Islam have to do with their war on the West, their habit of chopping off heads, throwing people off of tall buildings, or burning them alive if we don’t submit to their radical religion. We have not yet declared war, since Obama abruptly pulled the troops out of a hard-won peaceful Iraq, but he has left a nuclear North Korea and a nuclear Iran for his successor to deal with. Again the Federalist photo is a good example of using language inaccurately to make their point, which thanks to our Constitution, they are completely free to do. But we are also completely free to make fun of them.



A Quotation for a Rainy Monday in April by The Elephant's Child

Masterpieces created by a committee are notably few in number, but the United States Constitution is certainly one of them. Amended only twenty-seven times in 215 years, it came into being just as the world was about to undergo the most profound—and continuing—period of economic change the human race has known. The locus of power in the American economy has shifted from sector to sector as that economy has developed. Whole sections of the country have risen and fallen in economic importance. New methods of doing business and economic institutions undreamed of by the Founding Fathers have come into existence in that time, while others have vanished. Fortunes beyond the imagination of anyone living in the pre-industrial world have been built and been destroyed. And yet the Constitution endures, and the country continues to flourish under it.

—John Steele Gordon:  An Empire of Wealth



Accomplishment and Denigration: Goes With the Job. by The Elephant's Child

The President of the United States of America is often referred to as “the most powerful man in the world.” Well, yes, but there are all sorts of other superlatives that can be supplied. Maxine Waters keeps blathering on about impeaching Donald Trump and simultaneously claiming she never said any such thing. Democrats are clearly suffering from ‘Trump Derangement Syndrome,” which apparently results in not only psychiatric and psychological disorders, but ‘Trumporrhoea —” insomnia, exhaustion and gastrointestinal disorders. Pity that.

Presidents and noted politicians are simply ordinary human beings, with an oversize dose of ambition and self-regard, and a taste for the limelight. I suspect that most of us have no desire at all to run for office, even an important one. Once thrust into the spotlight of national attention, it’s almost impossible to escape. The media will deal with politicians depending on their political orientation.

“It would be difficult for those,” as Roger Kimball says, who get their news from outlets like “the New York Times, the Washington Post, MSNBC or CNN to have any sense of Trump’s stupendous accomplishments these past three months.”

Illegal border crossings are down by more than 90 percent. Sanctuary cities are on notice that defying federal law may lose federal grants. The Keystone and Dakota Access pipeline are moving ahead, and coal production is next. If Congress or agencies want a new regulation they have to get rid of two first, and executive orders are aimed at getting rid of inefficient regulations. The stock market is up about 2,500 points since the election and 3 percent growth may be on the horizon. That’s a pretty dramatic start. Do read the whole thing. And getting this U.S. citizen released from jail in nice too.

Aya Hijazi, a dual US-Egyptian citizen and her husband Mohamed Hassanein founded Belady, an NGO that promotes a better life for Cairo street children. They had been in prison in Cairo for three years, and her acquittal and that of her husband and four other humanitarian workers came about as the result of President Trump’s intervention.

That’s really a remarkable amount of accomplishment. Restoring deterrence, one bomb at a time, is pretty impressive as well. As historian Victor Davis Hanson notes, “the only thing more dangerous than losing deterrent power is trying to put it back together again.” Well done.




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