PETER ST ONGE: Trump Wants to Abolish the Income Tax But Will Congress Cooperate?

Abolishing the income tax would make the typical American family $15,000 richer, and they would pay $18,000 less in income tax.

Plus it shrinks and neuters the federal government.

It would turn America overnight into the greatest economy on earth. https://t.co/qySDbRNfrr

— Wall Street Silver (@WallStreetSilv) November 1, 2024

profstonge.com

"Trump Wants to Abolish the Income Tax."

It's official.  Donald Trump wants to abolish the income tax.  In a much anticipated interview with Joe Rogan, Trump said the country should return to the late 19th century when we had no income tax at all and funded the federal government with tariffs.  Now for months, Trump has been making it clear he really does not like the income tax.  He's promised to exempt tax on tips, Social Security, overtime pay, first responders, and even 18 million veterans.  I kept hoping he would come out and just break up with the income tax once and for all, and indeed he did.  So what if we end the income tax, laying off all 93,643 IRS agents?  So you can keep every dollar you earn while Washington will have to run on bake sales.  While the income tax currently costs American people $2.4 trillion dollars a year, Trump proposes to replace it with tariffs of 20% on everybody but China, who gets an extra special 60% tariff.  All together that might bring in about $900 billion dollars a year this would grow America's economy like rocket fuel I run through some numbers on the free sub stack but maybe near term we were talking a 20% increase in the economy so about a $15,000 raise for the typical American family note that's on top of the een thousand of income tax you would no longer have to pay knock off $3,000 for the tariffs and you get about $30,000 in additional income for the typical American family close to $3,000 per month.  Keeps getting better because going by low tax countries today or America before the income tax we might expect a doubling of annual economic growth.  So 5% growth would be the new normal.  Your kids would be three times richer than you as it used to work in America.   America would be by far the richest country in the world, also as it was before the income tax.  Of course, ditching the income tax would also mean the mother of federal budget holds after all replacing 2.4 trillion dollars with $900 billion dollars is a big hole even if you add say an extra $500 billion in payroll and excise tax from economic growth you still got about a trillion dollars to cover now we could just let it run a deficit letting the economy outgrow it I mean that's what they do with everything else that does not grow the economy but you could also cut a trillion dollars in federal spending out of the six and a half to seven trillion that we currently spend.  How would one do such a thing?  Well, the other day, Elon Musk estimated he could cut two trillion dollars in waste and fraudulent payments Ron Paul responded suggesting the military industrial complex and the Pharma industrial complex indeed going by countries like Britain perhaps $800 out of $900 billion dollars we spend on military is not for protecting Americans.  So border, Coast Guard, nukes, it's for invading other countries.  As for Pharma, really the medical industrial complex, if we simply copy countries like Singapore, we might save around about $2 trillion dollars or more and Americans would not go bankrupt getting knee surgery.  And then there is illegals, $150 billion a year minimum, plus the $1 trillion or more we spend on welfare, much of it to the able-bodied.  Sharpen some pencils, and you get $1 trillion easy, probably $2 trillion if you try.  So your country is rich, the IRS is gone, and you get a nice lean government.  

So what's next?  The Uniparty will fight this like a rabid dog.  But if a president can sell it to American voters, $30,000 is a chunk of change, Congress will go along out of sheer self-preservation; plus, the bake sales would be lit.

Starts with the headline that the Biden Administration leading a campaign to persuade leaders of G7 nations--UK, Canada, France, Germany, Italy, and Japan to sign off on this plan that it views as vital to to giving Ukraine a shot at turning around it's prospects against Russia.  I recently had Jim Rickards on, the author of Currency Wars, and he says that the US is set to steal Russian-owned treasury securities have to G7 which he says this theft will not only destroy the US Treasury market overnight, but potentially do far more damage.  What are your thoughts, Tom, on this US-led campaign, and do you agree with Rickards?

3:02. I frame it a more complicated way than that but I don't disagree with Jim that yes if the US were to take the catastrophic move to seize Russia's Frozen foreign exchange assets that this would be an unprecedented event change the nature of pretty much global finance and it would change the nature of pretty much of global finance.  My problem with that view is that I don't want to let Europe off the hook hear first Ursula von der Leyen and her acceptance speech, for lack of a better term, winning another term as European Commission president, effectively made it abundantly clear yes we're going to take 1.7 billion dollars from Russian foreign exchange assets this month and the next month basically they're going to use they have set up a facility I've always viewed this.  And I don't view the Biden Administration is working for the best interest of the United States I never have I never will I think there are a bunch of vandals and I think they're a bunch of vandals that take their orders from Europe.

Davos have claimed that they will be using Russian assets frozen in the United States to execute the war in Ukraine.  This theft will not only destroy the treasury overnight but potentially do far mor  

WALL STREET SILVER: Sales are crashing at McDonald’s, Coke, and Kraft as low-end consumers run out of money. Meanwhile, it’s record sales at the top, from Lambos to Balenciaga.

Sales are crashing at McDonald’s, Coke, and Kraft as low-end consumers run out of money. Meanwhile, it’s record sales at the top, from Lambos to Balenciaga.

This is what happens when the Fed prints $6 trillion: It goes straight into the pockets of the rich via asset markets.… https://t.co/NdpcPjtGxc

— Wall Street Silver (@WallStreetSilv) May 9, 2024

Recent earnings from McDonald's, Kraft, and Coke confirm that Bidenomics is turning into a two-speed affair with plenty of wealth at the top and plenty of pain for the rest.  Last week I joined Charles Payne, one of my favorite people at Fox, to talk about it.  So McDonald's, Coke, Nestle, Starbucks, and Pepsi have all now flagged that low-income consumers are no longer able to absorb inflation.  They are cutting back on visits and they are cutting back on spending, leading to a nationwide drop in traffic and sales across fast food and even basic groceries.  McDonald's reported same-store sales or down 3% and transactions dropped 7%, outpacing 4% price likes to keep up with inflation.  Pepsi reported a 5% drop in sales.  Nestle dropped 8% for Hot Pockets, frozen pizzas, and Stouffer's frozen dinners.  Kraft's Mac and Cheese, Pringles, and Pop-Tarts are all sagging.  Starbucks is losing the low end altogether with its stock plunging 14% after turning in lower revenue transactions and ticket sizes while losing fully 1.5 million Loyalty Reward users.  The CEO blamed "macro headwinds," meaning lower-end consumers squeezed by insulation and weak way growth.  Headwind is quite the understatement in fact Nestle's Chief Financial Officer estimates the loss and purchasing power among low-income people since Biden took office has come to roughly 50%.  It's a whole other reality on the high-end, where sales are doing fantastic.  Most reported strong growth in pricier beers as "more consumers treat themselves more."  More broadly, the luxury ETF LUXX which included brands like Hennessy, Hermes, and Ferrari is actually up 20% in the past 6 months as the wealthy gobble up their Balenciaga and let the poor eat TJ Maxx.  In fact, just a few months ago, Lamborghini announced they sold 10,000 cars for the first time in history, a third of them in the US and mostly the Urus SUV that goes for $237,000; that's $269,000 for the performance model with the carbon ceramic brakes with subtle off-white coloring in a watermark Bentley also reported record sales recently with Aston Martin and Rolls-Royce close behind one analyst sums it up as a "K-shaped economy with very different realities for those at the top and those at the bottom, reflected in strong credit card spending at the top paired with soaring delinquency rates for the rest."

2:47. The rich will keep getting richer and everybody else will keep getting inflation because that's how the Fed works and it's how crony government spending works the FED's $6 trillion money printing orgy paired with the $8 trillion in deficit spending. Since the pandemic has flooded money to anybody who either already owned assets, so rich people above all, or who was lucky enough to work at a politically connected company or government contractor.  As always, government money goes mostly to the powerful with an obligatory slab for vote buying at the bottom and nothing for the middle class.  The solution, of course, is very easy: a dollar-first monetary policy, ideally ending the FED along with ending the deficit, so Americans are not forced to run just to stay on the treadmill.  

Read the rest of the article with charts and all the Gory details at profstonge.com.